Luxury Waterfront Sales Update - 2009 Pending Sales and Closed Sales

We are experiencing somewhat of an anomaly in Sarasota this late spring as we move into summer: luxury properties are selling late into the season, with more sales to come, as evidenced by the number of pending transactions in the Mid Florida Regional multiple listing service, as noted below.

Nothing gets a realtor and a seller more excited than to see positive momentum in closed transactions of luxury property! Year to date through May 6, we have seen 21 closed transactions in Sarasota county, for single family residential homes listed for a minimum of $1.5 million. The highest sale is $4.75 million at 552 S. Spoonbill on Bird Key (my listing and pictured above), and the lowest is $1.15 million at 7230 Manasota Key. There is also one higher sale for $7.125 million in Manatee county at 5871 Gulf of Mexico Drive.

Part of what makes this interesting is that 3 of these sales occurred in January; 3 in February, 4 in March, 8 in April, and 4 in the first 6 days of May, with an additional 15 pending sales that should close by mid July.

Based on vigorous showings as evidenced by the escalating number of appointments scheduled through the Michael Saunders & Company call center, we, at Michael Saunders & Company, are anticipating continued strength in these sales throughout the summer. The buyers are realizing some pretty significant price reductions and making wise purchasing decisions at this time.

Stay tuned for more market updates on the luxury waterfront market in Sarasota. I look forward to keeping you informed.

DEBORAH BEACHAM REPRESENTS SARASOTA'S TOP SALE FOR 2009

At MSC, It’s Never Lonely at the Top - Deborah Beacham Represents Sarasota’s Top Sale for 2009 May 06th, 2009 | Category: Properties, The Real Estate Market

The following is reprinted from the Michael Saunders Blog posted May 6th, 2009:

With all the chatter about the difficulties in today’s market, it would seem highly unlikely that anyone could achieve a feat of success and record-breaking significance. However, it is with much delight that we announce the recent momentous sale courtesy of the determined, market savvy Deborah Beacham of our South Longboat Key office. Along with the final closing signatures for the expansive waterfront property she represented at 552 S. Spoonbill Drive on Bird Key, Deborah earned recognition for Sarasota’s highest sale thus far in 2009. At a sold price of $4.75 million, this Bird Key property sits atop the growing mountain of Sarasota area sales we are processing, with many more sure to follow. Congratulations, Deborah!

IN MARCH, PENDING SALES RISE IN SARASOTA

The following article appears in today's Sarasota Herald Tribune, authored by Aaron Kessler. Aaron interviewed me for this article as it relates to the luxury market and pending sales. Here is the full text from this article.

March 2009 sales up 33 percent over February;

April 16, 2009
*The following press release was sent to local media on April 16

March 2009 Sales Up 33 Percent Over February
Single Family Median Sale Price Rebounds


The Sarasota real estate market saw sales rise to the highest level of the year in March 2009, besting the previous month by 33 percent. In addition, the median sales price for single family homes rose after steadily declining since late last year, indicating a potential sign of the bottoming of the local market.

The overall sales level of 481 was the highest since June 2008, and nearly equaled the level of 504 sales reported in March 2008. Of those sales, 353 were single family homes while 128 were condominiums.

The good news also extended to pending sales, which once again rose in March 2009 to 817. The last time pending sales climbed over 800 was in March 2006, when pending sales also were reported at 817. The total of 817 was 21 percent higher than the 679 pending sales reported in March 2008.

According to statistics from the Mid-Florida Regional MLS for members of the Sarasota Association of Realtors®, 645 single family homes and 175 condominiums went under contract in March 2009, compared to only 471 homes and 208 condos in March 2008.

Pending sales have now exceeded the 500 level for the 15th consecutive month, and the statistic bodes well for the next two or three months, when many of these pendings will become closed sales. Pending sales reflect contracts executed by buyers and sellers during the month. The report continues to reflect a steady, strong pattern, and indicates buyers are more active in the Sarasota market even in the face of difficult economic times.

