Florida Real Estate - Brevard County

Hurricane Preparedness

2007-07-30T11:54:00.001-03:00

We're about to enter the peak of the hurricane season.

Any day now, you're going to turn on the TV and see a weather person pointing to some radar blob out in the Atlantic Ocean and making two basic meteorological points:

(1) There is no need to panic.

(2) We could all be killed.

Yes, hurricane season is an exciting time to be in Florida.

If you're new to the area, you're probably wondering what you need to
do to prepare for the possibility that "the big one"'ll hit us.

Based on our experiences, we recommend that you follow this simple
three-step hurricane preparedness plan:

STEP 1: Buy enough food and bottled water to last your family for at least three days.

STEP 2: Put these supplies into your car.

STEP 3: Drive to Nebraska and remain there until Halloween.

Unfortunately, statistics show that most people will not follow this
sensible plan.

Most people will foolishly stay here in Florida.

We'll start with one of the most important hurricane preparedness
items:

HOMEOWNERS' INSURANCE:

If you own a home, you must have hurricane insurance.

Fortunately, this insurance is cheap and easy to get, as long as your
home meets two basic requirements:

(1) It is reasonably well-built, and

(2) It is located in Nebraska.

Unfortunately, if your home is located in Florida, or any other area
that might actually be hit by a hurricane, most insurance companies
would prefer not to sell you hurricane insurance, because then they
might be required to pay YOU money, and that is certainly not why they
got into the insurance business in the first place.

So you'll have to scrounge around for an insurance company, which will
charge you an annual premium roughly equal to the replacement value of
your house.

At any moment, this company can drop you like used dental floss.

Since Hurricane George, I have had an estimated 27 different
home-insurance companies.

This week, the Bob and Big Stan Insurance Company cover me, under a
policy, which states that, in addition to my premium, Bob and Big Stan
are entitled, on demand, to my kidneys.

SHUTTERS:

Your house should have hurricane shutters on all the windows, all the
doors, and -- if it's a major hurricane -- all the toilets.

There are several types of shutters, with advantages and disadvantages:

(1) Plywood shutters: The advantage is that, because you make
them yourself, they're cheap. The disadvantage is that, because you
make them yourself, they will fall off.

(2) Sheet-metal shutters: The advantage is that these work
well, once you get them all up. The disadvantage is that once you get
them all up, your hands will be useless bleeding stumps, and it will be
December.

(3) Roll-down shutters: The advantages are that they're very
easy to use,and will definitely protect your house. The disadvantage is
that you will have to sell your house to pay for them.

(4) Hurricane-proof windows: These are the newest wrinkle in
hurricane protection: They look like ordinary windows, but they can
withstand hurricane winds!

You can be sure of this, because the salesman says so. He lives in
Nebraska.

Hurricane Proofing your property: As the hurricane approaches, check
your yard for movable objects like barbecue grills, planters, patio
furniture, visiting relatives, etc.

You should, as a precaution, throw these items into your swimming pool
(if you don't have a swimming pool, you should build one immediately).

Otherwise, the hurricane winds will turn these objects into deadly
missiles.

EVACUATION ROUTE:

If you live in a low-lying area, you should have an evacuation route
planned out.

(To determine whether you live in a low-lying area, look at your
driver's license; if it says "Florida," you live in a low-lying area).

The purpose of having an evacuation route is to avoid being trapped in
your home when a major storm hits.

Instead, you will be trapped in a gigantic traffic jam several miles
from your home, along with two hundred thousand other evacuees. So, as
a bonus, you will not be lonely.

HURRICANE SUPPLIES:

If you don't evacuate, you will need a mess of supplies. Do not buy
them now!

Florida tradition requires that you wait until the last possible
minute, then go to the supermarket and get into vicious fights with strangers over who gets the last can of SPAM.

In addition to food and water,you will need the following supplies:

(1) 23 flashlights. At least $167 worth of batteries that turn out, when the power goes off, to be the wrong size for the flashlights.

(2) Bleach. (No, I don't know what the bleach is for. NOBODY knows what the bleach is for, but it's traditional, so get some!)

(3) 55 gallon drum of underarm deodorant. (Very important!!)

(4) A big knife that you can strap to your leg. (This will be useless in a hurricane, but it looks cool.)

(5) A large quantity of raw chicken, to placate the alligators. (Ask anybody who went through Andrew; after the hurricane, there WILL be irate alligators.)

(6) $35,000 in cash or diamonds so that, after the hurricane passes, you can buy a generator from a man with no discernible teeth.

Of course these are just basic precautions.

As the hurricane draws near, it is vitally important that you keep abreast of the situation by turning on your television and watching TV reporters in rain slickers stand right next to the ocean and tell you over and over how vitally important it is for everybody to stay away from the ocean.

Good luck, and remember: It's great living in Paradise!

Housing on Upswing

2007-07-27T10:17:00.001-03:00

Hank Fishkind: Other economists wrong – housing on slow upswing

ORLANDO, Fla. – July 26, 2007 – Economist Hank Fishkind calls other economists’ dire warnings and negative news about the housing market overblown, and says that, outside of Miami’s condominium market, the state’s housing markets hit bottom months ago and are now on a slow return to normalcy.

Fishkind, speaking Tuesday on his radio talk show, pointed to recent stories released by respected economists. Last Friday, for example, Bloomberg news published a story with an ominous headline – “Miami condo glut pushes Florida’s economy to brink of recession.” It quoted Moody’s/Economy.com’s Mark Zandi who predicted Miami condo price drops as much as 30 percent and a state recession perhaps by October.

“There is no doubt that the Miami condominium market is severely overbuilt, and that there will be sharp price drops and massive defaults,” says Fishkind. “But, this is no surprise to anyone who has followed this market.” But, he adds, “It is also important to note that Florida’s housing markets, outside of Miami’s condo market, have hit bottom months ago. The closing volume for new and for existing homes has stabilized.”

Fishkind doesn’t predict a huge upswing in closings, but “they are no longer declining. Therefore, we have already seen the worst for this cycle. There is no evidence of sharp price drops anywhere in the state, and there is no reason to expect any such drops outside of Miami condos. Population growth is holding up well as the state continues to attract large volumes of retirees and working families looking for jobs.”

Fishkind says that rising gas prices could impact consumer spending more than expected, but he calls that a nationwide problem, one that “Florida will ride out … better than most other places.”

Source: WMFE Radio News, 90.7 FM/Fishkind & Associates Inc.

© 2007 FLORIDA ASSOCIATION OF REALTORS

SPRING 2007 – THESE ARE THE BEST OF TIMES

2007-07-11T17:58:00.000-03:00

SPRING 2007 – THESE ARE THE BEST OF TIMES
Markets are down. Regulatory agencies are breathing down the realty industry’s neck. Internet usage continues to grow and new entrants appear virtually every day.

Just another day at the office.

As we celebrate our twentieth year, it is worth noting that we have had environments like this before. Sales fell by 50 percent from 1979 to 1982. Home sales did not return to 1979 levels until 1996 – 17 years of a slump.
Home sales fell over 12 percent from 1987 to 1993, a nearly six year slump. During the earlier period, the fears were of the entry of large corporate entities into residential brokerage. The leadership of one national firm thought the greatest threats were Merrill Lynch and Sears. Turned out what traditional firms needed to fear was the 100 percent commission concept.
During the latter pull back, in the late 1980’s and early 1990’s, the fears were foreclosures, the RTC, rising interest rates and housing regulation. It turned out that all were just abnormal, short term market anomalies. Most receded into history when the market turned upward.
What to do now? First, focus on those things that affect your ability to prosper, now. While the national MLS proposed by NAR will be critical in the years ahead, it won’t matter much if brokerage leaders don’t figure out how to make a profit now. Regulatory changes may make it more challenging to do business, but leaders will find a way to deal with any changes thrown their way. After all, what is an entrepreneur but someone who finds the path around challenges thrown up by technological, regulatory and other changes?
As you can read elsewhere in this month’s REAL Trends, the market won’t likely return to its prior levels for several years. Frankly, while we believe a 6-6.3 million existing-home rate is plausible over the next ten years, we do not see any evidence that the seven million homes sales level that we saw in 2004 - 2005 is reachable for a prolonged period. This is the market and it will likely remain as such for 2-3 years. Don’t count on a sustained increase.
If it does come back significantly, bullish.
Your profits will soar. It just doesn’t appear to be in the cards. After each prior downturn, there was significant consolidation. Larger firms and those that were more adept at getting costs scaled to the business level existing at that time prospered mightily. Those that didn’t expired. During the 1988–1993 downturn, seven of the largest 25 in the country were taken over on the cheap or went out of business. Size won’t protect anyone from this market.
Apollo didn’t purchase Realogy based on wishful thinking, but rather on the potential to capitalize on consolidation in weak markets. It expects to win coming out of this downturn. There will be others, including many incumbents, who will do likewise. But to get there, costs must be brought down to the level of the business existent at this time. Counting on a short term market move to bail out operating losses is not a winning strategy.
The change in the market has been breathtaking in its suddenness and without normal cause. No rising interest rates, no rise in unemployment. What it does provide is the room to make far reaching, radical changes in your business. We read every day now about sales professionals doing this with their own business. This is one great opportunity to get tough on costs and inefficiencies. We recommend that you take the plunge.

Short Sales Basics

2007-05-31T16:40:00.000-03:00

How to Succeed at Short Sales

Unfortunately, short sales are a reality for home owners who owe more than their property is worth. If you have patience, persistence, and a knack for problem-solving, this niche could be for you.

BY MARIWYN EVANS

You’re so happy you got the listing — at least until the sellers inform you the price you’re suggesting based on your careful CMA just isn’t enough. Why? They owe more than that on their mortgage and home equity loans. Welcome to the world of short sales.

Flat or home prices, home-equity credit lines, 100-percent financing that sucked out equity, and spiking interest rates on adjustable mortgages are converging to create a regrettable, but expanding, niche for real estate practitioners: the short sale.

To help you gain a better understanding of short sales and what it takes to specialize in this growing area, we took a look at some of the most common questions on this topic that you and your customers likely will face today. Armed with this information, you can decide whether short sales are an avenue worth exploring for your business.

What is a short sale?

A short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs, such as property taxes, transfer taxes, and the real estate practitioner’s commission. The seller is unwilling or unable to cover the difference.

Some — although by no means all — short sellers may also be in default on their mortgage loans and be headed for foreclosure. However, home owners who bought at the top of the market or who took out large amounts of equity with a refinance and who now need to sell because of divorce or job transfer may also find themselves upside down, owing more than the home is currently worth when closing costs are factored in.

Tip: Losing your home can be very emotional and most people don’t want to face up to the reality until foreclosure sets in. "You have to have to have a very soft sell approach, but still keep sellers focused on getting forms and paperwork complete," says Sheryl Thomson, associate broker, Exit Island and Beach Realty, Merritt Island, Fla.

Other sellers simply don’t understand that if they have assets, such as stocks or a high-salaried job, a lender is not going to let them just walk away from a short sale without signing a note to repay what they owe, says Steve White, broker with Keller Williams VIP Properties, Santa Clarita, Calif.

How do I know it’s short?

A CMA will be your first indicator, but you also need to ask the seller what their outstanding debt is and calculate the cost associated with a sale — from transfer taxes to your commission. This will give you an estimate of the net proceeds that will be realized, often called the net sheet. This information can then be entered into a HUD-1 Settlement Statement to calculate out the final, negative result at closing. Some lenders also have their own forms.

Check with the title company and the lender to get exact figures on closing costs and loan balances and to find out what procedures they have in place. If they can afford it, sellers should also consider getting a home inspection to determine what repairs are needed on a home and how this might affect its value, says White.

Tip: Get the seller to send a brief letter to all mortgage holders, giving them permission to speak with you. Otherwise, privacy laws will prevent them from talking to you about the loans, says Larry Hollingsworth, associate with HomeCity Realty, Dallas/Frisco, Texas, and a short-sale course instructor. It’s also critical to build a relationship with the seller’s lender. Once you have credibility, the entire process becomes easier, he says.

Who do I and the seller need to talk to about the problem?

If there are a first and second mortgage or a home equity line of credit, you may have to talk to more than one lender to get approval for a short sale. In addition, you may also need approval from the entity that holds the pool of loans if the mortgage has been securitized.

"The presence of two lenders makes a short sale more complicated since it’s often the lender holding the second, or junior, mortgage that has to absorb most of the loss," says White, who with Gina Covello, e-Pro®, broker associate at Keller Williams Realty, Studio City, Calif., teaches a course called “The Anatomy of the Short Sale.”

Opinions differ, but most experts suggest that you let the lender involved know as soon as possible of the potential short sale. Others say you should wait until you have an offer because you’ll get no action until then. “Without a viable purchase offer, your deal won’t be considered by mortgagees,” says Margot Cole-Murphy, broker with RE/MAX Equity Group, Portland, Ore.

Tip: Be sure you contact the bank’s loss mitigation department, which will be the group to decide whether to accept a short sale, rather than the collection or customer service department, which is only interested in recouping past due loan payments. "Finding the decision maker is often one of the biggest initial challenges in a short sales," says Thomson.

What information will the bank need to decide whether to accept a short sale?

The sellers’ submission package should include W-2 forms from employers (or a letter explaining the seller is unemployed), bank statements, two years of tax returns, and other financial documents outlining income and debt obligations. The bank will also need comps or a broker’s price opinion showing your estimate of value.

In addition, the sellers should submit a “hardship letter,” explaining the circumstances that make it impossible for them to pay the full amount of the loan. The seller needs to be able to show true financial hardship. Someone with the assets or the income to pay is unlikely to be considered, say most interviewees.

Tip: In preparing the package, be careful about discrepancies between the seller’s income and the income used to obtain the loan, cautions Lance Churchill, an attorney and instructor on short sales and REOs with FrontLine Seminars. A big gap may indicate mortgage fraud, unless employment circumstances have drastically changed.

What are the options besides a short sale?

Thanks to programs such as those proposed by Fannie Mae and Freddie Mac to assist subprime borrowers, many lenders are more willing to offer loan modification options. This option can extend the term of the loan, add on delinquent payments to the loan principal, and/or reduce the interest rate to make the loan more manageable for the home owner.

Another option is a repayment plan that requires home owners to increase their monthly payments until the loan is current, says Loni Parmelly, a real estate practitioner and consultant who specializes in short sales. Parmelly also is author of Success in Short Sales (2004), a book she sells on her Web site. It may be possible to refinance an adjustable rate loan with a Federal Housing Authority or conventional fixed loan. Note that lenders will not postpone a foreclosure just because a property is listed, although they may postpone if you have a reasonable offer in the works.

Tip: The ideal candidate for a short sale is still making loan payments and has a credit rating worth preserving. Otherwise, it may not be worth going through the complicated process, says Steve Pierce, broker and operating principal of Keller Williams Benchmark Properties, Fremont, Calif.

How should I price a short sale property?

In general, most short sale experts say to price the property at or near fair market value, although a few will begin with the total payoff amount owned by the seller. How frequently prices are dropped will depend in part on whether the property is in preforeclosure. Most banks have a formula for what percentage under market value they will accept, say interviewees. Figures cited vary from 8 percent under to almost 20 percent under.

"I always price the property 10 percent lower than comparable to peak buyer interest and initiate buyer activity," says Cole-Murphy, who’s also founder and curriculum developer for Real Estate Pro Guides, a line of educational books for practitioners. However, it’s important for buyers to understand that the bank will not give away the property, she says.

Tip: Most lenders will want to get a broker’s price opinion or even an appraisal to see what the property is worth before you and seller set a list price. One way to help ensure that the bank’s estimate of value is realistic is to offer comps of recent sales — both traditional and REO, says Churchill, who is also the author of The Foreclosure Specialist: A Real Estate Agent’s Complete Guide on Working in the Foreclosure Market (Valco Press, 2007).

“Practitioners who do BPOs are rated in part on how close their estimates are to the final sale price, so they usually welcome information on legitimate comps,” he says.

What and how should I disclose about the short-sale property to prospective buyers?

Opinions vary on this topic, although most experts favor disclosing that a property is a short sale in the comments section of the MLS listing. Others suggest waiting to disclose the need for lender approval of the sale until a buyer is ready to make an offer. Debra Allen, ABR®, e-Pro®, with Prudential Arizona Properties, Gilbert, Ariz., uses a disclosure form prepared by her brokerage just for short sales. She also had a special sign rider for the yard sign made indicating a property is a short sale.

Tip: Watch out for unethical investors who will try to convice an owner facing foreclosure to sign a quit-claim deed for the property, and then lease the property, warns Jim Cacioppo, broker/owner of Grand Realty Group. Grayslake, Ill. In such cases, the former owners will still be liable for the mortgage payments, even though they no longer own the house.

How long does it take to complete a short sale?

Although response times vary from lender to lender, it can take two weeks or as long as 60 days to receive an approval of a short sale from a lender. That’s why it’s critical that buyers and their representative understand and accept that time frame before they make an offer.

An addendum to the California Association of REALTORS® purchase contract includes a provision allowing either party to cancel a short-sale contract within a set period if the seller hasn’t gotten the deal approved, says White. Properties with securitized loans (which are the majority these days) may require a longer time to get an approval of a short sale because of the possible need for approval from the entity holding the pool of securities, says Churchill.

Tip: Keep in mind that the purchase contract on a short-sale property is a legally binding agreement once the earnest money has been deposited. Without language in the contract stating that the lenders must approve the offer and release all liens on the property, the seller may face a legal problem for failing to execute the contract if the short sale is not approved, says Hollingsworth.

What can the seller and I do to make a short sale more attractive to a lender?

Getting a lender to approve a short sale is primarily a question of economics. You have to provide hard numbers to show that the amount of money a bank will realize on the short sale is better than the amount it may recoup from foreclosing on the property and selling the property as an REO, says Todd Ruckle, ABR, RE/MAX Associates Inc., Newark, Del.

A 2002 study by Craig Focardi of the Tower Group estimated that the entire cost of a foreclosure was $58,759 and took 18 months. Other factors that can influence a bank’s decision include the liability risk it assumes by owning the property after foreclosures, the money tied up during the holding period for a foreclosure and REO resale, additional costs associated with an REO such as attorneys’ fees, and the additional reserves it will need if REOs rise in the bank’s portfolio.

Tip: A buyer that is willing to close in 30 days and who can make a substantial down payment may make the deal more attractive than a buyer who wants 95 percent financing, notes Michael Termine, GRI, CRB, associate broker, Prudential Rand Realty, New York City. All buyers should be preapproved for a mortgage before submitting the offer.

However, to avoid unnecessary costs, buyers should wait on having a home inspection and an appraisal for the loan until after the bank has accepted the short sale proposition, say Cole-Murphy. Genuine hardship, such as a lost job or high medical bills from an illness may also have an influence, says Covello.

What are the seller’s options if a short sale is rejected by the lender?

There are a variety of reasons a bank will reject a short sale — from too low a price to too many files on the loss mitigator’s desk. You can look for another buyer or even try resubmitting the same contract. "Banks don’t want to take properties back in foreclosure, so they are going to do everything they can to make it work," says Pierce. You also need to prepare your seller in advance for the possibility of foreclosure if a short sale fails, says Parmelly.

Tip: A short sale might be rejected if the loan is less than a year old. In such cases, the servicer that’s bought the loan can often require the original lender to buy it back, says Hollingsworth.

What financial or credit liabilities will a seller have as a result of a short sale?

Many lenders ask sellers to sign a promissory note for all or part of the difference between the proceeds of the short sale and the debt obligation as a condition to a short sale. In such cases, the note gives lenders the right to sue a seller and attach other assets if the note is not paid when due.

It’s particularly important to understand this distinction if you work in states such as California that have a nonrecourse mortgage, says Churchill. In such states, the lender cannot pursue a deficiency judgment against a seller for any deficiencies after a property is foreclosed. Because of this distinction, sellers who are already in default on a mortgage and do not have the resources to pay off a separate promissory note after a short sale might be better off letting the lender foreclose, he says. If you are working in a state in which mortgage loans are nonrecourse, be sure and alert your seller-clients to this distinction.

Tip: Having a portion of a loan forgiven may have an adverse affect on the seller’s credit. Encourage your client to try and sign a lease on an apartment before credit is further damaged, suggests Roberta Murphy, an associate broker with Windermere Exclusive Properties, San Diego.

What tax liabilities will a seller have as a result of a short sale?

One often overlooked aspect of short sales is that a seller must count any amount forgiven by the lender as income and pay taxes on that income, even if no actual money was received. The IRS requires lenders to submit a Form 1099 stating the forgiven amount. Sellers who meet the Internal Revenue Service definition of insolvency (either in bankruptcy or with debts exceeding assets) will not have to pay taxes on the forgiven amount.

Tip: The U.S. House of Representatives has introduced the Mortgage Cancellation Tax Relief Act (H.R. 1876), which would eliminate taxes on any debt forgiven on a principal residence through either short sale or foreclosure. The NATIONAL ASSOCIATION OF REALTORS® has been working to support this bill.

What compensation will I receive as the real estate salesperson or broker in a short sale?

Banks are going to want you to discount your commission. "It’s the first place they’ll look to save on closing costs," says Ruckle. Rates offered can vary, but are typically 1 percent to 2 percent below averages in the market, say interviewees. However, says Hollingsworth, more lenders now seem willing to pay a full commission on sales.

Tip: Instead of stating a specific percentage of compensation for buyers’ representatives when posting the listing in the MLS, offer a split (50/50, 70/30, etc.), suggests White. In this way, if the lender pressures for a lower commission, you can divide the fee, rather than give a stated percentage to the buyer’s representative. Many MLSs also require that you disclose a short sale in your listing.

Where can I find clients if I’m interested in specializing in short sales?

Word of mouth remains the biggest source of new business, experts say, but you can also promote your services to individuals attending credit counseling classes (now required prior to filing bankruptcy), to people who receive state notices of loan defaults, and to home owners named on lists of ARMs that will be resetting in the next few months. To find buyer clients, creativity is a plus. For example, Thomson is developing a monthly “Short Sale Hot Sheet” she e-mails to investors.

Tip: FSBOs are another good source since many upside-down sellers think they can’t afford to pay a commission and so try to sell on their own. Many don’t realize that in a short sale, the lender pays the broker’s commissions, says Churchill.

Are short sales for me?

With many more adjustable rate mortgages ready to reset to higher loan amounts in the next couple of years, short sales represent a growing sector of the market. However, because sales are time consuming, they aren’t for everyone. "I always say that if you’re going to succeed in short sales, you need the 3 Ps — patience, persistence, and problem solving," says Cacioppo.

