 NOTE: Hover the mouse
pointer over "E-mail Mike" & "ICQ Me" buttons a few
seconds
for the email addresses.
This has been done to thwart the thousands of SPAM emails that
I receive.
|
|
Senate OKs new tax credit closing deadline
The Senate has amended a bill to give homebuyers
who were under contract on a home purchase by
April 30 an additional three months to close the
deal and claim the federal homebuyer tax credit.
Extending the deadline for closing from June 30
to Sept. 30 would allow lenders more time to
clear a backlog of 180,000 homebuyers
nationwide, said amendment sponsor Sen. Harry
Reid, D-Nev.
Read full story here.
|
Oil spill: Local governments
worry about falling revenue
FORT WALTON BEACH, Fla. – June 15, 2010 –
Relatively little oil has made it to
Northwest Florida, but the region’s fragile
tourism-driven economy already is reeling
from the blows being inflicted upon it by
BP’s Deepwater Horizon spill.
Caught in a situation where the bad only can
get worse, the last thing residents and
businesses need are higher millage rates
imposed to keep local taxing authorities
afloat, area property appraisers say.
“We want BP on the hook” to prevent economic
disaster, said Chris Jones, the property
appraiser for Escambia County.
Jones was one of five local property
appraisers who gathered Friday at the Fort
Walton Beach Chamber of Commerce at the
invitation of state Sen. Don Gaetz and his
son, state Rep. Matt Gaetz, R-Fort Walton
Beach.
The property appraisers had called earlier
this week for a special session of the state
Legislature.
They want to see lawmakers find ways to
force BP PLC to reimburse the region for
lost business and the tax revenue that
tourism generates. They want to see
lawmakers act quickly as well, because they
know a lot of businesses and homeowners
won’t survive until tax bills begin
reflecting lower property values.
“It would be next year before the people
getting killed by the drop in tourism can
see any ad valorem tax benefits,” Okaloosa
County Property Appraiser Pete Smith said.
“We’re saying we see the train wreck coming,
and it’s going to be ugly.”
They also worry BP will declare bankruptcy
and wash its hands of any liability.
“We’re concerned BP is going to break and
run,” Smith said. “When (legislators) can,
they need to get a long-term commitment from
BP to pay for all these losses.”
Don Gaetz said he favors taking the BP
reimbursement issue to Tallahassee as a
special session issue “so the special
session is not just a template for the
governor’s senate campaign.”
He said he believes the Legislature will
convene in special session in July. “We can
deal with real issues that are important to
Northwest Florida,” he said.
The Gaetzes were adamant, however, that
whatever legislation is proposed be tightly
drawn and solid enough to pass muster with
lawmakers from across the state. “In the
absence of knowing what to do, the
Legislature will do something,” Don Gaetz,
R-Niceville, said. “And sometimes when you
shoot in the dark, you don’t hit what you
want.”
Whatever bill might be drafted cannot shift
the burden of Northwest Florida’s coastal
community onto taxpayers living north of the
water or elsewhere in the state, Don Gaetz
said.
Smith had expressed some concern that
Friday’s meeting might be more political
sideshow than brainstorming session. He
said, afterward, however, he was pleasantly
surprised by the discussion.
The Gaetzes invited not only the property
appraisers from Escambia, Santa Rosa,
Okaloosa, Walton and Bay counties but also
had accountants, Realtors, condominium
presidents and local elected officials.
No one had good news to report.
In addition to property tax issues, the
appraisers noted that local governments will
suffer from lost sales and bed tax revenue.
Bruce Nunnally, with the accounting firm of
Carr, Riggs and Ingram, said his business is
working with clients who formerly made
enough profit in June, July and August to
tide them through the winter.
Now, he said, some of those business owners
are struggling to survive June.
Mary Anne Windes, president of the Emerald
Coast Association of Realtors, said the
rental market had shown signs of improving
until about two weeks after the Deepwater
Horizon spill. Since that time, vacation
rentals and home sales have taken drastic
downturns, she said.
“The difference between a month ago and
today is night and day,” she said.
Kabe Woods, president of KLW Properties,
analyzes trends in housing and business. He
said statistics indicate “a negative
outlook” for commercial business,
condominium sales and rentals, and local
governments.
“This is impacting tourist revenue at all
levels,” he said. “I see some big hits on
revenue.”
Suzanne Harris, president of her Miramar
Beach condominium association, reported,
“the condominium market is being
devastated.” She based her assessment partly
on advance rentals, which she said had shown
monthly increases from 16 to 30 percent
until June, when the rentals dropped 70
percent.
Harris also told the legislators a local
resort rental business had suffered 400
cancellations in a single week.
She said it is possible 50 percent of the
owners at her condominium could have packed
up and left by next year.
“I think you’re going to have a nightmare on
the Emerald Coast,” Harris said.
Copyright © 2010 Northwest Florida Daily
News, Fort Walton Beach, Tom McLaughlin.
Distributed by McClatchy-Tribune Information
Services.
 |
|
THINGS TO DO...
Naples Florida Activities and Attractions
Naples Florida offers exquisite sunsets,
incredible shopping, championship golf & white
sand beaches while being home to some of the
most luxurious waterfront estates and condos in
the world.
|
|
|
|
|
|
Address:
8000 State Road 31
Punta Gorda, Florida
33982Phone:
931-637-4611
|
If you wish to experience
the thrill of meeting
panthers, bison, birds, and
dozens of wild alligators
face to face, then this tour
is a must
|
|
|
|
|
|
|
|
|
|
Address:
1590 Goodlette Rdt
Naples, Florida
34102Phone:
239-262-5409
|
Rediscover natural fun in
the heart of Naples. Explore
this nationally accredited
zoo with animals from
alligators to zebras blended
into a historic botanical
garden - two attractions in
one! See Tiger Forest,
Panther Glade, and African
Oasis. Enjoy exciting
wildlife presentations all
day and a cruise past
islands of monkeys. |
|
|
|
|
|
|
|
|
|
Address:
1010 6th Avenue South
Naples, Florida
34102Phone:
1-800-592-0848
|
Taking the "Safari Wagon" to
the Everglades Jungle Cruise
|
|
|
|
|
|
|
|
|
|
Address:
137 12th Avenue South
Naples, Florida
34102Phone:
239-261-8164
|
Palm Cottage™ House Museum
and The Norris Gardens -
Naples Florida. Take a step
back in time strolling
through one of our Gardens,
like our Shade Garden, or by
taking a Walking Tour of the
Naples Historic District, or
just touring the Palm
Cottage™ house museum...any
tour will give you a glimpse
into the fascinating history
and heritage of Naples.
|
|
|
|
|
|
|
|
|
|
Address:
107 Camellia Street
Everglades City, Florida
34139Phone:
239-695-3299
|
Explore the the unhabited
islands of the Everglades
and 10,000 Islands by Canoe
or Kayak. Discover the
timeless Everglades
Backcountry. Travel through
the sun dappled mangrove
tunnels, wander across vast
sawgrass prairies or walk
the sands of the sparkling
10,000 Islands. Travel with
nature through these
magnificent and unique
ecosystems. Your day's
companions will be the
curious dolphins, the
sinister alligators, the
gentle manatees and birds of
glorious colors. And when
you leave, you will take
with you a lifetime of
unforgettable memories.
|
|
|
|
|
| Top 10 Home Buying Mistakes
Use our list of common
house-buying mistakes to avoid costly regrets.
1.
Doing it alone. Buying a house is a
complex transaction. Even if you don’t use an
agent, you’ll need a complete, dependable team:
lender, lawyer, inspector, insurer, as well as
referrals and advice from friends and family.
Enlist the help of these individuals early in
the buying process.
2.
Buying at first sight. You may be in love
with the place, but does it fit your family’s
needs and budget? Make a list of your needs and
wants and make sure the house fits your
requirements. Check out the neighborhood and the
community before you buy by visiting at
different times of the day and week to learn
about noise and traffic patterns. Even if you
don’t have kids, check out the local schools to
make sure your resale value will be good.
3.
Not getting pre-qualified and pre-approved.