"We believe the current climate of historically low interest rates, major incentives for first-time homebuyers, and the many other government programs designed to stabilize the economy and the housing industry is all having a very positive impact," said 2009 SAR President Bill Geller. "Every downturn is followed by an upturn - we know this to be true historically. We've been through a difficult time in the real estate industry, and hopefully we are seeing the beginnings of a new, dynamic era."

The recently enacted first-time homebuyers' tax credit of $8,000 will likely continue to boost sales this year, Geller said. Those who meet eligibility requirements and purchase a home this year prior to Dec. 1 are eligible for a tax credit of up to $8,000, and unlike the 2008 tax credit, this one does not have to be repaid.

The median sale price for single family homes rose to $152,125 in March 2009 from $142,000 in February 2009 - a 7 percent increase. The median sales price for condominiums fell to $166,750 in March 2009 from $198,000 in February 2009, for a 15 percent drop.

The median price of all single family homes sold in the last 12 months was $217,000, compared to a median of $299,900 for the 12 months ending in March 2008. For condominiums sold in the last 12 months, the median sales price was $256,000, compared to last year's figure of $295,000.

Another important market tracker - the absorption rate of properties on the market - continues to track lower than last year at this time for both single family homes and condominiums, as inventories have declined. Absorption rate is the number of months it would take to sell the entire remaining listed inventory in a particular category, based upon the sales for that particular month.

For March 2009, the absorption rate for single family homes stood at 17.1 months, compared to 24.1 months the previous month and 25.1 months in March 2008. For condominiums, the absorption rate was at 21.2 months, lower than the 28.5 months in the previous month, and much lower than the 34.1 months reported in March 2008.

*A 12-month rolling median price is not as susceptible to the volatility that can occur within any particular month, which sometimes results in drastic statistical swings up or down from one month to the next.

Click HERE for a PDF of the press release and two pages of statistical charts.

Sarasota Luxury Waterfront Sales Update

As of April 11, 2009, we have had 13 single family waterfront sales listed at or above $1.5 million, county-wide in Sarasota. The highest sale, 5871 Gulf of Mexico drive, closed at $7.125m in February. This was for a gulf front property on Longboat Key, built in 2008, 7,046 square feet of living area on just over an acre of land.

The next highest sale was the property at 784 Dream Island Rd, also on Longboat Key, which sold for $3m in January, for a 3,780 sq ft home on 1.5 acres of bayfront property.

The other 11 properties ranged in sales price from $1.150m to $2.9m and 4 of these were sales on Manasota Key, which had almost no activity in 2008.

The good news is there are 19 additional sales pending with list prices ranging from $1.5m to $5.550m, and these are all anticipated to close by the end of May. I will be updating these sales on the blog, so watch for the reports.

The Rich Take a Hit As Well

Published: Monday, March 23, 2009 at 1:00 a.m.
Last Modified: Friday, March 20, 2009 at 11:42 a.m.
Southwest Florida's real estate market has always had something of a dual personality -- the high-end waterfront properties catering to the affluent, and the "normal" market inhabited by everyone else.

The high-end retreats of the islands have operated in their own universe sometimes, as it was thought money flooding in from the well-to-do around the country and the world would cushion the blow of any regional economic challenges.

Of course, now we are in the midst of a global financial crisis, with economies around the world sputtering and stock markets struggling. The real estate market, fed by a Wild West atmosphere of lawless lending and speculation during the boom years, got completely out of control and is largely responsible for sparking this disaster. The upper bracket of properties have not been immune -- they are in this mess with the rest of us.

So it may be natural to ask, with 2008 likely to go down as one of the worst economic years in modern history, did people still buy those million-dollar Sarasota mansions on the beach and bay? And how much of a hit did sellers have to take to move those homes?