Brevard County By the Numbers 2007

2007-05-03T17:34:00.000-03:00

March 2007 April 2007
Total for sale 10865 10749
New Listings 3879 2034
Price Change 4655 3037
Withdrawn 1597 953
Expired 1669 920
Closed 850 637
Pending 491 284
Contingent 826 558

This information was provided by the Space Coast Association of Realtors in Brevard County Florida.
You may find this information useful in determining the best time to buy or sell a property.

Slump Doesn't Yield Expected Bargains

2006-11-30T16:21:00.000-04:00

Slump Doesn't Yield Expected Bargains
The housing slowdown isn’t giving buyers the big bargains that they might have hoped, and where there are discounts, buyers aren’t leaping to grab them, says Karl E. Case, an economics professor at Wellesley College, who specializes in real estate.

Case says the most recent survey he and a colleague conducted among home buyers revealed growing pessimism about buying in a down market.

“They’re scared they’re going to buy something very expensive that’s going to fall in value,” he says. Sellers, meanwhile, are being “stubborn. They seem to be holding out so far.”

The result: “People are staring each other down.”

Case described home prices as having “downward stickiness,” meaning they don’t fall nearly as much as they rise during the strong periods.

In previous down periods, Case points out, the economy has been in a general slump. This time, in most parts of the country, the economy is growing and adding jobs.

Case concludes the housing market is in “that flat period, of four to six quarters, where prices don’t plummet. They hold on.”

Source: The Boston Globe, Andrew Caffrey (11/26/06)

Can't they just admit they were wrong!

2006-11-18T14:04:00.000-04:00

Can't wait for the December release of the predictions! Pure S.W.A.G. (Scientific Wild Assed Guess)

'Factors' blew away hurricane predictions

BY JIM WAYMER
FLORIDA TODAY
William Gray blames his bum forecast on El Nino and African dust.
His team at Colorado State University put a 52-page tome online Friday, explaining month-by-month where they went wrong with their seasonal hurricane outlook.
"Nobody's forecast worked out very well," said Phil Klotzbach, who heads Gray's team.
At the season's onset, they predicted 17 named storms, nine of them hurricanes and five of those at least Category 3 -- storms featuring winds of at least 111 mph. Just nine named storms formed, five of them hurricanes and only two with winds of at least 111 mph.
Warm, dry dusty air over Africa also kept storms from forming.
"If you can still see the dust you have a very stable layer, and stable air masses aren't very conducive to thunderstorm development," Klotzbach said.
This year's slightly-below-average season also bucked loftier predictions by forecasters at the National Oceanic and Atmospheric Administration. In August, they called for 12 to 15 named storms, with seven to nine becoming hurricanes, and three or four of those at least Category 3. They pointed to warm waters in the Atlantic Ocean and a 20- to 30-year cycle of increased hurricane activity that began in 1995 as support.
The Gray team plans to release on Dec. 8 its first prediction for the 2007 hurricane season.

Dealing with Insurance

2006-11-13T12:51:00.000-04:00

TALLAHASSEE -- Brevard County lawmaker Bill Posey will lead the Senate's insurance committee in the new leadership team when the Legislature comes back to tackle Florida's insurance crisis.

The Rockledge Republican has been asked by incoming Senate President Ken Pruitt to chair the chamber's Banking and Insurance Committee.

Pruitt did not return calls Thursday, but Senate staff confirmed the pick.

Posey is faced with what he calls a "seemingly impossible" situation. Property insurance, if it's available at all, is nearly unaffordable for many home and business owners.

"I don't look forward to this," he admits. "But you do the best you can."

The plain-spoken real estate broker has wrestled with insurance problems before. He chaired the Senate committee when it confronted similar sky-high rates for workers compensation.

Posey enters this fray with some opinions, including one that Florida's insurance companies misled lawmakers in the last session.

Within days of the end of the last session, insurers, led by State Farm, began to file for dramatic rate increases. Had lawmakers known what was ahead, they would have pressed for harder reforms, Posey said.

"I think we were sandbagged," he said. "It's a whole different magnitude of a storm."

In anticipation of a special session that could come as soon as Dec. 4, Posey has met already with Gov. Jeb Bush and Lt. Gov. Toni Jennings, and with Rep. Don Brown, a DeFuniak Springs insurance agent who wrote much of last year's legislation.

At his meeting with Bush, Posey pulled out his own insurance policy, and challenged the governor to decipher it.

"I said, 'Mr. Big Shot, explain this to me, if it's going to be so simple.'"

Early reviews painted Posey as a straight shooter.

"He's not one bit afraid or reluctant to look an insurance lobbyist in the eye and say 'Heck no,' " said Rhett O'Doski, the registered lobbyist for some 49 insurance companies.

"It's all you can ask for of a chairman."

Rep. Bob Allen, a Merritt Island Republican, said Posey's frankness stands him well in the coming battle.

"He's a guy who can tell a room full of people Florida used to be underwater, and it will be again, and not get thrown out," Allen said.

Posey says he knows the property insurance problem will be contentious.

"There will be a lot of people screaming before this is over, and I'll need a bodyguard."

NAR: Home Sales, Prices Decline in August

2006-09-25T21:11:00.000-03:00

Existing-home sales and prices slipped slightly in August to a sustainable pace, as was expected, the NATIONAL ASSOCIATION OF REALTORS® reports.

Total existing-home sales — including single-family, townhomes, condominiums and co-ops — slipped 0.5 percent in August to a seasonally adjusted annual rate of 6.30 million units from a level of 6.33 million July. Sales were 12.6 percent lower than the 7.21 million-unit pace in August 2005, which was the second highest on record.

“After a stronger-than-expected drop in July, the fairly even sales numbers in August tell us the market is at a more sustainable pace,” says NAR Chief Economist David Lereah. “It keeps us on track to see the third highest sales year on record, but we do expect an adjustment in home prices to last several months as we work through a build up in the inventory of homes on the market.”

The national median existing-home price for all housing types was $225,000 in August, down 1.7 percent from August 2005 when the median was $229,000. The median is a typical market price where half of the homes sold for more and half sold for less.

“This is the price correction we’ve been expecting. With sales stabilizing, we should go back to positive price growth early next year,” Lereah says.

Total housing inventory levels rose 1.5 percent at the end of August to 3.92 million existing homes available for sale, which represents a 7.5-month supply at the current sales pace — the highest supply since April 1993.

Assess Market When Setting Price

Sellers need to price to current market conditions if they want to sell within a reasonable amount of time, says NAR President Thomas M. Stevens from Vienna, Va.

“In some areas, home sellers are not making sufficient adjustments in their listing price, so their homes are staying on the market and contributing to the build up in inventory,” says Stevens, senior vice president of NRT Inc.

“Sellers are starting to become more realistic, and that could provide some lift to home sales because there is a healthy underlying demand from household growth and job creation,” he says. “At the same time interest rates have moderated, so there are good opportunities for buyers in today’s market.”

30-Year Rates Decline in August

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.52 percent in August, down from 6.76 percent in July; the rate was 5.82 percent in August 2005. Last week, the 30-year fixed dropped to 6.40 percent.

Single-family home sales held at a seasonally adjusted annual rate of 5.51 million in August, unchanged from July, but were 12.3 percent lower than the 6.28 million-unit pace in August 2005. The median existing single-family home price was $225,700 in August, down 1.7 percent from a year ago.

Existing condominium and cooperative housing sales fell 3.5 percent to a seasonally adjusted annual rate of 793,000 units in August from an upwardly revised 822,000 in August, and were 14.5 percent lower than the 928,000-unit pace in August 2005. The median existing condo price3 was $223,200 in August, down 2.4 percent from a year earlier.

Regional Sales Data

Regionally, existing-home sales in the Northeast rose 1.9 percent to a pace of 1.07 million in August, but were 11.6 percent below August 2005. The median existing-home price in the Northeast was $271,000, down 3.9 percent from a year earlier.

Existing-home sales in the Midwest rose 0.7 percent in August to a level of 1.44 million, but were 11.1 percent lower than a year ago. The median price in the Midwest was $176,000, which is 1.1 percent below August 2005.

Existing-home sales in the South slipped 0.8 percent to an annual sales rate of 2.51 million units in August, and were 7.4 percent below August 2005. The median price in the South was $184,000, down 2.6 percent from a year ago.

Existing-home sales in the West dropped 2.3 percent to an annual pace of 1.29 million in August, and were 22.8 percent lower than a year earlier. The median price in the West was $345,000, up 0.3 percent from August 2005.

— REALTOR® Magazine Online

Psst . . . wanna buy some swampland?

2006-09-03T12:58:00.000-03:00

Unsuspecting Internet buyers are paying thousands for unbuildable lots.

Mark Pino | Sentinel Staff Writer
Posted September 1, 2006
Old-time swamp peddling has gone high-tech, thanks to Internet-auction sites such as eBay.

The pitch -- speculation on near-worthless Florida real estate -- is decades old. But today, a new generation eyeing property for investment or retirement is buying land that's miles from civilization, has no roads or utilities and sometimes is underwater.

Known as "paper subdivisions," these undeveloped tracts are the remnants of developers' unfulfilled dreams -- if not outright scams -- in Osceola, Polk, Volusia and Brevard counties. Buyers are paying thousands of dollars over assessed value for a lot that can't be built on in a subdivision that does not officially exist.

An acre-and-a-quarter lot -- usually assessed at $600 to $1,200 -- fetches 10 times that or more from unsuspecting buyers in Internet auctions. Florida officials estimate there are millions of these unbuildable lots in every part of the state.

Some eBay sellers have owned their lots for decades -- purchased as part of a retirement dream dangled by a high-pressure salesman. Others scooped up lots in tax sales after owners stopped paying property tax on land they realized they never could use.

Still others got ownership by paying as little as $2,000 a lot to previous owners.

Now, some buyers who say they were swindled are speaking up -- and getting results.

"You cannot do anything with the land," said Robert Derogene, a Coral Springs mortgage broker who paid $46,500 for three acre-and-a-quarter lots at a paper subdivision known as University Highlands in Volusia County. "A whole bunch of people were misled, and I didn't like that."

The state is responding to complaints from disgruntled buyers such as Derogene by forcing some sellers to offer to buy back the property, citing their failure to follow the state law regulating the sale of subdivided land. Violations can include a seller failing to register land with the state for sale.

Derogene's complaint resulted in the sellers agreeing last month to offer refunds to the buyers in 67 transactions, many of whom had complained about their eBay purchases.

Nathan Oliver of Daytona Beach, another owner who has been selling land via the Internet in University Highlands, wouldn't discuss the consent order that he and a partner signed with the state Division of Florida Land Sales, Condominiums and Mobile Homes. The pair had to offer refunds in 187 transactions to avoid a $1.87 million fine.

"I don't have anything to say. I've been honest and sincere with everybody," said Oliver, who, according to the order, agreed to $189,000 in penalties and investigative costs.

Buyer beware

The eBay listings can make the land appear more valuable than it is.

One pitch for Suburban Estates in Osceola County calls it a "gated community." Others tout easy access to the beach, Orlando and Walt Disney World. All are miles from the property.

And though some listings acknowledge that a house cannot be built on the property, they leave the impression that someday that could change.

"If you are looking for a site to build a house, you won't be able to use this property for that at this time. One day soon, when this area becomes further developed, this land could be worth a small fortune!!" reads an eBay listing in capital letters for Volusia's Cape Atlantic Estates.

Not every buyer is unhappy, however. Even though hundreds have been offered state-mandated restitution, some want to hold on to their land.

"It's a gamble," said Robert Thompson of Palm Beach, who is one of the 187 University Highlands buyers being offered a refund by Oliver. "I don't know if I ever will be able to build. I believe it's going to take off."

Thompson has seen the value of Florida swampland increase. He cites land once considered swampland in Palm Beach County that sold for about $1,000 for an acre-and-a-quarter 25 years ago. Houses now sit on it, and the land is worth $150,000 to $200,000 an acre.
The state Attorney General's Office has launched separate investigations in Polk and Volusia counties after angry buyers complained about their purchases. The civil investigations involve two companies, one selling land in River Ranch Acres in Polk County, which for decades has been the subject of land scams, and the other running a similar operation at University Highlands.

According to one of the complaints, the investigation centers on the "alleged sale of undevelopable 'swampland' to buyers over eBay without full disclosure of all material facts relating to condition of land."

The land-sales division does not go looking for unlawful transactions on eBay, said Thomas Butler, deputy press secretary for the Department of Business and Professional Regulation. However, "We do investigate complaints from the public that may involve its use."

Price too steep

Rob Walsh, coordinator of Volusia Forever , a group that buys land to preserve it from development, said his organization won't bid for lots on eBay.

"We will not pay eBay prices. We simply walk away from them," Walsh said. "It has made it more difficult to purchase property. Where it really has caused us heartburn, is that it caused the property appraiser to jack up some of the land. . . .''

University Highlands (9,400 acres) and Cape Atlantic Estates (11,400 acres) are two of the largest in Volusia, which also has many smaller paper subdivisions.

Deceptive land-sales practices are not new in Florida. For instance, in the 1960s, the Gulf American Land Co. sold thousands of lots in River Ranch Acres to unsuspecting buyers nationwide before going bankrupt .

Land throughout Florida was often sold in the 1960s and 1970s from telephone boiler rooms or through high-pressure sales meetings as retirement investments. The sales pitches, which often included a free dinner and a movie, would allow buyers to purchase land for a couple of hundred dollars down and interest-free payment of $50 a month. The developers, which often later declared bankruptcy, took cash and never filed the necessary paperwork with local governments or built roads and infrastructure.

Setback for recreation

Richard Lawrence of Kissimmee said the current speculation is destroying the recreational uses of Osceola's Suburban Estates, where he has owned land for several years.

Like similar tracts in Polk and Volusia counties, the 10,449 acres in east Osceola has become a haven for those like Lawrence who enjoy the outdoors.

Suburban Estates is a mixture of cypress swamp, palmetto brush and scrub pine. Sandy roads wind through the property that has through the years turned into a secluded refuge for owners who like to hunt and drive vehicles through the challenging country. The area is gated, and keys are issued to only deed holders by an owners-group calling itself the Suburban Estates Preservation Association.

Osceola County does not issue construction permits in Suburban Estates. Once, it permitted hunting camps, but the lack of utilities and roads made even those problematic, a county zoning official said.

But many investors don't know this, nor do they realize that land values in Suburban Estates have been stagnant for years.

Records show there are thousands of owners, which would make it almost impossible for any developer to buy up enough property to develop Suburban Estates. The same holds true for other areas.

The best thing that could happen would be for somebody to purchase the land and replat it, said Jo Thacker, Osceola's acting county manager. The thousands of owners would make that process difficult, but she said increasing land values eventually might attract a developer willing to take on such a project.

"I believe it will get to the point that someone will try to go in and accumulate pieces or large tracts of it," she said. "It could be a while. Someday they [owners] could get some money out of it."

Hurricane Forcast Update

2006-09-02T09:37:00.000-03:00

The hurricane farcasters can be compared to betting on a hockey game after the game is over. "See we were right!"

Hurricane forecast dips again

BY KIMBERLY C. MOORE
FLORIDA TODAY
First it was nine, then it was seven and now it's five, much to the relief of people who live in coastal communities.
In the often fluid world of weather predictions, hurricane forecaster William Gray's team whittled away again at its expectations for the 2006 Atlantic storm season Friday. They're calling for a slightly below-
average year, with only five hurricanes instead of the nine originally forecast in April.
Two of the hurricanes will be intense, according the team, based at Colorado State University. It was the second time they had downgraded their forecast in a month.
In the spring, Gray's team called for 17 named storms to form in the Atlantic basin during the June through November hurricane season, with nine set to become full-fledged hurricanes.
So far this year, five storms have formed, including Tropical Storm Ernesto, which briefly became the season's first hurricane last week and was moving through the mid-Atlantic region today.
The average for the Atlantic basin is about 10 named storms, six hurricanes and two to three intense hurricanes per year.
WKMG Meteorologist Larry Mowry said it is extremely difficult to predict a precise number of storms each season.
"When I look at those predictions, whether its from NOAA or Dr. Gray, you kind of have to look at whether it's going to be above average or below," Mowry said. "I think people understand better seeing numbers, rather than, 'It's going to be above or below average.' "
Mowry said Gray and his team look at a number of different factors when making their predictions, including:
• Atlantic and Pacific sea temperatures
• Global weather patterns
• El Nino or La Nina in the Pacific
• Ocean currents
• African weather patterns
• The Saharan dust field
Captain Tom Adams, who owns the charter fishing boat The Miss Cape Canaveral, said it was great news.
"I hope they're all right," he said, noting that he lost an orchard of pecan trees on some property in Alabama during Hurricane Katrina. "I hope we don't have any."

Well now that the media has rattled everyone with their “scare-monger” tactics;

2006-07-28T10:18:00.000-03:00

Well now that the media has rattled everyone with their “scare-monger” tactics; here’s an interesting article from the Florida Today paper. (07/28/2006)

CAPE CANAVERAL - Studies that link a spike in hurricane intensity with global warming are spotting "artificial upward trends" because they rely on bad historical data, a paper suggested today in the journal Science.
Hurricane intensity is measured by the storms' surface winds. Sometimes those winds are estimated by looking at satellite pictures, using a subjective technique invented in 1972.
Better technology since then, including greater satellite coverage, has led inevitably to higher wind-speed estimates for more recent storms, the authors suggest.
"The resulting higher resolution images and more direct overhead views of tropical cyclones result in greater and more accurate intensity estimates in recent years when using the Dvorak Technique," according to authors Christopher Landsea of the National Hurricane Center, Bruce Harper, Karl Hoarau and John Knaff.
For example, Hurricane Hugo's strength was underestimated based on images taken from an angle, and similar errors probably occurred frequently in the 1970s and 1980s, when there was less satellite coverage, the authors write.
While there may be trends in storm intensity linked to sea temperatures, which have increased, the "trends are very likely to be much smaller (or even negligible) than those found in the recent studies," the paper says.
An ongoing overhaul of the hurricane database may make it easier to quantify storm trends, the authors say.

RENT OR BUY?

2006-07-21T11:15:00.000-03:00

WASHINGTON -- July 20, 2006 -- Too often, renters look at their current monthly rent payment, compare it to the cost of owning a home, and decide the latter is "something I can't afford." But the financial advantage of homeownership, from property appreciation to income tax deductions, makes renting more expensive, and a new brochure published by the National Association of Realtors® (NAR) explains that fact to renters.

Renting can cost seven times more annually than owning, according to the brochure, “Why rent when you can buy?” It challenges assumptions about renting versus buying, and it helps Realtors and renters decide if homeownership is right for them.

“Housing is a good investment, and owning a home makes sense for a lot of current renters, but many would-be homeowners are reluctant to take those first steps,” says NAR President Thomas M. Stevens.

The Federal Reserve Board estimates that homeowners have a net worth nearly 36 times more than renters. Over the past 10 years, the cost of rental housing in the United States has increased an average of 3 percent per year; average rents are projected to rise 4.1 percent this year alone. With a 3 percent annual increase, a current rental payment of $1,000 per month would increase every year and amount to $137,567 after 10 years, with no wealth accumulation.

In contrast, a $210,000 home purchased today with a downpayment of $10,000 and a 20-year fixed rate mortgage at 6.5 percent would cost a steady $1,100 per month and yield a net worth of $138,521 after 10 years, assuming an historic 4.5 percent annual appreciation rate.

Interest rates may have 'topped'

2006-06-11T14:36:00.000-03:00

By Lou Barnes
Inman News

Ten-year Treasury yields are bouncing close to 5 percent, holding mortgages in familiar terrain just above 6.5 percent. Stocks worldwide have had a horrible month, all commodities except oil have cracked (gold the leader, today $614 vs. last month's $728 high), and odds are improving that interest rates have topped.

Watching the immediate impact of news on markets told a very different story this week than the media did.

The week opened with a speech by Federal Reserve Chair Ben Bernanke, who at last discovered the Fed Phrasebook. Three pages of price stability, price stability, price stability as the absolute priority and prerequisite for successful economic management wrapped around a predecessor-style key paragraph: "Core inflation has reached a level that, if sustained, would be at or above the upper end of the range that many economists, including myself, would consider consistent with price stability. These are unwelcome developments." The 10-year T-note instantly fell from 5.1 percent to 5 percent where it has remained since, and the Fed-funds futures market doubled the probability of 5.25 percent on June 29, close to 80 percent.

The news media interpreted the speech as a shift to tougher policy by Bernanke, and the media are wrong. The Monday speech and the half-dozen Fed speakers afterward were in full jawbone, nothing more. Every bond trader knows that the key clause in Bernanke's speech was "…if sustained..." and knows that the Fed-funds futures market is an opinion poll, not a predictor. That's why there was no bond-market follow-through -- neither deeper rate-drop in expectation of a Fed about to over-do and cause a recession, nor pricing up to a hike to 5.25 percent.

Bernanke got .1 percent in improved confidence in price stability, and nothing else. He deserves credit for speaking properly, discarding the ditsy thinking-out-loud about economic tinkering and angst about overshoot, but his stark failure to consider leadership in the half-year after nomination stands, inconceivable.

The stock market had a bad day on Monday after the speech, but it has had several; it did not really come unglued until Thursday, the day after the night in which the central banks of Europe, Denmark, India, South Korea and South Africa simultaneously raised interest rates. Japan is still at zero, but draining cash fast.

Other threads came together on Thursday, and again --says here -- were misunderstood in the media. Al-Qaida leader Abu Musab Al-Zarqawi got snuffed; Iraq got interior and security ministers; Iran agreed to talks -- and oil did nothing. The markets may be correct that the snuffing and ministers don't mean much in the Iraq mess, but the Iran reduction in tension should have undercut oil -- if that tension had anything to do with $70 oil in the first place. Oil has been there because demand has been there, not because of all this geo-political fright-mongering.

Connect the dots…the Fed is reacting, leading only in its insistent forecast of economic slowdown ahead, a forecast joined by everyone, if only because every central bank on the planet is working to make it so. One scare story in the bond market has held that foreign rate hikes would drive up U.S. rates; didn't happen on Thursday, maybe because frightened stock money went to bonds, more likely because the whole world economy is topping out.

One of the most disciplined investment managers, Brad Bickham (Sergeant Bickham Lagudis) I think is on the trail of the right question, now: how slow will the slowdown be? Forget whether, and count on a reduction in inflation pressure. Bickham is looking for a soft landing (really hardly any landing at all), and his corporate earnings case is a good one. However, the behavior of stocks and commodities make me uneasy, especially about the deeply underpriced risk of credit default as central banks conclude four years of the easiest money any of us has ever seen.

