The FHA will guarantee loans to qualified buyers with down payments as low as 3.5%. This means buyers for homes all the way up to $729,750 now have the choice in many areas. They can take out large loans that are over the limits of such programs as those backed by Fannie Mae and Freddie Mac and require down payments of at least 20%. Their second choice is to take out an FHA guaranteed loan. FHA loans allow for lower down payments, but they tack on insurance premium charges that add to the borrowers’ long term costs.
Recent studies have shown that the FHA backed one third of home finance mortgages last year. That is an increase compared to around 5% in 2006. The FHA insures lenders against defaults on mortgages that meet its standards rather than actually making loans itself.
According to the latest statistics which I recently reported to you, The Key West real estate market shows a very positive trend when comparing the first ten months of 2011 to the first ten months of 2010. The number of active listings has decreased almost every month since January 2011. The number of sales has decreased as well. The good news is that the average selling price increased, and the median selling price increased in 2011. This is GREAT NEWS for our local real estate market!
Both the average and median prices of properties sold this October were higher than a year ago. According to the October 2011 Key West Real Estate Statistical Analysis published by the Key West Association of Realtors, the average price for all properties sold in Key West in October 2010 was $346,087.67, and in October 2011 the average price increased to $450,129.00. The median price of properties sold in October 2010 was $304,000.00 and rose to a median price in October 2011 of $376,666.67.
Whether you’re a tourist, looking to move permanently to the Keys, or just someone who likes the beauty of nature, the great variety of amenities in the homes in our area are just one more reason to want to live in beautiful Key West. If you’re interested in real estate in this attractive area contact me, Jimmy Lane, at Key West Real Estate: 305-766-0585.