Deborah Beacham, an agent with Michael Saunders & Co. specializing in high-end properties, recently put together a report looking at just that issue -- looking specifically at single-family homes (no condos) in 2008 that were listed at $1.5 million and up and had either a waterfront view or boating water. Beacham grouped sales by locale: Bird Key, Casey Key, Lido/St. Armands, Longboat Key, Mainland Waterfront, and Siesta Key.

Beacham found while the total volume of such sales was down 20 percent overall -- $218.3 million in 2008 compared to $271.4 million in 2007 -- that "many individual properties retained most of their value" in 2008 compared with 2007. That does not mean buyers were not getting a discount off the list prices. On average, most properties in that upper bracket sold for about 82 percent to 86 percent of their asking prices in 2008. But those figures are about the same as how similar properties performed in 2007.

Now, a few caveats are in order, the first being that nothing compares to what was going on during the boom. Beacham found that if you bought a high-end waterfront property during the height of the boom in 2005-06, you were unlikely to be in the black these days. But for those who bought such homes prior to the boom, their values were still holding steady enough today that they are in profitable territory.

The other caveat I'll add is that the bulk of the 2008 crash really began in earnest in September, and so a buyer who bought in March 2008 likely had a different set of calculations than one who did in November.

But that said, back to the numbers.

Beacham found that the number of sales was the same or higher in 2008 on Lido and Longboat, as well as for the mainland waterfront. Sales were slightly down on Siesta Key, dropping from 24 in 2007 to 21 in 2008. But overall, not bad.

One place where there was a noticeable collapse of sales was on Bird Key, where only 6 homes valued at $20 million sold in 2008, compared with 15 homes at $58 million on 2007. The lack of action on Bird Key may show that even rich buyers are focused intently on price just like everyone else these days -- as the average ratio of sales price versus list price was 90 percent on Bird Key, the highest of any area studied.

What is more, that 90 percent figure is exactly what it was on Bird Key for 2007 sales, too, suggesting that Bird Key sellers were sticking to their asking prices, Beacham's report found.

By contrast, every other area studied in the report -- ones that already had lower sales-list price ratios to begin with compared to Bird Key -- saw even further drops of between 1 to 3 percentage points in 2008 compared to 2007. This would seem to indicate those sellers were more willing to negotiate in 2008 as the market continued to fall. Siesta Key sellers, for example, settled for 83 percent of their asking prices in 2008, compared to 86 percent in 2007.

It is interesting as well that the Bird Key homes took longer to sell on average in 2008, 292 days, compared to 2007's average of 246 days. So basically Bird Key sellers stuck their guns, and buyers decided they would be better off elsewhere.

Even for the rich, it seems, it is definitely a buyers' market these days in Sarasota.


This story appeared in print on page D12, Sarasota Herald Tribune, March 23, 2009, by Aaron Kessler

Pending sales rise to highest level in three years in February 2009

Pending sales in the Sarasota real estate market once again rose in February 2009, hitting 782 - the highest level since April 2006, a three year period. According to statistics from the Mid-Florida Regional MLS for members of the Sarasota Association of Realtors®, 611 single family homes and 171 condominiums were reported under contract in February, almost 100 more than the 683 pending sales reported in January 2009, and 19 percent higher than the 654 pendings reported in February 2008.

Pending sales have now exceeded the 500 level for the 14th consecutive month, and the statistic bodes well for the next two or three months, when many of these pendings will become closed sales. Pending sales reflect contracts executed by buyers and sellers. The report continues to reflect a steady, strong pattern, and indicates buyers are more active in the Sarasota market even in the face of difficult economic times.

For further info, click here.

Sarasota Association of Realtors Reports January 2009 Sales

January 2009 Pending Sales Jump Almost 18 Percent

In the face of national economic doom and gloom, pending sales in the Sarasota real estate market rose to 683 in January 2009 as reported by members of the Sarasota Association of Realtors®, topping the 500 level for the 13th month in a row.