Lou Barnes is a mortgage broker and nationally syndicated columnist based in Boulder, Colo.

Housing Analyst Says the Heartland's the Next Winner

2006-05-30T17:57:00.000-03:00

May 30, 2006) -- A new statistical analysis of housing price cycles in 100 major metropolitan areas suggests that real estate action is shifting to areas that didn’t enjoy the recent housing boom.

Christopher L. Cagan, director of research and analytics for First American Real Estate Solutions, examined historical housing price movements and concluded that middle America markets like Columbus, Ohio; Indianapolis; Houston; San Antonio; Memphis, Tenn.; Atlanta; Cincinnati; Des Moines, Iowa; and Louisville, Ky., are due for above-average price increases and home building because of expanding employment bases and moderate housing prices.

Cagan also doesn’t believe what he calls the shooting stars of housing booms like most of California, Florida, Washington, D.C., New York City, or Boston are going to incinerate. He simply believes appreciation rates will dwindle to the low single digits or go flat for awhile as incomes catch up.
His bottom line: Figure out where your community is in the cycle and adapt.

All is not lost in Brevard County. Read the Milken Report

2006-05-30T17:46:00.000-03:00

The Milken Institute Best Performing Cities Index ranks 379 U.S. metropolitan areas based on their economic performance and their ability to create, as well as keep, the greatest number of jobs in the nation.

The top positions in the 2005 index are dominated by Florida metros, which hold not only the index’s top three slots, but five of its top six and 12 of its top 30. Palm Bay-Melbourne-Titusville is No. 1, followed by last year’s top scorer, Cape Coral-Fort Myers in second and Naples-Marco Island in third place.

The 2005 winners have similar characteristics: strong and growing service sectors, a robust recovery in tourism, growing populations and an increase in the number of retirees. As evidence, six metros in the top 20 come from the Southwest, including three in California (Riverside, Santa Barbara and Santa Ana) and two in Arizona (Tucson and Phoenix). The other is Las Vegas.

By comparison, the Midwest has none. The top-rated Midwest metro is Madison, Wis., at 35th. Nine of the bottom 10 spots on the index were from the Midwest – five from Michigan and four from Ohio – reflecting the region’s troubled manufacturing sector. Flint, Mich., is at the bottom at No. 200.

The index enables businesses, industry associations, economic development agencies, investors, academics, governments and public policy groups, to assess and monitor recent metro performance.

The Best Performing Cities index is outcomes-based. Its components measure job, wage and salary, and technology growth.

The Milken Report of Best Cities

Biggest Price Gains Expected in California, Florida

2006-05-12T16:20:00.000-03:00

Biggest Price Gains Expected in California, Florida

(May 12, 2006) -- Not all financial analysts think housing prices are going to drop. Some, like Michael Youngblood, say prices in many areas are on the way up.

Youngblood, managing director of asset-backed securities research at Friedman Billings Ramsey & Co. in Arlington, Va., told Business Week that the housing market is a lot stronger than most people think due to job market strength and higher personal incomes.

He examined 379 markets and found bubbles in only 75 of them, including New York city, Los Angeles, Washington DC, Phoenix, Honolulu and Tacoma, Wash.

Home prices are likely to rise in far more markets, he predicts. He expects the largest gains in Bakersfield, Calif. (43 percent), Fort Myers, Fla. (42 percent), Stockton, Calif. (39 percent), and Punta Gorda, Fla. (35 percent).

Areas where prices are likely to fall because they are losing jobs include Harrisburg, Pa.; Odessa, Tex.; Roanoke, Va.; and Utica, N.Y.

Source: Business Week (05/15/2006)

Existing-Home Sales Rise Again in March

2006-04-25T13:46:00.000-03:00

NAR: Existing-Home Sales Rise Again in March

(April 25, 2006) -- Sales of existing homes edged up in March following a strong rebound in February, according to the NATIONAL ASSOCIATION OF REALTORS®.

Total existing-home sales — including single-family, townhomes, condominiums, and co-ops — rose 0.3 percent to a seasonally adjusted annual rate of 6.92 million units in March from a pace of 6.90 million in February, but were 0.7 percent below a 6.97 million-unit level in March 2005.

David Lereah, NAR’s chief economist, says sales are leveling out. “It’s a good sign to see home sales holding close to the level of a strong rebound in the month before,” he says. “This is additional evidence that we’re experiencing a soft landing. We may see some minor slowing in home sales as interest rates rise, but the market clearly is stabilizing.” Lereah expects 2006 to be the third strongest year on record for home sales.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.32 percent in March, up from 6.25 percent in February; the rate was 5.93 percent in March 2005.

“We now see appreciation cooling to single-digit rates of price growth — another sign that the market is normalizing,” Lereah says. The national median existing-home price for all housing types was $218,000 in March, up 7.4 percent from March 2005 when the median was $203,000. The median is a typical market price where half of the homes sold for more and half sold for less. Historic price data has been revised back to 1989, including updates to reflect geographic changes over time, but price patterns are consistent with previously reported data.

Total housing inventory levels rose 7.0 percent at the end of March to 3.19 million existing homes available for sale, which represents a 5.5-month supply at the current sales pace.
NAR President Thomas M. Stevens from Vienna, Va., says changes in the housing market mean consumers need more professional guidance.

“Changing waters require navigational adjustments, and this is especially true for home sellers in most areas who are now dealing with buyers on equal footing — it’s no longer a seller’s market,” says Stevens, senior vice president of NRT Inc. “Most buyers in today’s market are well-informed and have agents that represent their interests, so sellers need good advice on how to show and market their homes in the current environment, as well as negotiation skills — critical values that real estate agents bring to the table.”

Single-family home sales rose 0.3 percent to a seasonally adjusted annual rate of 6.07 million in March from 6.05 million in February, and were 0.5 percent below the 6.10 million-unit pace in March 2005. The median existing single-family home price was $217,300 in March, up 7.8 percent from a year ago.

Existing condominium and cooperative housing sales increased 0.2 percent to a seasonally adjusted annual rate of 854,000 units in March from a level of 852,000 in February, but were 2.0 percent below the 871,000-unit pace a year ago. The median existing condo price was $225,500 in March, up 6.1 percent from March 2005.

Regionally, existing-home sales in the Northeast rose 1.7 percent to an annual sales rate of 1.19 million units in March, and were 2.6 percent higher than a year ago. The median price in the Northeast was $275,000, up 5.0 percent from March 2005.

Existing-home sales in the Midwest increased 1.2 percent to a pace of 1.63 million in March, and were 3.8 percent above March 2005. The median existing-home price in the Midwest was $160,000, up 2.6 percent from a year earlier.

In the South, existing-home sales slipped 0.7 percent in March to a level of 2.67 million, but were 1.5 percent higher than a year ago. The median price in the South was $181,000, up 6.5 percent from March 2005.

Existing-home sales in the West eased 0.7 percent to an annual pace of 1.43 million in March, and were 12.3 percent below March 2005. The median price in the West was $341,000, up 8.3 percent from a year ago.

— NAR

Fla.: You Say Waterfront, I Say Retention Pool

2006-04-19T15:34:00.000-03:00

Fla.: You Say Waterfront, I Say Retention Pool

(April 19, 2006) -- Everyone wants to live on water in Florida – no matter the price or how the water came to be there.

Developers of top-dollar homes are digging faux lakes right and left and charging like they were real. For instance, at the Gardens, a 120-home development built around two manmade lakes, the lots alone sell for $600,000 to $800,000.

Real waterfront lots in Bella Collina are selling for more than $1 million.

"Bella Collina is on a natural lake, but it was known as the most-polluted lake in Central Florida, so they created value by marketing it as a golf and equestrian community," says Mark Leongomez, a local real estate practitioner.

Buyers don’t seem to care that the waterfront leaves a lot to be desired. As Fred Guitton, a mortgage banker who just bought two newly created waterfront properties for $500,000 a piece, says, “I don’t even call it a lake. It’s a retention pond. But it is water.”

Source: Orlando Sentinel, Wes Smith (04/18/2006)

Rules for Buying, Selling in Uncertain Markets

2006-04-12T18:12:00.000-03:00

Rules for Buying, Selling in Uncertain Markets

(April 12, 2006) -- There's no way to predict with accuracy whether home prices will rise or fall in over the next year. But there are some general rules you can follow to make sure that your housing decisions are smart ones.

BusinessWeek magazine analyzed the behavior of buyers and sellers in the current housing market and recommends a few ways to traverse the rapids.
Before buying or selling, assess what houses are really worth in the area.
Don’t be foolishly loss averse. Some people who bought high and are seeking to avoid selling low gamble recklessly that the market will rebound and bail them out, but dallying often worsens the problem. The solution: Cut your asking price and make the sale.
It's human nature to think you know what you're doing. Reality, however, is often unkind. Whether you're a buyer or a seller, make a plan that accounts for worst-case scenarios.
Sellers' thinking tends to be six months behind the market. So when prices are rising, they set theirs too low, and when prices are falling, they set theirs too high. So assess where the market is headed, not where it was.

Source: BusinessWeek, 04/10/2006

Florida Speculators in Hurricane's Eye

2006-03-29T14:49:00.000-04:00

Florida Speculators in Hurricane's Eye

(March 29, 2006) -- The Sunshine State has had more real estate speculators than other hot markets including Las Vegas and Los Angeles. Now that inventory of luxury condos is soaring, are property flippers in trouble?

The number of half-million-dollar-and-up condos for sale in Miami is twice the number in Los Angeles, where the population is four times as large.

Condo prices in Florida have gone up 63 percent since 2002, and many say speculators are the cause. The Encino, Calif. real estate firm Marcus & Millichap says more than half the mortgages in Florida are high spec. The firm compared price appreciation to income growth in markets across the U.S. and fingered West Palm Beach, Fort Lauderdale and Miami as three of the five most vulnerable to a price correction.

Most South Florida speculators have been selling to other speculators, says Jack McCabe, a consultant to developers. Which works fine, until somebody is left holding the property that nobody wants to buy. The number of unsold condos for sale in and near Miami has more than doubled from a year ago to 2,232 and foreclosures are twice the national rate.

Meanwhile, McCabe is ready to move in for the kill. He’s raising a $250 million vulture fund to buy condos. He hopes to pick up $1 billion of south Florida apartments on the cheap. Lenders are already offering him blocks of condos repossessed from distressed homeowners. “We’ll focus on buying million-dollar properties at 2003 prices – at 70 cents on the dollar,” he says.

Florida's existing home sales ease in February

2006-03-24T14:14:00.000-04:00

ORLANDO, Fla. -- March 23, 2006 -- Rising inventory levels and still-low mortgage rates continued to affect Florida's housing market, which is adjusting to a better balance between buyers and sellers following a five-year run of record-pace sales. Statewide, sales of single-family existing homes totaled 13,539 in February compared to 16,916 homes a year ago, for a 20 percent decrease, according to the Florida Association of Realtors® (FAR).

Realtors from across the state report that the supply of homes available for sale in their markets is improving, offering buyers more housing opportunities. The statewide median price for single-family existing homes last month was $244,200, up 24 percent from the February 2005 statewide median of $197,700.

In February 2001, the statewide median sales price was $118,200, which shows an increase of about 106 percent over the five-year period, according to FAR records. The median is a typical market price where half the homes sold for more, half for less.

In California, the statewide median resales price in January 2006 was $551,300; in New York, it was $319,000; in Maryland, it was $290,776; and in North Carolina, the average resales price was $206,788. Nationally, the median sales price for existing single-family homes in January was $210,500, up 13.1 percent from January 2005.

Sales of existing condominiums in Florida also decreased last month, with a total of 4,342 condos sold statewide compared to 5,643 in February 2005 for a 23 percent decline, according to FAR. The statewide median sales price for condos rose 11 percent to $218,700 last month; a year ago, it was $197,000. The national median existing condo price was $216,900 in January 2006.

Along with the University of Florida Real Estate Research Center, the Florida Association of Realtors began compiling data on closed condo sales for comparison purposes in 2005; the condo data series began in January 2006.

Favorable mortgage rates continued to spark buyers' interest in markets across the state. Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.25 percent, up from the 5.63 percent average rate in February 2005. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s larger markets, the Jacksonville Metropolitan Statistical Area (MSA) reported a total of 1,200 single-family existing homes sold in the area in February compared to 1,218 homes a year ago for a 1 percent decrease. The median sales price rose 14 percent to $196,200; a year ago, it was $171,800.

Kay Seitzinger, president of the Northeast Florida Association of Realtors and assistant manager with Watson Realty Corp. in Ponte Vedra, says a convenient location, employment opportunities and appealing lifestyle attract people to the Jacksonville area.

"The continued strong market we are having here in Northeast Florida is considerably influenced by our area's stable economy," she says. "With our diverse business base and positive job outlook, people continue to relocate to the greater Jacksonville area. Add to that our great quality of life -- with so many arts and leisure activities, who wouldn't want to live here?"

As for smaller markets in Florida, the Tallahassee MSA, reported strong resales activity last month with a total of 330 single-family homes changing hands compared to 298 homes a year ago for an increase of 11 percent. The area's median sales price rose 15 percent to $185,800; a year ago, it was $161,300.

Kenny Ayers, president of the Tallahassee Board of Realtors and new-home specialist with Heritage Homes Realty of Tallahassee representing Turner Heritage Homes, notes that the area's changing seasons and friendly community appeal to many homebuyers.

"As the state capital, we have a lot of job opportunities with the government and state offices, plus three big universities and colleges," he says. "The Tallahassee area is convenient to the coast and offers a nice mix of art and cultural activities along with a laid-back, friendly lifestyle."

© 2006 FLORIDA ASSOCIATION OF REALTORS

Mortgage Rates Dip for 2nd Week

2006-03-24T14:11:00.000-04:00

(March 24, 2006) -- With economic indicators this week showing that inflation is being held in check, the national average commitment rate on a 30-year, fixed-rate mortgage dropped for the second week in a row to 6.32 percent from 6.34 percent in the previous week, according to Freddie Mac.

The national average commitment rate on a 15-year, fixed-rate mortgage also bumped down to 5.97 percent from last week's 5.98 percent.

The national average commitment rate, along with fees and points charged by lenders, reflects the cost of obtaining a mortgage.

The average rate on a five-year adjustable-rate mortgage also decreased to 5.96 percent this week from 5.93 percent last week. However, the average rate on a one-year ARM edged up to 5.41 percent this week from 5.37 percent last week in reaction to a recent speech by Federal Reserve Chairman Ben Bernanke hinting at even further rate hikes this year.

— REALTOR® Magazine Online

Housing Market Readjusting to Normal Balance

2006-03-13T22:17:00.000-04:00

(March 13, 2006) -- A lower level of home sales expected this year will create a more level playing field for buyers and sellers on the heels of a five-year sellers’ market, according to the NATIONAL ASSOCIATION OF REALTORS®.

David Lereah, NAR’s chief economist, said the number of homes on the market has been improving nicely. “The cooling from overheated sales conditions in recent months is helping to bring inventory levels up to the point where buyers have more choices than they’ve seen in the last five years,” Lereah said. “Annual price appreciation is still running at double-digit rates, but the cause of those sharp increases is going away. As the market readjusts, price appreciation should return to more normal rates of growth this year.”

The national median existing-home price for all housing types is projected to rise 5.8 percent in 2006 to $220,300. The median new-home price should increase 5.4 percent this year to $250,200.

Existing-home sales are expected to fall 5.7 percent to 6.67 million in 2006 from the record 7.08 million last year. At the same time, new-home sales are forecast to decline 7.7 percent to 1.18 million from a record 1.28 million in 2005 – each sector would be at the third highest year following the tallies for 2005 and 2004. Housing starts are likely to total 1.98 million this year, down 4.3 percent from 2.06 million in 2005.

NAR President Thomas M. Stevens from Vienna, Va., said some home buyers and sellers have unrealistic expectations. “Some sellers in markets that have had rapid appreciation are listing the price of their home too high, but those homes are just languishing on the market,” said Stevens, senior vice president of NRT Inc. “At the same time, some buyers who have believed hype about a housing bubble are hoping prices will drop, but that’s not happening either.

“Consumers need professional assistance to understand and negotiate the current market realities. Sellers should listen to their agent’s advice to competitively price and show the home, and buyers may want to choose a buyer’s agent to represent their interests and help them negotiate favorable terms. Today’s market has changed a lot from the conditions we’ve seen during the last five years.”

The 30-year fixed-rate mortgage should increase gradually to 6.9 percent in the fourth quarter.

Inflation as measured by the Consumer Price Index is projected at 3.3 percent this year. Inflation-adjusted disposable personal income is expected to grow 3.7 percent in 2006.
Growth in the U.S. gross domestic product is forecast at 3.5 percent in 2006, while the unemployment rate is seen to average 4.8 percent this year.

--NAR

Sandpiper Tower Reduced and Virtual Tour

2006-03-11T11:13:00.000-04:00

All the information is on this link.
Sandpiper Tower

Reduced! Magnificent 3 bed 3 bath direct with Ocean view from all bed rooms and living room. This 4th floor unit has a wonderful balcony to enjoy the breezes and take in the beach. One week min. rental! Two elevators, central waste, storage room, sundeck, game/party room, pool, ocean access, seawall and resident manager. Handicap accessible, pocket doors, assist rails, , and enhanced kitchen airflow!

Satellite Beach Fl.
Direct Ocean

Virtual Tour Shortcut

House Prices in America

2006-03-02T14:40:00.000-04:00

Anyone wishing a copy of
House Prices in America
Valuation Methodology & FindingsPlease email me at cyril@cbeaton.com

Prices Going Down? I Don't Think So!

2006-02-23T18:30:00.000-04:00

Brevard is No. 1 in U.S. job gains
County's high-tech, tourism sectors fuel county's economy, survey finds

Brevard County has the strongest overall job growth in the country, according to a just-released ranking of the 200 largest U.S. metropolitan areas.

The Los Angeles-based Milken Institute's Best Performing Cities Index -- a measurement of where U.S. jobs are being created -- said Brevard topped its list.

Brevard, which a year ago ranked No. 31 on the Milken survey, was among five Florida communities in the top six on the new list, which was released Wednesday. Brevard edged out Fort Myers -- last year's No. 1 -- for the top spot.

Brevard County's unemployment rate fell to a record low 2.8 percent in December, according to the latest data from the Florida Agency for Workforce Innovation. Nonagricultural jobs increased to 214,000 in that month, up from 209,000 in December 2004, a gain of 2.4 percent.

Florida "is creating jobs at a prodigious rate," said Ross DeVol, the Milken Institute's director of regional economics and the report's lead author. "It has all the makings of a job-creating machine: good weather, low costs, a growing population, a strong tourism industry and little heavy manufacturing."

The report noted that Brevard has Kennedy Space Center, and "a diversified economy, with many aerospace and defense-related industries, as well as space-related tourism and a growing number of retirees."

The Milken survey uses job and salary growth data over one-year and five-year periods, along with data on the growth within the higher-wage high-tech sector, to come up with its rankings.

Brevard ranked between sixth and 35th among the 200 metropolitan areas in all nine categories of data the Milken Institute economic think tank studied. That consistency across the board earned Brevard the overall No. 1 ranking.

Local business and economic-development boosters quickly seized on the Milken rankings as proof that Brevard has a pro-growth, business-friendly environment -- and is fully worthy of its No. 1 ranking.

"It sends a good message to the rest of the country that we have a good, strong business environment," said Lynda Weatherman, chief executive officer and president of the Economic Development Commission of Florida's Space Coast.

"It's saying we have a growing number of jobs," Weatherman added, "and we also have the salaries keeping up with them."

Brevard residents in 2005 had an estimated per-capita income of $24,766 and an estimated median household income of $45,282, according to Claritas Inc., a leading demographic research company. At the median, half the households earned more and half earned less.

Shannon Meyer, president and chief executive officer of the Melbourne-Palm Bay Area Chamber of Commerce, said that while the Space Coast is known for its aerospace and defense industries, a strong presence of small businesses also has been important.

"The area is also attracting many entrepreneurs and many organizations are actively recruiting and promoting business incubator sites throughout the county," Meyer said.

The No. 1 Milken ranking "is very good for the area," said Ossama Mikhail, an assistant professor of economics for the University of Central Florida's College of Business. "That will draw more resources and firms to the area, and create a chain effect of growth."

The key to staying at the top, Mikhail said, is the county and state continuing to work closely together so cities have enough "infrastructure to accommodate the new population. Communities don't wake up and find themselves at the top of that kind of list overnight."

Brevard's rankings in eight of the nine individual categories rose over the last year, with particularly strong gains in the high-tech categories -- areas in which jobs typically pay more than in such areas as retailing and leisure/hospitality.

Among the local high-tech companies that have been creating jobs is DRS Tactical in Melbourne. The company, a subsidiary of Parsippany, N.J.-based DRS Technologies, makes hardened computers for tanks and armored personnel carriers. It has added nearly 200 jobs in recent years, to a total of 400.

DRS Tactical President Rick McNeight said he was not surprised the county got the top spot on the annual survey.

The quality of life in Brevard -- including the weather, the beaches and relatively light traffic -- is "the biggest attraction we have, particularly for families with children," he said. "It also has some of the best schools in the state."

The area also is a hub for technology companies with Kennedy Space Center, Melbourne-based Harris Corp. and major operations for Lockheed Martin Corp., Northrop Grumman Corp., Rockwell Collins Inc. and The Boeing Co., McNeight said.

So, if another major company wants to locate in Brevard, there's already an "excellent supporting base of local subcontractors and vendors," he said. "We don't need to go anywhere else for significant infrastructure."

Harris has added nearly 600 new jobs in the past two years, said Steve Sockbeson, the company's director of human resources.

"We hire a lot of engineers from college campuses and a lot of experienced employees from the Northeast," he said. "They like the weather and the lifestyle in Brevard."

The county will like the national exposure from its top ranking, said Franck Kaiser, executive vice president and chief executive of the Home Builders & Contractors Association of Brevard.

"Wow, that's awesome," he said, when told of the rankings. "To be ranked No. 1 by a reputable organization . . . is extremely attractive to employers to attract higher-paying, highly skilled jobs. That gives a great deal of credibility to employers."

Strong homebuilding activity in recent years has boosted construction employment in Brevard, with a gain of 500 construction jobs in the last year alone, according to state data.

Overall Price Growth Slows, Condos Still Hot

2006-02-15T18:23:00.000-04:00

( February 15, 2006) -- Numerous metropolitan areas showed double-digit annual home price appreciation in the fourth quarter, although the overall pace of growth has cooled slightly, according to the latest survey by the NATIONAL ASSOCIATION OF REALTORS®.