Being pre-qualified gives you a general idea of
how much you can afford to borrow. Being
pre-approved means a lender has verified your
information and credit rating and agreed to
provide you with a specific amount of money. You
are in a better position to go house hunting
knowing exactly how much you can afford and that
you have financing.
4.
Overbuying. You may qualify to borrow
more, but can you afford to? Analyze your
monthly costs: debt, food, transportation,
entertainment, and savings. As a general rule,
your total monthly debts, including your
mortgage, should not exceed 36 percent of your
income before taxes. Be sure to budget enough to
cover closing costs (often two to five percent
of the home’s purchase price), plus moving,
redecorating and maintenance. Allow for
increases in ongoing expenses such as utilities
and taxes.
5.
Misplacing your trust. No matter how much
you like the agent, sellers, inspector, or the
guy down the block who vouches for them,
remember this is a business transaction. Your
decision is binding. Do your own research and
know your support team’s roles and
responsibilities.
6.
Relying on oral agreements. Get it right
and get it in writing. Written agreements almost
always trump oral ones when it comes to
contracts. If the offer says the lawnmower is
negotiable, but the agent says it’s included,
get it in writing.
7.
Skipping the fine print. You need to
understand what you’re signing before you pick
up a pen. Ask for documents in advance, make
time to read them and ask questions. Get copies
of your mortgage papers a few days ahead of
closing.
8.
Forgetting or betting on resale. Avoid
buying a home that costs 50 percent more than
neighboring homes and think before buying the
most expensive home on the block. Your
neighbors’ lower home values will weaken yours.
Remember, markets change. If you buy intending
to flip your investment and the market falls and
you have to sell, your selling price may not be
enough to even cover your mortgage.
9.
Making an unconditional offer. Protect
yourself with at least two of these
contingencies in your offer:
- Mortgage financing --
You’re pre-approved, but is the house?
Before a bank will lend you money, it will
want a formal appraisal of the property to
confirm that there is sufficient equity in
it to warrant the loan. If the house
appraises lower than the sales price, the
loan may be declined.
- Inspection -- never buy
an existing or new home without a thorough
home inspection. Walk through the home with
the inspector to learn more about the house
and any concerns he or she may have.
- Insurance -- confirm you
can get adequate coverage. In some areas,
it’s difficult to get hazard insurance.
10.
Having buyer’s remorse. No place is
perfect. There will always be surprises. Don’t
let a few initial blips spoil the whole ride.
And don’t miss a great house waiting for the
perfect one! |
4/8/2010: Federal Court Awards
7 Virgina Families $2.6 Milllion
Dollars in Chinese Drywall
Lawsuit
On Thursday, Federal Court Judge
Eldon Fallon ordered that the 7
plaintiff's homes be fully
remediated due to the damages
caused by defective drywall.
The Judge's ruling could
possibly set the standard for
remediating homes with defective
drywall.
We have been continually
monitoring the progress of the
court cases filed against
Drywall Manufacturers, Home
Builders, Insurance Companies,
and Contractors.
If you would like to obtain a
copy of the ruling from Judge
Fallon, please email
Info@kro ssinspectors.com or
visit
www.krossinspectors.com/chinesedrywall.
|
Multiple offers on homes for
sale are common in urban centres
across Canada as buyers race to
beat interest rate increases.
Here's how to stay above the
fray and not overspend on your
house purchase.
FULL STORY->
|
Real Estate
Outlook: Jumps and Gains
by Kenneth R. Harney
You can take your economic cues
from the Federal Reserve Board' s
latest assessment…or you can take
them from the nation's consumers
directly, as measured by the
Conference Board's monthly Consumer
Confidence survey.
Both are now essentially saying
the same thing: The economy is
surely but steadily getting
stronger, consumers feel better than
they have in months about their
prospects, but the ongoing concern
-- and it's a big one -- is
unemployment and creating new jobs.
The Consumer Confidence index
-which is based on interviews with
5,000 households per month -hit its
highest mark in more than a year. At
the same time, Federal Reserve Board
announced its decision to hold
interest rates at their low current
levels, and observed that the
economy is still very much in
recovery mode - a slow healing
process that the Fed doesn't want to
diminish by raising rates.
|
Golf deals: Survey
finds Naples area clubs slashing
membership fees to attract business
The retirement dream of many —
joining a country club — is becoming
more attainable and affordable.
With the economy wreaking havoc,
golf clubs are hacking fees like a
30-handicaper in a sand trap. The
Daily News surveyed more than 30
golf clubs in Southwest Florida —
from communities with mandatory
memberships to public facilities —
and found bargains are as bountiful
as birdies and bogeys.
From slashing initiations fees by
60 percent to eliminating them
altogether, local golf clubs are
going to extreme measures to attract
business.
“I definitely think if anybody is
interested in golf it is now more
affordable than what it used to be
and I think that trend is going to
continue,” said Hilda Gilbert,
membership director at the Club at
the Strand, a private club which
once hosted an LPGA Tour event and
has decreased family initiation fees
to $32,000 from $55,000 in the past
five years.
Discounted country club
memberships and attracting new
members is becoming a national
trend.
|
Freddie Mac (NYSE:FRE) today released
the results of its Primary Mortgage
Market Survey (PMMS) in which the
30-year fixed-rate mortgage (FRM)
averaged 5.08 percent with an average
0.7 point for the week ending September
3, 2009, down from last week when it
averaged 5.14 percent. Last year at this
time, the 30-year FRM averaged 6.35
percent.
|
More Biz in a
Tough Market: How to Get More
Exposure Right Away
http://realtytimes.com/rtpages/20090624_morbiz.htm
|
Real Estate
Outlook: Recovery Underway
by Kenneth R. Harney
The pattern gets clearer week after week: We are looking at a
slow-motion housing recovery that is
itself feeding into a broader economic
recovery that should have us out of
recession later this year.
Now that's not to ignore the fact
that there are markets in the country
that still face very challenging
economic dynamics, with no real
turnaround in view yet on housing sales,
prices and unemployment.
But the national numbers are telling
us something important. And they
increasingly look positive.
Take last week's new home
construction starts and permits reports.
Your local paper or the network news may
have said housing starts dropped again,
but that was misleading.
The facts are that the Commerce
Department found that apartment starts
-- new multifamily units -- took a drop
in April, but starts of new single
family homes were up by 3 percent, and
permits for future construction of
detached single family homes jumped by
nearly 4 percent.
That's the second straight month of
increases. Home builders themselves are
seeing a turnaround -- more shoppers in
their models and showrooms, more
contracts, fewer cancellations.
The latest survey of builder
confidence, released last week by Wells
Fargo and the National Asociation of
Home Builders, found sentiment up again
for the second straight month. This is
for real.
Consumer confidence in the economic
outlook also continues to get better and
better. The latest University of
Michigan consumer sentiment poll took a
three point jump overall … and a 6
percent jump in terms of consumers'
expectations for economic improvements
ahead.
There are other, less widely
publicized signs that we've digging out
of the recession as well. For example,
economists at Northwestern University
say the fact that new weekly claims for
unemployment insurance peaked last month
-- and have been dropping ever since --
is a sign that the national economy is
past the worst.
Treasury Secretary Timothy Geithner
told a congressional panel about other,
more technical indicators of growth
ahead -- such as narrowing spreads on
corporate and municipal bonds, smaller
risk premiums on short-term inter-bank
loans and decreased credit protection
costs at the largest U.S. banks.
Finally, consumer interest rates
continue to be about as stimulative for
economic expansion as they possibly
could: Mortgage rates dropped last week
by a tenth of a percent -- 30-year fixed
rate mortgages are at 4,7 percent with
an average one point, and 15-year rates
are at 4.4 percent.
Remember back to how you felt last
September and October when the global
financial system was falling apart? Now
think about how you feel about the
economy today.
It's a refreshing comparison.
Published: May 26, 2009
|
Snag a great deal
on a short sale
Short sales - where
a lender agrees to take less than it's owed
on a mortgage - are rising sharply. Here's
how you can profit.