Pending sales last month were much higher than the 516 reported in January 2008, which indicates that local real estate has bucked the national downward to some extent. Pending sales reflect contracts executed by buyers and sellers. The recent numbers demonstrate a steady, strong pattern, indicating buyers have become more active in the Sarasota market as the traditional season heats up.

“These are certainly historic times for our nation’s economy, and we must be realistic and understand that higher unemployment and the recession impacts everyone,” said 2009 SAR President Bill Geller. “But we must also understand that even during downturns, opportunities exist for savvy buyers. The Sarasota market is blessed with tremendous, high quality properties, and the lower prices have made this area a goldmine of opportunity. With the guidance of a well-trained, professional local Realtor®, buyers can be assured that they will find the perfect property in today’s market environment.”

Overall closed sales in the first month of 2009 stood at 319, compared to 327 in January 2008, a year-to-year decline of only 2.4 percent. Sales totaled 406 December 2008, but the monthly decline was expected, especially during a four-year election cycle, when real estate activity often sees a lull prior to a new administration taking office.

The recent signing of the $787 billion American Recovery and Reinvestment Act, plus the Obama administration’s enactment of the $75 billion Housing Support and Foreclosure Prevention program should help improve the real estate markets even more
in the months ahead, said Geller.

Click HERE for a PDF of the press release and two pages of statistical charts.

American Recovery and Reinvestment Act of 2009

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

Click here for FAQs.

Sarasota Market Sees Rise in September Pending Sales

October 24, 2008

*The following press release was sent to local media on October 24 at 2:00 p.m.

Local Real Estate Market Enjoys September Rise in Pending Sales


Pending sales rose in September 2008 and overall sales stood almost identical to August 2008 in the Sarasota MLS. In fact, overall sales in September 2008 were 29 percent higher than overall sales in September 2007 - a statistic that flies in the face of the recent negativity in the media.

Overall sales came in at 438 in September, just under the 440 reported in August, and only slightly lower than the 454 in July. But the sales figure in September 2008 was much higher than the 338 sales reported in September 2007 for single family homes and condos.

The local market faired even better than the overall state of Florida, which saw a 24 percent jump in single family home sales and an 11 percent jump in condo sales over September 2007 numbers.

Single family home sales soared comparing September 2008 to September 2007. There were 360 sales reported this year, compared to only 234 last year, for a jump of almost 54 percent. The number of sales was roughly the same as last month, when 356 single family homes changed hands. While there were fewer condominium sales reported in September 2008 by SAR members (78 total), the overall numbers were strong.

The September 2008 report also continued to show strength in pending sales, which stood at 584, almost 9 percent higher than last month's total of 536. Higher pending sales, which are contracts executed by buyers and sellers during the month, forecast a stronger market, as these properties close in the coming months.

Click here for the full story.

Longboat Key Florida Living

Great article in today's CNN.com travel section about Longboat Key:

LONGBOAT KEY, Florida (CNN) -- Like any sun-drenched beach paradise, Longboat Key offers water sports, biking and tennis, but the best way to enjoy the island may be by doing nothing at all.

Low season on Longboat Key, Florida, generally starts in May and runs until late fall.

This thin sliver of land off Sarasota on Florida's west coast is home to 8,000 people year-round, but come winter, the population swells dramatically.Thousands of visitors from colder climates flock to LBK -- its shorthand moniker -- from January to April to enjoy its balmy temperatures and the sparkling turquoise waters of the Gulf of Mexico.

Off season, however, the only crowds are the sea gulls grooming their feathers on the warm white sand, and Longboat Key feels like the closest thing to having a private beach.

On a recent late-September visit, the temperatures hovered in the mid-80s, palm trees swayed gently in the wind, hibiscus flowers bloomed and the sun's rays were on par with their intensity in July.

The only signs of fall were the pumpkins on display at the local grocery store, along with regular fare, like mango Key lime pie.