In addition, annual appreciation in metro area condo prices was mostly in the double-digit range.

The association’s fourth-quarter metro area single-family home price report, covering 145 metropolitan statistical areas, shows a record 72 areas with double-digit annual increases in median existing single-family home prices and only six areas posting price declines.

The previous record for areas showing double-digit price appreciation was 69 metros in the third quarter of 2004.

The national median existing single-family home price was $213,000 in the fourth quarter, up 13.6 percent from a year earlier when the median price was $187,500. The median is a typical market price where half of the homes sold for more and half sold for less. In the third quarter of 2005, the annual rate of home-price appreciation was 14.7 percent.

David Lereah, NAR’s chief economist, says the modest dip in appreciation is an early sign of a market adjustment.

“Although home sales have eased, the tremendous momentum in price appreciation was sustained in the fourth quarter because tight inventories still favored sellers,” he says. “The good news is that the supply of homes on the market has been trending up and we are entering a period of a more normal balance in supply and demand.”

NAR Launches New Condo Series

Beginning with this report, NAR is launching a new series on metro area condominium and cooperative prices, covering changes in 51 markets; co-ops are a very small market share and are included with condo data. In the fourth quarter, the national median existing condo price was $228,200, which is 12.3 percent higher than a year ago. In all, 27 areas showed double-digit annual gains in the median condo price; there were seven areas with declines.

“The national condo price is higher than the median single-family home price because there is a high concentration of condos in the most expensive metropolitan areas,” Lereah says. “The data shows that within a given area, the typical single-family home costs more than the median condo price.”

NAR President Thomas M. Stevens says the long-term outlook for home prices and sales is favorable. “There is a powerful underlying demand for homes from a growing population, which will keep housing at a high plateau,” said Stevens, senior vice president of NRT Inc.

“The children of the baby boom generation, often called the echo-boomers, are the second largest generation in U.S. history and are just entering the period in which people typically buy their first home. Along with a strong immigrant impact, and the boomers themselves who remain in peak earnings years, this means the need for housing will stay strong over the next decade and long-term prices will continue to rise,” Stevens says.

The biggest single-family price increase in the nation was in the Phoenix-Mesa-Scottsdale area of Arizona, where the fourth quarter price of $268,400 rose 48.9 percent from a year earlier. Next was Cape Coral-Fort Meyers, Fla., at $293,100, up 48.0 percent from the fourth quarter of 2004. Orlando, Fla., with a fourth quarter median price of $261,800, was up 42.0 percent in the last year.

Most, Least Expensive Areas in U.S.

Median fourth-quarter metro area single-family prices ranged from $63,800 in Danville, Ill., to nearly 12 times that amount in the San Jose-Sunnyvale-Santa Clara area of California where the median price was $747,000. The second most expensive area in the United States was the San Francisco-Oakland-Fremont area at $718,700, followed by the Anaheim-Santa Ana-Irvine area (Orange Co., Calif.) at $699,800.

Other low-cost markets include, Elmira, N.Y., the second least costly metro area at $78,800, and Decatur, Ill., with a fourth-quarter typical resale home price of $84,500.

None of the areas with price declines had previously experienced rapid price growth. Generally, these were lower-cost areas experiencing one or both of the conditions necessary for temporary price softness – local economic weakness, mainly in jobs, or a large supply of homes available in the local market.

As for condo prices, the strongest gains were in the Phoenix-Mesa-Scottsdale area, where the fourth quarter price of $175,600 jumped 50.9 percent from a year ago. In the Tampa-St. Petersburg-Clearwater area of Florida, the median condo price of $185,400 rose 37.1 percent from the fourth quarter of 2004, while the Honolulu area, at $300,000, increased 36.4 percent. In all, 52.9 percent of the available markets experienced double-digit annual condo price appreciation. The condo price series will be expanded in the future as more data becomes available.

Metro area median existing condo prices ranged from $105,700 in Bismark, North Dakota, to $616,800 in San Francisco-Oakland-Fremont. The second most expensive reported area for condos was Los Angeles-Long Beach-Santa Ana, at $406,600, followed by the San Diego-Carlsbad-San Marcos area of California at $390,300.

Other low cost condo markets include Rochester, N.Y., at $108,800, and Greensboro-High Point, N.C., at $109,000.

Regionally, the strongest increase in the median existing single-family home price was in the West, up 18.2 percent over the last year to $328,500 during the fourth quarter. After Phoenix-Mesa-Scottsdale, the strongest increase in the West was in the Tucson area, at $245,200, up 32.3 percent, followed by Salem, Ore., at $194,100, up 28.3 percent from the fourth quarter of 2004, and Honolulu, at $620,000, up 26.5 percent.

In the Midwest, the fourth-quarter median existing single-family home price of $167,600 rose 11.0 percent from the same period in 2004. The strongest metro increase in the Midwest was in Peoria, Ill., where the median price of $112,700 was 18.4 percent higher than the fourth quarter of 2004. Next was Bismark, N.D, up 16.0 percent, and Danville, Ill., at $63,800, up 12.5 percent in the last year.

In the South, the typical existing single-family home price was $185,300 in the fourth quarter, up 9.2 percent from a year earlier. After the Cape Coral-Fort Meyers and Orlando areas of Florida, the strongest increase in the South was in Ocala, Fla., at $161,100, up 41.2 percent from the fourth quarter of 2004. Next was Tampa-St. Petersburg-Clearwater, where the fourth quarter median price of $223,000 was 32.3 percent higher than a year ago, and the Virginia Beach-Norfolk-Newport News area of Virginia and North Carolina, at $220,500, up 31.5 percent.

High Appreciation on Gulf Coast

“Homes on the Gulf Coast that escaped damage from Hurricane Katrina were in high demand, resulting in strong price appreciation,” Lereah said. The New Orleans-Metairie-Kenner area annual rate of appreciation in the fourth quarter was 29.2 percent, Gulfport-Biloxi was up 24.9 percent and Beaumont-Port Arthur rose 18.8 percent.
In the Northeast, the median resale single-family home price during the fourth quarter was $240,300, up 8.0 percent from a year ago.

The strongest increase in the region was in the New York City-Wayne-White Plains area of New York and New Jersey, at $537,300, up 19.2 percent from the fourth quarter of 2004, followed by Reading, Pa., with a median price of $143,200, up 16.9 percent, and the larger region of the New York-Northern New Jersey-Long Island area of New York, New Jersey and Pennsylvania, at $459,600, up 16.0 percent.

—NAR

Pending Home Sales Expected to Rebound Soon

2006-02-01T17:40:00.000-04:00

Pending Home Sales Expected to Rebound Soon

( February 1, 2006) -- Pending home sales continue to decline but are expected to recover in the months ahead, according to the NATIONAL ASSOCIATION OF REALTORS®.

The Pending Home Sales Index, based on contracts signed in December, was down 3 percent to a level of 116.4 from 120.0 in November, and is 5.5 percent below December 2004.

Pending sales have trended steadily down from a record index of 129.2 last August.
The index is based on pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed, but the sale usually is finalized within one or two months of signing. An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined, and was the first of five consecutive record years for existing-home sales.

David Lereah, NAR’s chief economist, says momentum in the housing market shifts slowly.

“Changes in the overall direction of the housing market are akin to a large ship making course corrections – it takes some time for the driving factors to materialize as a change in the sales level,” he says. “In many recent transactions we’re looking at a delayed effect of mortgage interest rates that peaked in November but are now lower than expected."

Mortgage applications have trended up in recent weeks, so we shouldn’t be surprised to see pending home sales rise in the next couple months, he adds.

Even with an upturn in sales, Lereah expects the housing market to stay below last year’s record. “We’re going through a period of adjustment," he says. "As home sellers recognize a return to more normal rates of price growth, some that have been holding out for higher prices will be more willing to negotiate terms that are acceptable to buyers but still provide them a solid return on their investment.”

Regionally, the Pending Home Sales Index in the South rose 2.3 percent in December to 135.9 and was 4.1 percent above December 2004. In the Northeast, the index increased 1.5 percent to 90.7 but was 11.1 percent below December 2004. The index in the West fell 8.1 percent to 117.1 in December and was 11.8 percent lower than a year ago. In the Midwest, it dropped 9.3 percent to a level of 105.8 and was 11.0 below December 2004.

The Pending Home Sales Index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 closely parallels the level of closed existing-home sales in the following two months.

Existing-home sales for January will be released Feb. 28; the next Pending Home Sales Index will be on March 6.

—NAR

Editor's Note: For more housing market statistics and research reports,visit NAR's Research Department at REALTOR.org.

Bad time to invest in Real Estate?

2006-01-30T19:12:00.000-04:00

Internet Gurus Swap Virtual for Real Estate

(January 30, 2006) -- High-flying Internet pioneers have traded online businesses for real estate opportunities, reports Forbes magazine.

Here is what some of these former electronic high-flyers are doing now:

Steve M. Case, former chairman of AOL Time Warner, is now the majority owner in Miravel, a spa in Arizona.

Thomas Jermoluk, former head of ExciteAtHome, partnered with James Clark, founder of Silicon Graphics, Netscape, and Healtheon, to build a pair of luxury condo towers in Miami.

Timothy Koogle, former chief executive of Yahoo, is developing el Banco, a luxury community on Mexico’s Pacific coast where lots start at $4.7 million. "It's a huge amount of fun to take a bare piece of land and create a great product for it," Koogle says.

Ben Addoms, former top executive for ExciteAtHome, co-founded luxury residence club Quintess. Members pay a fee, plus annual dues of $10,500 to $30,500, to stay in mansions around the world. "All of us that went through the boom and the bubble have traded that high-risk, high-reward experience for something with a little more predictability," Addoms says.

Jonas P. Lee, founder of Giftcertificates.com, is now managing partner of Redbrick Partners, which buys single-family homes around the United States. "I didn't look at this as a real estate play. It makes all the sense in the world — you go from one entrepreneurial industry to another entrepreneurial industry," Lee says.

Source: Forbes, Sara Clemence (02/13/06)

Does this contradict the local paper?

2006-01-30T19:09:00.000-04:00

U.S. New-Home Sales Rise in December

(January 30, 2006) -- New-home sales posted an annual sales gain of 3 percent to 1.269 million units in December from 1.233 million the previous month, a joint report from the U.S. Department of Housing and Urban Development and the U.S. Commerce Department shows.

New-home sales for all of 2005 rose 6.6 percent to 1.282 million from 1.203 million in 2004.

The median new-home price in December hit $221,800, while the average price reached $272,900.

Source: Industry Week, John McClenahan (01/30/06)

Hard to know what to think here?!

2006-01-26T10:27:00.000-04:00

From the local Brevard County Florida paper today.
The headlines
Reports: Housing market cooling
This is followed by quotes from some organization I’ve never heard of!

Page 3
Brevard County housing permits top record

It’s always the same question; is this reporting news or sensationalizing and making news?

It's very hard to imagine that the relationship of the head lines to advertising revenue is not related. Although I did not do a page or ad count in Sunday's Florida Today, there were three sections while usually there are two! Bad real estate head lines equals more money!

Now to top it all off they use one report found here;
http://www.localmarketmonitor.com/HomeValueRating.xls
(Copy and paste to your browser)

I'm sure if they looked hard enough they could have found another "half baked" agency showing that prices were undervalued.

Thank you Florida Today; everyone will wait with bated breath for prices to drop 39%!

Or more likely they'll consider the Florida Today paper to be the "rag" it is.

2005 Existing-Home Sales Set Annual Record

2006-01-25T15:29:00.000-04:00

January 25, 2006) -- Existing-home sales declined in December but easily set an annual record, according to the NATIONAL ASSOCIATION OF REALTORS®.

There were 7.07 million existing-home sales in all of 2005, up 4.2 percent from 6.78 million in 2004. This is the fifth consecutive annual record; NAR began tracking the sales series in 1968.

However, total existing-home sales for December — including single-family, townhomes, condominiums and co-ops — were down 5.7 percent to a seasonally adjusted annual rate of 6.60 million units from an upwardly revised pace of 7.00 million in November. Sales were 3.1 percent lower than a 6.81 million-unit level in December 2004.

David Lereah, NAR’s chief economist, expected the monthly sales decline. “This is part of the market adjustment we’ve been discussing, with a soft landing in sight for the housing sector,” he says. “The level of home sales activity is now at a sustainable level, and is likely to pick up a bit in the months ahead. Overall fundamentals remain solid, driven by population and employment growth as well as favorable affordability conditions in most of the country, so we expect the housing market to remain historically high but lower than last year’s record.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.27 percent in December, down from 6.33 percent in November; the rate was 5.75 percent in December 2004. Last week, Freddie Mac reported the 30-year fixed rate was down to 6.10 percent.

“Mortgage interest rates have been trending down from a peak in November, and are lower than expected – if lower interest rates are sustained, the housing market could see some unexpected lift,” Lereah said.

The national median existing-home price for all housing types was $211,000 in December, up 10.5 percent from December 2004 when the median was $191,000. The median is a typical market price where half of the homes sold for more and half sold for less.

For all of 2005, the median price was $208,700, up 12.7 percent from a median of $185,200 in 2004.

NAR President Thomas M. Stevens from Vienna, Va., says it may take a while for home price growth to cool. “We’re coming off of five years of tight supply, and many sellers are accustomed to expecting very strong price gains and exceptional returns on their investment,” said Stevens, senior vice president of NRT Inc. “With the supply of homes improving and buyers having more choices, the rate of price growth should come down to more normal levels this year.”

Total housing inventory levels declined 4.4 percent at the end of December to 2.80 million existing homes available for sale, which represents a 5.1-month supply at the current sales pace.

Condo Sales Activity Picks Up

Existing condominium and cooperative housing sales increased in December by 1.6 percent to a seasonally adjusted annual rate of 877,000 units from a level of 863,000 in November. Last month’s sales activity was 4.5 percent higher than the 839,000-unit pace in December 2004. For all of 2005, condo sales jumped 9.3 percent to 896,000 units, the 10th consecutive annual record.

The median existing condo price was $228,100 in December, which was 10.2 percent above a year ago. In 2005, the median condo price was $218,200, up 12.7 percent from 2004.

Single-Family Sales Slip, Prices Rise

Single-family home sales declined 6.8 percent to a seasonally adjusted annual rate of 5.72 million in December from 6.14 million in November, and were 4.2 percent lower than the 5.97 million-unit pace in December 2004. In 2005, single-family sales rose 3.6 percent to 6.18 million, the fifth straight yearly record.

The median existing single-family home price was $209,300 in December, which was 10.8 percent above a year ago. For 2005, the median single-family price was $207,300, up 12.6 percent from 2004.

Sales Pace Differs by Region

Regionally, total existing-home sales in the Northeast held even at an annual sales rate of 1.09 million units in December, and were 3.5 percent lower than December 2004. The median price in the Northeast was $245,000, up 11.4 percent from a year ago.

In the Midwest, existing-home sales eased by 2.6 percent to an annual pace of 1.52 million in December, and were 1.9 percent below a year ago. The median price in the Midwest was $173,000, which was 10.9 percent higher than December 2004.

Existing-home sales in the South declined 7.2 percent in December to a level of 2.58 million, but were 1.2 percent higher than December 2004. The median price in the South was $182,000, up 4.6 percent from a year earlier.

In the West, existing-home sales fell 11.4 percent to a pace of 1.40 million in December, and were 11.4 percent below a year ago. The median existing-home price in the West was $318,000, up 14.0 percent from December 2004.

—NAR

It's so nice to be in Brevard County Fl.

2006-01-25T15:26:00.000-04:00

Modest Homes Fetch Luxury Prices in California

(January 25, 2006) -- Thanks to soaring home prices, the number of million-dollar homes sold in California rose 47 percent last year to almost 49,000, according to DataQuick Information Systems.

The median million-dollar property had just four bedrooms and three bathrooms, encompassing 2,480 square feet.

Almost all of the homes sold in Rancho Santa Fe were priced at $1 million or more, and properties in many non-resort communities also hit that benchmark.

DataQuick adds that 2,902 condominiums sold for $1 million-plus last year, marking a gain of 73 percent from 2004. The priciest condos were located in West Los Angeles, San Diego, and San Francisco.

Los Angeles Times, Annette Haddad (01/25/06)

Lower Rates Boosted Mortgage Demand Last Week

2006-01-25T15:24:00.000-04:00

(January 25, 2006) -- Thanks to the lowest long-term rates in three-and-a-half months, U.S. mortgage applications climbed steadily in January.

The Mortgage Bankers Association reports its seasonally adjusted index of mortgage application activity for the week ending Jan. 20 rose 7.7 percent to 660.5. Volume was driven by demand for new mortgages as well as refinancing.

Mortgage rates on a 30-year fixed-rate mortgage, excluding fees, averaged 6.04 percent, down 0.03 percentage points from the previous week’s high of 6.07 percent. Rates have fallen steadily since the week ending Nov. 11, when they reached a 2005 high of 6.33 percent.

Source: Reuters News (01/25/06)

Brevard sprawl coming

2006-01-25T12:07:00.000-04:00

Space limitations building in Brevard

BY JEFF SCHWEERS
Antonio Rovira left the urban congestion of Orlando 18 months ago for the relative peace and seclusion of Newfound Harbor on Merritt Island.
He figured the neighborhood of single-family homes on narrow streets would be immune to the kind of development that drove him out of Orange County. He was wrong.
"I left Orlando because Orlando is a madhouse," he said. "Orange County is completely out of control because of the sprawl."
Brevard County faces similar challenges. The county is growing daily by about 24 people -- the size of an average classroom. That's 9,000 new people a year -- enough to populate a city the size of Indian Harbour Beach.
Where to put them is a problem county and city officials face on a weekly basis. Residents along the shoreline, accustomed to unobstructed views, resist condominiums; folks in rural regions and along the green, western fringes where development now ends bristle over seeing more homes crowding out
nature.
Experts say condos are the most effective way to go because it keeps growth concentrated in one area. That takes the burden off of roads and other public services and preserves the environment.
In Brevard, though, 85 percent of the housing being built involves single-family homes stretching outward into therural enclaves to the west, north and south of the already developed areas.
"While it's popular to say you shouldn't build on less than one acre, the reality is that sometimes you have no choice," County Commissioner Ron Pritchard said.
Still, he said, "There is a limit to the tolerance of neighborhoods to have high-rise developments in their backyards."
Housing boom
Last year alone, developers put up 8,112 homes, condos, townhouses and apartments. Currently, one-third of the development plans under review at the county's land development offices is for condos.
Meanwhile, thousands of single-family homes are popping up everywhere, particularly in Palm Bay and Viera. And based on site plans under review, hundreds more houses are coming to areas like Mims, Grant and west of Cocoa.
"Look around," said Eugene Peeples, a Kennedy Space Center employee looking at model homes Monday afternoon in Viera. "All you see is rooftops."
Way to grow
Urban planning experts say one way to combat the sprawl and save the environment is to build condos in already developed areas where roads and services like water, sewer, fire protection and law enforcement already are in place.
Building condos allows you to put more people in a concentrated area -- 40 families stacked on top of each other takes up less space than the same 40 families spread out across 40 acres.
For example, the Hamlin Groves subdivision proposed for Mims envisions 351 home lots on 142 acres while the proposed Harbor Island condominiums on Merritt Island would have 516 units on 48 acres -- 2.5 units per acre versus 10.75 units per acre.
"We have this peculiarly American view that we need suburban-type sprawl, and everyone has their own plot of land, and they're isolated," Florida Tech President Anthony Catanese said. "If we just keep sprawling to the west and north, it's extremely expensive."
His argument: Building out away from compact centers requires not just more police, but more police stations; not just more teachers and classrooms, but more schools.
Nonetheless, Jonathan Barnett, the professor who directed a University of Pennsylvania study looking at Central Florida growth trends, said Space Coast developers shouldn't get a blank check for colossal condominium projects.
Rather, population growth should be developed along a high-speed and light rail system, with hubs in downtown Orlando, Sanford, Lakeland and Orlando International Airport.
"You don't have to be anywhere near high-rise density to contain your growth," said Maureen McAvey, a senior fellow at the Urban Land Institute, a Washington, D.C.-based think tank specializing in urban planning and growth-related issues.
It's government's job to plan good communities for everyone, McAvey said. And that means looking at the big picture, even if it means upsetting some residents.
"When you come down to the real nitty-gritty, you have to start finding solutions about what land could you develop," she said.
Growth is inevitable, so at least plan for that growth, environmentalists say.

Tips for Selling your Home

2006-01-25T12:04:00.000-04:00

Young buyers like a pretty house, so if a house won’t sell, Mark Nash, author of 1001 Tips for Buying and Selling a Home, urges home sellers to make these simple cosmetic updates.

• Expose hardwood floors and buff them until they shine. Nash, who sells homes in the Chicago area, says an increasing number of younger buyers dislike homes with wall-to-wall carpeting. ''It's amazing how often I hear from young clients who won't even look at a place unless it has hardwood floors,'' he says.

• Remove antiquated furnishings. Many young buyers have eclectic tastes. Get rid of matched sets of look-alike furniture from the ’70s and ’80s then rearrange what’s left to make the house feel more contemporary.

• Take down your old draperies and light fixtures, including old-style track lightings. Nash says outdated lighting and heavy, elaborate draperies (the kind with swags and valances) turn off young buyers.

• Remove wallpaper. Young buyers are unwilling to purchase any home that needs wallpaper removal—it’s just too daunting.

• Repaint your walls. Nash encourages home sellers to stick with neutrals or calm earth tones, like a light sage green. Using bold tones can be very tricky, he cautions. “I call these ‘commitment colors.’ Chances are good that your buyers won't like them as much as you do,'' he says.

Brevard Not Even Mentioned

2006-01-19T14:17:00.000-04:00

Home price declines more likely but less risky

WALNUT CREEK, Calif. -- Jan. 17, 2006 -- A study released by PMI Mortgage Insurance Co. finds a greater chance that home prices will fall in selected U.S. markets, but it also envisions a soft landing for the red-hot housing market. The highest Florida city in danger of a price decline is the Fort Lauderdale metropolitan statistical area (MSA) at No. 16 on the top 50 list.

According to the PMI U.S. Market Risk Index issued today, home price appreciation slowed in 32 of the nation's 50 largest housing markets, and many markets face an increased chance of price declines. The continued strength of the economy, however, bodes well for a "soft landing" of the nation's housing market, according to Mark Milner, Chief Risk Officer of PMI Mortgage Insurance Co.

