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10 year Treasury yield

It’s hard to believe that almost 1 year ago I was talking about the rise in interest rates and their effect on the real estate market here in Manatee and Sarasota counties.  Interest rates were running about 4.5-5%, and were the topic of all the news blogs, TV news stations included.  At that time I was still confident that the real estate market in our area of Bradenton, Lakewood Ranch, Sarasota, and the Islands would remain steady, for 2 reasons. First, about 50% of transactions in our area are cash.  Second, money was still relatively inexpensive to borrow.

 

10 year t-bond 1 month

10 year T-Bond 1 month

Fast forward one year and who would have imagined that rates today are about 3.5-3.75%.  Another interesting fact is that those who can afford to purchase with cash are opting for a mortgage.  Why?  Their financial advisors are telling them to keep the cash and use OPM (other people’s money).  In most cases, their portfolios are making more money than the current mortgage rates and providing positive cash flow, if only in terms of what they would be losing in return from investments had they taken out the cash.

Mortgage Rates- Freddie Mac

Mortgage Rates- Freddie Mac

  writes: Contrary to popular belief, mortgage rates are not based on the 10-year Treasury note. They’re based on the bond market, meaning mortgage bonds or mortgage-backed securities. When shopping for a new home loan, many people jump online to see how the 10-year Treasury note is doing, but in reality, mortgage-backed securities (MBS) drive the fluctuations in mortgage rates.

In fact, it is not unusual to see them move in completely different directions…

Some bond market reporters mistakenly tie mortgage rates to the performance of the 10-year Treasury bond. Many of these financial reporters possess a broad knowledge of bond markets, but they are not mortgage experts and do not fully comprehend how mortgage interest rates are determined.

In summary, the state of Florida is still experiencing large growth, mainly coming from high tax states.  Builders are very busy here in Lakewood Ranch and Sarasota, trying to keep up with demand.  As our “season” approaches for 2019-2020 we are expecting an even balance continuation of growth.  A 3-4% increase in year over year sales of existing homes and new builds would keep prices stable.  Low-interest rates will help the market continue in its upward trend.

Multiple Offers

A multiple offer situation arises when a seller receives competing offers from two or more prospective buyers to purchase the listed property. The market conditions for multiple offers generally occur when there is a high demand for properties and a low inventory of listings or when the property is being sold by auction or a similar process sometimes referred to as an “Immediate Sale”. The primary objectives at all times are to represent your customer’s/client’s interest in the transaction and comply with the requirements of the Code of Ethics, the MLS rules, and the Company’s best practices. Multiple offers can be confusing for the seller, the prospective buyers, and even Realtors® if they do not understand the process and what obligations and options come into play for each person in the transaction.

Timely and honest communications reduce the stress for everyone while ensuring each offer is presented in an objective manner.

While a Realtor’s® primary duty is to protect and promote the interests of the client/customer, Realtors® are not relieved of their obligation to treat all parties honestly. Honest is not the same as fair. Sellers alone make the ultimate decision about what is in the seller’s best interest and how the seller wants to process the multiple offers received. Prospective buyers need to know: sellers do not have to treat the competing buyers fairly when negotiating with them nor must the offers be negotiated in the order they are received.

Seller Options: The seller has several options in responding to the multiple offers submitted. The seller decides on how to proceed and the listing agent’s duty is to provide counsel and explain the process to help the seller make an informed decision in the seller’s best interest. Seller’s options: 1) Accept one offer and reject the others; 2) Reject all the offers; 3) Work with just one of the prospective offers and counter that offer and reject the others; 4) Allow all of the prospective buyers the opportunity to improve their offers and present their “highest and best” offer by a set deadline. Upon receipt of the offers, the seller would then make a decision.

For more details and information, talk to your licensed real estate professional.

Longboat Key Condo

Located in Sarasota and Manatee Counties of Florida is the coastal town of Longboat Key. Famous for its white sandy beaches, tons of palm trees, refreshing sea breeze, and fantastic weather conditions all year round, Longboat Key is considered a highly desirable place to live in Florida. Longboat key is both a town and a barrier island, south of Anna Maria Island between the Gulf of Mexico and Sarasota Bay.

The main attraction of Longboat Key is Gulf of Mexico Drive, a long and winding road that is bordered by dozens of shops and restaurants on both sides. This road is surrounded by beautiful landscape that includes huge expanses of water and hidden driveways. You will find a series of clubs starting from the southern tip of this barrier island in between many gated communities that reflect the elegant and relaxed condominium lifestyle of the residents living here. There are many Longboat Key condos for sale in these communities that are perfect for a dream life in this tropical paradise.

Median home value in Longboat Key is upwards of $700,000. but the cost of living is still affordable as median household income in this beach town is more than $100,000. It has a population of only 7000 and most of the homeowners live here only for a certain time period in a year. They enjoy a decent median monthly rent of close to $2500 from their investment.

Longboat Key is regarded as a luxury Gulf Coast golf resort community because of some world-class gold courses and 12 miles of stunning beaches. Waterfront properties offer residents a chance to enjoy golf and world-class shopping and dining facilities. The cool and relaxed lifestyle of Longboat Key attracts large numbers of retirees who come here to enjoy the scenic beauty and the warm and sunny weather conditions. However, it is a good place to live for families with kids too. You will find some very high-quality public schools in Longboat Key serving the educational requirements of the parents.

As far as Longboat Key real estate is concerned, it offers multiple options to you depending upon your budget and liking. These include wonderful estates, townhomes, and Longboat key condos for sale. No matter what your choice, you will enjoy living along the majestic Gulf Coast in this tourist beach town.

Take a look at the example below and imagine yourself here!