See photos of Longboat Key's beaches, birds and sunsets »

Tell people you are heading to Longboat Key, and many will think it's part of the Florida Keys off the southern tip of the state, but LBK is about 200 miles to the north-northwest of -- and in some ways worlds away from -- Key West and its neighbors.

Key Facts
• Longboat Key is an offshore barrier island about 60 miles south of Tampa, Florida.
• The nearest airport is Sarasota/Bradenton International.
• The island is home to 8,000 permanent residents, but the population swells to 22,000 during peak months.
• Average daily high temperature in January: 72°.
• Average daily high temperature in July: 90°.
• Longboat Key incorporated as a town in 1955.
• There are no schools on the island.

Source: Longboat Key Chamber of Commerce

Nightlife on the island is likely to mean a moonlit walk on the beach rather than a drink at the bar, and the odds are good the locals will sport gray hair.

Elegant setting

Buffered by Sarasota Bay on one side and facing the Gulf of Mexico on the other, the Key is sheltered from the tourist hustle and bustle of mainland Florida.

At less than 11 miles in length and no more than a mile across in its widest places, LBK also feels like a secluded community with an elegant flavor of its own.

The surroundings are lush, upscale and serene. A trip down Gulf of Mexico Drive, the island's main artery, reveals golf courses, condominiums and homes ranging from newly constructed mansions to older, one-story houses.

The traffic is light, life moves at a slower pace and the mood is relaxed.

"You won't find mini-malls, towering billboards, or glaring neon signs," the local Chamber of Commerce promises.

Nonhuman island visitors also contribute to the mellow atmosphere. Dolphins regularly swim just offshore. Great egrets and great blue herons fish along the beach, while pelicans dive into the water in search of a meal. Birds of all sizes regularly patrol the palm-lined parking lot of the local supermarket looking for scraps of food from the lunch crowd.

Wingless creatures also pop up in unexpected places. Visitors walking into one establishment are greeted by a stern voice exclaiming, "Bear, no!" Bear, it turns out, is a curious 5-month old Chesapeake Bay retriever who insists on checking out all the customers entering the store despite his owner's orders to stay put.

To read the complete article, click here.

If you're considering finding a winter home or moving permanently to Florida, Longboat Key is a wonderful option. Feel free to contact me so I can show you this serene area and the many Longboat Key real estate opportunities available.

Here's a quick link to search for real estate on Longboat via my website:
Search for Longboat Key Real Estate

Sarasota Association of Realtors Releases August Sales Figures

August 2008 sees continuation of summer sales slowdown

Despite a late summer and early fall dominated by depressing economic news across the nation, property sales in the Sarasota MLS did not see a dramatic change from the previous month, continuing a traditional slower summer sales season.

Overall sales stood at 440 in August, only slightly lower than the 454 in July. In fact, sales in August 2008 were actually higher than in August 2007, when only 430 overall single family homes and condos were sold.

The biggest decrease from last year was in condominium sales, which fell to 84 this year compared to 122 last year. The August 2008 report continued to show strength in pending sales, which stood at 536, just off last month's total of 584. In August 2007 only 456 pending sales were reported, which forecasts a stronger market for the fall and winter months. Pending sales reflect contracts executed by buyers and sellers, and current numbers indicate more closings likely in the upcoming months.

Sales prices for single family homes decreased somewhat in August, falling to $226,250 from last month's median of $250,000. But condominium prices saw a resurgence to $295,000 from July's $252,500. This means most property is apparently holding its value better locally, which also means the local market is doing better than the statewide and national downward trends.

"The national financial crisis has obviously dominated the news this month, but fortunately our market appears to be weathering yet another storm very well," said Helen Sosso, 2008 SAR President. "These are difficult times for many businesses and industries, and the real estate industry is no exception. But the Sarasota market is blessed with many fundamental strengths and attractions, one of which is our highly skilled and professional group of real estate brokerages and agents. In difficult times, the guidance of member agents in the SAR is vital to achieving your most advantageous property transaction."