The median Risk Index value for all cities increased 25 percent, from 134 to 168, and there are now 11 markets with a greater than 50 percent chance of experiencing price declines, up from 5 last quarter. The index represents the possibility that property prices will decline over the next two years, with a national Risk Index of 134, for example, translating into a 13.4 percent chance that the median national home price will go lower over the next two years.

Four Florida cities made the top 50. According to the study, the Fort Lauderdale-Pompano Beach-Deerfield Beach MSA has a 37.8 percent chance of property price declines during the next two years. At No. 20, Miami-Miami Beach-Kendall has a 30.3 percent chance; No. 22 Tampa-St. Petersburg-Clearwater has a 25.9 percent chance; and No. 29 Orlando has a 13.7 percent chance.

In the 50-percent bracket, San Diego, Calif., now tops the list with a 58.8 percent chance of price declines, followed by Santa Ana, Calif., Boston, Mass., Long Island (Nassau-Suffolk), N.Y., Oakland, Calif., Sacramento, Calif., Riverside, Calif., Providence, RI, Los Angeles, Calif., San Jose, Calif., and San Francisco, Calif. Nationwide, there exists a 26.1 percent probability of an overall house price decline, as measured within the next two years and across the 50 largest housing markets, up from 21.8 percent last quarter.

"We expected what we are seeing in the third quarter data, which is a moderating of appreciation that, over time, is likely to bring prices back into line with the economic fundamentals that support them, particularly incomes," says Milner. PMI expects this slowing to continue, he added, because appreciation in many markets is still in the double-digits, which is high by historical standards -- a rate of four to six percent annually is considered normal in the United States. Milner believes that a continued gradual slowing of appreciation will contribute to a soft landing, provided that the U.S. and regional economies remain (unharmed by economic shocks, unforeseen events or an adverse change in consumer sentiment.

Other study findings include:

• Nineteen of the top 20 MSAs saw increases in their Risk Index scores. The exception is Detroit, whose score fell four points.

• San Diego, Calif., has jumped to first place, followed by Santa Ana, CA, and Boston, pushing Long Island out of the top three.

• Las Vegas, N.V., experienced the biggest change in Market Risk Index score since last quarter, gaining 221 points for a score of 418, up from 197 last quarter, and rising seven positions in the index.

• Newark, N.J., New York, Edison, N.J., and Washington, D.C., also saw gains of more than 100 points in their Risk Index scores.

• Because third quarter data reflects the initial impact of Hurricanes Katrina and Rita, New Orleans saw the biggest jump in position, rising 16 spots on the Risk Index to number 26.

• Two areas -- Riverside, Calif. and Fort Lauderdale, Fla. -- have seen their Affordability Index scores drop below PMI's benchmark threshold of 70. Six more (San Diego, Santa Ana, Oakland, Sacramento, Los Angeles and Miami) have Affordability Index scores between 70 and 75.

• The five least risky areas are Nashville, Tenn., Cincinnati, Ohio, Indianapolis, Ind., and Memphis, Tenn., with Pittsburgh, Penn., last on the list with a score of 56, up two points from last quarter.

No land left, where do you think prices will go?

2006-01-18T07:49:00.000-04:00

That's it; it's gone!
The last grassy block of untouched developable land in Cocoa Beach is joining its construction-covered neighbors.
Sure, a handful of individual plots remain, but pre-construction work already has begun on the city's last large virgin piece of land that can be built on -- a 4-acre city block between 3rd and 4th streets between S. Atlantic and Orlando avenues.
Coming soon: 24 villas selling for more than $1 million apiece, called The Enclave.
"There's nothing left, no more land," said real estate broker Judy Richman with Dur-Rich Realty, which is handling sales. "People will have to tear down the old and build new."
The hope, Richman said, is that the upscale units -- to be occupied early next year -- will raise property values in the vicinity, bring the city more taxes, be aesthetically pleasing and help revitalize the nearby downtown area.
But City Commissioner Kevin Pruett has mixed emotions about the project.
"Being a longtime Cocoa Beacher, I'm a little partial to nostalgia. I would like Cocoa Beach to be smaller, but progress keeps marching on," he said. "You hate to see a nice hammock like that leave, but by the same token, as a commissioner, we have to grow smartly and allow landowners to develop their investments."
For years, the undeveloped property belonged to FLORIDA TODAY founder Al Neuharth. The land was thick with trees and brush with a few grassy paths cut through. Residents said it was not very well maintained.
In July, Neuharth sold the parcel to developers -- which included former FLORIDA TODAY publisher Frank Vega --
for about $3.5 million.
Margaret Engh-Turgon, who lives across the street from the site at The Courtyards, shrugged her shoulders when asked about the building project.
"I think it's like everywhere else in Cocoa Beach and heading down toward Patrick Air Force Base. Everything is getting overbuilt," she said. "Pretty soon it will be like Daytona Beach around here. I realize it's growth and it's good for the economy but . . ."
Mayor Skip Beeler said things could be a lot worse.
"Hey, they could have built a four-story building," he said. "I don't think it's bad for the city. It's going to be an upscale project with not a lot of height to it. You're not talking about adding lots of units. They own it and they can develop it."
The units -- consisting of two models selling for $1.25 million and $1.29 million -- are about as upscale as they come. Each two-story unit features its own elevator, heated pool and spa, stone fireplace and is more than 3,500 square feet in size. It is the first large housing development to be built in Cocoa Beach since the River Falls development went up 12 years ago.
Among the buyers are Realtors Joanne and John Young of Orlando, who look forward to using their new property as a vacation home for now, and as a full-time residence after they retire. The couple spent "a long, long time looking" before finding exactly what they were looking for, still on the drawing board.
"We drove past that area hundreds of times and never noticed it. I think now it will be," Joanne Young said. "I think it's going to be great for that area, because I think it's going to start a whole string of tear-downs and build-ups."
Richman said her office has received no complaints about the project except from people saddened to see the trees taken out. But, Richman explained, 62 of the trees were transplanted throughout Cocoa Beach parks last month and more than 100 adult trees have been ordered to replace the trees that were taken down.
That was part of the developer's deal with the city.
"I guess it'll be kind of nice as far as building the area up," said nearby resident Dan Coats.
That's it; it's gone!

An investor pullout from the housing sector ?

2006-01-13T10:50:00.000-04:00

ORLANDO, Fla. -- Jan. 12, 2006 -- An investor pullout from the housing sector this year could spell trouble for many U.S. markets.

High-priced home markets and condominiums will be the hardest hit by an anticipated slowdown in investment activity, the country's top housing analysts said Wednesday.

"We expect housing activity to drop about 8 percent this year -- it's primarily because of the investors' slowing purchases," said David Berson, chief economist with mortgage company Fannie Mae.

Berson and other housing economists were in Orlando this week for the National Association of Home Builders' annual conference and exposition.

All the economists are predicting a dip in home sales in 2006, caused mostly by a decline in investment activity.

"We can't find a period when the investor share of home sales has been higher than in the last year," Berson said. "In the fourth quarter, it looked like investors were starting to step back."

That's bad news for such cities as Las Vegas, Phoenix, Orlando, Miami and San Diego, where investors account for more than 25 percent of the home purchases.

Nationwide, investor and second-home purchases total at least 20 percent of the market.

Investors also account for a big chunk of condominium sales in cities nationwide.

"I've been suggesting that we be careful not to oversupply the condominium market," said National Association of Home Builders' chief economist Dave Seiders.

"Once the investor activity declines, we may be looking at some pretty soft conditions there."

In both the condo and single-family home sectors, the fear is that investors will choose to sell properties or decide not to go through with purchases they've signed up for, the analysts say. That could lead to oversupply and dropping prices.

"That's the big downside risk to the housing market this year," Seiders said. "The question is how many units in that hidden inventory will actually come on the market."

The National Association of Home Builders is betting that home starts will drop by about 6 percent this year. Home mortgage rates are also expected to increase to an average of 6.6 percent.

And economists are predicting much slower growth in nationwide home price gains in 2006.

"I can't see how we can maintain double-digit house price growth nationwide like we have enjoyed," said Frank Nothaft, chief economist with mortgage giant Freddie Mac.

The drop in investment activity will take some hot air out of home values.

"Investment activity introduced more speculative fervor in valuation of homes and could have pushed home values higher than can be supported," Nothaft said.

Impact of the investment slowdown will depend on the percentage of such buyers in each market, Berson said.

"It appears the condo market is slowing considerably," he said. "It's no surprise because that's the type of housing investors most favor -- there is no lawn to mow and you don't have to shovel the snow.

"The condo market will almost certainly perform worse than the single-family market," Berson said. "The single-family market may not move down by much at all."

Dallas housing analyst Mike Puls said he's already seeing speculative buyers dwindle from the local condo market.

"The investors are gone -- they are back in the stock market," Puls said. "That's 30 to 50 percent of the deals."

Investors are leaving the housing market for a variety of reasons, the analysts said.

"Investor demand for housing is more volatile," Berson said. "Is it the stock market instead, maybe? Maybe it's gold. Maybe it's oil."

Speculative buyers may also cash out of overheated markets in favor of lower-priced cities.

"I've heard about some of the investor activity making its way to Texas," Seiders said. "Price performance in Texas has been relatively slow and there is some expectation it will accelerate.

"I don't think that's a good bet to make," he said.

Economists see Texas cities as among the most stable housing markets.

"Texas is one of the better markets in the country," Berson said. "While many markets are cooling, Texas is picking up."

© 2006 The Dallas Morning News, Steve Brown. Distributed by Knight Ridder/Tribune News Service.

What's Wrong With This?

2006-01-11T15:01:00.000-04:00

'Transit Villages' Gain Popularity in California

(January 11, 2006) -- As home buyers look for cheaper housing and shorter work commutes, they're flocking to new developments built within walking distance to transit stations.

The trend is fully underway Orange County, Calif. Such projects are in the works near transit stations in Santa Ana, Buena Park, Orange, Fullerton, and Anaheim. Olson Co., for instance, is building 192 townhomes in Buena Park priced in the mid-$500,000s.
The development is located a block from a new Metrolink station that is slated for completion in early 2007. More transit villages are expected, as the Orange County Transportation Authority plans to devote $400 million to expand train service over the next three years.

Source: Los Angeles Times (01/10/06); Reyes, David

Housing Market to 'Normalize' in 2006

2006-01-10T20:47:00.000-04:00

January 10, 2006) -- The key word for the housing market in 2006 is balance, with a return to a more normal rate of price growth, according to the NATIONAL ASSOCIATION OF REALTORS®.

David Lereah, NAR’s chief economist, says current trends in the housing sector are healthy. “We don’t need to break a record every year for the housing market to be good—in fact, cooling sales are necessary for the long-term health of this vital sector,” Lereah says. “A modest slowdown in home sales, coupled with improvements in housing inventory, means the market is in the process of normalization. That will help to bring balance between home buyers and sellers, yet sales will remain historically strong.”

After setting a fifth consecutive annual record, projected to be 7.10 million units for 2005, existing-home sales are forecast to ease by 4.4 percent to 6.79 million this year, which would be the second highest on record. New-home sales, which should be a record 1.29 million for 2005, are expected to decline 6.0 percent to 1.21 million in 2006—that also would be the second best year in history. Total housing starts for 2005 are seen at 2.07 million units—the highest since setting a record 1972—with a 6.6 percent slowing to 1.94 million this year.

“A lot of demand has been met over the last five years, and a modest rise in mortgage interest rates is causing some market cooling. Along with regulatory tightening on nontraditional mortgages, there will be fewer investors in the market this year,” Lereah says. The 30-year fixed-rate mortgage is likely to increase gradually to 6.7 percent during the second half of the year. “This will preserve generally favorable affordability conditions and keep the housing market at a more sustainable sales pace.”

NAR President Thomas M. Stevens from Vienna, Va., says price appreciation should be at more normal levels across most of the country. “Buyers are no longer competing for a tight supply,” says Stevens, senior vice president of NRT Inc. “That means home prices generally will rise much closer to long-term norms, which is the overall rate of inflation plus one or two percentage points. Lower price appreciation will keep the door open to first-time buyers while preserving the investment advantages of home ownership for sellers.”

The national median existing-home price for all housing types, projected to jump 12.9 percent to $209,100 for 2005, is forecast to rise 5.1 percent to $219,700 this year. The median new-home price, which should be up 4.6 percent to $231,300 for 2005, is expected to increase 6.0 percent this year to $245,200.

Inflation as measured by the Consumer Price Index is projected to rise 3.4 percent for 2005 and 3.0 percent in 2006. Inflation-adjusted disposable personal income is forecast to increase 1.3 percent for 2005 and 4.6 percent this year.

Growth in the U.S. gross domestic product is likely to be 3.6 percent for 2005, with GDP seen at 4.0 percent this year. The unemployment rate is expected to drop to 4.8 percent by the end of the year.

—NAR

20 years later, buying a house is less of a bite

2006-01-10T20:44:00.000-04:00

NEW YORK -- Jan. 10, 2006 -- Most homeowners contribute less of their income to housing than the previous generation did, but real estate prices are widely considered to be more expensive than ever. Despite the escalation in property values, most housing markets -- with some exceptions, such as Miami, coastal California, New York, and the District of Columbia -- have remained largely affordable thanks to deeply declining mortgage rates since the 1980s and increasing incomes.

Nationally, a family that earns the median income would have to contribute 22 percent of their pre-tax income to mortgage payments in order to afford a median-priced home this year, according to research firm Moody's Economy.com.

Although housing prices continue to rise, the decline in mortgage rates and fees has made housing more affordable for homeowners these days. In the early 1980s, the percentage of income needed to afford a home rose to more than 30 percent; and since hitting a low of 17 percent in 1998, the share of income required to purchase a home has been creeping back up due to the sharp increase in prices.

Source: New York Verdana,Arial (12/29/05) P. A1; Leonhardt, David; Rich, Motoko

Florida Today Predictions for 2006

2006-01-04T20:40:00.000-04:00

Perhaps just cozying up to their two biggest revenue sources but it sounds accurate!

Consumers and tourists will be driving, flying and buying as much or more this year than they did last year, fueling the engines of Brevard County's economy in 2006.

That's the message from local experts, who disagree with some national economists' predictions that certain sectors -- like housing, energy and buying big-ticket items like cars -- could slide across the country in the new year.

William Dunkelberg, chief economist for the Washington, D.C.-based National Federation of Independent Business, the nation's largest small-business advocacy group, is forecasting consumers will spend less on cars and homes this year, and that the economy will slow in the face of higher interest rates.

While there has been a "softening in prices" for homes and condominiums, Brevard shouldn't see its real estate bubble burst, said Franck Kaiser, executive vice president and chief executive Home Builders & Contractors Association of Brevard.

He said the area will "continue to see a healthy market" in 2006, but it won't be the 20 percent and 30 percent annual appreciation rates -- rather, more to the tune of 10 percent a year.

A recent leveling in home prices is a "market adjustment," Kaiser said. "We are still not as expensive as a number of other areas in Florida."

It's important that the local real estate market have a soft landing from its high-flying act because "construction has been the backbone of our economy for the last few years," Kaiser said. "We are looking forward to a good 2006."

The shift in real estate occurring now is from a sellers' market -- in which houses got multiple offers and many times sold for above their appraised value -- to more of a buyers' market, where houses stay on the market longer, giving buyers more options and lower prices, said Tony Ayala, a Realtor with Pruitt Real Estate in Melbourne.

"It's a great time for buyers to be buying homes," he said, adding that unlike last year at this time, he has a "sizable inventory" of homes.

Home prices are dropping as well, with some houses that were $329,000 now going for $319,000, Ayala said.

When people aren't getting mortgages for new homes, they are usually refinancing to pay off bills, which typically occurs in January, said Allan Kraftchick, office manager for First Choice Mortgage in Satellite Beach.

"I think 2006 will be a good year" for real estate, he said. "Fixed rates are still low enough to do home purchases and refinance to make sense. With all the ice storms in the Northeast, more people will be coming here for 75-degree weather."

On the automotive end of the buying spectrum, 2005 was a record year for Kelly Ford in Melbourne, said sales manager Charles Algieri, adding sales were up 15 percent from 2004.

Even when gas prices soared, "people didn't get rid of their gas guzzlers," Algieri said. "They drove what they wanted to drive."

Anyone who drives keeps an eye on oil prices, which now are hovering near $63 a barrel.

Oil shouldn't surge to above $70 like it did in 2005, said Denton Cinquegrana, markets editor for the Wall, N.J.-based Oil Price Information Service.

Still, he said that could change with another wicked hurricane season, combined with the global demand for oil from China, India and other countries.

Cinquegrana said oil prices are expected to stay near $60 a barrel, with dips and spikes before a steady increase starts around Memorial Day, the historic start of the spring/summer driving season.

This year, drivers should expect "more of the same high prices," he said. "Demand for gas remains as strong as ever, despite high retail prices. You don't see less driving. Maybe it has slowed down the economy a little, but we still have a really strong economy."

Cinquegrana said he expects gas prices to rise, but not as much as they did in 2005, when they reached $3 a gallon for regular unleaded.

Two facets helping Brevard's economy is its low unemployment rate and resurgent tourism market.

The county's unemployment rate was 3.3 percent in November, down from 4.3 percent the previous year. Analysts consider any rate below 4 percent as full employment.

The area's tourism sector is expected to be up as much as 5 percent this year, with many storm-damaged hotels reopening and a shuttle launch as early as May, said Rob Varley, executive director of the Space Coast Office of Tourism.

Brevard's unemployment rate, barring any "substantial changes" in the real estate market, could range between 3.3 percent and 4.3 percent this year, said Michael Slotkin, an associate professor of economics at Florida Tech's College of Business.

"Our defense backbone is strong," Slotkin said. "I don't think it will be a bad year."

The Million Dollar Trailers!

2006-01-04T08:26:00.000-04:00

BRINY BREEZES, Fla. -- Jan. 2, 2006 -- The news traveled fast, as it usually does in this tiny trailer-park town.

A secret suitor was offering to buy the entire municipality for $500 million -- more than $1 million per mobile home. Over shuffleboard courts, pinochle tables and whittling benches, word of the fabulous price soon spread.

" 'A million is a million' and 'Wow, a million dollars!' " said Bob Kraft, 78, a retired high school English teacher from Detroit, recalling initial reactions to the proposal. "That looks good to a lot of people."

If the gargantuan sale goes through, the buyer is expected to wipe this unpretentious beach enclave off the map, obliterating one of the most conspicuous vestiges of the long-ago era when a Florida seaside paradise could be had cheap.

Hundreds or thousands of luxury condos would probably rise in its place, a prospect that has evoked an unexpected surge of nostalgia for this cluster of boxy aluminum homes that are just somewhat wider than rail cars. They sit just feet from one another.

"We used to be an embarrassment," said Tom Byrne, 67, a retired insurance sales manager from Long Island, who had just been boasting to neighbors of reeling in a bluefish. "Now it turns out we're quaint."

Trailers of one kind or another have been on the property since the 1930s, when a farmer allowed passing "tin-can tourists" to park on his beachfront acreage. But in recent decades, many Florida beaches have proved far too pricey for trailer parks, and some communities have forbidden them in fits of snob zoning.

"Briny," as it is known locally, was becoming increasingly noticeable as a throwback, particularly as the coast has become lined with ostentatious mansions and million-dollar condos. But with the specter of so much more development in this area north of Boca Raton -- even though it would be far more grandiose than a trailer park -- has come a sense that a way of Florida life is disappearing.

"It'd be like selling my hometown," said Mayor Jack Lee, 56, who grew up there. He opposes the sale. "We're already living a millionaire's lifestyle -- even without the millions."

"I don't want to live in a condo," said Polly Brady, a retired teacher from Massachusetts.

She and her husband, Tim, a retired vice principal, bought one of the most valuable trailers in town -- on a lot overlooking the beach -- for $150,000, three years ago, they said.

"My kids thought I was crazy," Tim Brady said. "People have preconceptions about trailer parks. But we love it."

The identity of the bidder has not been disclosed by the residents who serve on the park's board. Ken Doyle, president of the corporation that owns the town's 43 acres, would say only that "we're quite sure it's a solid offer."

The owners of the mobile homes all are shareholders in the corporation. In early December, it was announced that nearly three-quarters of the residents in this town of 488 homes had voted to appropriate $30,000 to pay lawyers to pursue the offer.

Earlier this year, 13 homes were for sale in Briny Breezes; since news of the proposal in October, there are none, Brady said.

The founders of the trailer park -- residents themselves who formed the corporation and purchased the land from the farmer decades ago -- set up rules intended to block a developer's buyout, preventing any one person from buying up too many lots, residents said. The buyout proposal avoids those limits by buying the whole corporation of which residents own shares.

The town has 1,100 feet of frontage on the Intracoastal Waterway and about 600 feet on the Atlantic Ocean, and it has long been attractive to developers. The bid is more than 10 times what Briny Breezes is assessed for by Palm Beach County. Residents noted that it may be worth it because by purchasing the entire town, the potential buyer may be purchasing flexibility in what might be built there.

The residents of Briny Breezes, most of them retired, play shuffleboard and join a multitude of hobby clubs, from carving to choir. They say hello to one another as they pass in the narrow streets -- easily done, because many drive around in open golf carts. Some residents boast of being the second or third generation of their family to live there, another strand that holds the community together.

But with one of the largest such real estate sales in Palm Beach County history in the balance, the bid has opened a tense rift among neighbors.

Some are eager to vote for the sale, tempted by the prospect of a purchase price 20 times what many put into their homes. The renewed fear of Florida hurricanes in the wake of recent storms, moreover, has many wondering how long it might be before a direct hit will take it all away anyway.

"It's a mobile home park, we're on the ocean, and there are hurricanes," said Jack Taylor, a retired manufacturer of fire alarms and safety devices. "It's time."

But others rise to anger at the mere thought of selling out. On both sides of the debate, Brinyites tout their devotion to their community, and it is difficult to say even after conversations with more than a dozen residents exactly how a vote might turn out.

Many are loath to come out and say they want to sell. "This is a wonderful place," said Bill Tolford, 81, a retired optometrist from Maine, over a Manhattan outside his beachfront home one night recently. He has been traveling to Briny since the mid-'50s, when his parents had a place. He calculates his home would fetch $1.46 million in the deal. "It's an overly fair price. I know how hard it is to accumulate a million dollars. When you can get it, take it."

Even before the proposed buyout came to light this fall, there were signs that the old Briny lifestyle -- spartan and sunny at the same time -- might be fading. In recent years, participation has dropped off on the shuffleboard courts; attendance has fallen at Briny's annual stage production. The types of people buying into the community have changed, too, residents said, with more who bought purely for weekend visits. One woman bought a place only to be able to walk her dog on the beach.