(Money Magazine) -- When Brian Gavitt, a
physician, and his wife Gayleen, a
stay-at-home mom, started to eye homes
in Sacramento last winter, they knew
they were looking in the hardest-hit
areas of the housing bust. So the
couple, who were relocating from
Lansing, figured they could land a
fantastic bargain in no time at all.
The part about the bargain turned out
to be true. The Gavitts bought a
five-bedroom house in the upscale
Natomas Park neighborhood ("Even now,
you don't see FOR SALE signs up
anywhere," says Gayleen.) And it was a
steal at $300,000, a full $200,000 less
than they would have paid just two years
ago.
The amount of time it took to land
the deal was another story. It was more
than six months from when the Gavitts
first saw their dream home to the moment
they held the keys in their hands. The
reason: The home they bought was a short
sale.
Not along ago, few people had even
heard of a short sale, which occurs when
the bank agrees to discount the loan
balance for a seller who owes more on
his mortgage than the home is currently
worth.
If you're in the market for a home
today, you're almost guaranteed to be
looking at some short sales. Nationwide,
14% of homeowners are currently
underwater on their mortgages,
calculates real estate website
Zillow.com. And in many areas, it's
far more: In the Gavitts' zip code, for
example, over half of homeowners would
owe more than their home is worth if
they sold today, calculates Dee
Schwindt, the Gavitts' realtor.
The good news is that short sellers
are likely to still be living in the
home and some may even be current on
their payments. That means these aren't
the run-down, distressed properties that
you often find among foreclosures; in
fact, there's a good chance that some of
the most deluxe homes for sale in your
market are underwater.
Before you get too excited about
buying a short sale, know that they
generally aren't, well, short. For the
sale to go through, the seller's lender
must approve the price and agree to take
the shortfall as a loss. That extra step
can cause the process to drag on three
times as long as a normal home sale.
But as the Gavitts discovered, the
hassles can be well worth it. Some
buyers and realtors don't want to deal
with short sales, leaving many choice
homes with very few bidders. So if
you're willing to brave the intricacies
of the process, you'll be far more
likely to land the home you always
wanted. The key to snagging a good deal
is knowing how to avoid the land mines.
Know what you're getting into.
In a short sale, you are dealing with
several parties: the sellers, their
agent and the sellers' lender. That's
why a short sale can take anywhere
between two and six months to execute,
compared with about 30 days for a
typical sale. Though many banks are
willing to take a loss on a mortgage in
a short sale if it means avoiding an
even bigger loss in a foreclosure, with
so many owners trying to unload
properties, the lender's negotiators are
flooded with short-sale offers. So if
you're moving or selling another
property, keep in mind that you'll
likely need to budget for a few months'
worth of rental payments so you have
somewhere to live in the interim.
Find the right pro. Lenders
often make realtors who work on short
sales take a hit on their commission, so
some brokers may be loath to show you
the listings. But don't even think about
going solo. These deals take a lot of
work and persistence, says Loni
Parmelly, author of Success in Short
Sales. Before you sign up with an agent,
ask him how many short sales he's
closed. If he hasn't done at least two,
find someone more experienced.
Weed out candidates. In most
cities, home listings will indicate in
the description whether the property is
a short sale. Ideally, you want to knock
off ones that come with extra
complexities. If possible, pass on any
home that has more than one lien against
it; having to negotiate loans with two
lenders can greatly increase the amount
of time it takes to complete the deal.
Also avoid homes where the seller has
other offers. That's because if another
offer is pending, the seller's agent
isn't likely to even submit yours for
approval until the first one is
rejected, meaning you'll have to wait
for another negotiation to play out
before you even get a chance.
Set the right price. The first
step is to have your agent submit your
offer to the seller. Don't just rely on
the current list price to come up with
your initial bid, says Bill Richardson,
a district sales manager for the Keyes
Co. Realtors in Boca Raton, Fla. The
seller's agent may have far underpriced
it in hopes of attracting buyers, but
the bank likely won't accept a lowball
offer. Ask your agent to determine the
home's fair market value by searching
comparable sales in the area, with an
emphasis on other short sales and
foreclosures (or get a rough estimate
yourself at
zillow.com). If the fair market
value is lower than the list price, set
your offer 10% lower than that.
At this point, you'll also want to
get pre-approval for a mortgage; many
banks won't even consider your offer if
you don't have one, says Schwindt.
Protect yourself. Next, the
seller's agent will submit your offer to
the seller's lender. At this point,
you'll be asked to sign a sales
contract. See if the lender will agree
to pick up all closing costs as part of
the contract, says author Parmelly. Also
ask your realtor to specify that you
won't do an appraisal or inspection of
the property until the offer is
approved. That way you won't have to
shell out hundreds of dollars until you
know you realistically have a good
chance of getting the home.
Finally, though most lenders will
require you to make some kind of deposit
along with the contract, don't put down
more than $3,000 before your bid is
accepted. That will give you room to put
offers on other homes or even to pull
out of the sale if it drags on for too
long.
Be a pain in the neck. After
your offer is submitted to the lender,
you're likely to hear nothing for weeks,
if not months. This is no time to relax.
Call your agent at least once a week,
and make sure the seller's agent is
contacting the bank's negotiator nearly
every day.
"These negotiators may have 400 files
on their desk. They'll want to get rid
of the squeaky wheels," says Parmelly,
who worked as a loan negotiator for
lenders for 16 years. To help the
seller's realtor in her negotiations
with the lender, it's a good idea to
have your agent show her which
comparable homes you used to arrive at
your number.
If the clock keeps ticking and you're
reaching the end of your rope, try
playing hardball. After months, the
lender the Gavitts negotiated with was
still dragging its feet and their
pre-approved loan rate was about to
expire. "We said, 'We need an answer by
Friday or we walk,' " Gayleen says. The
bank responded by week's end.
Keep your eye on the market.
When the bank finally sends its
counter-offer, use it as a guideline
rather than an ultimatum. Most of the
time, the lender's number is based on
its own research, that of a local
realtor it hires and the outstanding
loan balance. Usually its goal is to
sell for at least 90% of the home's
value, says Amy Bohutinsky, a
spokes-person for Zillow.com.
The lender's offer may not be what
you'd hoped for, but don't despair: You
have a chance to counter. If the market
has been flat since your initial bid,
try for 5% to 10% less than the bank's
number. If the market has been sinking
rapidly, however, you may be able to
prove that the home's value has shrunk
further and offer even less. Once you
have the lender's ear, the new offer
should take less time to process.
Despite all the legwork and wait, the
Gavitts are thrilled with their new
home. "I'm glad people are turned off by
short sales," says Brian. "It just means
more choices for the rest of us."
Have you found a way to pay for
your child's college education without
taking on too much debt? Did you choose
a university based on its lower cost or
loan programs, research scholarships, or
just save up and pay in full? We want to
hear from you. Send your stories to
pwang@moneymail.com and you
could be featured in an upcoming story.
|
Five reasons to buy a home
this year
Affordability returns to housing, and buyers
have loads of negotiating power
1. Affordability is better than ever
2. You have a large inventory to
choose from
3. Builders are offering big
discounts
4. Mortgage rates are
historically low
5. You can get a
federal tax credit
|
|
Investor Report: Pennies on the Dollar
by Kenneth R. Harney
With all the foreclosures and distressed
property price declines, is this finally the
time for investors to take the plunge in
Florida?
Some sophisticated players appear to be
saying, "yes, absolutely," provided you can
acquire mortgage notes or real estate at
wholesale prices as low as ten cents on the
dollar.
That's right. It's not fifty cents on the
dollar, not thirty cents on the dollar, but
ten to twenty cents.
For example, Realty Times last week spoke
with Larry Kestin, founding partner and
managing principal of the New York equity
firm, Glenmont Capital. Kestin recently
completed acquisition of what he calls a
"structured" package of residential real
estate and mortgage paper in Vero Beach --
on Florida's Treasure Coast - for ten to
twelve cents on the dollar.
Glenmont bought 45 houses, 138 developed
lots and two major land assemblies on the
water for about 8.8 million dollars, marked
down from a valuation of one hundred million
several years ago.
