Jim Hinkamp Broker Real Estate

03/29/2023

Only $3,900 per square foot.

https://www.floridarealsales.com/property-details/A11215754

Decorator ready with APPROVED 30k square foot ocean front mansion plans and permits for a 10-bed, 3 staff room, 6-car garage,.

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03/19/2023

https://www.floridarealsales.com/107/blog-details/2882695

Housing Market Update: Demand For Mortgages Ticks Up As Rates Drop Amid Banking Turmoil

Some homebuyers are returning to the market as mortgage rates decline from the four-month high they reached last week. Daily average mortgage rates dropped from 7% to about 6.5% over the weekend in the wake of Silicon Valley Bank’s collapse. U.S. home prices also fell, dropping 1.8% year over year during the four weeks ending March 12, the biggest decline in over a decade.

Sidelined buyers reacted quickly: Bay Equity, Redfin’s mortgage-lending company, locked a rate on more loans this past Friday (March 10) than any other day so far this year. Overall, U.S. mortgage-purchase applications increased 7% from the week before during the week ending March 10.
But overall homebuying demand remains tepid, especially compared with the same period last year. That’s largely because housing payments are still near historic highs: The typical homebuyer’s monthly mortgage payment is $2,556, down marginally from last week’s record high but up 24% from a year ago. Pending home sales are down 17% year over year, the biggest decline in six weeks. Demand is also limited by low supply; new listings of homes for sale posted their biggest annual drop in nearly three months.
“Buyers pounced when rates fell because they’re so volatile right now, which shows that there are plenty of people waiting in the wings for the right time to enter the market. Where mortgage rates go from here largely depends on how the Fed reacts to chaos in the banking industry in the U.S. and abroad, alongside stubbornly high inflation,” said Redfin Economics Research Lead Chen Zhao. “The Fed’s goal at its meeting next week is to achieve a balancing act: Fight inflation while keeping the banking system intact. Even though the European Central Bank hiked interest rates more than expected this morning, it’s unlikely the Fed will follow suit. Instead, we expect them to either raise rates modestly or press pause for the time being, the latter of which would send mortgage rates down and bring back many sidelined buyers and sellers.”
While the unrest in the banking system may lower rates and bring back some buyers in most of the country, it’s likely to further spook buyers in certain areas. Housing markets in the Bay Area and New York, home to the three regional banks that have tumbled over the last week–along with many tech workers who have either been laid off or are worried about being laid off–are already feeling the pain.
“Some buyers are canceling their contracts or bowing out of their home search because they work in tech and they’re worried about losing their jobs,” said Bay Area Redfin manager Shelley Rocha. “The surge in tech layoffs was already causing jitters, and now the bank failures are adding to buyers’ nerves.”
Leading indicators of homebuying activity:
• For the week ending March 16, average 30-year fixed mortgage rates dropped to 6.6%, the first decline after five straight weeks of increases. The daily average was 6.54% on March 16.
• Mortgage-purchase applications during the week ending March 10 increased 7% from a week earlier, seasonally adjusted. Purchase applications were down 38% from a year earlier.
• The seasonally adjusted Redfin Homebuyer Demand Index–a measure of requests for home tours and other homebuying services from Redfin agents–was essentially flat from a week earlier (down -0.8%) during the week ending March 12. It was down 30% from a year earlier.
• Google searches for “homes for sale” were up about 40% from the trough they hit in December during the week ending March 11, but down about 14% from a year earlier.
• Touring activity as of March 11 was up about 19% from the start of the year, compared with a 22% increase at the same time last year, according to home tour technology company ShowingTime.
Key housing market takeaways for 400+ U.S. metro areas:
Unless otherwise noted, the data in this report covers the four-week period ending March 12. Redfin’s weekly housing market data goes back through 2015.
Data based on homes listed and/or sold during the period:
• The median home sale price was $355,668, down 1.8% from a year earlier. That’s the biggest decline in at least a decade, according to Redfin’s monthly dataset, which goes back through 2012.
• Median sale prices fell in 24 of the 50 most populous U.S. metros, with the biggest drops in northern California. San Jose, CA (-17.2% YoY) experienced the biggest decline, followed by Austin, TX (-13%), San Francisco (-11%), Oakland, CA (-10.9%) and Sacramento, CA (-8.6%). That’s the biggest sale-price drop since at least 2015 for San Jose, Austin and Sacramento.
• Sale prices increased most in West Palm Beach, FL (12.7%), Milwaukee (9%), Fort Lauderdale, FL (7.2%), Virginia Beach, VA (6.9%) and Miami (6.8%).
• The median asking price of newly listed homes was $389,234, up 1.3% year over year.
• The monthly mortgage payment on the median-asking-price home was $2556 at a 6.6% mortgage rate, the current weekly average. Monthly mortgage payments are up 24% ($499) from a year ago.
• Pending home sales were down 17.1% year over year.
• Pending home sales fell in all 50 of the most populous U.S. metros. They fell most in Las Vegas (-53.5% YoY), Portland, OR (-48%), Sacramento (-47.8%), Riverside, CA (-45.9%), and Seattle (-44.1%).
• New listings of homes for sale fell 22.1% year over year, the biggest decline in nearly three months.
• New listings declined in all but one of the 50 of the most populous U.S. metros, with the biggest declines in Milwaukee (-65% YoY), Sacramento (-48.1%), Oakland (-45.9%), San Francisco (-42.6%) and San Jose (-41.8%). They increased 2.6% in Nashville.
• Active listings (the number of homes listed for sale at any point during the period) were up 16.5% from a year earlier, the smallest increase in more than three months.
• Months of supply—a measure of the balance between supply and demand, calculated by the number of months it would take for the current inventory to sell at the current sales pace—was 3 months, down from 4 months a month earlier and up from 1.9 months a year earlier.
• 46% of homes that went under contract had an accepted offer within the first two weeks on the market, the highest level since June, but down from 53% a year earlier.
• Homes that sold were on the market for a median of 46 days. That’s up from 27 days a year earlier and the record low of 18 days set in May.
• 24% of homes sold above their final list price, down from 45% a year earlier.
• On average, 4.9% of homes for sale each week had a price drop, up from 2% a year earlier.
• The average sale-to-list price ratio, which measures how close homes are selling to their final asking prices, was 98.3%, the highest level in more than three months but down from 101.2% a year earlier.