"It has changed, but I would still rather spend the rest of my days here," Kraft said. "The money is good, but is it enough to buy another place this close to the beach? Not these days."

1031 Exchanges Used for More Than Real Estate

2005-12-30T09:28:00.000-04:00

(December 29, 2005) -- Investors increasingly are avoiding capital-gains taxes by undertaking Section1031 exchanges, which allows them to swap one asset for another and defer the taxes for as long as they hold the new asset.

The total value of 1031 exchanges climbed to $175 billion in 2003 from $90 billion in 1999, Deloitte Tax LLP reports. These "like-kind" exchanges typically involve real estate, but investors are now using them for art, collectibles, private jets, collector cars, yachts, copyrights, and Web site addresses, among other valuables.

However, there are concerns that this section of the tax code is being abused, as exchanged assets must be used for investment purposes only. It is often difficult to determine whether cars and collectibles are purchased for investment or personal use.

In order to get the tax break, investors must locate a similar, replacement asset within 45 days and make the purchase within 180 days. Most use independent middlemen known as "qualified intermediaries" to orchestrate the exchange, keeping the proceeds from the sale in escrow until the purchase of the new asset is finalized.

At least in the case of real estate, investors could have trouble locating a replacement property in a timely manner, forcing them to pay more than what it is worth to achieve the tax benefits.

Source: Wall Street Journal (12/29/05); Silverman, Rachel Emma

Canadians Flock to Brevard County Florida

2005-12-27T08:15:00.000-04:00

Electronic numbers, a cacophony of voices, euphoria and dismay. Just call it another typical evening on ye olde bingo circuit.
Inside this particular bingo hall, though, you also will hear a few Eh's and J'ai perdu encores (I lost again).
Welcome to the Ameri-Cana Resorts Co-Op Inc. in Rockledge, a 55-and-older community where Canadians occupy some of the 400-plus manufactured homes that sit on streets with names such as Toronto, Montreal, Ottawa and Windsor.
Since at least the 1930s, Canadians have been migrating to Brevard County and the rest of Florida during the winter. They come mostly from eastern provinces such as Ontario and French-speaking Quebec, but occasionally from western provinces like British Columbia and Saskatchewan.
This year, the numbers could be the highest since the late 1990s, according to Alain Forget of Palm Beach, an official with RBC Centura Bank, a fully owned subsidiary of the Royal Bank of Canada.
"It's really picking up," said Forget, a native of Canada who oversees the cross-border sector for more than 30 RBC Centura operations in Florida, including one on Wickham Road in Melbourne. "By far, Canadians represent the largest group of foreigners traveling to the state."
He said about 400,000 "snowbirds," staying at least four months, and about 1.5 million others coming in for a week or two, traveled to Florida in 2004, the most recent figures available.
"We expect the total figure to
rise to about 2 million in 2005 and 2.1 million in 2006," Forget said. "In Florida, even the hurricanes haven't chased people away."
Most of the snowbirds are older than 50, but many families with young children also come here for shorter visits.
Some reasons for the surge, according to Forget: A stronger Canadian dollar, financially set baby boomers nearing retirement, and renewed confidence about safety in the United States since the 2001 terrorist attacks.
And don't forget the weather, of course.
"It's so nice to be away from the snow and the cold," said Mary Lou Moore, 63, a retired teacher's assistant from Oakwood, Ontario, who on this night is taking her chances at the Ameri-Cana bingo table.
Moore said she and her husBand, Donald, a 68-year-old retired teacher, plan to spend about four months in Brevard. This year, they did not arrive until the end of November when the hurricane threat subsided.
"We do a whole lot more than just play bingo," Moore said. "We're active in volunteer work and are on the go all the time -- line dancing, square dancing, and my husband woodcarves. The weather doesn't get in the way of activities like it does in Canada."
Scattered around the county, Canadians in Brevard reside in manufactured-home settings such as Ameri-Cana, nearby Casa Loma Estates Co-Op Inc. on U.S. 1 and Holiday Park in Palm Bay, as well as in condominiums and residential neighborhoods.
Johnnie Stout, an agent with National Realty in Melbourne, is among the real-estate agents who have sold homes to Canadians.
"They really enjoy our good weather," she said, "and I wish we had more sunshine right now."
But you won't hear any Canadians grumbling about the weather. What might be chilly for Floridians is a heat wave for them.
Julie McClellan, 20, a Montreal native, lives in Casa Loma with her mother, Michele Rousseau, and Michele's husband, Ron Hoggatt, an American. They just moved here and may stay longer than a few months.
One reason they came to Brevard was family, McClellan said. Her uncles -- Pierre and Alain -- spend several months each winter at nearby Ameri-Cana.
"I've been coming to Florida since I was a little girl," McClellan said. "For Canadians, it's paradise. Just to escape the hip-high snow is a joy."
But even while basking in Brevard's sun, Canadians still miss home, said John Harper, the American owner and president of radio station WMEL-AM (920) in Melbourne.
To help them keep their ties to home while in Florida, Harper's stationhas been broadcasting a daily newscast called "Canada Calling" for 14 years.
Begun nearly 52 years ago, the show, which offers Canadians a mix of news and sports, is heard on more than 20 stations in Florida and some in Arizona, which also appeals to Canadians. On WMEL, the show is broadcast each day from 9 a.m. to 9:05 a.m. beginning Nov. 7 and ending April 10.
"If we have any technical problems, plenty of Canadians call me," Harper said. "The show is very important to them."
In addition to their own news show, visitors from north of the border stay close to one another through the Canadian Snowbird Association, which has headquarters in Toronto.
The association began in 1991 after the Canadian province of Ontario slashed the socialized health coverage of Canadians living part time out of the country. The group has about 80,000 dues-paying members. Most members are 50 and older.
Often, association officials receive phone calls from Canadians as they near the U.S. border. They are unsure about what "to bring in to the states," spokesman Michael MacKenzie said.
"One thing they can't bring in is a beef product," he said, referring to concerns over mad cow disease, fatal in humans. "If you have a ham sandwich at the border, you'll be turned back."
Once they get past the border, Canadians have a special bond with Florida that goes back decades, MacKenzie said from Toronto.
"I'm 38, and I've been going to Florida since I was a kid," MacKenzie said. "For a lot of us, Florida definitely is a home away from home. You even have hockey teams, and Canadians love their hockey. It's just a nice familiar place."
To encourage even more people to come here, MacKenzie's association on Jan. 17 and 18 will hold a "snowbird extravaganza" at the Lakeland Center in Lakeland. He expects more than 30,000 people to attend.
There will be entertainment and "plenty of information" about the sunshine state, MacKenzie said.
One thing no one will talk about, though, is the way it is back in Canada during winter. The answer to that is obvious.
With a wry smile the other night, Violet Wherry, 73, of St. Catharine's, Ontario, looked up knowingly from the bingo table at the Ameri-Cana resort after someone wondered why she leaves Canada each year for the south.
"The weather."
Need we say more.

Condo are not cooling A BIT!

2005-12-22T17:34:00.000-04:00

Condos planned on Ramada Inn site if state approves
The Ramada Inn in Satellite Beach, seen Sept. 5, 2004, suffered major damage to the building and lobby from Hurricane Frances. The abandoned hotel never reopened. The site could soon host condos.
SATELLITE BEACH - A developer plans to raze the hurricane-smashed Ramada Inn Oceanfront Resort and build two 96-foot condominium towers. During a special meeting Wednesday, the Satellite Beach City Council unanimously approved the proposal submitted by Tricon Development of Merritt Island. The abandoned hotel across State Road A1A from Atlantic Shopping Plaza never reopened after hurricanes Frances and Jeanne stormed ashore.
Wednesday's decision ended months of behind-the-scenes talks on the future of the 5-acre site. In the end -- facing questions about population density, building height and "breezeway" requirements -- the developer agreed to donate two acres of oceanfront land blocks to the south to the city. Dubbed the Gemini property, this vacant lot is between Ellwood and Harwood avenues. That's between La Playa and Sandcastle. "If we build on two pieces of property, that's one less we have for an ocean view or a public park," Councilman Frank Catino said.
City Hall staffers will draft ordinances to rezone the old Ramada property. The state's Department of Community Affairs must also approve the proposal. That process could take six months or more, Building Official Bruce Cooper said. The developer bought the Ramada property in February for $8.5 million, Brevard County property appraiser records show.
Plans call for construction of 126 condominium units and nine habitable floors. Satellite Beach zoning typically only allows six-story buildings, at most. With the Gemini property acquisition, City Manager Michael Crotty said the city will control 40 percent of the waterfront land within its borders.

The Rich Expect to get Richer

2005-12-22T06:44:00.000-04:00

Among Florida homebuyers, the rich expect to get richer.

A new survey found that 73 percent of wealthy Floridians expect to see double-digit increases in their home prices during the next five years.

The survey, released Wednesday by The PNC Financial Services Group, shows the level of optimism among the wealthy in the Sunshine State is higher compared with their peers nationwide.

Half of the Floridians surveyed think their home prices will rise 20 percent or more during the next five years. In comparison, slightly more than one in four wealthy people in other states expect price increases of that level.

The survey queried 205 South Florida residents with annual incomes of $150,000 or more, and at least $500,000 in assets, excluding their homes, if employed, or at least $1 million in such assets if retired.

Local real estate officials had mixed opinions about whether homeowners in Brevard County should be as optimistic about their future property values.

Some said it's realistic for local homeowners to expect a 10 percent increase or more during the next five years. Others cautioned that local housing prices are "flattening."

Lisa Durgin, owner of Edwards Realty in Cocoa Beach and the Florida Association of Realtors' district vice president, said single-digit home price increases could be the norm in Brevard for the next few years, but she doesn't think prices will decline.

"We've had a wonderful market for the last five years," Durgin said. "We saw increases of 25 percent a year, and in some cases more. Do we have that now? No. In the last six months, the market has really flattened out."

David Barin, division president of Mercedes Homes in Melbourne, would disagree. He sees plenty of demand for local homes, especially those priced at $500,000 and above. Part of the trend, he said, comes from homeowners who have benefited from the big price gains of recent years and are selling their homes and "moving up" into more expensive ones.

Barin said homes in all price categories in Brevard have done equally well, but location has been the key factor for those with the biggest price gains.

In October, the median sales price of an existing home in Brevard was $238,200, up 35 percent from a year earlier, according to the latest statistics from the Florida Association of Realtors. Statewide, the median sales price in October was $241,000, up 28 percent from a year earlier. The median is the price at which half the homes sell for more and half sell for less.

Terry Lolmaugh, general manager and broker at Trafford Realty in Cocoa, said the current trend seems to be people shaving the asking price of their homes -- most notably on homes that generally sell for $500,000.

"People are having to adjust the price they're asking for, if they're really motivated to sell," Lolmaugh said.

Jennifer Youngblood, spokeswoman for Holiday Builders in Melbourne, said home prices in Brevard have "stabilized" recently, prompting Holiday not to raise its home prices this month.

Home Loan Delinquencies, Foreclosures Rise in 3Q

2005-12-15T15:22:00.000-04:00

(December 15, 2005) -- More home owners were late on their mortgage payments during the third quarter of this year than in the previous three months, according to a report by the Mortgage Bankers Association.

The rate of home loan delinquencies rose to 4.44 percent during the third quarter from 4.34 percent in the previous three months, but was down from 4.54 percent a year ago. Also, the rate of homes entering the foreclosure process rose to 0.41 percent, up from 0.40 percent in the third quarter of last year.

MBA warns that the effects of hurricanes Katrina, Rita, and Wilma will be reflected over at least the next few quarters. Although the group expects delinquencies and foreclosures to rise, the improving economy is likely to offset the increase.

"At the end of the day, the most important criteria are job growth and real income growth," says MBA Chief Economist Doug Duncan.

Survey Says

2005-12-12T15:16:00.000-04:00

Florida existing-home sales (October 2005):
+ 28 %

National existing-home sales (October 2005):
- 2.7 %

National housing starts (September 2005):
-5.6%

Florida consumer confidence:
84

National consumer confidence:
98.9

U.S. new home sales:
+ 13 %

Median price of an existing-home (Fla.)
$241,000

Median price of an existing-home (U.S.)
$218,000

Median price of a new-home (U.S.):
$231,300

30-year fixed rate mortgage:
6.32 %

Pending home sales index
128.8

Housing market index:
60

Historically Strong Home Sales Expected in 2006

2005-12-12T15:07:00.000-04:00

(December 12, 2005) -- The housing market for 2005 is headed for a fifth consecutive annual record, and sales activity in 2006 is expected to be the second best year in history, according to the NATIONAL ASSOCIATION OF REALTORS®.

David Lereah, NAR’s chief economist, said that market conditions are still favorable for housing. “The slowdown amounts to a tapping of the brakes on a hot market,” said Lereah. “Home sales are coming down from the mountain peak, but they will level-out at a high plateau – a plateau that is higher than previous peaks in the housing cycle. This transition to a more normal and balanced market is a good thing.”

The 30-year fixed-rate mortgage should trend up modestly and reach 6.6 percent during the second half of 2006.

Existing-home sales, expected to rise 4.7 percent to 7.10 million this year, are likely to decline 3.7 percent in 2006 to 6.84 million. New-home sales, projected to increase 7.0 percent to 1.29 million this year, are forecast to drop 4.8 percent to 1.23 million in 2006 – also the second best on record. Total housing starts for 2005 should grow 5.8 percent to 2.06 million units, the highest since 1972, and then decline 4.8 percent to 1.92 million next year.

NAR President Thomas M. Stevens from Vienna, Va., said that housing has always been the soundest investment for most families. “As the old saying goes, homeownership beats the heck out of a drawer full of rent receipts,” said Stevens, senior vice president of NRT Inc. According to the Federal Reserve Survey of Consumer Finances, the median net wealth of a homeowner household is 36 times higher than a renter household.

Stevens said that the national median home price has never declined since good recordkeeping began in 1968. “Although there can always be a temporary decline in a given area if jobs are weak and there is an oversupply of homes on the market, people who stay in their homes for a normal period of homeownership generally see healthy returns over time. There are no guarantees, but there are very good odds.”

The national median existing-home price for all housing types, which is experiencing a surge estimated at 12.7 percent to $208,800 for 2005, is expected to rise another 6.1 percent in 2006 to $221,400. The median new-home price is likely to rise 5.5 percent to $233,100 in 2005, and then grow by 7.3 percent next year to $250,100 as higher construction costs impact the market.

The U.S. gross domestic product should grow 3.7 percent for 2005 and 4.1 percent next year. The unemployment rate is expected to decline to 4.9 percent by second quarter of 2006, and then stabilize.

The Consumer Price Index is projected to rise 3.4 percent for 2005, and 2.9 percent next year. Inflation-adjusted disposable personal income is forecast to increase 1.4 percent in 2005 and 4.5 percent in 2006.

NAR

What's in and what's not for 2006

2005-12-12T12:04:00.000-04:00

The majority of full-time real estate agents hear a lot of feedback every day all year from homebuyers as they visit potential resale and new construction homes.

They wonder why builders, developers and home-sellers add finishes or upgrades that say "cheap" or "soon-to-be-out-of-date", in addition to owners who think the laminate wood-grained kitchen cabinets look fine.

Old standbys like solid oak hardwood floors might not be on the design edge, but quality and durability out sell trendy any day in residential real estate. After a year of property showings in 2005 and eight previous years with homebuyers as well as requests from consumers after the review of "1001 Tips for Buying and Selling a Home" in The New York Times, I've compiled a list of home runs and strikeouts for those looking to sell to homebuyers in 2006.

What's In

Smaller square footage homes. After years of sprawl, new construction buyers want less space with better finishes.
Quality kitchen cabinets. With the kitchen/greatroom the center of family living, buyers today are looking at furniture style cabinets.
Bamboo wood floors. It could overtake maple as the favorite light-colored wood flooring in 2006.
Wall space for flat screen TV's. Specify power and cable boxes close to locations where homebuyers want to place the latest in visual technology. The popular location for installation in new construction is over the fireplace.
Multiple and high-powered phone lines. With modems, dsl, wi-fi moving into mainstream use, tech-savvy homebuyers want "wired" homes.
Separate shower stalls and bathtubs in master bathrooms. The growing divide among "soakers" and "showers" is increasing. Not having one of each in a master bath could quelch a purchase.
Built-in home stereo systems are a must-have for many audiophiles. Wireless hasn't quite made the pre-wired audio system home obsolete, at least not in 2006.
Balconies and decks wider than 3 feet. Homebuyers want usable outdoor space. Big enough for a bistro table and chairs and a couple of pots for container gardening.
Guest parking. With the rise in condominiums, lofts and zero-lot line subdivisions, homebuyers want their guests to have a hassle-free experience when they arrive at their new home. Buy or lease an extra space for family or friends.
Dog Parks. Dogs and home ownership go hand-in-hand. The new way to meet neighbors in the hood is to interact with them at the dog park. Before buying a home, check out the nearest one.
Ranch or one level homes. The baby-boomers are discovering their utility in droves.
Second Homes. The baby-boomers are also keeping this market segment strong. Demand for second homes was still on the upside in 2005, but if primary home demand weakens, the second home market will historically follow.
Seller give-backs. With a more balanced market in most metro markets, requests by buyers to pay closing costs have increased, and some sellers are paying them.
Carbon Monoxide detectors. Home inspectors red flag homes that have only smoke detectors. Inexpensive and lifesaving, install one on every floor of a home before opening to homebuyers.
What's Out

The real estate bubble. It's a correction with a soft decline in prices.
Ebony-stained hardwood floors. You're better off tearing it out than trying to sand the ebony out to refinish.
Single-rod closets. Buyers want the most storage in the least amount of space. Organizers accomplish this.
Dark rooms with small windows. Natural light can overrule a lot of other problems in a home.
Wallpaper. Buyers never have the same taste as decorators. Take it down (carefully) and paint.
Builder grade light fixtures and interior fixtures used outside. The right fixtures say quality to buyers.
Mid-century awnings on exterior windows and doors. Buyers want to let the sun shine in.
Mirrored backsplash's in kitchens and everywhere else. Mirrored walls and ceilings say 1980's hedonism.
Commitment (strong, bold trendy) colors. They look great in magazines, but as one buyer said to me "I don't live in a magazine".
Gas grills that need their own tank. Buyers prefer the gas piped from the house so they don't have to replace tanks.
Dropped ceilings. It might have updated a bungalow in the 1950's, but buyers want as much vertical space as possible.
Flipping. Increasing inventories of unsold homes is increasing, signaling weakening demand by all buyers. If you are holding properties to flip, prepare to place them on market after the holidays.
On the Way Out

Stainless steel appliances. Word-of-mouth says the cleaning requirements aren't for everyone.
Laminate flooring that looks like hardwood. Not only can buyers tell it's not wood, the noise it makes with high-heel shoes is the deal killer during property showings.

Alternate Link to Website

2005-12-11T23:15:00.000-04:00

Just throwing one in for the email spyders
http://atlanticcanada.info/bindex.htm

Florida Condo Owners Rights

2005-12-09T13:47:00.000-04:00

Condominium owners across Florida can go to www.myflcondo.org to learn their
rights and responsibilities, file a complaint against their condo board or ask questions.
Florida Condo Ombudsman Virgil Rizzo, whose office was established last year to
handle disputes between condo owners and boards and to push for new state laws,
created the Web site. However, residents of communities ruled by homeowners
associations do not yet have such an outlet.

A Brief History of Real Estate 1900 to 1999

2005-12-07T21:52:00.000-04:00

1900
75 percent of urban Americans live in rented apartments or flats.

ca. 1900
Prefab houses become popular in the United States after Sears, Roebuck begins featuring them in mail-order catalogs.

1905
The first ranch homes are built in California, probably in Pasadena. Bungalows, or ranch-style homes, gain popularity in the rest of the United States from 1905 to 1910, when a number of design books and articles on the style are published. By 1910, because of their affordability and popularity, bungalows become the ideal "all-American family house," according to The American Family Home, 1800-1960.

1908
The National Association of Real Estate Exchanges is founded with a mission “to unite the real estate men of America for the purpose of effectively exerting a combined influence upon matters affecting real estate interests.”

The Los Angeles City Council passes the "Residence District Ordinance," the first major land-use zoning law in the United States.

1910s

1913
The National Association of Real Estate Exchanges adopts the first Code of Ethics.

The current income tax system is established by Congress under the Revenue Act of 1913, which includes provisions for the home mortgage interest deduction.

1916
The National Association of Real Estate Exchanges changes its name to the National Association of Real Estate Boards.

The term REALTOR® is coined “to identify real estate agents who are members of the National Association of Real Estate Boards and subscribe to its strict Code of Ethics.”

In Brooklyn, N.Y., Sunset Park is established by Finnish immigrants. It’s now the oldest existing co-op in the United States.

New York City becomes the first U.S. city to adopt a comprehensive, citywide zoning law.

1917
In Buchanan v. Warley (1917), the U.S. Supreme Court begins to reverse the landmark Plessy v. Ferguson decision of 1896. The Buchanan ruling outlaws racial segregation ordinances, which set aside certain blocks where only African-Americans can live. (In Plessy v. Ferguson, the Supreme Court established the "separate but equal" doctrine for railway travel. The doctrine was soon adapted more broadly to race relations and was used by some real estate practitioners to justify steering homebuyers to certain neighborhoods.)

1919
The first real estate licensing law is enacted in Michigan. One of the earliest challenges to state licensing law comes in that same year in Riley v. Chambers. The California Supreme Court rules that a statute that prevents an individual from engaging in a business occupation because of his moral character or reputation is not an invasion of personal rights and is therefore legal.

1920s

1926
The University of Michigan grants the first master’s degree in real estate business administration.

In Village of Euclid, Ohio, v. Ambler Realty, the U.S. Supreme Court upholds the right of a municipality to adopt a comprehensive zoning ordinance.

1930s

1934
The National Housing Act is enacted, creating the Federal Housing Administration. The mortgage insurance program included in FHA's mission spurs the creation of fixed-rate mortgages.

1938
The Federal National Mortgage Association—now Fannie Mae–is chartered by the federal government.

1940s

1947
An organization of mostly black real estate professionals, the National Association of Real Estate Brokers (the “Realtists”), is founded.

1948
The U.S. Supreme Court, in Shelley v. Kramer, decides that racially restrictive covenants aren’t legally enforceable. (The covenants became popular after racial zoning was outlawed in Buchanan v. Warley, 1917. They were attached to property deeds, dictating which racial or ethnic groups the property could or could not be sold to.)

1949
The term REALTOR® is approved as a registered trademark by the U.S. Patent & Trademark Office. The REALTOR® emblem is approved in 1950.