Kestin said he plans to sell the
portfolio in phases during a multi-year
holding and redevelopment period. Even if he
sells to other investors at 35 cents on the
dollar two years from now, Glenmont will
still be tripling its money.
Kestin said the firm had been shopping
the Florida market for well over a year, but
only recently found the combination of
unique location. "Vero Beach is a gem," he
said, and a highly-motivated seller who had
special needs that Glenmont could address
through its deal structuring.
One of South Florida's best-known experts
on so-called "vulture fund" investing, Jack
McCabe of McCabe Research and Consulting in
Deerfield Beach, says strategies like
Glenmont's "can work - but you've got to be
patient, you've got to do a lot of home work
and understand the risks" and the potential
for long holding periods that may not work
out.
"The question is-how good are you at
catching falling knives?" he asked.
McCabe said one vulture investor he knows
specializes in well-located, finished
building lots held by publicly-traded home
building companies … and has purchased $100
million worth for about $12 million.
But McCabe is no Pollyanna about Florida
vulture real estate.
He warns that there are perils all over
the place, not the least of which is the
possibility that Florida may no longer be
the magnet for retirees and foreign buyers
that it was during the boom.
The deals and potential profits are
there, says McCabe. But so are the snares to
catch the unwary.
Published: March 6, 2009 |
Mortgage applications
rise
Despite the highest
interest rates in more than a month, a
refinancing surge sends mortgage applications up
8.6% in the last week of January.
NEW YORK (Reuters) -- U.S. mortgage
applications rose in the last week of January,
reflecting a jump in demand for home refinancing
loans even as interest rates rose to their
highest levels since early December, data from
an industry group showed Wednesday.
The Mortgage Bankers Association said its
seasonally adjusted index of mortgage
applications, which includes both purchase and
refinance loans, for the week ended Jan. 30
increased 8.6% to 795.4 after slumping 38.8%
during the previous week.
Borrowing costs on 30-year fixed-rate
mortgages, excluding fees, averaged 5.28%, up
0.06 percentage point from the previous week.
Three weeks earlier, mortgage rates were 4.89%,
the lowest level recorded since the MBA survey
began in 1990.
John Lonski, chief economist at Moody's
Investors Service in New York, said the recent
trend higher in mortgage rates is a setback for
the U.S. housing market and not what the economy
needs right now.
"In this environment, we cannot afford to
have mortgage rates going up, especially because
of how critical the stabilization of housing is
to any steadying of the overall economy," Lonski
said on Tuesday.
"We cannot have a bottoming of the macro
economy without first stabilizing home sales,"
he said.
Indeed, enticing mortgage rates impacts
demand. The National Association of Realtors
said on Tuesday its Pending Home Sales Index,
based on contracts signed in December, surged
6.3% to 87.7 in December, the first increase
since August. |
FAR releases
latest report on Florida home buyers and sellers
ORLANDO, Fla. – Jan. 6, 2009 – What did the
typical Florida homebuyer look like in 2008? The
answer lies within the pages of the 2008 Profile
of Home Buyers and Sellers Florida Report
released by FAR and compiled by NAR, which is
now available at floridarealtors.org.
Because the real estate market evolves, it’s
important for real estate professionals to have
a clear picture of today’s home buyers and
sellers. The 2008 Profile of Home Buyers and
Sellers describes the characteristics and
motivations of recent home buyers and sellers in
Florida to help real estate professionals track
the changing demands of consumers in a dynamic
market.
Characteristics of home
buyers
• The median age of home buyers was 43 years
old. Among first-time buyers, the median age was
32.
• The median 2007 household income of home
buyers in Florida was $68,500 compared to
$74,900 among home buyers nationally.
• Sixty-seven percent of home buyers had no
children under age 18 residing in the home.
• Fifty-eight percent of home buyers were
married couples, 18 percent single females, 13
percent single males, and 9 percent were
unmarried couples.
• Seventeen percent of home buyers reported they
were born outside the United States, compared to
9 percent nationally.
• First-time home buyers accounted for 43
percent of recent home purchases.
• Forty-eight percent of first-time home buyers
were between 25 and 34 years old.
• The median income of first-time home buyers
was $58,400 compared to $60,600 among all
first-time buyers nationally.
• Thirty percent of first-time buyers identified
their race or ethnicity as non-white.
• The primary reason for the recent home
purchase was a desire to own a home for 60
percent of first-time buyers.
• For the timing of the home purchase, 34
percent reported it was just the right time for
them, 19 percent noted they had to purchase when
they did, and 29 percent reported it was either
due to improved affordability of homes or
availability of homes for sale. Only 7 percent
stated they wished they had waited to buy.
• Forty-six percent of home buyers reported
using social networking Web sites, such as
MySpace, Facebook, LinkedIn, and Friendster.
Among home buyers aged 18 to 24, 85 percent
reported using social networking sites, and 50
percent reported using them every day or nearly
every day.
Characteristics of homes
purchased
• New home purchases were 25 percent of recent
home purchases.
• Seventy percent of homes purchased were
detached single family homes.
• The typical home buyer purchased a home 15
miles from their previous residence.
• The median price of homes purchased was
$207,000 compared to $204,000 in the U.S.
• The typical buyer purchased a home that was
1,760 square feet in size. The median size of
home purchased by first-time buyers was 1,570
square feet
• Commuting costs were considered as very or
somewhat important by 79 percent of buyers when
considering which home to purchase.
• Recent home buyers plan to live in their home
a median of 10 years.
The home search process
• Twenty-nine percent of recent buyers reported
that their first step in the home-buying process
was looking online for properties for sale.
Thirteen percent of first-time buyers and 19
percent of repeat buyers reported their first
step was to contact a real estate agent.
• Eighty-four percent of home buyers used a real
estate professional during their home search.
• Among home buyers, the typical Internet
searcher was 41 years old and visited a median
12 homes. The typical home buyer who did not use
the Internet to search for homes was 54 years
old and saw a median 7 homes.
• Forty percent of home buyers first learned
about the home they purchased from a real estate
professional; 24 percent first learned about the
home they purchased through the Internet.
• Real estate agents were viewed as a very
useful information source by 79 percent of
buyers, and as a somewhat useful information
source by an additional 19 percent of buyers
searching for a home.
• Six percent of buyers purchased a foreclosed
home. 48 percent considered buying a home in
foreclosure, but either could not find the right
home, or found the purchase process to be too
difficult or complex.
Home buying and real
estate professionals
• Seventy-eight percent of home buyers purchased
their home through a real estate agent or
broker.
• Thirty-seven percent of first-time buyers were
referred to their agent by a friend, family
member, neighbor or relative.
• Ninety-seven percent of buyers ranked honesty
and integrity as a “very important” factor when
choosing a real estate professional to assist
with a home purchase.
• When asked about their agent’s performance on
those qualities considered important, 84 percent
reported they were “very satisfied” with the
honesty and integrity of their agent.
• Seventy-two percent of recent buyers will
definitely use their agent again and 16 percent
will probably use the agent again or recommend
to others.
Financing the home
purchase
• Eighty-eight percent of home buyers financed
their home purchase; 95 percent of first-time
home buyers financed the purchase of their home
compared to 82 percent of repeat buyers.
• Savings was the chief source of the
downpayment for 65 percent of first-time buyers.
• Forty-two percent of repeat buyers used
proceeds from the sale of their primary
residence toward the downpayment; 44 percent
relied on savings for a portion of the
downpayment.
• 48 percent of home buyers reported they have
made some sacrifices to be able to make their
home purchase, such as reducing spending on
luxury items, entertainment or clothing.
• Forty-seven percent of all buyers believe that
their home purchase was a better financial
investment than stocks, and an additional 30
percent of buyers feel their home purchase was
at least as good an investment as stocks.
Home sellers and their
selling experience
• The median age of home sellers was 52 years;
they had a median income of $80,600.
• Sixty-nine percent of home sellers were
married and 72 percent had no children under 18
years old living at home.
