Sunrise from our new listing at Pointe Santo de Sanibel
Susan here, happy to report again that The SanibelSusan Team was hoppin’ this week. Must be high season! Yes, we like that. I had a couple of new sales, plus received three terrific new listings.
Beachwalk from our new listing at Sundial Resort
February visitors buying in greater numbers than last year (or at least so far). Showing activity has increased, particularly with condos. We heard about several well-priced properties receiving multiple offers, which makes for challenging negotiations. With more visitors in town, traffic on overcast days makes travel interesting and has shopkeepers smiling.
View from our new listing at White Sands
Below are a couple of news items that are affecting the house market, followed by the activity posted in the Sanibel & Captiva Islands Multiple Listing Service this week.
Congress Now Has Housing Finance Dilemma
The Associated Press reported today that the Obama administration is laying out three broad options for overhauling the mortgage lending system, but will let Congress make the final decision. The Treasury Department said in a report released today that the government should withdraw its support for the mortgage market slowly, over five years or more. The report describes a path for winding down the troubled mortgage giants Fannie Mae and Freddie Mac.
The three options are: end the government’s role in guaranteeing most mortgages; support the mortgage market only in times of stress; or provide a government guarantee for mortgage investments created by private companies. Under any scenario, the private sector will assume a greater role in housing finance as the government scales back its involvement. The government currently owns or guarantees more than 90 percent of U.S. mortgages. The bailouts of Fannie and Freddie have cost taxpayers nearly $150 billion.
The report comes after years of debate about how to end the government’s role in housing. The options have been discussed for years as well. By handing the decision to Congress, the administration sidesteps one of the most complex and politically explosive questions facing the financial system. Any of the three options will almost certain force mortgage rates to rise.
Republicans have called for Fannie and Freddie to be abolished. But there is a growing recognition that drastic action would upend the housing finance system, threatening the broader economy.
A near-complete withdrawal by the government probably would end the popular 30-year fixed rate mortgage or, at least, make it more expensive. Banks would prefer adjustable-rate mortgages that would fluctuate with the markets.
However, all three options maintain some level of government support, either through guarantees or through existing agencies, such as the Federal Housing Administration.
Administration officials said the proposals will end the hybrid model of public-private companies that left the public on the hook for billions when Fannie and Freddie failed.
Uptick in Mortgage Rates
The average rate on a 30-year mortgage topped 5 percent this week for the first time since April. Freddie Mac said Thursday that the average rate rose to 5.05 percent from 4.81 percent last week. It hit a 40-year low of 4.17 percent in November. The average rate on the 15-year home loan, a popular refinance option, increased to 4.29 percent from 4.08 percent. It reached 3.57 percent in November, the lowest level on records starting in 1991. These rates are following the yields on the 10-year Treasury note, which are spiking on fears of higher inflation. Investors have been demanding higher Treasury yields since the Federal Reserve began its $600 billion bond-buying program to boost the economy.
14 price changes: 1663 Bunting Ln 3/2 now $359K (short sale); 9292 Kincaid Ct 3/2 now $388K; 1057 Sand Castle Rd 3/2 now $697K; 317 Palm Lake Dr 3/3 now $699K; 244 Daniel Dr 3/3 now $744K; 728 Anchor Dr 4/3 now $799K; 1163 Seagrape Ln 4/4 now $899K; 1658 Sabal Palm Dr 2/2 now $920K; 1162 Kittiwake Cir 3/3.5 now $1.295M; 2332 Troon Ct 4/5 now $1.3M (short sale); 2284 Troon Ct 4/4.5 now $2.099M; 5029 Joewood Dr 3/2.5 now $2.345M (short sale); 4453 Waters Edge Ln 3/3 now $2,497,013; 1069 Bird Ln 4/3.5 now $3.399M.
5 new sales: 9426 Kava Ct 3/2 listed for $399,993; 1730 Windward Way 3/2 listed for $474K; 1186 Sand Castle Rd listed for $479K, 1805 Farm Trail 3/2 listed for $558K, 1214 Buttonwood Ln 3/3 listed for $999K.
No closed sales.
1 new listing: 5881 SanCap Rd $299K.
No price changes, new or closed sales.
2 new listings: Tennis Villas #3224 1/1 $305K, Beach Homes #2 3/2 $1.775M
1 price change: Lands End Village #1651 2/2 now $975K.
1 new sales: Captiva Hide-A-Way #2A 2/2 listed for $639K.
No closed sales.
1 new listing: 15361 Captiva Dr 5/4.5 $2.895M (short sale).
1 price change: 16171 Captiva Dr 4/4.5 now $1.795M.
2 new sales: 33 Urchin Ct 2/2 listed for $718.8K, 11541 Wightman Dr 3/3 listed for $1.495M.
No closed sales.
No new listings.
1 price change: 16297 Captiva Dr now $1.749M.
No new or closed sales.
This representation is based in whole or in part on data supplied by the Sanibel & Captiva Islands Association of Realtors or its Multiple Listing Service. Neither the association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or its MLS may not reflect all real estate activity in the market. The information provided represents the general real estate activity in the community and does not imply that SanibelSusan Realty Associates is participating or participated in these transactions. If your property currently is listed with another broker, this is not intended as a solicitation of that listing.