Inventory levels in August 2008 dropped for the sixth consecutive month, and are the lowest they have been since late 2005. There were 6,461 single family homes listed, compared to 8,677 in July 2008, and 2,407 condos listed, compared to 4,599 condos listed last month. However, some of this discrepancy is likely attributable to the new MLS system which became operational in early August and resulted in the elimination of much of the duplication in property listings between the five area member associations (including the Manatee Association of Realtors).

The current local market, despite the negativity in the national news, continues to demonstrate statistically that we have a great selection of more affordably priced housing for buyers to visit and purchase. In addition, declining inventory levels normally indicates the market is returning to a more historical balance, which eventually leads to normal, long-term price appreciation.

Click HERE for the complete press release.

Sarasota Board of Realtors Announces June 2008 Sales

July 24, 2008

*The following press release was sent to local media on July 24 at 11:00 a.m.

Sarasota Market Sees Slower Summer Sales in June 2008, But High Pending Sales Figures Indicate Stronger Market Ahead


The Sarasota MLS saw a slight dip in sales for June 2008 compared to the previous month, and home prices continued to normalize as the local market entered the slower summer sales season.

Overall sales stood at 559 in June - still one of the highest months for sales during the past year, but lower than the May total of 627 sales. Single family home sales in June 2008 stood at 411, matching the level from June 2007. But condominium sales dropped to 148 from the previous year's total of 186. Sales had been increasing each month in 2008 prior to the June dip, from 329 in January to 627 in May.

Sales prices saw a decline in June, dropping to a median of $250,000 for single family homes, and $275,000 for condominiums. The price for homes was $274,500 in May, and $367,250 for condominiums. The median sale price for condominiums had been in the mid- to upper- $200,000 range for the entire year with the exception of the May spike.

"Normally, we see a decline in sales as the summer season begins," said Helen Sosso, 2008 SAR President. "This year, the decline has not been very sharp, and we have seen pending sales remain at a very high level. So there is evidence that we won't experience a lengthy or deep lull in sales activity. The Sarasota area real estate market is continuing to demonstrate resilience in a down cycle, and we all know why. This area remains a prime relocation spot for families and businesses, and our cultural, geographic and environmental assets are a natural magnet, both across the nation and in the international arena."

The June 2008 report continued to show strength in pending sales, which stood at 698 - the second highest level since June 2006. Last month's pending sales stood at 692, the highest in the period. In June 2007 only 543 pending sales were reported. Pending sales reflect contracts executed by buyers and sellers, and current numbers indicate more closings in upcoming months and an improving market in the mid-summer months.

Inventory levels were lower in June 2008 for the fourth consecutive month, and are the lowest they have been since February 2006. Still, with 9,108 single family and 4,765 condos listed, buyers continue to enjoy an abundant selection of more affordably priced housing to review and purchase. As in the past few months, the reduced inventory has resulted from a combination of fewer new properties being listed, and higher sales numbers. As the inventory continues to decline, the market will return to a more historical balance. And as the market approaches equilibrium, the buyer's market we've been experiencing will vanish, and price appreciation will return to the market.

Click HERE for the complete press release, including PDF with two charts.



Sarasota Association of REALTORS®

Sarasota market hits highest sales figure since March 2007

June 26, 2008

The following press release was sent to local media on June 26 at 11:00 a.m.

Sarasota market hits highest sales figure since March 2007

Home sales in the Sarasota MLS for May 2008 stood at 627 - the highest level in 14 months, and approximately 92 percent higher than the sales in January 2008. In 2008, sales have been increasing each month, possibly due to the influence of the new property tax portability law enacted in late January. Sales have climbed from 329 in January to 423 in February, 514 in March and 567 in April.

"This year, the Sarasota real estate market has been a beacon of hope as the state and national markets continue to struggle," said Helen Sosso, 2008 SAR President. "I believe our local agents have embraced the concept of a buyers' market, and educated sellers on the realities of pricing. We still have advantageous interest rates, and our communities' natural and cultural amenities always attract buyers."

