Is Now the Time to Buy or Is Now the Time to Sell?

We are in a buyer’s market.  The market is now a seller’s market.  Now is the time to buy.  Now is the time to sell.  Interest rates are low.  Interest rates are soaring.  CONFUSED???  With all the mixed messages out there, many consumers are confused as to what they should do.  This week’s blog post will explain what type market we are currently in and what current interest rates mean to people trying to buy homes in St. Augustine and northeast Florida.

For the past several years the St. Augustine real estate market, just like the rest of the country, has been a market favorable to buyers.  Average prices of homes dropped drastically, interest rates were low, and there was a lot of inventory.  There was also an influx on new construction communities will nice incentive packages.  Over the past several months real estate around the country but especially real estate in St. Augustine has begun to change.  We have now entered a seller’s market.  The inventory levels have dropped drastically.  In some neighborhoods there are no houses for sale at all.  Due to the low inventory, list prices are on the rise.  Sellers also do not have to make as many concessions during closings (i.e. paying closing costs)

Last week interest rates also took a major jump.  This is being caused by changing monetary policies by The Fed, stating they will no longer be printing more money.  The stock market has also been climbing causing people to remove their money from mortgage bonds and place it in the stock market so they can get a better return on investment.  Due to the Dow Jones drop yesterday interest rates have stabilized today.  Current interest rates as of today are the following:
               FHA        4.25%
               VA          4.25%
               Conv       4.75%
               FB          4.25%

So what does this mean to you, the consumers?  If you are wanting to buy a home in St. Augustine or any of the surrounding areas, you need to begin the process now.  With interest rates on the rise you will qualify for less than you did a month ago.  If interest rates continue to rise you will qualify for less tomorrow than you do today.  If you are wanting to sell your home in St. Augustine or any of the surrounding areas now is the time to do it.  Inventory levels are dramatically reduced from just a few months ago and the market will yield you more money than in previous months.  Whether you’re wanting to buy or sell TEAM JOHNSON can help you.  We have a 5 member team each with our own specialties.  We will work hard to achieve a sale.  Give us a call today at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com 

Team Johnson Gives Back

TEAM JOHNSON is the number one producer in our office.  We sold more homes in St. Augustine than anyone else in our office for 2011 and 2012.  Part of our success is, unlike most real estate teams, we are not 5 real estate agents all doing the same job.  Each of our 5 team members have their own areas of expertise when it comes to buying and selling real estate.  3 members of our team took last weekend off from selling homes in St. Augustine and donated their time, talents, and expertise to a charity organization centered on children. 

Cheers for Peers (CFP) is a non-profit professional musical theater program.  Their mission statement is to present quality theater for family audiences and school assemblies in the St. Augustine area.  CFP’s program offers students a unique and amazing opportunity to learn in a professionally structured environment.  CFP provides children of all backgrounds an opportunity to experience quality theater productions.  Their singing, acting and dancing skills are developed in a disciplined classroom atmosphere. The students then test these skills through performance.  The audience applause strengthens their self-confidence and positively reinforces their hard work.  CFP's mission is to produce high quality musical productions, nurture imaginations & creative thinking skills, build theatre audiences of the future and create a memorable family experience.

Gene Johnson is the leader of TEAM JOHNSON.  He has an extensive background in accounting and business management in addition to being a top real estate agent in St. Augustine.  He used that business knowledge to manage the front of the house.   He collected the ticket money and helped this non-profit entity with very little resources stay in budget and even raise some funds for the continuation of the program.

Libby Johnson is the TEAM JOHNSON REALTOR handling buying and selling homes in the St. Augustine area.  She also has over 20 years experience teaching the arts to children of all ages.  She was the main teacher for these children, some of them having never even seen a stage let alone act, dance, and sing on one.  Due to casting changes she even donned the apparel of the teacher “Ms. Grouchstick” and the “Witch” in the musical. 

Shalynn Johnson is the TEAM JOHNSON member that handles all the marketing.  Her marketing efforts ensure that TEAM JOHNSON, as well as our listings, are marketed to the world!  She also has over 20 years experience in the performing arts.  Unlike Libby, Shalynn chose to stay behind the scenes of this musical.  She set up the theater’s sound and light system.  When show time came she used her extensive technical background to run the light board and the sound board.

All together these three members of TEAM JOHNSON donated hundreds of hours of knowledge and expertise to this program.  Gene, Libby, and Shalynn had fun meeting the children and their parents who were involved in this program and the shows were great, rewarding, and fun too!  For more information on this charity organization please call TEAM JOHNSON at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com

Obtaining Homeowners Insurance in Florida During Hurricane Season

June is here and Floridians know what that means, hurricane season is upon us.  Hurricane season for the Atlantic runs from June 1^st through November 30^th.  Throughout that time there may only be a few tropical depressions swirling around or there could be back to back storms headed towards the U.S.  This could create a problem for people looking to buy or sell a house during this six month span.  Do not panic though.  Ironically, this six month span is also the busiest time of the year for real estate transactions.  This week’s blog will have tips for ensuring a smooth transaction during hurricane season.

If you are planning to finance your home it is important to remember that any mortgage lender will require that the buyers provide proof of homeowner’s insurance coverage on the day of the closing.  Failure to do so will result in the lending company’s refusal to release the funds and the closing will at best postponed or outright cancelled.

As a storm develops insurance companies will suspend issuing homeowners insurance policies until the storm passes, even if the area is not in the direct path of the storm.  It does not take a direct hit by a storm to cause damage.  The Florida Realtors®/Florida Bar Contract for Sale and Purchase contains within it a clause that extends the closing date for a period of time in this event; however, it could impact other areas such as interest rates, points and closing costs, homeowner’s insurances rates, etc. It is important to know.

There is a very simple way to avoid this happening.  Start shopping as early as possible for homeowner’s insurance.  These types of storms can pop up out of no where.  A great time to start would be as soon as you have an executed contract on the property.  Narrow down your choices and as soon as you feel good about your loan being approved or you have been informed by your lender; go ahead and have your insurance company "bind" your policy.  You will be required to write a check at the time of application and the policy will become effective on the date of closing.  If the sale falls through for whatever reason or you are delayed you can always cancel the coverage and request a refund from the insurance company for any unused premiums.  Make sure you talk to your local insurance agent before signing anything.

TEAM JOHNSON can help navigate you through a successful sale even in the middle of hurricane season.  Each of the members on our team have been long time Florida residents for a minimum of 20 years.  We have seen some of the worst seasons for the state of Florida including the record setting 2004 where we had 4 hurricanes (Charlie, Frances, Ivan, and Jeanne).  Give us a call at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com