The Bosshardt Blog

POST: January 2009 Market Outlook

The surprising numbers recently released by NAR . . . and what they really mean.

Click here to download the PDF.

REALTORS launch new ad campaign: Buyers get off the fence, but consult your local REALTOR

There is some news out there this week that home sales have skyrocketed! NAR produced some December sales numbers that were much better than November. Just be wary if you're a local buyer in Gainesville. Our volume was up near 60% from November to December. That's not because the market is doing better. Historically, November is a slow month in Gainesville. December of 2008 was not even close to December of 2007. Back then I was hoping for a bottom. Turns out I was wrong!

Mortgages are low, and rates are getting higher and higher everyday it seems. Now is a great time to buy. Just don't buy into any hype about the market skyrocketing!

Bosshardt Realtors discuss Web 2.0

Posted by Aaron Bosshardt, COO, Bosshardt Realty, 01/26/09

Web 2.0 interactive session

While I’m certainly no web guru and definitely no more than a Web 2.0 neophyte, I thought it would be nice to chronicle our collective journal through this learning process as we transition from the way we have always done real estate to redefining how real estate will be done in our markets: Venice, Ocala and Gainesville, Florida.

What is Web 2.0? 

Web 2.0 is the business revolution in the computer industry caused by the move to the Internet as a platform, and an attempt to understand the rules for success on that new platform.[3]

-Tim O’Reilly

Web 2.0 and the financial crisis combine to represent a combined incredible opportunity.

How do you make your business and data live?

One way is Blogging:

1. What data do I have that is of interest to the consumer? Makes your website interactive. You want and need comments.
2. Marketing is dead. Think like a publisher. How do you publicize your listings? How do you publicize your business?
3. Newspapers are down, but the need for news is still alive. Make yourself the source of news as it relates to your market and area of expertise.
4. For your listings, remember the quote, “Books don’t sell themselves. Ideas and concepts do.”

We had a lot of discussion about Facebook and Twitter. As we were talking one of the gurus on Twitter I follow actually put up a great post here!

 Robert Krames, SEO expert with Smart Media, did a presentation on RSS feeds and Google Reader.

We also mentioned the Edelman Report on Social Networking used in the 2008 Election and applications for business use.

We will be meeting again Friday at 12pm in the workroom. Don't be afraid to bring your questions or your lunch!

A Look Ahead...The Top 10 Stories of 2009: #4 - Lower Tax Values

Posted by Michael B. Kitchens, Executive VP, Bosshardt Realty, 01/23/09

With 2008 coming to an "adventurous" end, what will the year ahead bring us in the real estate industry?   One thing for sure . . .  it will continue to be a journey of the unknown.  Here is our look at the top 10 stories for 2009...

#4 With Lower Tax Values, Budgets Will Become Tighter

With real estate values continuing to back up, the tax collector is having to do the same.  In 2009, city and county budgets will become that much more tight since they depend on property taxes as their main source of revenue.  The downside is that, with less money, the already horrible infrastructure will continue to fall into disrepair.  Our elected officials will be counted on to be fiscally wise this year in their budget decisions...good luck with that.

Top Ten Real Estate Stories of 2008: #2 - Foreclosures

Posted by Aaron Bosshardt, COO, Bosshardt Realty, 01/20/09

Well it looks like the timing didn't work out so well, and Mike Kitchens stole my thunder on this a bit by making foreclosures what he thinks will be the #5 most relevant real estate story of 2009. Not to be completely outdone, I solicited our Venice Broker Mary Smith to do the blog on this topic. Foreclosures have been a problem for Gainesville property owners and lenders, but in Venice they are a way of life. Mary once told me this past year that, if a property hasn't already been foreclosed on, assume it's going to be a shortsale. Without further ado, I will let Mary explain why foreclosures made our Top Ten at #2 for top real estate stories of 2008.

Foreclosure Facts and Figures…Florida’s Past and Present.  And what of the Future?

Foreclosures were a way of life in 2008, and the reality is that isn't about to change anytime soon: foreclosures are here to stay in 2009. With all the discussions on the foreclosure market in the media, it is interesting that a large segment of consumers do not understand just how entrenched the real estate market is, whom exactly it is involving, and how much farther are we going to go?

It is no longer the investors, who were out to flip properties, that are hurting. It is no longer the sub-prime borrowers, who had no equity and adjustable rate loans. Now it is more than 12 million homeowners, who were our prime borrowers, spenders, and investors. We are now seeing people who have had great credit for 20 years facing foreclosure simply because they are upside down on their mortgages.  We are at a point where one change in a person’s financial framework can send them into the foreclosure market.

When the media gets hold of a story like this, it often becomes part entertainment, part news. We stare at the TV waiting for some real time ticker tape updates on the numbers down to the third decimal point. Foreclosure statistics, however, carry some dark consequences. I'll share just a few.

• Every three months, 250,000 new families enter into foreclosure. - Mortgage Bankers Association

The Venice office completed a sale recently in which the homeowner was retired on a fixed income and was hard hit by the devaluation of her 401K. With no equity in her home, mortgages that made it impossible for her to continue payments, and  the value of her home having dropped to 40 percent of theloan value, she opted to short sale the property. The lender accepted an offer that was at 50 percent of loan value.

The biggest question among industry insiders today in the Florida real estate market is, “What are the biggest side effects related to the glut of foreclosure properties?” It’s a question that is only answered by more questions. I’ve narrowed it down to a few that I feel are the most important:

• How long will it take to gain equity in a foreclosed home purchased in 2009?  Some experts say 2010; others say 2012.

• How do we get consumer spending back on track when our steady middle income families are facing years of negative equity, a hit to their credit scores, and rising costs of living?

• Will there be a federal bailout for homeowners to help them refinance instead of losing their property?  Is it plausible for lenders to reduce interest rates on existing loans without appraising the property? 

Of course, the good news is there are great opportunities for buyers right now. What could be better than low interest rates, a glut of inventory for sale, and prices that, in our area, haven't been seen since 2001.

The Cost of Foreclosure for Cities and Communities

Homes in foreclosure that become vacant provide sites for crime or other neighborhood problems. One foreclosure can impose up to $34,000 in direct costs on local government agencies, including inspections, court actions, police and fire department efforts, potential demolition, unpaid water and sewage, and trash removal.

– William C. Apgar, Mark Duda, and Rochelle Nawrocki Gorey, "The Municipal Cost of Foreclosures: A Chicago Case Study," February 27, 2005, p. 2.

One foreclosure can result in as much as an additional $220,000 in reduced property value and home equity for nearby homes.

– William C. Apgar and Mark Duda, "Collateral Damage: The Municipal Impact of Today’s Mortgage Foreclosure Boom," May 11, 2005, p. 4.