The May 2008 report continued to reflect strength in pending sales, which stood at 692 - the second highest level since June 2006. Last month's pending sales stood at 756, the highest in the period. In May 2007 only 541 pending sales were reported. Like closed sales, pending sales have been edging upward since December 2007, when there were only 374 pending sales reported. Pending sales reflect contracts executed by buyers and sellers, and indicate more closings in upcoming months and an improving market in the early summer months.

Inventory levels were lower in May 2008 for the third month, and are the lowest they have been since February 2006. Still, with 9,500 single family and 5,100 condos listed, buyers have a huge selection of more affordably priced housing to select from. The reduced inventory is a combination of fewer properties being listed, and increasing sales numbers. As the inventory continues to decline, the market will come back to more balance. As we approach equilibrium, the buyer's market we've been experiencing will be gone, and price appreciation will creep back into the market.

In general, the Sarasota MLS statistics show a rebound throughout 2008 - every month seeing stronger numbers than the month before. In fact, Sarasota statistics have been stronger in recent months than sales in the Miami market, which is a much bigger geographic and demographic area.

In the local Sarasota market, we have seen the trend already beginning toward lower inventories, higher sales, and a leveling of prices after several months of declines. The May figures reflect this new reality.

Click here for the full story with bar charts:

Approval Is Near for Bill to Help U.S. Homeowners

By DAVID M. HERSZENHORN
Published: June 25, 2008

WASHINGTON — With sinking home values continuing to drag down the economy, Congress is poised to approve a huge package of housing legislation, including a refinancing program aimed at rescuing hundreds of thousands of homeowners in danger of foreclosure and the most sweeping government overhaul of mortgage financing since the New Deal.

Lawmakers moved with increasing urgency on Tuesday after a closely watched housing index showed prices nationally had declined in April by more than 15 percent from a year earlier. Senator Harry Reid of Nevada, the majority leader, threatened to keep the Senate in session through the Fourth of July holiday to finish the housing measure, if needed. The House has already approved similar legislation.

The centerpiece of the Senate package is a rescue-refinancing plan aimed at stemming the tide of more than 8,000 new foreclosures a day that lenders are filing across the country. The plan would allow distressed borrowers and their lenders to stem losses by allowing qualified owners to refinance into more affordable, 30-year fixed-rate loans with a federal guarantee.

The legislation would also provide benefits for first-time buyers, who would receive a refundable tax credit of up to $8,000, or 10 percent of the value of a home, on purchases of unoccupied housing.

As part of a regulatory overhaul of Fannie Mae and Freddie Mac, the mortgage finance giants, the bill would permanently increase to $625,000, from $417,000, the limit on loans they can purchase from lenders in expensive housing markets, making it easier for borrowers to obtain mortgages at discounted rates. Despite a presidential veto threat, the package received overwhelming bipartisan support, clearing by 83 to 9 a crucial procedural vote in the Senate on Tuesday morning.

Final passage of the bill was snagged temporarily in the Senate Tuesday evening because of a fight over renewable energy tax credits. Still, major supporters of the bill said they hoped it would be completed before for the holiday.

“There’s a great desire to act,” said Representative Barney Frank, Democrat of Massachusetts, the bill’s main author in the House. “We’re just not there yet.”

The bill would provide $150 million to expand counseling for borrowers to prevent foreclosure and would establish stricter disclosure rules to require lenders to make plain the maximum monthly payment for a borrower with an adjustable rate loan.

The bill also establishes an Affordable Housing Trust Fund, to be financed by $500 million to $900 million in fees from Fannie Mae and Freddie Mac. The fund will cover any expenses related to the foreclosure rescue plan for three years, and will be used to create affordable rental housing.

Under the refinancing plan, only borrowers seeking to remain in their primary home would be eligible. Lenders would first have to agree to cut the principal balance of loans to roughly 85 percent of each property’s current value.

Read the full article