Monologue of a Laketown Wharf Buyer

If you are in the market for furniture, I have some for sale. Actually, it’s a credit at Resort Interiors/Resort Ready Rooms. I own $17,432.00 worth of furniture, accessories, custom window treatments, bedspreads and shower curtains. However, I have never seen it (except in the store) nor do I have a condo to put it in!

You see, I’m one of the Laketown Wharf contract owners who decided, for us, the better financial decision would be to pay the developer an additional 5%, on top of the 10% we had put down, to get out of the contract rather than close. We made that decision in July and signed the official termination agreement mid-August. Now we have this furniture we do not need so the folks at Resort Interiors/Resort Ready Rooms are allowing me to transfer the majority of my credit (the custom window treatments, etc. are not returnable) to someone else who needs furniture!

You may be wondering why I bought furniture before closing on my condo. I certainly wish I hadn’t. If you want to read my condo story, then read on. I bet many of you can relate :(. If you just want to learn more about the furniture credit details, check out my craigslist ad.

History:
I’ve wanted a place at the beach for a long time. I was never super serious, but in 2004, when the market was going crazy, I thought if we didn’t act soon, we’d never be able to afford a place at the beach so we jumped into the Real Estate frenzy by securing a contract at Laketown Wharf.

I had passed up a pre-construction opportunity in St. Pete Beach in 1998 that I regretted. So, by golly, I wasn’t going to miss the PCB Real Estate bus!! We couldn’t afford beachfront at the 2004 prices so we settled for what we believed (and I still do!) would one day be a very cool place to stay/live across from the beach. We signed the hard contract in Feb 2005.

The ground-breaking ceremony was held in May 2005. In August 2005, my husband shows me an article on msn.com titled “Condo market is showing signs of cooling”. Ugh!

Nevertheless, I was still optimistic about Laketown Wharf. In Sept 2006, I got my first mailing from Resort Interiors stating they were the preferred furnishing supplier for Laketown Wharf. Since I was in Phase 2, I didn’t need to buy anything immediately but started my correspondence with them. In Jan 2007, I got a second mailing encouraging me to choose and buy my furniture now because “I’d be able to rent my unit and make money on my investment soon after closing”. They also had 2 other reasons why I should buy now and they even gave me a discount if I bought a package by a specific date! So, I drove to Destin and visited their store in Feb 2007, finalized my decision, and bought my package that May. I financed it free for a year but when my year was up, I had to write a check to the financing company and still no condo to put it in!! BUT, by this time, the developer had starting coming down on prices. In June 2008, I was notified that my unit was now only $299/sq ft., down from the contracted price of $376! What a bargain!

But, my husband, being much smarter and less emotional than I, did not want to close. I talked him in to going to Laketown Wharf, actually staying there, before making the final decision. It was a nice stay even though many units were incomplete and there were no shops/restaurants open yet. In fact, since I don’t like crowds, it was great – except for this obnoxious softball team staying there, but I won’t go into that.

The units are spacious and the staff/security guards were very nice and accommodating. My son loved the two pools that were open. The lake fountain show was wonderful and the walk to the beach was no big deal. In fact, my son preferred the pools to the beach most days. We talked about how cool the place will be once all the commercial space is occupied. I was ready to close when we came home but after many hours of crunching numbers, we decided walking away from our deposit would be the best thing for us to do.

Present Day:
I’ve heard the current offer to those folks who still have contracts with Laketown Wharf (whether in a law suit or not) is $224/sq. ft. Not sure where the bottom is. The bank says they plan to furnish and rent ½ of the unsold units and I hear they are offering super low rent rates to get commercial business in.

In the meantime, I still have this furniture credit I would like to sell to one of you lucky folks who managed to time the market better than I. Or maybe you’re looking to replace some of your current furniture. Whatever your reason, you’ll save money by purchasing this credit. The ladies at Resort Interiors/Resort Ready Rooms are wonderful to work with and I appreciate them for allowing this transfer of credit.

