The sub-prime mortgage crisis that has impacted the Florida housing market has had a major effect on all sectors of the real estate market, including Sarasota luxury homes and condominiums.
"Mortgage providers that normally write "jumbo" loans (mortgages above the limits set by Fannie Mae, Freddie Mac and Ginnie Mae) are now having to keep those loans on their own books but they are reluctant to add to their current in-house mortgage portfolios," according to Connie Belmont, a well-regarded Sarasota waterfront homes specialist Realtor. To compensate themselves for accepting this extra risk, banks are charging higher interest rates on the types of "jumbo" loans normally written for luxury home and condominium sales. This reluctance is having a depressing effect on the sale of luxury homes and condos throughout the United States and particularly here in the Sarasota Bradenton area.
According to Brian Ward, a Sarasota luxury homes Accredited Buyers Representative, there is still a substantial number of luxury waterfront and golf course homes and condominiums in the $1 million and up price range for sale.
Sarasota luxury home and condominium owners who need or want to sell their elegant homes and condos, after having held off selling, hoping for a quick housing market recovery, have begun to understand the situation. As a result, they have reduced their asking prices to more realistic levels and become particularly interested in cash buyers.
Luxury home sellers are becoming willing now to accept a lower price offer from a buyer with no financing contingency. They also appreciate that an all-cash deal can close within 2-3 weeks, far more quickly than a deal requiring the normal appraisal and mortgage approval.
As a result, Sarasota luxury home buyers with cash on hand are in the enviable position of being able right now to purchase a Sarasota area luxury home or condominium at a really attractive price.
USA Today reported this week that all-cash buyers are beginning to scoop up those Sarasota and Bradenton Florida luxury homes at bargain prices.