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Some homebuyers are returning to the market as mortgage rates decline from the four-month high they reached last week. Daily average mortgage rates dropped from 7% to about 6.5% over the weekend in the wake of Silicon Valley Bank’s collapse. U.S. home prices also fell, dropping 1.8% year over ye...

03/18/2023

https://www.floridarealsales.com/107/blog-details/2876893

Study: Almost 50% of Sellers Making Concessions
Posted:March 16th

Nationally, it’s 45.5%.

SEATTLE – Home sellers gave concessions to buyers in 45.5% of home sales recorded by Redfin agents during the three months ending Feb. 28, 2023, in a year-to-year comparison, according to a report from Redfin – the highest share of any three-month period in Redfin’s records, which date back to June 2020. One year earlier, 31.1% of sellers gave concessions.

Concessions have become more common as rising mortgage rates and higher home prices have caused many buyers to put their plans on hold, which motivates sellers to throw in freebies to attract the buyers who remain. The concessions often include things like an offer to fund repairs, cover closing costs and/or pay to buy down buyers’ mortgage rates.

The housing market has reversed itself over the past two years. In 2021, a surge in homebuyer competition fueled by rock-bottom mortgage rates forced buyers to offer everything but the kitchen sink to win a listing. Today the market is more balanced with buyers in some areas often in the driver’s seat.

“Buyers today are way more demanding and selective. They’re willing to wait to find the perfect house, which wasn’t the case during the pandemic homebuying boom.” “During the peak of Covid, it took two to three days to sell anything regardless of the condition, location or square footage. Now, a home that’s not perfect may stay on the market for three to four months if the seller doesn’t throw in something to sweeten the deal.”

Buyers are ignoring some homes.

“Any home with a roof that’s over eight years old is just sitting – buyers don’t want to put any additional funds into repairs. I had a few sellers offer credits for new roofs to close the deal. We’re also seeing more buyers ask for credits toward their closing costs.”

Sellers also lowering prices to lure buyers
In addition to concessions, sellers are increasingly likely to sell their home for less money than they hoped for, either by lowering the listing price or accepting an offer that’s less.

In the study, one out of four sellers (25.2%) did both, lowering their offer and also agreeing to a buyer’s bid that was less than the newly lower asking price. One out of five (20.6%) cut the listing price and also offered a concession. And more than one out of 10 sellers (13%) cut the listing price, accepted an offer that was even lower while also offering the buyer some type of concession.

Nationally, Seattle sellers gave the most concessions (51.6%) during the three months ending Feb. 28, up from 20.1% a year earlier. Only two metros had few concessions year-to-year, Austin, Texas ( down 3 percentage points) and Chicago (down 2.1 percentage points).