The amount of credit available for transfer is $15,027. The window treatments are non-refundable but if you’re in the market for custom window treatments, bedspreads, etc. I’ll be happy to get the measurements and see if they work for you. I paid $2,405 for them and am willing to take $2000. Check out my craigslist ad.

No Real Mortgage Relief Despite Government Efforts

To say 2008 has been a bad year for real estate is just a wee bit of an understatement. Property values have plunged by some 35% nationwide and foreclosures are expected to exceed 2.2 million for the year. Nearly 4% of all outstanding mortgages are currently delinquent and in Florida the rate of delinquent mortgages leads the nation at 7.82%.

The impacts of the sub-prime fallout, resulting credit crunch and global recession are all taking a serious toll on homeowners who often find themselves unable to sell or refinance as they owe more than their homes are currently worth. The Federal Government has made several impotent attempts to bring relief to homeowners and stem the tide of foreclosure and it seems more plans are bandied about almost daily.

So what options are available to struggling homeowners?

Early this year, the President announced an informal plan that brought together a coalition of banks, mortgage-servicers, credit counselors and investors to provide loan work-out solutions to borrowers facing foreclosure. The Hope Now Alliance, as it was called, was a non-governmental effort and since its inception has helped some 1.7 million homeowners through loan restructuring and modification. Unfortunately, the Comptroller of the Currency reported this week that, of all those helped in the first six months of the year, more than half were already back in default.

In July, The Housing and Economic Recovery Act of 2008 became law creating, among other things, the Hope for Homeowners program to be administered through HUD and offer a vehicle for borrowers who were upside down in the homes to refinance to a lower, more affordable interest rate. The plan, intended to help hundreds of thousands of homeowners relied on the current lien-holders of the properties willingness to write down the principal balance of the mortgage to 90% of the current market value. Second lien holders would have to also agree to re-subordinating their liens to the new first making them basically worthless.

As one might imagine, most lenders were reluctant and chose to pursue their own work-outs with borrowers on a case by case basis. As a result, only a handful of borrowers were helped by the plan. HUD has since revised the principal write down requirement to 96.5% of market value but still requires the borrower’s new payment be no more than 31% of their gross monthly income.

So what is on the horizon? Is there any real relief in sight for homeowners facing foreclosure? Several plans have been presented from a variety of governmental agencies but none yet have the full support of Congress and the White House. One plan offered by Sheila Bair, Chairwoman of the FDIC, would lower borrower’s rates to as low as 3%, extend the amortization period to as much as 40 years and defer a portion of principal to some future time.

Another plan proposed would have Fannie and Freddie offer a low fixed rate to both homeowners and buyers to not only help those with unaffordable payments but also generate demand for housing as buyers would presumably be drawn into the market – attracted by the lower rates. This would help stabilize home prices that ultimately are at the heart of the problem. The Obama transition team also is said to be working on a plan though no details have yet emerged.

So what help is there for struggling homeowners right now? Sadly, very little. The silver lining is that several robust plans that could have a real impact on the problem are being discussed seriously and the new administration will have the political capital to insure that whatever plan emerges victorious passes quickly. That is why Fannie Mae and Freddie Mac, along with Governor Charlie Crist, have placed a temporary moratorium on foreclosures until January. The hope is that by that time, after a new president is sworn into office and details of the plan are ironed out, there will finally be a real and workable alternative to foreclosure for millions of Americans.

To have any teeth, the final plan will have to contain several aspects of the plans already discussed. It will have to provide for a low fixed rate, a forty year amortization and some postponement and/or forgiveness of some portion of principal. It must also, and this is critical, offer the same terms to homebuyers with a minimum down payment requirement of 5% and a HUD backed mortgage insurance plan to safeguard banks so they will indeed lend. Without renewed demand for housing to stop home price decline, any new mortgage rescue plan will simply be buying time.