The first national real estate franchise, Gallery of Homes, is established.

Dale Rector founds Realty Executives in Phoenix, introducing the 100 percent commission concept.

Under the 1949 Housing Act, the federal government undertakes its landmark mission of providing "a decent home and a suitable living environment for every American family."

1950s

Late 1950s
Condos begin appearing after developers bring the idea from Puerto Rico (Puerto Rico has imported the idea from Cuba).

1959
In one of the earliest agency disclosure cases, Hughes v. Robbins et. al., an Ohio court decides that a broker can operate in a dual agency capacity but only with the full disclosure and consent of all parties.

1960s

1960
Del Webb begins building the Sun City active adult retirement communities in Arizona.

1961
President Kennedy signs the Housing Act of 1961, which extends FHA mortgage insurance program to cover condos.

1966
The National Historic Preservation Act popularizes the idea of using historic preservation—rather than just new construction—as a means of providing housing. The act establishes the National Register of Historic Places and provides a grant and loan program for historic preservation projects.

1968
Discrimination in housing is outlawed under Title VIII of the Civil Rights Act of 1968, also known as the Fair Housing Act.

The Long Island Board of REALTORS® makes the first (unsuccessful) attempt at a computerized MLS. In 1975 it becomes the first board to create a successful computerized MLS.

1970s

1970
The Federal Home Loan Mortgage Corp.—Freddie Mac—is chartered by Congress, creating the secondary market for conventional home loans.

U.S. Census Bureau reports that suburban population has outgrown the population of central cities.

Census records 60,000 condo units in the United States.

1973
The U.S. Department of Housing and Urban Development and the U.S. Census Bureau begin publishing the American Housing Survey, which is now the source of much of the nation’s statistical and demographic information on housing.

RE/MAX is founded in Denver. The company is widely credited for shifting the balance of power between salespeople and brokers by popularizing the 100 percent commission concept.

1974
The National Association of Real Estate Boards changes its name to the NATIONAL ASSOCIATION OF REALTORS®.

Congress passes the Real Estate Settlement Procedures Act, which regulates how real estate settlement services are provided and compensated.

Condos account for nearly 25 percent of new home sales.

1975
In Southern Burlington Council, NAACP v. Township of Mount Laurel (aka Mount Laurel I), the New Jersey Supreme Court rules that a municipality cannot ignore the housing needs of its region by using zoning laws to prevent the building of low-income housing.

1978
Existing-home sales hit a record high of 3.986 million units sold. The record stands until 1996.

Variable-rate mortgages, the predecessor to today's adjustable-rate mortgages, are introduced by a savings & loan association in California.

1980s

Early 1980s
Gated communities begin to gain popularity in the United States. The idea has been around since at least 1870, when the streets in some St. Louis neighborhoods were closed off and made private.

1980
Census shows more than 2 million condo units in the United States.

1982
The Federal Home Loan Bank Board adopts the adjustable rate mortgage as its alternative mortgage instrument of choice.

Coldwell Banker, the oldest of the current franchise organizations (founded in 1906), begins franchising

1983
Federal Trade Commission (FTC) releases its report The Residential Real Estate Brokerage Industry, which indicates that, in cooperative transactions, 72 percent of potential homebuyers think that the real estate practitioner who’s working with them is working for them.

In Southern Burlington Council, NAACP v. Township of Mount Laurel (aka Mount Laurel II), the New Jersey Supreme Count rules that residential developments must set aside funds to help provide affordable housing in the community.

1984
California Court of Appeals decides in Easton v. Strassburger that a real estate broker has the duty to inspect a property listed for sale for defects and disclose those defects to prospective purchasers.

1985
California becomes the first state to pass a seller property condition disclosure law. More than 25 other states eventually follow suit.

1986
The Tax Reform Act of 1986 makes it easier for taxpayers to deduct capital gains from the sale of real estate from their income taxes.

1987
California and Hawaii enact some of the first agency disclosure laws. At least 47 states now require some form of agency disclosure.

In Nollan v. California Coastal Commission, the U.S. Supreme Court concludes that the Commission can’t require property owners to provide public access to beaches (an easement) in return for private property permit approvals.

The U.S. Supreme Court, in First English Evangelical Church v. County of Los Angeles, decides that the temporary, as opposed to permanent, taking of property without compensation is unconstitutional.

1990s

1991
Recession officially ends in March, according to the National Bureau of Economic Research Inc., signaling the return of commercial and residential real estate.

The oldest cohousing project in the United States—Davis, Calif.'s Muir Commons—opens.

The ruling by the 11th U.S. Circuit Court of Appeals in Thompson v. Dekalb County Board of REALTORS® that the exclusive right of NAR members to use the MLS is harmful to other businesses opens up MLS use to nonmembers in that jurisdiction.

1992
Lucas v. South Carolina Coastal Commission is an important recent land-use decision, in which the U.S. Supreme Court adopts a new takings rule requiring compensation for the deprivation of all economically beneficial uses, even though the regulation may be legitimately advantageous for the state.

1994
Property listings begin to become publicly available on the Internet.

U.S. Supreme Court's decision in Dolan v. City of Tigard establishes the "rough proportionality" test for determining whether government regulation of land is so intrusive as to constitute a taking.

1995–96
Hospitality Franchise Systems (now Cendant Corp.) acquires Century 21, Coldwell Banker, and ERA, starting what some refer to as the "consolidation craze." HFS acquires Century 21 on Aug. 1, 1995, for an estimated $200 million; ERA on Feb. 12, 1996, for about $46 million; and Coldwell Banker on May 31, 1996, for more than $640 million. The dates are those of the completion of the acquisitions, not the dates of the announcements of agreements to acquire.
1996
In March, lead-based paint disclosure requirement regulations are issued jointly by the U.S. Environmental Protection Agency and the U.S. Department of Housing and Urban Development. The regulations require sellers and property owners of pre-1978 homes to disclose potential hazards to prospective buyers and tenants.

In May, the Megan's Law is signed by President Clinton. Modeled after a two-year-old New Jersey statute, the federal law requires sex offenders to register a current address with a designated state law enforcement agency and makes the dissemination of this information mandatory to preserve the safety of children in any given community.

Nearly 4.2 million homes are sold, an existing-home sales record.

Single licensing is adopted in Colorado.

1997
REALTOR.COM rises from the ashes of the REALTORS® Information Network, a failed attempt to launch a proprietary network that would be the platform for the electronic real estate transaction. REALTORS® lost nearly $17 million on RIN but today hold a stake in Homestore.com (operator of REALTOR.COM) that’s worth more than $200 million.

4.38 million existing homes are sold, breaking the 1996 record.

1998
Microsoft's HomeAdvisor Web site is launched.

4.97 million existing homes are sold, breaking the 1997 record.

1999
In January, the U.S. Department of Housing and Urban Development announces largest housing discrimination settlement ever. Columbia National Inc., a mortgage lender with offices in 28 states, agrees to make more than $6 billion in home mortgages available to minorities over five years.

In August, Homestore.com makes an initial public offering that generates $140 million. The stock price opens at about $22 per share and is trading at 53-7/8 by Nov. 18. Homestore.com operates REALTOR.COM, NAR's official Web site, as well as other top real estate sites, including Remodel.com, HomeBuilder.com, SpringStreet.com, and CommercialSource.com.
The National Association of Hispanic Real Estate Professionals is founded.

Homeownership reaches 67 percent of households nationwide, and projections show that home sales will be well over 5 million, another record.

New Survey Shows Dangers of Banks Entering Real Estate

2005-12-03T10:02:00.000-04:00

(December 2, 2005) -- A new survey by Bankrate.com—that shows banks are boosting their fees faster than the interest rates they offer customers—illustrates why banks should not be allowed to broker real estate, the president of the NATIONAL ASSOCIATION OF REALTORS® said Thursday.

“Banks have once again demonstrated their incredible ability to find ways to charge customers record fees," said NAR President Thomas M. Stevens of Vienna, Va. "Banks that once touted warm, fuzzy customer relations now are brazenly charging nearly $3 to use an ATM and more than $26 for a bounced check. Imagine what they will do to the real estate customer if they are allowed to broker real estate. Banks will control the real estate transaction end-to-end, creating virtually unlimited opportunities for extra charges and add-ons.”

The Bankrate.com survey found that:

The fee for using the "wrong" automated teller machine—one owned by a bank where you don't have an account—hit an all-time record high. You’ll be hit twice for a single withdrawal—once by that other bank's ATM fee and once by your own bank, for a total average fee of $2.91.

Bankrate.com estimates that American consumers will pay more than $4.3 billion in withdrawal fees for using ATMs not owned by their own bank in 2005.

Bounced-check fees have gotten sneakier. While the average insufficient funds fee fell a few cents, from $27.13 to $26.90, Bankrate found more banks are instituting tiered fees that ramp up the more often you bounce a check or leave a check uncovered. Even at $26.90, the bounced-check fee remains the second-highest recorded since Bankrate began surveying checking accounts in 1998.

Interest-bearing checking accounts remain an unattractive option, where you have to pay a lot more to open an account and lock up a lot more money to gain a pittance in interest.

Since 2001, NAR has successfully opposed a rule promulgated by the Federal Reserve and U.S. Treasury Department that would allow federally chartered banks to enter real estate brokerage and property management. Some 250 members of the U.S. House of Representatives and 27 U.S. Senate members support the Community Choice of Real Estate Act, which would bar federally chartered banks from entering real estate.

—NAR

30-Year Rates Fall to 6.26%

2005-12-03T10:01:00.000-04:00

December 2, 2005) -- The national average commitment rate on a 30-year, fixed mortgage dropped to 6.26 percent from 6.28 percent during the past week, marking the second straight decline, according to Freddie Mac.

Analysts attribute the decrease to economic uncertainty but predict that mortgage borrowing costs will move upward as the Federal Reserve implements additional short-term rate hikes.

The national average commitment rate on a 15-year, fixed mortgage, meanwhile, held steady at 5.81 percent. The average rate on a one-year, adjustable-rate mortgage rose to 5.16 percent from 5.14 percent, and the five-year hybrid ARM edged up to 5.76 percent from 5.75 percent.

Source: Detroit News (12/02/05); Crutsinger, Martin

Engineers Develop Home-in-a-Bag

2005-12-03T10:00:00.000-04:00

(December 2, 2005) -- A pair of 26-year-old engineers from Great Britain have developed a concrete-based mixture in a bag that, when water is added, inflates into a hard living quarters with 172 square feet of interior space.

The so-called Concrete Canvas weighs 500 pounds in its bag form; and once filled with water and inflated, becomes a durable hut with a 10-year lifespan—all in about 40 minutes of assembly time.

Engineers Peter Brewin and William Crawford say the house in a bag is perfect for aid agencies and military organizations, and they plan to market it at a price of about $2,100 per Concrete Canvas.

Source: Time (12/05/05); Caplan, Jeremy

Average Price of Homes Up 12%

2005-12-03T09:58:00.000-04:00

(December 2, 2005) -- The pace of residential price gains slowed in some hot markets in the New England and Pacific states over the 12 month-period ended Sept. 30, but the average U.S. home price still rose 12 percent during this period, according to the Office of Federal Housing Enterprise Oversight.

Although some analyses suggest that the housing boom will slow as mortgage interest rates continue to rise, the regulator's data indicates that appreciation rates still were very strong during the third quarter, said OFHEO chief economist Patrick Lawler in a statement.

However, Lawler said it remained to be seen whether an upward trend in borrowing costs after the third quarter ended would impact appreciation. "To the extent that those increases may have affected prices, those effects will be evident in future quarters," he said.

Source: Los Angeles Times (12/02/05)

The Bubble Burst in Florida! For a couple of minutes.

2005-11-30T11:49:00.000-04:00

Lets see now, our local paper Florida Today serving The Space Coast (Brevard County) had these headlines
Home sales show signs of slowdown
Sales of existing Brevard homes rise in October

I wonder which it is? I really think the local rag is disappointed that things in the Real Estate Market haven't gone to "hell in a hand basket", but judge for yourself.

Many property owners, economists and Realtors are paying careful attention to real estate prices, wondering whether home sales data will give any indication the housing boom is headed for a hard or soft landing.
The latest numbers indicate some softening in sales-transaction figures, although prices rose in October after a decline.
"There's no magical answer to what's going on," said Kathy Starkey, president of the Space Coast Association of Realtors and a local Realtor. "There's not always consistency with these market conditions."
The numbers show:
# Brevard prices: Brevard County's existing-home prices rose in October, with the median price up 6 percent from September and 35 percent from last year.
The Florida Association of Realtors said Monday the median selling price of an existing home in Brevard in October was $238,200, ahead of September's of $225,300 and $176,200 in October 2004.
The median price is the point at which half the homes sell for more, half for less.
# Brevard sales: In Brevard in October, sales fell 7 percent during the previous year -- from 552 sales to 512. They were down 25 percent from the 679 sales in September, a trend many Realtors expected as the real estate market enters the slower holiday period.
Some expected a more modest increase in home prices than occurred.
# Statewide prices: Brevard's real estate scene in October appeared better than Florida as a whole.
Statewide, the median sales price fell 3 percent in October -- to $241,000 from $247,800. Year over year, the median price rose 28 percent --from $188,800 in October 2004.
# Statewide sales: Home sales fell 5 percent statewide in October from the same time a year earlier -- to 16,029 units from 16,844.
The Florida Association of Realtors said sales were off in the southern part of the state because of Hurricane Wilma.
Most insurers stopped issuing new policies when the hurricane neared Florida.
Dean Gatzlaff, chairman of the department of real estate at Florida State University's College of Business, said the effects of Hurricane Wilma "was a plausible explanation" for the dip in home sales statewide.
Gatzlaff said sales volumes are down nationally -- and in parts of Florida -- and that will tend to stop sizable price increases. It could even drive down prices.
Sean Roberts of Orlando, who owns property in Brevard he is trying to sell, said a big problem in Central Florida is local wages have not kept up with the drastic rise in home prices. Some people who ordinarily would be buying simply can't, Roberts said.
Fewer buyers means fewer sales, he said.
"The market is starting to show that," Roberts said.

New Realtors. What a crock of you know what!

2005-11-30T11:38:00.000-04:00

Written by someone who just doesn't "get it" or didn't bother to fact check!

Hot market lures new Realtors
Freelance

Bradley first got into the real estate business, Realtors would have to sell 30 or 40 houses before hitting that sweet benchmark known as million dollars in sales.
Times have changed.
Realtors who work for Bradley, now a manager with National Realty in Melbourne, average a million dollars in sales with just three or four houses.
"Most of my realtors sell at least a million dollars their first year," said Bradley.
Because the real estate market has been so hot recently, local real estate schools have been inundated with people eager to get in on the action.
"There has been a tremendous amount of interest in our real estate school in the past 12 months," said Bob Cox, who owns Professional Real Estate School on Merritt Island.
Although both Bradley and Cox admit that the market has cooled off recently, they also agree that the profession continues to be potentially lucrative.
"The market has just changed," said Cox. "It's changed to a buyer's market overnight."
For Realtors, it doesn't matter if the market favors sellers or buyers. The Realtor will make a nice living as long as people are willing to buy the homes other people want to sell.
"We have twice as many houses listed as we had last year," Bradley said. "But it's still a good profession, depending on how hard you're willing to work and what type of connections you have."
It's also a relatively inexpensive and easy profession to try. At Professional Real Estate School, students pay $399 for the state-required 63-hour course that delves into real estate law, principles and all-important math.
You must pay a few more dollars for a state-mandated background check and for the three-hour, 100-question test that Florida demands all new Realtors pass before hanging their shingle.
Belonging to a Multiple Listing Service will set you back $75 each quarter and you must fork out $125 to obtain the computerized key that allows Realtors access into listed homes.
"It takes about $1,000 to get started," Bradley said.
Some real estate schools offer evening classes that run for several weeks, but the one-week format seems to be very popular.
"Most Realtors want to go the full week," Bradley said.
"There are different models you can use, as long as you get in the 63 hours," Cox said. "Ours is very concentrated but we've found it to be very effective."
Real estate commissions are fluid, averaging between 5 percent to 6 percent of the selling price of the house. However, the Realtor only gets a portion of that amount.
The listing and selling offices each get about half, give or take a little either way. The Realtor who made the sale pockets about half of what the selling office made.
That means Realtors earn about 1 1/2 percent of a home sale. The sale of a $300,000 home, for example, would make a Realtor about $4,500.
The prospect of a good income is just part of the attraction for newly minted Realtor Tammy Patnaude of Palm Bay.
"A home is one of the biggest investments people make," she said. "I want to help people find their dream home."
With Bradley as a mentor, Patnaude is getting her feet wet in the business. Shadowing Bradley, she's been able to get hands-on experience that will come in handy when she strikes out alone.
Although she worked in the health care field for 25 years and still continues to work in a doctor's office while learning more about the real estate business, Patnaude thought the time was right to make the move into the profession.
"I've wanted to do this for a long time," she said.

Florida's home resales' median price rises in October

2005-11-29T09:16:00.000-04:00

ORLANDO, Fla. -- Nov. 28, 2005 -- Home sales statistics from the Florida Association of Realtors® (FAR) show that home prices continued to rise but the number of sales fell in October, notably in southern areas directly impacted by Hurricane Wilma's march across the state. Most insurers stopped issuing new policies when the hurricane neared Florida, and, following the storm, some lenders required a re-inspection of properties before they would release mortgage money.

Despite storm problems, however, the state's median home price rose 28 percent in October to $241,000 from $188,800 in October 2004. In September 2005, the median price was $247,800. In October 2000, FAR records show the statewide median sales price was $116,100, resulting in an increase of 107 percent over the five-year-period.

Many Realtors across the state report gains in housing supply, giving buyers a larger selection of homes to consider. Statewide, a total of 16,029 existing single-family homes sold last month compared to 16,844 homes a year ago for a decrease of 5 percent, according to FAR.

The national median existing-home price in September was $212,000, up 13.4 percent from the previous September's median price of $187,000, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $543,980 in September; in New York, the median price was $275,000; and in North Carolina, the average resales price was $208,097.

Interest rates for a 30-year fixed-rate mortgage averaged 6.07 percent in October, a slight increase from the average 5.72 percent in October 2004. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s larger markets, the Daytona Beach metropolitan statistical area (MSA) reported that 1,037 homes sold in October for an 18 percent gain over October 2004 home sales of 881. The median home price in Daytona Beach rose 35 percent over the same time period, from $165,000 in October 2004 to $223,300 in October 2005.

Shawn M. Goepfert, president of the Daytona Beach Area Association of Realtors and owner of Ideal Realty of Volusia, says that demand for Daytona-area homes is now catching up with supply. "We started 2005 off with only about 1,000 residential listings, really robust sales and it taking only about two or three weeks to get a contract," Goepfert says. "That demand really pushed up our sales price, but in the last 30 days, our inventory has increased to about 3,000 residential listings."

Other larger MSAs with strong sales and price increases include Jacksonville, with 1,504 home sales in October for a 38 percent gain over October 2004 sales numbers; and Tampa-St. Petersburg-Clearwater, with 3,735 homes sold for an increase of 4 percent over the same time period. Prices also rose in both markets over the year. In Jacksonville, the median price rose 20 percent to $191,600; in Tampa-St. Petersburg-Clearwater the median price rose 35 percent to $225,700.

Among the state’s smaller MSAs, Lakeland-Winter Haven posted a 24 percent gain in home sales in October, with 513 homes changing hands compared to 414 homes a year ago. The market’s median sales price rose 50 percent in October to $173,500; last year, it was $115,500.

"I think people have discovered our little secret," says Peggy Daley, treasurer of the Lakeland Association of Realtors and a Realtor with ImperiaLakes Realty Services in Lakeland. "We've got the best of everything. People are moving here in droves from South Florida, plus people from the North keep coming down and quickly realize that we're centrally located with easy access to Tampa or Orlando -- but without the traffic."

Other smaller MSAs that posted gains in the number of homes sold in October include Ocala, where 482 homes sold for a 15 percent jump; and Tallahassee, where 393 homes sold for an 18 percent increase. The median sales price in those markets also rose. In Ocala, it rose 38 percent to $159,200; and in Tallahassee, 19 percent to $172,700.

© 2005 FLORIDA ASSOCIATION OF REALTORS®

Brevard 6th-hottest market

2005-11-22T13:54:00.000-04:00

Median home resale price jumps 33.6% since third quarter 2004
Brevard County's skyrocketing home prices ranked the county as the sixth-hottest housing market in the country during the past year, the National Association of Realtors reported Tuesday.
The Washington, D.C.-based Realtors' organization said Brevard's median home resale price rose 33.6 percent from $159,300 in the third quarter of 2004 to $212,800 in the third quarter of 2005. Six Florida metropolitan areas made the top eight of the 147 communities in the survey. The other two are in Arizona, including the Phoenix area, ranked No. 1, with a 55.2 percent gain.
The median price is the point at which half the homes sell for more and half for less.
A hot real estate market has been one of the biggest financial stories this year, with home values escalating to the point at which many people have earned tens of thousands of dollars -- on paper, at least -- because of rising prices.
The rising prices also have kept many would-be first-time homebuyers out of the market.
Although there are some indications the real estate market is slowing, many Realtors and property owners don't appear worried about declining values.
"I think the value is still there and still appreciating," said Steve Neville, a broker/owner of AAmerican Properties Management, based in Indialantic.
Neville said rising new-home prices -- based in part on land and materials costs -- help prop up prices in the existing-home market.
Also, buyers from outside the state coming to Brevard continue to play a role in growth, said Neville, who conceded the current existing-home market is flat.
However, Neville said, "It would appear that we have established a really good trend for growth."
Anthony Romero, who is selling a home in Palm Bay, also is confident in the local real estate market, although he recently dropped the asking price on a 1,600-square-foot home he is selling from $295,900 to $279,900.
"The market has slowed down just a bit, just because we're coming to the end of the year, and also mortgage rates are starting to creep up a bit," Romero said.
Brevard home-resale prices rose a respectable 4.3 percent from the second quarter to the third quarter, according to the National Association of Realtors report. But that's down from increases of more than 10 percent in each of the two previous quarters.
The Florida Association of Realtors, which also issued a third-quarter report, put Brevard's median selling price at $237,800, a 35.3 percent increase from third-quarter 2004 price of $175,800.
The variance in price statistics from the national and state Realtor groups stems from differences in the sales data samples used by the two organizations.
The cost of housing on the Space Coast has soared, with the median selling price of an existing home rising from $186,700 in September 2004 to $225,300 last month -- and that's down from $248,700 in August, according to the Florida Association of Realtors.
There were 2,243 single-family homes sold in Brevard in the third quarter, up 11.6 percent from 2,010 in the third quarter of 2004.
Some economists have expressed concern that demand for housing in some parts of the country is being driven by a speculative frenzy that could burst the price bubble as mortgage rates climb.
Freddie Mac's nationwide survey showed that the 30-year, fixed-rate mortgage hit 6.36 percent last week, the highest level in more than two years.
"The good news is that inventory levels are improving and housing supply will come closer to buyer demand in 2006," said David Lereah, the National Association of Realtors' chief economist. "We expect a healthy and more balanced market next year."
The organization's latest survey showed that 69 metropolitan areas -- almost half of the 147 areas surveyed -- experienced double-digit percentage price gains in the July-September quarter, compared with a year earlier.
There were six metropolitan areas where price declined since last year, led by Elmira, N.Y., where prices dropped 5.4 percent to a median price of $77,100, compared with $81,500 a year ago.
The nationwide median price rose by 14.7 percent in the July -- September quarter to $215,900, compared with a median price of $188,200 a year ago.