Nationally, it’s 45.5%. SEATTLE – Home sellers gave concessions to buyers in 45.5% of home sales recorded by Redfin agents during the three months ending Feb. 28, 2023, in a year-to-year comparison, according to a report from Redfin – the highest share of any three-month period in Redfin’s...

03/11/2023

Rush Limbaugh's widow sells his sells his lavish Palm Beach waterfront mansion for $155 million

Kathryn Adams Limbaugh, 46, quietly listed the lavish waterfront property last year for $150 million to $175 million. The long-time Palm Beach, Florida, resident sold the property in a record deal of $155 million.

It sets a new record for Palm Beach, with the last biggest sale being $129.6million for four parcels in 2013 by hedge-funder Ken Griffin, according to the Wall Street Journal (WSJ).

Rush, who died in 2021 from lung cancer, bought the property in 1998 for $3.9million, which was purchased through a trust tied to Kathryn. He also bought up four neighboring properties to build a 2.7-acre estate.

The mansion, which features its own private beach, was mostly decorated by Rush himself and features a vast salon in the style of the Palace of Versailles and has a main guest suite modeled after the Presidential Suite of the Hotel George V in Paris, the Wall Street Journal reports.

However, property experts suggested last year that this could actually hold the property back as it may be considered a 'tear down' to buyers who want a less dated, and more modern home.

Limbaugh - a man with a net worth of around $600 million when he died - paid $3.9 million for the main estate in 1998. Limbaugh's ex-wife, Marta, paid $2.3 million for the home at 108 Mediterranean Road in 2000, and Limbaugh's trust paid $450,000 for the house next door, at 1501 North Ocean Boulevard, in 1999.

'It reflects the things and places he has seen and admired.' The house had a vast salon meant to be reminiscent of Versailles, he wrote, and a massive chandelier in the dining room was a replica of the one in New York's Plaza Hotel.'

The main house has seven bedrooms, a dozen bathrooms and a two-story library inspired by the Biltmore Estate in North Carolina which contained wood-painted walls and 'cherubs dancing on the ceiling,' according to Chafets' book. The library also features an elevator.

The mansion also includes hundreds of feet of oceanfront property, as well as a pool and a putting green for golf.

A 24-hour guard station is among the various structures the Limbaughs purchased to go along with the mansion.

The estate also includes a guest house that is meant to be a replica of the Hotel George V's Parisian Presidential Suite.

Limbaugh also built his own studio on the property that allowed him to broadcast live every day for the last 20-plus years of his life.

It was one of multiple properties owned by Limbaugh, who also owned a condominium on Fifth Avenue in New York City.

Limbaugh, the radio icon and 'voice of American conservatism', died in February of 2021, aged 70, following his year-long battle with lung cancer.
The Presidential Medal of Freedom Winner was diagnosed with Stage IV advanced lung cancer back in February 2020, hosted his last radio show on February 2 during which he revealed another host was on standby in case his health deteriorated.

'Well, my friends, that's it. Yet another excursion into broadcast excellence in the can. Enjoyed being with you today, always do. And look forward to the next time,' he said at the conclusion of the show.

It was in the early 1980s that Limbaugh first garnered an audience, broadcasting shows dripping with sarcasm and bravado.

Limbaugh began broadcasting nationally in 1988 from WABC in New York. While his know-it-all commentary quickly gained traction, he was dismayed by his reception in the big city.

'I came to New York,' he wrote, 'and I immediately became a nothing, a zero.'

Ultimately, Limbaugh moved his radio show to Palm Beach and bought his massive estate. Talkers Magazine, which covers the industry, said Limbaugh had the nation´s largest audience in 2019, with 15million unique listeners each week.

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02/24/2023

How To Make Your Dream of Homeownership a Reality

According to a recent Harris Poll survey, 8 in 10 Americans say buying a home is a priority, and 28 million Americans actually plan to buy within the next 12 months. Homeownership provides many financial and nonfinancial benefits, so that interest is understandable.

However, it’s unlikely all 28 million Americans will accomplish that goal in the coming year. Experts project a total of around five million homes will be sold in 2023. Why is there such a big difference? It’s partly because there can be challenges to buying a home.

In the same survey, when asked, “Which of the following are preventing you from pursuing homeownership at this time?”:

-34% answered, “I don’t have enough saved for a down payment”
-30% answered, “My credit score”

If you’re aiming to buy a home, here’s what you need to know to accomplish that goal.