For this and more, visit my blog at www.activerain.com/blogs/hpalmer

Hunter Palmer

Seahaven Condos Sold for 60% Off and More

Suffering through a shadowy frigid 50 degree temperature, bidders and spectators alike gathered in anticipation in the hottest condominium auction to hit Panama City Beach. The party was held under the covered portacache at Origin in the Towne of Seahaven just 1/2 mile east of Pier Park on Panama City Beach.

Even as late as 12:40 pm, the crowd looked sparse, of course, maybe it appeared to be spread thin as the area was large and people were scattered all over. A childhood technique comes to mind to give the appearance of a eaten dinner – spread the food around a little to make a lot look like a little, and break for an early desert.

Bidder registrations were at a scant 30 something when I arrived on the scene at 12 noon, although I was unable to get a definitive number. I was able to confirm after the auction had begun that a total 54 had registered to bid.

“I’m looking to buy 40 cents on the dollar,” said one registered bidder, indicating the smell of blood in the air. “I’ll probably offer $200,000 for a 2 bedroom,” said another bidder, “not sure if I’ll get it, but I’ll try.” He later signed the paperwork for a 3 bedroom for his original budget of $200k. At the end of the day, his purchase was the least per square foot purchase of all the condos offered for sale at the auction. He bought a 1963 square foot condo for $112.07 per square foot, after the buyer’s premium. “It’s always a little risky bidding first,” he said, “but nobody was bidding, so I just through out a number and I actually got it.”

It took a while for the crowd to wake up, but once they did, a feeding frenzy much like what was seen at Palazzo ensued. The market price seemed to be set by a few winning bidders, then the National Auction Group began working with interested parties to negotiate and sell a total of 37 condos.

What I found interesting was that at some point, the actual auction stopped but real estate continued to sell. The National Auction agents seemed to change modes from auctioneers to negotiators bringing offers and deals back and forth between attendees and the developer. In fact, only 9 condos actually sold auction style – all the others happened after the fact.

As the cold wore on and the crowd again grew scarce, condo sales were still being picked off one by one. The average price per square foot sold after the buyer’s premium was $166 with a range from $112/sf to $196/sf.

I should note that if you were following the live updates that I was posting as the auction was happening, all the sold prices stated were BEFORE the 10% buyers premium. The action was just happening too fast for me to take notes, send in updates AND do another calculation.

Out of the condos that were sold when I left only 3 were pool/center view, indicating that with the lower than expected prices, the developer is reserving the ‘premium’ units for a higher price.

Talking with Neel and Mike Bennett several times throughout the auction, they both expressed their concern for the market and the desire of a higher price being commanded from their product offering. Many owners are upset because of the auction as it certainly makes clear the value of these beautiful condominiums at Origin in the Towne of Seahaven.

Being an owner, it certainly hurts to know how upside down we are right now, but at least we know – and “knowing is half the battle,” as a wise G.I. Joe commercial once said.

I’ve been criticized in the past for sticking up for the developer, but in this case I stick up for them not because they are friends, but from a business stand point. The reality is that even though we are significantly upside down, our hurt doesn’t hold a candle to that of the developer. We’d all like the market to be a lot better than what it is now. Everyday we have to fight for an appetite because of all the money we’ve lost. The fact is that there is nothing we can do about it, we are were we are. For the developer, the best thing to do is get rid of as much inventory as he can – that is the only way he can move forward. If he doesn’t do it, the bank will, he can’t hold onto unsold condos forever.

This auction is another testement to what I’ve been telling everyone for months – Now is the time to be buying real estate. Prices are better now then they’ve been in several years.

Below is the unit number/price breakdown for all the condos sold when I left Saturday. I’m hoping to have some final numbers soon, and will post them when I do.

It is my understanding that the Bennetts (developer) are still taking deals. If you need more information on this, or help purchasing a condo, feel free to contact me at jason@pcbdaily.com or 850-319-1172.

Sold condos – all numbers are after 10% buyer’s premium with the bold units being the ones that are on the inside of the horseshoe.