• Thirty-eight percent of sellers traded up to a
larger home when purchasing their next home.
• The typical home seller owned their home for 6
years.
• The typical home was on the market for 12
weeks. Thirty-one percent of home sellers did
not reduce their asking price before their home
sold.
• Recent sellers typically sold their homes for
92 percent of the listing price.
• Forty-four percent of sellers offered
incentives to attract buyers, most often
assistance with closing costs and home warranty
policies.
• Eighty-five percent of sellers used an agent
or broker to sell their home.
• Forty-nine percent of all sellers were very
satisfied with the selling process.
Home sellers and real
estate professional
• Fifty-seven percent of sellers contacted only
one agent before selecting one to help assist in
the sale of their home.
• When selecting a real estate professional, 38
percent of sellers received a recommendation
from a friend, neighbor or relative.
• The reputation of the agent was the most
important factor when choosing a real estate
professional for 34 percent of recent sellers.
• Nineteen percent of sellers used the same
agent for their home purchase.
• For 23 percent of sellers, their most
important expectation was that the real estate
agent would help price home competitively; 24
percent reported that their most important
expectation was that the agent help sell the
home within a specific timeframe.
• Ninety percent of sellers reported their home
was listed or advertised on the Internet.
• Seventy-nine percent of sellers used an agent
that provided a broad range of services and
managed most aspects of the sales transaction.
• Sixty-four percent of sellers reported they
would definitely use the same real estate agent
again.
For sale by owner sellers
(FSBO)
• Twelve percent of sellers sold their home
without the assistance of an agent compared with
13 percent of sellers nationally. Among all
sellers, 5 percent were FSBO sellers who knew
the buyer.
• Fifty-nine percent of FSBO sellers reported
that they had some difficulty in selling their
home themselves, in performing tasks such as
understanding and performing the necessary
paperwork to complete the transaction, preparing
the home for sale, and getting the price right.
© 2009 FLORIDA ASSOCIATION OF REALTORS® |
| Great news !!!!!!!!!!
Contacts: Arlene Carozza, NABOR, President
Marcia Albert, NABOR, Manager of Events &
Marketing
NAPLES SUNSHINE BECOMES AFFORDABLE, BUT FOR
HOW LONG?
Report Shows Median Sales Price Down 25
percent
NAPLES, Fla.-December 12, 2008-Overall
pending sales, which are a key indicator of
buyer activity, continues to increase and the
average days on the market decreases according
to a report released by the Naples Area Board of
REALTORS® (NABOR), which tracks home listings
and sales within Collier County (excluding Marco
Island).
The Average Days on the Market decreased 20
percent from 211 DOM in November 2007 to 169 in
November 2008.
Mike Hughes, Vice President of Downing-Frye
Realty acknowledges that
"The significant decrease in the average days on
the market for properties under $300,000
indicates that choice properties are being sold
at a swift pace, which is a key change."
Jo Carter, President of Jo Carter &
Associates agrees,
"There are great opportunities in every
geographic area. The median sold price in
several areas has decreased to under $300,000."
The median sales price decreased 25 percent
over the last 12 months ending November, 2008,
due to the flurry of activity in sales of the
under $300,000 price category.
"The decrease can be attributed to developer
incentives, sellers realistically pricing
properties, and foreclosures," stated Phil
Wood, Managing Broker of John R. Wood REALTORS®.
For the 12 months ending November, 2008, the
median sold price for properties over $300,000
increased 1 percent to $565,000 compared to
$558,000 for the 12 months ending November,
2007.
"Year over year, in the over $300,000 price
category, the median sold price has increased 1
percent. This indicates that this price segment
has stabilized," stated Brett Brown,
Managing Broker of Miromar Realty of Southwest
Florida.
The report which provides annual comparisons
of single-family home and condo sales (via the
SunshineMLS), price ranges, geographic
segmentation and includes an overall market
summary. The statistics are presented in chart
format, along with the following analysis:
- Overall pending home sales in the
greater Naples Area, which includes Naples
Beach, North Naples, Central Naples, South
Naples, East Naples, Immokalee and Ave Maria
,
increased 54 percent, with 473 in November
2008 compared to 308 in November 2007.
Overall pending home sales for
properties less than $300,000 saw a 198
percent increase with 340 in November 2008
compared to 114 in November 2007.
Single-family pending home sales
increased 87 percent overall, with 288 in
November 2008 compared to 154 in November
2007; Pending sales of single-family
properties of less than $300,000 were 208 in
November 2008 compared to 45 in November
2007, a 362 percent increase.
Overall condo pending sales increased 20
percent, with 185 in November 2008 versus
154 in November 2007; and pending condo
sales under $300,000 increased 91 percent
with 132 in November 2008 compared to 69 in
November 2007.
According to Brenda Fioretti, Managing Broker
of Prudential Florida Realty,
"The temporary reduction in interest rates
combined with current home pricing could be a
catalyst for an extremely busy season."
Bill Coffey, Branch Manager of Coldwell
Banker Residential Real Estate agrees "This has
helped lead us to a 17 percent increase in home
sales for the 12 month ending November, 2008."
The Naples Area Board of REALTORS® (NABOR) is
an established organization (Chartered 1949)
whose members have a positive and progressive
impact on the Naples community. NABOR is a local
board of REALTORS® and real estate professionals
with a legacy of nearly 60 years serving 5,000
plus member-customers. NABOR is a member of the
Florida Association of REALTORS® and the
National Association of REALTORS®, which is the
largest trade association in the United States
with more than 1.3 million members and over
1,400 local boards of REALTORS® nationwide.
NABOR is structured to provide programs and
services to its membership through various
committees and the NABOR Board of Directors, all
of whose members are non-paid volunteers. |
Fed, Treasury Announce Plan to
Jumpstart Lending
The Federal Reserve
and Treasury Department on Tuesday unveiled
hundreds of billions more in money they are
pumping into the struggling U.S. economy, trying
to jumpstart lending by the nation's banks for
mortgages and consumer debt.
Together, the
programs from the Federal Reserve and the New
York Fed aim to dump $800 billion in additional
funds into the struggling U.S. economy, more
than Congress approved in October for a bailout
of the nation's banks and Wall Street firms.
The NATIONAL
ASSOCIATION OF REALTORS® said the actions will
free up money on main street and lower long-term
interest rates, which in turn will boost home
sales.
"This is great
news for home buyers and sellers and we applaud
the Fed for taking this historic step,” said NAR
President Charles McMillan. “Housing recovery is
the key to economic recovery in this country and
it always has been.” (Read
the full NAR statement.)
Under the plan, the
Federal Reserve announced it will purchase up to
$500 billion in mortgage-backed securities that
have been backed by Fannie Mae, Freddie Mac, and
closely held Ginnie Mae, the three
government-sponsored mortgage finance firms set
up to promote homeownership. It will also buy
another $100 billion in direct debt issued by
those firms.
"This action is
being taken to reduce the cost and increase the
availability of credit for the purchase of
houses, which in turn should support housing
markets and foster improved conditions in
financial markets more generally," said the
statement from the Fed.
By putting money
in the hands of holders of consumer and mortgage
loan securities, the government hopes more money
will flow to consumers than has occurred so far
in previous bailout plans.
The moves came as
the Commerce Department announced that
gross domestic
product,
the broad measure of the nation's economy, fell
at an annual rate of 0.5% in the third quarter,
the biggest drop in economic activity in seven
years. Economists believe that the economy is
likely to continue to contract in the current
quarter and into early next year.
Source: Chris
Isidore, CNNMoney.com (11/25/08), NAR |
| Autumn is a
great time to buy
ORLANDO, Fla. – Sept. 10, 2008
– This fall could be a particularly great time
for first-time buyers or those who have been out
of the market for at least three years to jump
in, say a variety of real estate professionals.
Here are the reasons why:
• Property prices are probably as low as they
are going to go as the market stabilizes, thanks
to the government takeover of Freddie Mac and
Fannie Mae.
• Interest rates are likely to decline as
Freddie and Fannie get government help.