Save for Your Down Payment
Your down payment is a big chunk of what you pay up front for your home. For most home purchases, buyers put down some amount of cash up front (a down payment) and then take out a loan (a mortgage) to pay for the rest.

It’s a longstanding myth that you need to pay 20% of the purchase price for your down payment. In reality, 20% down isn’t always required. In fact, according to the National Association of Realtors (NAR), today’s median down payment is 14% for the average buyer and just 6% for a first-time buyer.

Regardless of how much money you can save for your down payment, know there’s help available. A local lender can show you options to help you get closer to your down payment goal. Plus, there are even loan types, like FHA loans, with down payments as low as 3.5% for some buyers, as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants.

Beyond assistance programs and different loan types, here are a few other tips to help you as you save for your down payment:

Remember to factor in closing costs. In addition to your down payment, closing costs are usually 2-5% of the home's purchase price.
Maintain your savings. Your down payment shouldn’t deplete all your savings. It’s important to still have some money set aside for homeownership expenses after you move in.
Explore your options and lean on your trusted advisor for expert guidance. Do your research, ask questions, and look into the resources available for buyers like you.
Improve Your Credit Score
Your credit score is a number that indicates how financially reliable you are to lenders. A higher credit score usually means you’ll be able to borrow more money at a better interest rate. If your credit score is preventing you from getting an affordable mortgage, there are steps you can take to improve it. Here are two:

+Pay your bills on time. When you pay your bills on time, your credit score improves. When you’re late, it takes a hit. One way to make paying your bills on time easier? Set up automatic payments when and where you can.

+Mix it up. From auto loans, to credit cards, to mortgages – there are several different types of credit. And having a mix of them improves your credit score.

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02/23/2023

Spring into Action: Boost Your Home’s Curb Appeal with Expert Guidance

To sell your home this spring, it may need more preparation than it would have a year or two ago. Today’s housing market has a different feel. There are more homes for sale than there were at this time last year, but inventory is still historically low. So, if a house has been sitting on the market for a while, that’s a sign it may not be hitting the mark for potential buyers. But here’s the thing. Right now, homes that are updated and priced at market value are still selling fast.

Today, homes with curb appeal that are presented well are still selling quickly, and sometimes over asking price. According to Danielle Hale, Chief Economist at realtor.com:

“In a market where costs are still high and buyers can be a little choosier, it makes sense they’re going to really zero in on the homes that are the most appealing.”

With the spring buying season just around the corner, now’s the time to start getting your house ready to sell. And the best way to determine where to spend your time and money is to work with a trusted real estate agent who can help you understand which improvements are most valuable in your local market.

Curb Appeal Wins
One way to prioritize updates that could bring a good return on your investment is to find smaller projects you can do yourself. Little updates that boost your curb appeal usually work well. Investopedia puts it this way:

“Curb-appeal projects make the property look good as soon as prospective buyers arrive. While these projects may not add a considerable amount of monetary value, they will help your home sell faster—and you can do a lot of the work yourself to save money and time.”

Small cosmetic updates, like refreshing some paint and power washing the exterior of your home, create a great first impression for buyers and help it stand out. Work with a real estate professional to find the low-cost projects you can tackle around your house that will appeal to buyers in your area.

Not All Updates Are Created Equal
When deciding what you need to do to your house before selling it, remember you’re making these repairs and updates for someone else. Prioritize projects that will help you sell faster or for more money over things that appeal to you as a homeowner.

The 2022 Remodeling Impact Report from the National Association of Realtors (NAR) highlights popular home improvements and what sort of return they bring for the investment.

Remember to lean on your trusted real estate advisor for the best advice on the updates you should invest in. They’ll know what local buyers are looking for and have the latest insights of what your house needs to sell quickly this spring.

As we approach the spring season, now’s the time to get your house ready to sell.

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02/18/2023

Should You Consider Buying a Newly Built Home?

If you’re thinking about buying a home, you might be focusing on previously owned ones. But with so few houses for sale today, it makes sense to consider all your options, and that includes a home that’s newly built.

The Number of Newly Built Homes Is on the Rise
While there are more houses for sale right now than there were at this time last year, there’s still a historically low number of homes available on the market. One reason for that is years of underbuilding—meaning there haven’t been enough new homes built to keep up with demand.

The graph above shows how low the production of newly constructed homes has been over the past 14 years. But it also shows another important trend: the number of new homes being built each year is on the rise.