Unit #	Type	SF	Price	Price/SF
1033/1035	3 Bedroom Lock B	1781	$297,000	$166.76
1133/1135	3 Bedroom Lock B	1781	$297,000	$166.76
1433/1435	3 Bedroom Lock B	1781	$297,000	$166.76
1701	3 Bedroom D	1963	$220,000	$112.07
429	2 Bedroom B	1427	$221,100	$154.94
1432	2 Bedroom E	1293	$210,000	$178.65
501/503	2 Bedroom Lock A	1306	$220,000	$168.45
535/537	2 Bedroom Lock A	1306	$220,000	$168.45
1425/1427	2 Bedroom Lock C	1303	$176,000	$135.07
1232	1 Bedroom A	815	$137,500	$168.71
1031	1 Bedroom B	881	$143,000	$162.32
1331	1 Bedroom B	881	$143,000	$162.32
1407	1 Bedroom B	881	$137,500	$156.07
729	Studio B	541	$93,500	$172.83
809	Studio B	541	$93,500	$172.83
733	Studio A	475	$93,500	$196.84
805	Studio A	475	$93,500	$196.84
933	Studio A	475	$93,500	$196.84
1234	Studio A	475	$93,500	$196.84
423	Studio C	465	$60,500	$130.11
525	Studio C	465	$75,900	$163.23
1023	Studio C	465	$75,900	$163.23
1125	Studio C	465	$75,900	$163.23
719	Studio D	562	$75,900	$163.23
819	Studio D	562	$75,900	$163.23

Seahaven Auction – LIVE Action on PCBDaily.com!

That’s right, you heard it. Live on pcbdaily.com will be the auction details as they unfold on Saturday at Origin in the Towne of Seahaven.

Right now, many anxiously await the time when the auctioneer starts rambling off barely discernable numbers to bring who knows what kind of prices. Many have criticized the auction process.

I personally have a number in my head that the condos will bring, but I’ll respectfully decline to comment on that at this time. BUT, feel free to post in the comments what you predict they’ll sell for.

On Saturday, if you can’t make it to the auction, just hang on pcbdaily.com and hit refresh every few minutes for updates.

See you at the auction!

Use an Appraisal When Buying or Selling Real Estate

When I became an appraiser I had no idea that my profession would be of such interest to total strangers. The minute someone finds out what I do for a living, the next question is either “What is my house worth?”, “Where should I buy?”, and most recently “Are we at the bottom yet?” The one question I am rarely asked is “Why should I get an appraisal?” Appraisals are becoming multi-purpose real estate tools. In the past, appraisals were viewed as just another step in the purchase process. Now appraisals serve as guides to help borrowers:

Know if a refinance is possible,
What price to realistically list a property at,
How long it is taking similar properties to sell and at what price they sold for,
Determine market rental rate for an investment property.

Anyone can order an appraisal – not just a bank!! The appraisals completed for an individual contain essentially the same data as an appraisal for a lending institution and are given directly to that individual. Homeowners and potential buyers both should consider ordering an appraisal… why?

To avoid paying too much for a property,
To find out what their property’s competition sold for,
Avoid “under-pricing” their property in order to maximize potential profit,
Aggressively price property or negotiate a lower sales price based on prior sales.

Too often I hear “You won’t find a similar property listed for less!!” The problem with this phrase is that a property can be listed for any price – list price does not determine market value. There are some fantastic Realtors in our area that work extremely hard for their clients. However, buyers should not rely solely on an agent to research and organize data to the extent that an appraiser will, as it is not their profession. In many cases, agents will contact an appraiser prior to listing a property to ensure they are pricing the subject realistically. It is important to note that appraisers are unbiased third party individuals and therefore do not have a vested interest in the outcome of the transaction (be it a purchase or refinance). Appraisers do not create value; rather we report the data from the current market.

Ultimately, an appraisal can serve as an invaluable tool in order to avoid financial ruin. Appraisals can help investors know the potential profit of that duplex they are looking to purchase, help the first time homebuyer avoid paying too much for their first home, and can help the savvy condo buyer get a fair price along with that perfect gulf view.