• The Federal Housing Administration recently
boosted its loan limits to $729,750 in expensive
areas. It’s going to take some of that back on
Jan. 1, 2009, when the loan limit shrinks to
$625,500.
• The FHA allows down payments of as little as 3
percent, but that will rise to 3.5 percent as of
Oct. 1. People scraping dollars together for a
down payment should try to set their closing for
the end of this month.
• The federal tax credit recently approved will
shave $7,500 off a first-time buyer’s federal
tax bill due April 15. Buyers who don’t owe tax
will get the money as a refund. The government’s
definition of a first-time buyer is anyone who
hasn’t owned a home in the last three years.
Source: The Washington Post, Elizabeth Razzi
(09/07/08) |
A recession-proof home sale
ORLANDO, Fla. – July 1, 2008 – It’s a buyer’s
market, but sellers can increase the chance of a
sale in today’s climate by working with a
Realtor and considering these eight things.
1. Don’t count on open houses to sell your home.
According to the California Association of
Realtors, less than 5 percent of buyers find
their home at an open house. An open house
should never be the center of a prospective real
estate agent’s marketing plan.
2. Target your marketing. Know what buyers in
your area look for and emphasize your home’s
appeal accordingly. This includes everything
from the description (whether you highlight
transportation and parks, or restaurants and
nightlife) and how you stage the home (whether
the third bedroom becomes an office), to where
you advertise the listing (a newspaper in
addition to online).
3. Tour similar homes in the area to better
understand the competition – what a home sold
for 12 months ago, or even six months ago, may
not be a good estimate for today.
4. Consider staging your home. Although not
always necessary, staging can make a difference
in how your house is viewed and compared to
others.
5. Offer prospective buyers a neighbor
“reference” list. Make a list of your best, most
reliable neighbors, so that buyers can reach out
to get a better feel for the area, the locals,
and what makes the neighborhood a truly unique
place to live.
6. Photos posted online should be taken on a
sunny day with a wide-angle lens. Approximately
one-third of buyers who responded to a recent
survey said they would eliminate homes they saw
online if they had too few or poor quality
photos.
7. Consider a pre-inspection to give you a
selling edge. Include information about any
repair work you’ve completed since you bought
the home. If you don’t market your improvements,
you won’t get as much return for them.
8. Once your house is on the market, accept
feedback and tweak as necessary.
© 2008 FLORIDA ASSOCIATION OF REALTORS® |
|
These
are
the
100
largest
markets
according
to
the
2000
Census.
Growth
forecast
is
for
April
2007
–
April
2008
from
Fiserv
Lending
Solutions.
Click
on
column
headings
to
re-rank.
|
|
Metro
Area
|
Home Price
(median)
|
Median Mortgage
(% of income)
|
Price change
(5 years)
|
Worst one-year
decline
|
Forecast growth to
April 2008
|
|
McAllen,
Texas |
$130,000
|
25 |
26.5 |
-12.3 |
88-'89 |
9.8% |
|
Tulsa |
$135,000
|
14 |
17.6 |
-7.5 |
86-'87 |
4.3% |
|
El
Paso |
$130,000
|
19 |
48.2 |
-5.4 |
87-'88 |
4.2% |
|
Scranton |
$118,000
|
13 |
41.2 |
-7.2 |
94-'95 |
3.9% |
|
Rochester,
N.Y. |
$122,000
|
11 |
22.3 |
-4.1 |
94-'95 |
3.7% |
|
Buffalo/Niagra
Falls |
$106,000
|
11 |
28.6 |
-5.2 |
81-'82 |
3.7% |
|
Fort
Worth/Arlington |
$150,000
|
14 |
18.4 |
-6.9 |
87-'88 |
3.6% |
|
Baton
Rouge |
$178,000
|
19 |
34.2 |
-8.3 |
87-'88 |
3.6% |
|
Dallas |
$151,000
|
13 |
17.8 |
-7.7 |
86-'87 |
3.6% |
|
Birmingham |
$165,000
|
17 |
31.7 |
-3.2 |
80-'81 |
3.6% |
|
San
Antonio |
$146,000
|
16 |
34.7 |
-15.8 |
81-'82 |
3.3% |
|
Houston |
$153,000
|
15 |
25.2 |
-9.6 |
84-'85 |
3.2% |
|
Syracuse |
$124,000
|
12 |
39.1 |
-7.5 |
94-'95 |
3.2% |
|
Indianapolis |
$122,000
|
11 |
15.9 |
-6.6 |
81-'82 |
3.1% |
|
Youngstown,
Ohio |
$86,000
|
10 |
14 |
-1.0 |
98-'99 |
3.1% |
|
Wichita |
$128,000
|
12 |
18 |
-4.9 |
86-'87 |
3.1% |
|
Little
Rock |
$129,000
|
15 |
28.1 |
-3.8 |
87-'88 |
3.1% |
|
Oklahoma
City |
$127,000
|
14 |
30.2 |
-15.7 |
87-'88 |
3.1% |
|
Grand
Rapids |
$137,000
|
13 |
17.3 |
-11.2 |
81-'82 |
2.9% |
|
Hartford |
$256,000
|
19 |
48.2 |
-8.2 |
89-'90 |
2.8% |
|
Cleveland |
$144,000
|
14 |
13.5 |
-1.3 |
81-'82 |
2.7% |
|
Omaha |
$140,000
|
12 |
21.5 |
-7.6 |
80-'81 |
2.7% |
|
Pittsburgh |
$139,000
|
14 |
21.9 |
-8.5 |
80-'81 |
2.7% |
|
Memphis |
$133,000
|
14 |
14.3 |
-1.4 |
89-'90 |
2.7% |
|
New
Orleans |
$175,000
|
20 |
50.5 |
-7.1 |
87-'88 |
2.6% |
|
Akron |
$137,000
|
13 |
13.1 |
-3.2 |
81-'82 |
2.6% |
|
Columbia,
S.C. |
$140,000
|
14 |
25.8 |
-7.9 |
80-'81 |
2.5% |
|
Austin |
$176,000
|
15 |
20.3 |
-20.1 |
88-'89 |
2.5% |
|
Toledo |
$124,000
|
12 |
12.9 |
-14.6 |
82-'83 |
2.4% |
|
Cincinnati |
$168,000
|
15 |
18.4 |
-2.7 |
80-'81 |
2.4% |
|
Chicago |
$281,000
|
23 |
46.7 |
-1.0 |
81-'82 |
2.2% |
|
Albany,
N.Y. |
$198,000
|
17 |
70.8 |
-7.1 |
94-'95 |
2.1% |
|
Raleigh/Cary,
N.C. |
$214,000
|
17 |
21.4 |
-8.7 |
81-'82 |
2.1% |
|
Dayton |
$128,000
|
13 |
15.2 |
-8.8 |
81-'82 |
2.1% |
|
Columbus |
$165,000
|
15 |
18.2 |
-3.2 |
81-'82 |
2% |
|
Louisville |
$143,000
|
14 |
23 |
-3.4 |
80-'81 |
2% |
|
Atlanta |
$195,000
|
17 |
22 |
-1.7 |
89-'90 |
2% |
|
St.
Louis |
$154,000
|
14 |
37.3 |
-8.1 |
80-'81 |
2% |
|
Gary,
Ind. |
$135,000
|
13 |
26 |
-6.3 |
81-'82 |
2% |
|
Greensboro,
N.C. |
$152,000
|
16 |
18.4 |
-0.5 |
81-'82 |
1.8% |
|
Charlotte,
N.C. |
$198,000
|
18 |
22.7 |
-2.9 |
82-'83 |
1.8% |
|
Kansas
City |
$158,000
|
14 |
25 |
-4.8 |
82-'83 |
1.8% |
|
Knoxville |
$137,000
|
15 |
38.3 |
-0.1 |
84-'85 |
1.7% |
|
Salt
Lake
City |
$216,000
|
21 |
45 |
-6.0 |
87-'88 |
1.7% |
|
Nashville |
$159,000
|
15 |
34.8 |
-2.6 |
89-'90 |
1.7% |
|
Cambridge,
Mass. |
$431,000
|
28 |
27.1 |
-7.7 |
89-'90 |
1.3% |
|
Farmington
Hills,
Mich. |
$177,000
|
13 |
9.5 |
-13.2 |
81-'82 |
1.2% |
|
Lake
County,
Ill. |
$275,000
|
19 |
38 |
-8.4 |
81-'82 |
1.1% |
|
Tacoma,
Wash. |
$273,000
|
26 |
64.5 |
-3.6 |
81-'82 |
0.8% |
|
Minneapolis/St.
