My New Blog

It depends if you view the information as the glass is half full or half empty.  Yes, property values have declined.  However, if you are a buyer in the market your opportunities have just increased. 

I just spoke with my family in Connecticut.  Recently they received their anticipated winter monthly fuel costs.  It doubled since last year.  In their case, $350/month jumped to $725/month to heat their home.  Let's compare.  

Florida winter fuel costs?  One Harley Davidson, one propane for the grill maybe $25/mo?  Dude, what are you waiting for? 

Check out Zillow Buzz for their recent update:

http://www.zillow.com/reports/RealEstateMarketReports.htm?city=Sarasota,FL&s_cid=emm-2007093BuzzQ2ReportRePro-citybab

Finally, after much anticipation, clamor and chest thumping the MLS systems have joined together to provide a regional MLS.  For those of you that might be unfamiliar MLS stands for multiple listing service.  This is significant especially for consumers. 

As a strong supporter of this shift, Brock Realty offers direct access and the ability to search for properties on this website to over 15 counties. We have built alliances with agents throughout Florida and can now provide outstanding service, sales, rentals or leasing in all regions of coverage. 

Up until this point 24% of potential homebuyers were able to enter the housing market.  As property values have fluttered downward this percentage has jumped to 56%.  Yes this is true!  Now potential buyers can choose their ideal home or second home. 

Although mortgage money is tight it is still available.  To qualify you need to be organized and provide adequate documentation to the mortgage company.  Work closely with your mortgage broker and you will succeed in closing in a timely manner. 

Simply amazing and the best the consumer now has a powerful search took at their disposal.  Click on the Property Search button located on out home page.  You will be WOWed by the information.  If you would like additional information regarding any property you see give us a call 941-870-8100 or write to us at Email@BrockRealty-Inc.com

Yesterday, 8/5/08 USA Today pg 4B bottom of the page had an interesting article which I feel is worth reading.  It pertained to Banks and Brokered CDs. 

Let's say, you have some money and are looking to place it into an account to obtain a slightly higher interest rate. If you are seeking liquidity then a money market is the way to go.  If you are unsure you may seek a conversation with your local bank.  Some banks, like Wachovia have third party brokers placed inside their branches under the guise of a bank employee.  These homogenized agents field a slew of clients from the branch tellers, bank customers waiting for customer service representatives or older clients confused about the economy and where to place their money. 

If you have been duped into believing your money was placed into a bank CD but was in reality placed somewhere by one of these homogenized agents it could be anywhere.  Wachovia is currently being investigated for such dubious practices.  Buyers Beware. 

muscle man

Be strong!  Be Agile!  Be Grateful!

One of the most ridiculous events, I have attended was the Tampa Red Bull 2008 Flugtag held at the Tampa Convention Center July 19th.  The challenge?  Build an aircraft able to take flight from a 30 foot ramp.  Attendance?  over 100,000 people.  Temperature? about 100 degrees. 

It was absolutely hysterical to watch the antics, dancing and attempts by the participating teams.  crafts were assembled with upwards of 700 man hours only to be shattered in a matter of seconds.  everyone dressed for the occasion.  they arrived by foot, helicopter, surfboard, kayak and boats.  big boats and little boats. 

check out the series of photos. 

This was just fun!

Recession  The act of withdrawing or going back.  An extended decline in general business activity, typically two consecutive quarters of falling real gross national product.  The withdrawal in a line or file of participants in a ceremony, especially clerics and choir members after a church service.

Inflation  The act of inflating or the state of being inflated.   A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.

How to cure stagflation. (Readings from 1980)

According to the Wikipedia entry, stagflation describes:

a period with out-of-control price inflation combined with slow-to-no output growth, rising unemployment, and eventually a recession.

There is apparently only one solution.

For example:

There are a number of competing theories as to the root cause of stagflation but all are similar, attributing the phenomenon to disruptive forces acting on normal free market conditions. These forces may include a supply shock such as a real or relative scarcity of raw materials, improper applications of monetary policy, poorly constructed tax codes or government regulations, or anything else that interferes with free-market resource allocation.

Again, a quote from the Wipkipedia stagflation article regarding it's solution ...

The rise of conservative theories of economics, including monetarism, can be traced to the perceived failure of Keynesian policies to combat stagflation or even properly explain it. Stagflation in the USA was defeated by then Federal Reserve chairman, Paul Volcker, who sharply increased interest rates to reduce money supply from 1979-1983 in what was called a "disinflationary scenario."

And from the Wikipedia biography of Paul Volker ...

Paul Volker was appointed Chairman of the Federal Reserve in August 1979 by President Jimmy Carter and reappointed in 1983 by President Ronald Reagan. Volcker's Fed is widely credited with ending the United States' stagflation crisis of the 1970s by limiting the growth of the money supply, abandoning the previous policy of targeting interest rates. Inflation, which peaked at 13.5% in 1981, was successfully lowered to 3.2% by 1983. The change in policy contributed to the significant recession the U.S. economy experienced in the early 1980s, which included the highest unemployment levels since the Great Depression.

However, Volcker's Fed also elicited the strongest political attacks and most wide-spread protests in the history of the Federal Reserve (unlike any protests experienced since 1922) due to the effects of the high interest rates on the construction and farming sectors, culminating in indebted farmers driving their tractors onto C Street and blockading the Eccles Building.

Try additional reading about Carter and Volcker exposes activities much less noble than their commitment to ending the stagflation crisis of the 1970's.

Are you ready for 3-5 years of 20% interest rates, 10% unemployment, and 15% inflation? It's the only known cure!

Obviously the real estate market is in a downward trend.  The concern is "how much money will i be leaving on the table, if I buy now?"  No one knows the answer to that question, but, it follows the same simple rule what is your definition of success?  No matter what decision you select be it real estate or life in general, you are guided down a path of your own choosing.  The success of that path is clearly up to you and how you feel about it. 

Let's look at the latter.  Selling.  Take a big gulp and write down where you are financially, what you paid for the house, what you put into the house* (you may not be able to re coup this dollar amount) and list at least five properties similar to yours that have SOLD in the past six months.  Sold=you can look up the dates and amount of the sale in public records.  Then write down how much it will cost you to continue owning the property for the next 3 to 5 years.  Include mortgage, taxes, insurance and maintenance.

Now how fast do you need your money?  If you sell it at a wash but the debt is gone will you claim that as success?  If you sell at a loss but the debt is gone will you claim that as success?  Can you afford to hold on to the property for five more years?  Does this strategy fit with your overall life plans?  Figure it out and write it down.

Let's shift to buying.  Is this the right time?  Again write down your plans and 3 / 5 years life strategies.  How does this purchase fit?  No matter what will you be happy with the property?  Will you be able to enjoy it?  Perhaps it is a better time to rent?  Consider a 7 month or 9 month lease.  The shorter term might provide you with a more aggressive time line to enter the market as a buyer.  If you do decide to buy, make sure that if the property is mortgaged that the mortgage is in good standing with the lender.  You do not want to be paying rent to your landlord only to learn the rent money was accepted by the owner and the mortgage not paid causing the property to shift into default. When this happens you as the tenant are out.  Lease or no lease. 

Certain real estate markets are still correcting.  Do your homework, write down your plans/strategies and then determine a timeline to enter the market place. 

Here's an interesting website:  Zillow Buzz.  When you drop by for a visit you can click on a region near where you live.  Watch the screen refreshen and a map appear showing the area populated with colored diamonds.  The diamonds clearly show the + or - drop in housing costs in that area.  This clever site shows how the economy is doing through out the US.  Check out the quarterly reports also located on this website.  It is really pretty informative.