Appraisals are not just for purchases/refinances – I have been asked to do appraisals for:

Employee Relocations
PMI (private mortgage insurance)
Estate planning
Divorce settlement
Tax abatement

I truly think that the housing market will begin to strengthen again – however the speed at which it does and the solidity of the foundation will be a direct result today’s buyers. These buyers will need to do their homework, know exactly what they are purchasing and what the current market value is – not the anticipated value. Please, who ever your appraiser is, ask questions. If you feel something was missed – ask your appraiser. If you don’t understand how to read an appraisal, let your appraiser know. It is our job to build public trust in our profession – which will be a daunting feat based on the downward spiral the real estate market has taken. The information and data contained within appraisal reports could prove to be invaluable to both the real estate novice as well as the seasoned investor.

I am a Certified Real Property Appraiser working predominately in Bay County with some projects extending west towards Destin and east of the Mexico Beach area. Prior to becoming an appraiser I worked as a mortgage loan underwriter – which has provided me with a unique understanding of both sides of mortgage loan transactions. – Jake

How to sell your home during the Holidays

The holiday season offers the perfect opportunity to showcase your home at its sparkling best, especially if you follow a few simple tips.

You only have one opportunity to make a first impression; so, of course, this first impression starts as the potential buyer drives up to your home. Twinkling lights hung neatly on doorways and trees are very attractive and festive, but don’t overdo it. Less is generally more! Leave those inflatable lawn displays in the box this year. Giant bobbing snowmen or Santas on the roof are very cute for the kids, but do nothing to entice buyers to your front door. Opt for a simple, attractive wreath for your door and perhaps some white lights strategically placed on shrubbery in the yard.

Don’t let your Christmas tree take over the living area. The smaller the square feet of the home, the fewer decorations you should use. Keep it simple, not cluttered, with a few decorations and some fresh greenery, like poinsettias and fresh garland. A larger home can handle more decorations and the décor should be a little more elaborate. Most importantly, subtle, yet attractive décor allows the potential buyer to see the warmth of your lovely home during the holiday season.

Enhance that special holiday feeling by playing soft, seasonal background music to set the stage for a showing. Although Jingle Bell Rock and Grandma Got Run Over by a Reindeer may be holiday favorites of yours, soothing music will make that potential buyer think that your home is comfortable and desirable.

Finally, allow the aroma of the holidays to fill your home with delicious scents that make your visitors want to sit at the kitchen table and share a glass of cider. Bake a cake or cookies before a showing so the savory smell lingers in the air…or simply leave a pot boiling with cider or packaged Christmas spices. Place cinnamon sticks in an open jar or include them in a decorative design.

Remember, even though there may be fewer buyers actively looking at this time of year, there are still buyers looking. It only takes one! Use this opportunity to showcase your home at its festive best…and that’s a wrap.

If you have any questions about Staging for the Season, I’d love to hear from you. Let’s look forward to a great 2009!

For more information, please contact Sandy at 850-303-1825 or sandythompson10@comcast.net. You can also visit her websites @ http://www.ringthebelles.com and http://www.sandythompsoncondos.com.

Can we start buying again yet?

“The answer is a qualified yes,” stated a November issue of Fortune Magazine in an Investing column titled Time to Jump In?

The author then goes on to explain that now is a great time to get into, or get back in, the stock market. “Stocks aren’t exactly cheap, but for the first time in years investors can expect annual gains that should eventually approach double digits.”

Well, cheap is always a relative term. Stocks ARE cheap right now compared to where they were 12 months ago. With the 12 month high at just under 14,000, the DOW has dropped 41% since this time last year. I just bought a new pair of Sperry’s this weekend at a 40% off sale. I saved 35 bucks! That’s dinner and a matinee.