Paul |
$240,000
|
18 |
38.9 |
-1.6 |
82-'83 |
0.7% |
|
San
Francisco |
$837,000
|
54 |
56.8 |
-8.8 |
90-'91 |
0.7% |
|
Seattle |
$399,000
|
31 |
62.8 |
-7.8 |
81-'82 |
0.6% |
|
Honolulu |
$635,000
|
52 |
105.9 |
-51.9 |
80-'81 |
0.6% |
|
Albuquerque |
$165,000
|
18 |
46.4% |
-1.2 |
1998-1999 |
0.6% |
|
Wilmington,
Del. |
$244,000
|
19 |
69.7 |
-8.3 |
90-'91 |
0.2% |
|
Milwaukee |
$219,000
|
19 |
41.7 |
-8.2 |
81-'82 |
0.2% |
|
Springfield,
Mass. |
$205,000
|
19 |
55.5 |
-5.9 |
93-'94 |
0.1% |
|
Richmond |
$231,000
|
20 |
64.8 |
-1.4 |
81-'82 |
0.1% |
|
New
Haven |
$264,000
|
21 |
60.2 |
-7.4 |
90-'91 |
-0.1% |
|
Stamford,
Conn. |
$545,000
|
33 |
53.1 |
-8.7 |
89-'90 |
-0.2% |
|
Detroit |
$118,000
|
12 |
12.5 |
-17.8 |
81-'82 |
-0.2% |
|
Camden,
N.J. |
$239,000
|
18 |
81.9 |
-8.2 |
81-'82 |
-0.3% |
|
Worcester,
Mass. |
$268,000
|
22 |
38.2 |
-9.5 |
89-'90 |
-0.4% |
|
Boston |
$379,000
|
28 |
41.2 |
-8.2 |
89-'90 |
-0.4% |
|
Philadelphia |
$222,000
|
19 |
71.8 |
-3.8 |
94-'95 |
-0.6% |
|
Allentown,
Pa. |
$270,000
|
24 |
69.1 |
-12.2 |
81-'82 |
-0.7% |
|
Sacramento |
$408,000
|
36 |
93.9 |
-6.4 |
92-'93 |
-0.9% |
|
Portland,
Ore. |
$293,000
|
26 |
67.4 |
-16.6 |
80-'81 |
-1.1% |
|
Essex
County,
Mass. |
$372,000
|
28 |
33.8 |
-9.2 |
90-'91 |
-1.2% |
|
San
Jose |
$740,000
|
45 |
54.1 |
-11.6 |
00-'01 |
-1.2% |
|
San
Diego |
$574,000
|
52 |
93.7 |
-6.8 |
92-'93 |
-1.3% |
|
Baltimore |
$275,000
|
22 |
95.3 |
-4.1 |
81-'82 |
-1.9% |
|
Ventura
County,
Calif. |
$647,000
|
48 |
110.4 |
-10.7 |
90-'91 |
-2% |
|
Denver |
$268,000
|
22 |
12.6 |
-2.3 |
87-'88 |
-2.2% |
|
Newark |
$397,000
|
27 |
71.5 |
-7.4 |
89-'90 |
-2.4% |
|
West
Palm
Beach,
Fla. |
$340,000
|
31 |
118.7 |
-4.9 |
90-'91 |
-2.5% |
|
Oakland |
$630,000
|
44 |
70.4 |
-5.7 |
90-'91 |
-2.5% |
|
Providence |
$287,000
|
26 |
74.7 |
-7.7 |
80-'81 |
-2.6% |
|
Sarasota |
$278,000
|
28 |
103.3 |
-2.6 |
81-'82 |
-3% |
|
Edison,
N.J. |
$362,000
|
24 |
76.3 |
-7.3 |
89-'90 |
-3.2% |
|
Jacksonville |
$224,000
|
22 |
80.8 |
-0.8 |
83-'84 |
-3.3% |
|
Virginia
Beach |
$244,000
|
24 |
99.1 |
-0.6 |
94-'95 |
-3.4% |
|
New
York
City |
$482,000
|
48 |
82.1 |
-6.4 |
89-'90 |
-3.9% |
|
Washington,
D.C. |
$421,000
|
28 |
96.2 |
-5.1 |
90-'91 |
-3.9% |
|
Tampa |
$227,000
|
24 |
100.5 |
-1.7 |
90-'91 |
-4.2% |
|
Fresno |
$311,000
|
39 |
149.7 |
-9.7 |
82-'83 |
-4.2% |
|
Orlando |
$269,000
|
27 |
107.1 |
-1.4 |
91-'92 |
-4.4% |
|
Riverside,
Calif. |
$407,000
|
41 |
147.9 |
-9.2 |
93-'94 |
-4.4% |
|
Poughkeepsie,
N.Y. |
$288,000
|
23 |
82.9 |
-19.0 |
82-'83 |
-4.5% |
|
Bethesda,
Md. |
$465,000
|
28 |
99.5 |
-3.8 |
81-'82 |
-4.6% |
|
Tucson |
$237,000
|
26 |
84.6 |
-1.7 |
81-'82 |
-4.6% |
|
Santa
Ana,
Calif. |
$713,000
|
53 |
116.9 |
-8.8 |
92-'93 |
-4.9% |
|
Los
Angeles |
$547,000
|
57 |
138.5 |
-11.9 |
92-'93 |
-5% |
|
Bakersfield,
Calif. |
$287,000
|
35 |
168.1 |
-5.4 |
94-'95 |
-5.4% |
|
Stockton,
Calif. |
$450,000
|
46 |
99.1 |
-5.2 |
94-'95 |
-5.4% |
|
Fort
Lauderdale |
$325,000
|
31 |
128.4 |
-3.1 |
92-'93 |
-5.5% |
|
Phoenix |
$271,000
|
26 |
103.8 |
-6.0 |
81-'82 |
-5.5% |
|
Nassau/Suffolk,
N.Y. |
$483,000
|
31 |
76.3 |
-6.6 |
89-'90 |
-6% |
|
Miami |
$335,000
|
41 |
149.3 |
-4.3 |
81-'82 |
-8.8% |
|
Las
Vegas |
$325,000
|
33 |
110.8 |
-17.0 |
82-'83 |
-8.9% |
|
|
|
|
by
Benny L.
Kass
Question:
You once
wrote
that the
condominium
resale
certificate
that a
potential
buyer
must
receive
should
disclose
any
outstanding
assessments.
Is a
seller
required
to
disclose
that
there is
a large
upcoming
assessment
due to
known
problems
in the
entire
complex.
The
condominium
documents
I
received
when I
purchased
my unit
were
outdated
and
incomplete,
but
because
it was
so close
to the
closing
date, I
foolishly
completed
the
transaction.
How do I
determine
if my
seller
knew of
these
problems
and the
pending
assessment?
Answer:
What can
I tell
you? You
have
already
admitted
that you
foolishly
went to
settlement
without
doing
your
homework.
In
many
jurisdictions
(including
Maryland,
Virginia
and the
District
of
Columbia)
potential
condominium
buyers
are
entitled
to
receive
what is
known as
a
"resale
certificate."
This is
a
document
which
spells
out a
number
of
important
aspects
of the
condominium
you are
planning
to
purchase,
from the
amount
of
reserves
in the
association,
to
whether
there is
any
pending
litigation
against
the
complex.
This
certificate
also
should
contain
the
current
legal
documents
of the
association,
as well
as the
most
recent
budget
and the
most
current
audited
statement
from the
association's
independent
CPA. It
will
also
advise a
potential
purchaser
whether
there
are any
special
assessments
which
have to
be paid.