“While existing-home inventory remains limited, the silver lining for home buyers is that new-home inventory is on the rise, and a new home at the right price is a pretty good substitute.”

Builder Incentives Can Provide a Boost
While there a growing number of new homes for sale, builders are slowing that pace until they sell more of their current inventory.

“The builders have to work off the backlog of homes, but instead of 3%-4% mortgage rates, they’re dealing with 6% plus mortgage rates, which means they have to provide many incentives to make sure those homes sell.”

Many builders are now offering incentives to help buyers purchase these homes. Fleming also explains:

“The National Association of Home Builders reported that nearly two-thirds of builders were offering incentives, including mortgage rate buydowns, paying points for buyers and price reductions, which could entice potential home buyers.”

A builder who’s willing to pay to reduce your mortgage rate could be a game changer. First American, puts it this way:

“A one percentage-point decline in mortgage rates has the same impact on affordability as an 11 percent decline in house prices.”

Should You Buy a Brand-New Home?
The best way to decide what type of home to buy is to work with a trusted real estate professional who can help you weigh the pros and cons of each option. They know which homes are available in your local market, and which builders might be offering incentives that make sense for you.

Even though there aren’t a lot of homes for sale today, new home inventory is on the rise, and many builders are offering incentives.

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02/14/2023

What You Should Know About Closing Costs

Before you buy a home, it’s important to plan ahead. While most buyers consider how much they need to save for a down payment, many are surprised by the closing costs they have to pay. To ensure you aren’t caught off guard when it’s time to close on your home, you need to understand what closing costs are and how much you should budget for.

What Are Closing Costs?
People are sometimes surprised by closing costs because they don’t know what they are. According to Bankrate:

“Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome . . . Closing costs vary depending on the purchase price of the home and how it’s being financed . . .”

In other words, your closing costs are a collection of fees and payments involved with your transaction. According to Freddie Mac, while they can vary by location and situation, closing costs typically include:

Government recording costs
Appraisal fees
Credit report fees
Lender origination fees
Title services
Tax service fees
Survey fees
Attorney fees
Underwriting Fees

How Much Will You Need To Budget for Closing Costs?

Understanding what closing costs include is important, but knowing what you’ll need to budget to cover them is critical, too. According to the Freddie Mac article mentioned above, the costs to close are typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to cover your closing costs.

Let’s say you find a home you want to purchase for the median price of $366,900. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $7,500 and $18,500.

Keep in mind, if you’re in the market for a home above or below this price range, your closing costs will be higher or lower.

What’s the Best Way To Make Sure You’re Prepared at Closing Time?

“As you start your homebuying journey, take the time to get a sense of all costs involved – from your down payment to closing costs.”

Work with a team of trusted real estate professionals to understand exactly how much you’ll need to budget for closing costs. An agent can help connect you with a lender, and together your expert team can answer any questions you might have.

It’s important to plan for the fees and payments you’ll be responsible for at closing.

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02/09/2023

Number of Homes for Sale Up from Last Year, but Below Pre-Pandemic Years

The biggest challenge in the housing market right now, and likely for years to come, is how few homes there are for sale compared to the number of people who want to buy. That’s why, if you’re thinking about selling your house, this is a great time to do so. Your house would be welcome in a market that has fewer homes for sale than it did in the years leading up to the pandemic.

According to the latest Monthly Housing Market Trends Report from realtor.com:

“There were 65.5% more homes for sale in January compared to the same time in 2022. This means that there were 248,000 more homes available to buy this past month compared to one year ago. While the number of homes for sale is increasing, it is still 43.2% lower than it was before the pandemic in 2017 to 2019. This means that there are still fewer homes available to buy on a typical day than there were a few years ago.”

The graph below shows how today’s inventory of homes for sale compares to recent years:

What Does This Mean for You?
Fewer homes for sale means buyers have fewer choices than they did prior to the pandemic—and that frustration is leading some to give up on the homebuying process altogether. But with mortgage rates sitting lower than they were at the peak last fall, more buyers are willing to come back into the process—they just need to find homes to buy. This is welcome activity for the spring market, especially if you’re thinking of selling your house.

With a renewed interest in buying a home for many, the New York Times (NYT) reports:

“Home buyers are edging back into the market after being sidelined last year . . .”

So, if you want to take advantage of a sweet spot in the market, this spring could be your shot.

The housing market needs more homes for sale to meet the demand of today’s buyers. If you’ve thought about selling, now’s the time for us to connect and get ready for you to make a move this spring.

HinkampRealEstate.com

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