This is not to say that in the next 6 to 12 to 18 months that those purchasing stocks now will not lose money, because there is actually a good likelyhood that they will. However, the longer the term, the smaller the risk. The advantage to buying now is the tremendous long term gain potential. The disadvantage to NOT buying now is the risk of missing the bottom and losing an opportunity at potential long term gain. We may be in a recession, but historically, the market comes flying out of downturns. A study performed this year by Ned Davis Research found after studying 10 recessions after WWII, the average market return one year after the market low point was around 32%.

If the last 10 years have been on average bad, does that mean that the next 10 years will be bad also? Most likely no. In fact, odds are overwhelmingly good they will yield much better than average returns.

The interesting observation to be made right now is that the quite opportune time to purchase stocks now is actually parallel with the real estate market. Now is the time to be buying real estate. Like stocks, real estate is likely to continue to fall, but the bottom is near. Real estate, historically, has always been a good long term hold. Ownership is not without heartburn, but if you can’t stomach seeing your property values come down a little over the course of 10 years, maybe investing in real estate isn’t for you.

In many cases, prices have come down to 2003 levels. The average sold price on Panama City Beach during the third quarter 2008 was 10% less than what it was during the same period in 2006. On an individual basis, some prices have come down as much as 20 to 40%. Right now there are deals everywhere with motivated sellers willing to do just about anything to sell their property. In many cases, velocity sales has actually increased from last year, indicating the entrance of buyers into the market.

The best way to acheive healty returns in any investment is buying low. You know the saying – you make money when you buy, not when you sell. Now is the time to be making money.

Seahaven Auction Details

29 Seahaven Condos to be Sold at Absolute Auction on December 13th

For the National Auction Group, one successful project often leads to others. That has been the case in Panama City Beach this year where the company will conduct its third auction on Saturday, December 13th. This one will feature 29 luxurious condominium homes in the Gulf-view Origin at Seahaven community. The auction will be absolute, meaning regardless of price, and bidders will be able to select from 61 condos. The Gadsden, Alabama-based company specializes in the marketing of one-of-a-kind, high-end properties. In two previous Panama City Beach projects this year they sold more than $26 million worth of condos.

The 17-story Origin at Seahaven community is brand new and located near Pier Park. Water views are tantalizing and are close to the most popular beach restaurants, attractions and night spots. All are crafted from the finest materials and with painstaking attention to the smallest details. The wide array of offerings includes studio units as well as spacious one, two and three bedroom units, and one four-bedroom penthouse condo. All have to be seen to fully appreciate.

The Origin tower is one of the first phases of the carefully planned Towne of Seahaven, a 53-acre pedestrian village with 1,400 +/- feet directly on the Gulf of Mexico. Expected facets include hotels, town homes, a town hall and a Main Street marketplace, an events plaza and a water park. In other words, the value of the luxurious condos will surely escalate over the next few years.

All of the condos feature attractive African mahogany two-panel doors; kitchens with Whirlpool appliances, granite and porcelain countertops and custom cabinets; ceiling fans in both the living areas and master bedrooms, and washers and dryers in the two-bedroom and larger units. Included in the purchase are electronics, linens, window treatments, kitchenware, accessories and high speed internet access.

Rental-ready furniture packages are available for purchase.

The list of community amenities is both endless and extraordinarily impressive. Residents and their guests enjoy a fully-equipped fitness center, his and her saunas, a theater with stadium seating for 24, a spectacular Zero-Edge swimming pool overlooking the Gulf, a heated and covered spa, observation decks, grilling terraces with built-in commercial grade stainless steel grills and a game room. Origin at Seahaven also features 24-hour security, climate-controlled storage units, high-speed elevators, on-site property management and beautiful tropical landscaping.

“These are truly wonderful condominiums,” said National Auction Group president William Bone. “And being part of the new Towne of Seahaven makes them even more special. This is a remarkable opportunity to bid on spectacular residential fantasies and to purchase an incomparable beach lifestyle.”