Where
there
are such
assessments,
my
experience
is that
buyers
and
sellers
will
negotiate
who is
to pay
them and
when an
agreement
is
reached
it will
be
included
in the
purchase
and
sales
contract.
Typically,
a seller
will
agree to
make the
payment,
but that
is not
always
the
case.
Some
sellers
take the
position
that
they
will not
pay the
balance
of the
special
assessment
since it
will
only
benefit
the new
buyer.
But
your
situation
is
different.
When you
received
the
resale
certificate,
there
was no
formal
assessment
imposed
by the
board.
It was
only in
the
planning
stage.
You
had the
opportunity
to do
your
homework,
but
unfortunately
you were
too much
in a
hurry to
close on
your
condominium
unit.
You
should
have
requested
updated
copies
of the
financial
documents,
and you
should
have
discussed
the
status
of the
condominium
with one
or two
board
members
as well
as the
association's
property
manager.
Regardless
of the
cost of
your
unit, I
am sure
that it
was a
significant
investment
for you.
Yet you
opted to
ignore
the
warning
signs,
and you
failed
to
exercise
the
rights
provided
you by
statute
--
namely
the
right to
receive
-- and
review
-- the
financial
state of
affairs
for that
association.
But
even if
you did
carefully
examine
this
information,
at the
time you
signed
your
sales
contract
no such
assessment
was in
effect;
it was
only a
possibility,
and not
a
reality.
What
if you
determine
that
your
seller
knew
about
the
upcoming
assessment?
Does
that
make him
legally
obligated
to
disclose
this to
you?
Under
the
disclosure
requirements
imposed
by
statute,
the
seller
must
only
disclose
known
conditions
about
the unit
you are
considering
to buy,
and not
the
entire
complex.
The
burden
to
disclose
common
element
issues
rests
with the
association,
and not
the
individual
unit
owners.
Did
you ask
the
seller
if there
are any
special
assessments
pending?
If so --
and if
the
seller
knew
about
those
issues
and lied
to you
-- that
would
change
my
opinion
as to
his
potential
liability.
But
proving
knowledge
will not
be easy.
Obviously,
if the
seller
was a
member
of the
Board of
Directors
at the
time you
signed
the
sales
contract,
that
might
make a
difference.
But
unfortunately,
too many
condominium
owners
just do
not take
the
time,
nor
care, to
educate
themselves
as to
the
operation
of the
complex
in which
they
live.
Apathy
runs
rampant
in many
community
associations.
All too
often,
the only
time
that
owner's
complain
is when
their
monthly
condo
fees are
increased
or when
there is
a
special
assessment
promulgated
by the
Board.
It
still is
a
mystery
to me
why
potential
condominium
buyers
spend
more
time
deciding
what
computer
or cell
phone to
buy than
they do
when
purchasing
the home
in which
they
plan to
live.
The
legislatures
have
given us
the
tools
with
which to
make
educated
decisions;
potential
homebuyers
should
make
full use
of this
opportunity.
|
|
|
|
|
|
Tax Benefits
of Real Estate
Ownership
by PJ
Wade
If you rely
on media
coverage
during the
money season
for an
appreciation
of the value
of real
estate
ownership,
you might be
misled into
believing
that, while
a house or
condominium
is useful as
a place to
keep your
stuff, real
estate
carries
little
significant
tax benefit.
In reality,
real estate
offers more
tax
advantages
than other
classes of
investment,
particularly
for home
owners.
As the
annual RRSP
frenzy
descends on
Canada, even
ever-popular
discussions
of the
weather take
a back seat
to talk of
Registered
Retirement
Savings
Plans until
the
contribution
deadline
March 1. The
yearly
financial
hype-fest
then
broadens to
include more
income-tax
issues and
rages on
until the
return-filing
deadline
April 30. In
May, spring
inspires a
renewed
interest in
gardening
and real
estate.
Home
buyers are
often
ignorant of
these
financial
benefits, or
overlook
their
significance,
when
deciding how
much to
invest and
where.
Developers,
builders and
real estate
brokers
place the
emphasis on
floor plans,
mortgage
rates and
decor.
Television,
with its
make-over
madness, and
other media
as well,
reinforce a
home buying
perspective
that places
investment
far down the
"must have"
buying list.
Yet, real
estate is
the single
largest
financial
investment
most
Canadians
make, even
though the
selection
process for
residential
property
seems to
emphasize
esthetics
over asset
management.
Consumers
would
benefit from
a deeper
understanding
of how their
home,
cottage and
income
properties
can become a
significant
active
partner in
their
future.
According to
a TD
Economics'
estimate,
"more than
70 per cent
of Canadian
families are
currently
homeowners.
The total
value of
residences
exceeds C$1
trillion and
land and
housing
together
account for
one-third of
all personal
assets.
Given this
importance,
the future
value of a
home should
be included
in the
financial
plans of
Canadians."
If you
are
considering
the purchase
of a home --
new or
resale, any
type of
ownership or
design -- be
aware that
all profit
made on this
investment
will be tax
free if it's
your
principal
residence.
Buy smart,
renovate for
added value,
add on
market
appreciation,
and sell
well, and
all that
profit or
capital gain
is yours --
unlike the
money made
on stocks
and bonds.
According to
the Canada
Revenue
Agency, if
the real
estate was
your
principal
residence
for every
year you
owned it,
you don't
even have to
report the
sale on your
tax return.
Market
and economy
fluctuations
can affect
the amount
of profit,
but real
estate has
the added
advantage of
being a
live-in
investment,
so one must
add this
cost-reducing
advantage
into the
calculation.
Home
ownership
carries
additional
financial
benefits as
the selected
highlights
below
illustrate:
-
Special
government
savings
and
rebates
For
example,
rebate
of part
of the
GST or
HST paid
on a new
owner-built
or
builder
constructed
residence,
including
condominiums,
a
substantially
renovated
house, a
modular/mobile
home or
a
floating
home.
For
co-operatives,
shares
in the
capital
stock of
the
co-op,
which
represent
the
equivalent
of
ownership,
are
eligible.
New
residential
rental
property
also
qualifies.
-
Tax-free
access
to RRSP
funds
The Home
Buyers'
Plan
(HBP)
allows
tax-free
withdrawal
of up to
C$20,000
from
your
RRSP to
buy a
qualifying
home,
provided
the
amount
is
gradually
repaid
over 15
years.
The
property
may be
bought
or built
for
yourself
or a
related
person
with a
disability.
When
multiple
buyers
purchase
a
property,
each may
withdraw
up to
C$20,000
under
the HBP.
Funds
may be
withdrawn
under
the
Lifelong
Learning
Plan at
the same
time.
-
Income
generation
using
real
estate
Renting
out all
or part
of your
home
generates
rental
income,
which
can be
offset
by
allowable
expenses.
Principal
residence
status
may not
be
affected
by
rental
activity
if rules
of
timing
and
depreciation
are
followed.
-
Home-based
business
head
quarters
Working
at home,
telecommuting,
or
operating
a
home-based
business
allows
certain
expenses
to be
claimed
against
income,
including
a
proportionate
share of
mortgage
interest.
-
Related
tax
credits
In
Manitoba
and
Ontario,
provincial
Property
Tax
Credits
may
reduce
the
amount
of
income
tax due.
Search
out the full
range of
opportunities
related to
home
ownership,
many of them
presented in
the +400
articles of
this column
on
Decisions &
Communities.
Obviously,
before you
act on any
financial
benefit,
investigate
the
qualification
criteria,
locate the
correct
forms and
ask many
questions of
your
financial
advisor or
the Canada
Revenue
Agency
staff. For
instance, to
qualify for
the GST
rebate, the
fair market
value of the
house and
land must be
less than
C$450,000.
While
you're
pondering
ways to gain
the greatest
benefit from
RRSPs and on
your income
tax return,
go a step
further and
consider how
to use the
financial
advantages
of home
ownership to
your benefit
-- now and
in the
future.
Published:
February 13,
2007 |
|
|
|
|
|
|
|
Mortgage Rates