These lavish condos are available for viewing daily, by appointment, from 10:00 a.m. to 5:00 p.m. To schedule an appointment, please call 877-636-6550 or 256-547-3434. Bidders will be required to bring $7,500 in personal check, business check or certified funds to bid on the studio units; $10,000 for the one-bedroom units; $12,500 for the two-bedroom condos; $15,000 for the three-bedroom units and $20,000 for the four-bedroom penthouse condos. Closing will be within 30 days. The auction will take place at Origin at Seahaven community which is located at 15100 Front Beach Road.

The National Auction Group (nationalauctiongroup.com), Inc. is the country’s largest seller of private, one-of-a-kind real estate properties such as estates, ranches, farms, commercial properties and recreational facilities. Recognized for its creative and aggressive marketing strategies which are carefully planned, promoted, scheduled and implemented, the National Auction Group’s team of talented professionals is skilled at developing plans of action customized to the needs of each client.

Laketown Wharf – Corus Bank bracing for money outflow

I’ve had some dialogue with a Corus Investor who has been kind enough to keep me updated with what Corus is up to regarding Laketown Wharf. Below is the most recent update:

1) They suspended payment of interest on $404m of debentures (type of bond). This is the only debt that Corus (holding company) has, other than deposits. The rules of the debenture allow this for up to 20 quarters. The holders of the debentures cannot be too happy. This was done to preserve cash for operations. No big deal unless you need the interest and own the debentures.

2) They disclosed that they formally applied to TARP funds from the Treasury. If granted, they will issue preferred stock to US Treasury at 5% for 5 years. I DO NOT think they would have applied if there was any chance of rejection. This may also force a merger of Corus with another bank, but I put that at less than 5% odds because the Glickman family owns half the bank and they are not going to be too happy taking orders from anyone.

One of the Glickman wives sold about 20% of her shares. No big deal. the proceeds were enough to buy her a $30k car. She’d probably going to use the proceeds for a divorce! Her spouse owns about 6 million shares.

Florida Home and Condo Sales Up ?24% in September

Florida existing home and condo sales were up in September 24%, the highest year over year increase in almost three years.

A total of 10,817 existing homes sold in the state of Florida in September, that is 2,092 more than sold during September 2007. The last time the state of Florida reported a higher year over year gain was in 2005.

The September sales report from the Florida Association of Realtors shows a 24 percent increase in the sales of existing homes in the state; this represents the sixth month in a row that the sales figure has exceeded its 12-month moving average (average of the previous 12 months). This is a clear sign that the significant price declines that have occurred across the state are leading to a more rapid absorption of the housing inventory.” – Dr. Sean Snaith, economist and director of the University of Central Florida Institute for Economic Competitiveness.

Although the sales are up 24% this year, that increase can largely be attributed to the sharp decline that the housing market suffered at the end of the summer 2007 with the subprime mortgage meltdown. In July of this year, only six more existing homes sold in the state of Florida than did in July 2007.

Florida’s median home price in September was $175,100, down 22% from the same period a year ago, at $224,700. However, September’s median home price is still 10.3% higher than 2003’s number of $158,800.

During the September time period, year over year, existing condo sales experienced an 11% increase, from 2,595 to 2,878. The statewide median condo sales price was $153,800, down from $197,000 in September 2007 or a 22% decrease.

Panama City/Bay County reported 111 total existing home sales for September 2008, down from 117 (5%) homes sold during the same period 2007. Existing condo sales were down 28% September 2008 from 2007, from 67 to 48. The average sold price for Bay Couty was $213,770 in September 2008, down 19% from $264,122 during the same period 2007.

If you take out the top 10 highest priced from both time periods (September 07 and September 08), the average sold price was $193,848 in 2008, down 6.7% from 2007’s number of $207,942.

So, housing prices are still falling, but velocity sales are picking up. I suspect they will continue to pick up, and hopefully that rate will be exponential. As prices continue to fall, more and more people will be able to justify making a purchase.

Source: Florida’s existing home, condo sales increase in September 2008