THE NEWER LONGER MORTGAGE

2005-11-22T13:48:00.000-04:00

Forty-year mortgages don’t always seem like a good idea when compared to a 30-year loan, but the popularity of the longer mortgages is gaining ground because many homebuyers view them favorably when compared to an interest-only home loan. For a slightly higher interest rate, borrowers receive an initial monthly payment nearly as low as the one on a comparable interest-only loan, with the amortization enabling them to slowly amass equity in the property. Argent Mortgage President Sam Marzouk reports that 40-year loans are particularly attractive to consumers who consider their home to be a long-term investment. Some consumers should be aware, though, that many loans that amortize on a 40-year schedule have balloon payments that come due after 30 years.

Source: American Banker (11/21/05)

Hardest hit get hit again

2005-11-22T13:45:00.000-04:00

MIAMI -- Nov. 22, 2005 -- Hurricane Wilma's howling winds and drenching rains wrecked havoc in many mobile-home parks in Broward and Miami-Dade counties. It also damaged the insurance market for these homes.
Even before this year's storms hit Florida, few insurance companies were willing to take on mobile homes because they pose a greater risk to insurers than traditional brick-and-mortar single-family homes and apartment buildings. Now after the hurricane, insurance is even more scarce.
Case in point:
Safeway Property Insurance, based in Gainesville, had been willing to write coverage for mobile homes when other insurers shied away. In the 11 months before the storms, Safeway wrote 24,000 new policies, and many of those policies were written with windstorm coverage.
"I could have written more policies if we had the capacity," said Frank Lake, Safeway's senior vice president. The company wrote only as many policies as it could cover with reinsurance and reserves, a careful, deliberate underwriting strategy that allowed it to thrive in the market.
But Wilma put a hold on writing new business, even for Safeway.
Most carriers in Florida don't want mobile-home business. This segment was among the policies dropped by Nationwide Insurance of Florida earlier this year when it pared down its business in the state in order to reduce its risk.
State Farm, the state's largest home insurer, hasn't written any new policies in South Florida, including mobile-home coverage, since 1995.
"After last year's hurricane season, there were a number of companies that had offered mobile-home coverage that decided the money to be made in this business wasn't enough to cover the regulator and political costs that were building" in the Florida market, said William Stander, a government affairs representative for the Property Casualty Insurers Association of America.
He said several of the trade group's members that had sold mobile-home coverage in Florida have left the state entirely.
That means mobile-home owners looking for coverage end up with Citizens Property Insurance, the state-run insurer of last resort.
In a market where rates have risen rapidly in recent years, those owners with Citizens policies will be hit with a 33.7 percent rate increase in both Broward and Miami-Dade in February when the insurer puts through a new rate hike.
Citizens' premiums on mobile homes, including windstorm coverage, range from $800 to $1,300. Premiums vary, based on size and insured value of the home.
As a possible remedy for this tight market, the Florida Manufactured Housing Association is studying the feasibility of starting its own insurance company to write coverage for mobile-home owners.
Frank Williams, FMHA's executive director, said there are investors willing to put capital in an insurer that will cover only mobile homes because the newer homes, those constructed after Hurricane Andrew hit South Dade in 1992, are more structurally sound.
If the feasibility study has a positive outcome, Williams said the trade group could get its insurer off the ground after the first quarter of 2006.
Another insurer would be welcome in this market because many believe the need for mobile-home coverage won't lessen any time soon.
There are about 850,000 mobile homes throughout the state, and their number is growing steadily.
FMHA estimates about 25,000 new mobile homes are sold in this state each year.
Williams from the FMHA contends that affordability is a big issue.
With the median price for single-family homes in Broward and Miami-Dade being well more than $300,000, mobile homes "are one of the last vestiges of of affordable housing left in this state."

New York Has Highest Closing Costs

2005-11-22T13:43:00.000-04:00

(November 22, 2005) -- Homebuyers in New York fork over more money in closing fees than buyers in any other U.S. state, according to a new study by Bankrate Inc. On average, buyers there pay $3,907.

Second on the list is Hawaii, where average closing costs hit $3,628, followed by Alaska at $3,620, New Jersey at $3,362, and Florida at $3,196.

The rankings were based on comparisons of closing costs provided by nine to 15 lenders in each state. Lenders were asked what the fees would be for a $180,000 single-family mortgage to a borrower with stellar credit who contributed a downpayment of at least 20 percent on a property in the state's largest city.

Besides identifying the states with the highest closing costs, the research also found that the biggest differences in closing costs could be traced to disparities in title and settlement service fees.

Origination costs, meanwhile, were fairly uniform across the country, although they did vary from lender to lender.

Bankrate is an aggregator of financial rate information. The company continually surveys approximately 4,800 financial institutions in all 50 states in order to provide unbiased rates to consumers.

Source: Inman News Features (11/21/05)

Understand What Factors Into a Credit Score

2005-11-22T13:41:00.000-04:00

(November 22, 2005) -- Mortgage lenders, auto insurers, wireless-service providers, and employers are just some of the businesses that use credit scores to gauge a customer's likelihood of making late payments or committing fraud.

Credit scores, which range from 300 to 850, are most commonly used by lenders to set interest rates. According to Fair Isaac Corp., which pioneered credit scoring in the 1950s, a borrower with a credit score of 639 would pay nearly $2,000 per year more on a $150,000, 30-year mortgage than a borrower with a score of 760.

Thus, it is important for consumers to understand how their scores are calculated and what they can do to improve them.

Fair Isaac reports that 35 percent of a consumer's credit score is based on timely payments, while 30 percent is tied to balance-to-limit ratios, with consumers using 50 percent or more of their available credit recording lower scores. The remainder of a credit score is based on the length of the borrower's credit history, new accounts, and diversity of accounts.

Credit scoring formulas favor lengthy credit histories and consumers who have a mixture of credit cards and installment loans. Opening new accounts, however, can temporarily lower credit scores.

Source: Wall Street Journal (11/20/05); Conkey, Christopher

Wine Secret

2005-11-16T19:33:00.000-04:00

The secret to enjoying a good wine is to;
1 Open the bottle to allow it to breathe.
2 If it does not breathe, give it mouth to mouth.

Home Appreciation Still Hot in Most Areas

2005-11-16T16:11:00.000-04:00

(November 15, 2005) -- Strong annual increases in median existing-home prices were common in most metropolitan areas during the third quarter, according to the latest report by the NATIONAL ASSOCIATION OF REALTORS®.

The association’s third-quarter median existing single-family home price survey, covering changes in 147 metropolitan statistical areas, shows 69 areas with double-digit annual price increases. Six metros had small price declines.

The national median existing single-family home price was $215,900 in the third quarter, up 14.7 percent from the third quarter of 2004 when the median price was $188,200. The median is a typical market price where half of the homes sold for more and half sold for less. Ninety-seven metros—two-thirds of the total—experienced increases greater than the U.S. historic average of 6.4 percent.

David Lereah, NAR’s chief economist, says the pace of price appreciation in the third quarter is far from being normal over time. “These historically high home price gains are the simple result of more buyers than sellers in the market,” he says. “The good news is that inventory levels are improving, and housing supply will come close to buyer demand in 2006. In other words, we expect a healthy and more balanced market next year.”

Since 1968, home prices generally have risen between 1 and 2 percentage points faster than the overall rate of inflation; the historic average price gain appears high relative to inflation because there was a period of rapid inflation in the U.S. during the 1970s and early 1980s.

NAR President Thomas M. Stevens explains what buyers and sellers generally can expect in the coming year. “Improvements in inventory in most areas should take pressure off of home buyers to make snap decisions, or find themselves in a competitive bidding situation,” says Stevens, senior vice president of NRT Inc. in Vienna, Va. “This calmer real estate market will create a more level environment for buyers in weighing options to invest in the American dream of homeownership. Sellers will enjoy very healthy gains on the value of their home, but should expect annual increases to be much closer to historic levels going forward.”

The strongest price increase in the nation was in the Phoenix-Mesa-Scottsdale area of Arizona, where the third quarter price of $268,000 rose 55.2 percent from a year earlier. Next was Orlando, Fla., at $261,300, up 44.8 percent from the third quarter of 2004. Cape Coral-Fort Meyers, Fla., with a third quarter median price of $277,600, was up 42.5 percent in the last year.

The areas experiencing price declines were lower-priced markets, with one or both of the conditions necessary for price softness—local economic weakness, primarily in jobs, or a large supply of homes for sale in the local area.

Median third-quarter metro area prices ranged from $72,800 in Danville, Ill., to nearly 10 times that amount in the San Francisco-Oakland-Fremont area of California where the median price was $721,900. The second most expensive area in the United States was Anaheim-Santa Ana (Orange County, Calif.) at $710,700, followed by the Honolulu area and San Diego-Carlsbad-San Marcos area of California, tied at $615,000.

Other low-cost markets include, Elmira, N.Y., the second least-costly metro, at $77,100, and Decatur, Ill., with a third-quarter typical resale home price of $85,500.

Regionally, the strongest increase was in the West, where the median existing single-family home price rose 18.8 percent over the last year to $322,000 during the third quarter. After Phoenix-Mesa-Scottsdale, the strongest increase in the West was in the Tucson area, where the median price of $242,300 rose 34.7 percent from a year earlier, followed by Honolulu, up 31.1 percent, and Eugene-Springfield, Ore., at $208,900, up 25.9 percent from the third quarter of 2004.

In the Northeast, the median resale home price during the third quarter was $249,300, up 13.2 percent from a year earlier. The strongest increase in the region was in the Glenn Falls, N.Y., area, at $160,000, up 25.4 percent from the third quarter of 2004, followed by Kingston, N.Y., with a median price of $259,300, up 19.8 percent, and the Philadelphia-Camden-Wilmington area of Pennsylvania, New Jersey, Delaware, and Maryland, at $230,600, up 19.0 percent.

In the Midwest, the third-quarter median existing-home price of $173,300 rose 13.1 percent from the same period in 2004. The strongest increase in the Midwest was in the Waterloo-Cedar Falls area of Iowa, where the median price of $111,000 was 14.8 percent higher than the third quarter of 2004. Next was Bloomington-Normal, Ill., at $170,900, up 14.5 percent, and Rockford, Ill., at $120,400, up 13.7 percent in the last year.

In the South, the typical existing-home price was $183,500 in the third quarter, up 7.7 percent from a year earlier. After the Orlando and Cape Coral-Fort Meyers areas of Florida, the strongest increase in the South was in the Deltona-Daytona Beach-Ormond Beach, Fla., area, at $208,200, up 33.8 percent from the third quarter of 2004. Next was Palm Bay-Melbourne-Titusville, Fla., where the third quarter median price of $212,800 was 33.6 percent higher than a year ago, and Ocala, Fla., at $151,500, up 31.9 percent.

—NAR

Thank you
Cyril

Cyril Beaton
Real Estate Advisor
Signature GMAC Real Estate
Cocoa Beach Florida
Direct 321-604-5823
Website www.cbeaton.com
Email cyril@cbeaton.com

Click here to Search M.L.S. Current Listings Website

Market by Market Anti Bubble Reports

2005-11-10T06:36:00.000-04:00

The NAR research department's Market-by-Market Anti-Bubble Reports -- 130 of them -- are now posted on REALTOR.org along with a Q&A and a glossary of terms. These reports present the facts you need to refute housing-bubble claims by media outlets and analysts.

All in PDF format
Click here

The Basics of Representing Foreign Buyers in the U.S.

2005-11-09T13:34:00.000-04:00

The Basics of Representing Foreign Buyers in the U.S.
By Neil Kalin, Esq.

This article is designed to give U.S. agents an overview of many issues that will help you work better with foreign buyers. It will not make you an expert in any of the areas, nor will it be all-inclusive, but it will highlight many things of which you must be aware to effectively serve foreign buyers, and perhaps to create clients for life. Professionals from outside the U.S. may find this a useful primer to U.S. ownership issues and laws.

The U.S. Basics: Licensing and Professional Affiliations
In many countries, anyone can act as a real estate broker because there is no license required to do so. In the U.S., individuals must be licensed by a state before they can act as a real estate broker or sales associate and complaints about a licensee can be brought before the state regulatory body. Real estate agents cannot act alone, but must conduct their real estate client representation through a real estate broker. Acting for another in a real estate transaction without a proper license is a crime. A real estate broker cannot pay a person who does not have a license, and anyone acting as a licensee without a license is probably not entitled to be paid nor allowed to bring an action in court for compensation.

Many U.S. real estate licensees choose to enhance their professionalism by joining the National Association of REALTORS® (NAR) through their local associations. All REALTORS® subscribe to a voluntary code of ethics. They also agree that if a dispute arises in a transaction, the parties will not go to court, but instead will submit the dispute to binding arbitration at their local Association of REALTORS®. In countries where there is no licensing requirement, a national association of real estate agents may exist. These associations may have an alliance with NAR and also may be affiliated with the International Consortium of Real Estate Associations1 (ICREA).

Alternative Markets for International Clients
All buyer clients expect that you can help them differentiate and compare different properties and different neighborhoods. This is easy for you in your primary market. Foreign buyers, however, may need a broader perspective. Develop the skill to compare and contrast not just adjoining neighborhoods or cities but counties, states or even countries. For example, a client involved in the high tech industry coming to California may be interested in both Orange County in Southern California and Santa Clara County in Northern California. A client interested in beachfront property may be evaluating Newport Beach, California and Miami Beach, Florida. Someone interested in high-end resort locations may be deciding between La Jolla, California and Cabo San Lucas, Mexico.

U.S. Reporting Regulations for Foreign Owners
There are very few restrictions on ownership of U.S. property by foreign persons, but your clients should be aware of certain reporting regulations.

1. Agricultural
The Agricultural Foreign Investment Disclosure Act requires the reporting to the Farm Service Agency of the Secretary of Agriculture2 within 90 days of a transfer to or from a foreign person if the land has been used for agriculture, forestry, timber, farming, or ranching, within the last five years, is 10 acres or more, and generates $1,000 or more in gross receipts. Failure to make a timely report can generate hefty penalties.

2. Statistical
The Bureau of Economic Analysis of the Commerce Department3 requires reporting of foreign ownership of all real property for analytical and statistical purposes only. There are exceptions for a personal use primary residence (or rental if intent to return) and partial exemption from reporting for real estate which is both valued at less than $3 million and is less than 200 acres.

U.S. Tax Requirements

1. Capital Gains Tax on Sales
Non-resident aliens and foreign corporations are taxed on income resulting from the sale of U.S. real property. A buyer who is aware of that at the time of purchase can plan accordingly, and may even consider an exchange. The time to divest can become the time to reinvest.

2. FIRPTA (Foreign Investment in Real Property Tax Act)
Under FIRPTA, a buyer must withhold 10% of purchase price if the seller is a foreign person. No withholding is required if the seller is a U.S. citizen; green cardholder (lawful resident); or resident alien (meets either the physical presence test—present in the U.S. for at least 183 days in the current calendar year; or the substantial presence test—present in the U.S. for a weighted average of 183 days over three years).

At the time of purchase, inform your foreign buyers that they must acquire a U.S. taxpayer identification number (TIN). Waiting until the time of sale to obtain a TIN may cause difficulty recovering money withheld pursuant to FIRPTA.

3. Income Tax (on income producing property)
Generally, non-resident aliens are taxed at a flat 30% federal tax rate on gross rental income, unless they make a certain income election on their returns. This election, which allows for deductions for regular expenses before income tax is calculated is commonly know as the “net election.” Your client who is interested in income properties should ask any potential tax advisor (lawyer or accountant) if the advisor knows about, and how to exercise, the “net election.” Further, anyone who collects income for a non-resident alien and then pays that income to a client is generally required to withhold 30% of gross U.S. source income (such as rent). No withholding is required if the foreign person has a green card, meets the physical or substantial presence test, or if there is a treaty addressing this issue between the U.S. and that person’s home country.

4. Property Taxes
Property tax payments are required as an additional cost of real property ownership. These payments can be added to a loan or paid directly to the taxing agency. Failure to pay property taxes can lead to financial penalties and even loss of the property. Just as a taxing agency (usually a county) has remedies against a property owner for failure to pay property taxes, so may a lender, since the failure to pay usually is also deemed a breach of the loan agreement. It is important to know that change in ownership, such as altering title among family members and differing entities may cause the property value to be reassessed, and the property tax payments to increase.

5. Title decisions
The way your foreign buyer clients take title (individual, foreign corporation, U.S. corporation, or trust, for example) is a serious decision that could affect their ability to transfer the property and the financial and tax implications both during the property’s ownership, and upon sale. In states like California, which taxes worldwide income, the decision can affect more than the property itself. Since the method of holding title can affect the tax consequences during life and after death, it is advisable to advise your clients to seek out a competent lawyer or an accountant with an international practice.

Immigration and National Security Law
You should know the difference and effect of your clients’ residency status on property ownership. If your clients are in the U.S., or intend to visit before or at the close of escrow of a property, you should know whether they have a visa (and the type—for example, work or student), a green card, or neither; and if they have or intend to get a U.S. taxpayer identification number. Also, the U.S. government places restrictions on the ability to do business with certain individuals. The Office of Foreign Asset Control4 may be involved if your client's name appears on, or is even similar to that on, a specially designated persons list. Don’t let your client be surprised or offended; be prepared.

Agency
The practice of selling real estate varies from country to country. Your clients' expectation of what a real estate agent can and should do may not be consistent with what is allowed and standard in your area. In most U.S. states, a real estate agent has the authority to receive and present offers but not the authority to sign for the principal without a power of attorney. In other words, the agent can negotiate on behalf of, but not bind contractually, the principal.

Further, the Statute of Frauds and Equal Dignities Rules, laws common in the U.S., provide that if an agent has been given actual authority to enter into a contract on behalf of the principal, the agent’s authority must be in writing in order to be enforceable. If your foreign buyers have experience in other U.S. states, ask what their experience with agency has been. In some states, the licensee acts as a facilitator, and not an agent. You may have to clarify differences, not only between the foreign country and your state, but also between your state and another state.

Finally, if dual agency is permitted in your state, be certain that your principals understand the difference between single agency and dual agency, If your firm engages in dual agency, notify your clients of this in writing.

Contracts and Conducting Negotiations
In states where it applies, the Statute of Frauds requires that a contract to sell real estate must be in writing and signed by the party to be charged if it is to be enforceable. Verbal agreements to sell are not binding nor are agreements that are signed by the principal’s real estate agent instead of the principal (unless the agent has a written power of attorney from the principal). An indication that the agent spoke to the principal and the principal approved (such as adding the words, “per telephone conversation”) does not make the contract enforceable.

The primary negotiation between buyer and seller typically occurs before a contract is signed and a purchase price agreed upon, but the contract might effectively create additional negotiating points—for example, following a buyer's inspection of the property or before the buyer removes certain contingencies. Persons not familiar with the process and contract requirements in your state may believe either that no further negotiation is expected or required or, conversely, that everything is negotiable right up to payment of the purchase price. While market forces ultimately will determine who gets what and when, your client's expectation of the contract and negotiating process should be checked against what is the legal, contractual, and the standard of practice in your community.

Escrow and the Closing Process
In the U.S., the escrow process is formalized with different parties serving different roles. The escrow holder serves as a neutral depository for documents and money with equal duties to buyers and sellers plus responsibilities to existing and future lenders. The escrow holder performs these services for a fee. If the transaction does not go forward and the escrow holder holds the buyer’s deposit money, generally the funds will not be released without mutual signed instructions from both buyer and seller. While some buyers may not be comfortable with this procedure, the alternative of releasing deposit money direct to the seller may be even less appealing. As with other contract terms, the choice of escrow holder is negotiable but if the escrow holder and title company are one and the same in your area, the Real Estate Settlement Procedure Act (RESPA) may restrict the seller's ability to require the buyer to use a particular entity if the buyer will be paying for all or some portion of the title insurance.

The Dispute Resolution System
The way problems in a real estate transaction are solved may be very different from the system in the buyer’s native country. Misconceptions may need to be addressed.

The first step in resolving a dispute should always be to try to negotiate a solution that is satisfactory to all. After that, the contract or the law may require the buyer and seller to attempt to mediate a resolution with the help of a third party neutral mediator. Explaining to your clients that mediators do not have the authority to force a resolution on the parties may help achieve their appreciation for and involvement in the process and achieve a successful mediation. If these efforts fail to resolve the dispute, the legal system may be the next step. In many countries government involvement is something to be avoided because of corruption, inefficiency, or unfairness. As a result, some foreign clients may be frightened or suspicious of the legal system.

On the other hand, some foreign clients may have idealized expectations of the legal system in the U.S. They may need to be educated that the U. S. legal system is generally fair, though often time consuming and expensive, and that it is public.
Anyone who wants to attend the hearing may do so and the verdict is open to the public. Also, receiving a favorable judgment at trial and collecting on that judgment are two entirely different things. First, the losing party may appeal. Second, the losing party may not be able to pay or have any assets worth pursuing. And third, bankruptcy may be filed to stall or avoid a judgment altogether. For the buyer who is purchasing rental property, or may consider converting a personal use residence to rental property at some time, a reminder that tenants have legal rights and in locales where rent control laws are present these rights can be substantial.

An alternative to the legal system is arbitration. The use of arbitration in lieu of court is by agreement of the parties. Advantages of arbitration over litigation is that it is private, the result is typically binding, the matter can often be resolved sooner than going to court, and the parties determine who will decide their dispute—they get to select the arbitrator. Disadvantages to arbitration include the loss of the right to have a jury hear your case, the lack of any appeal right, and the obligation to pay the arbitrator and the administrator, if there is one.

Compensation
In the U.S., sellers typically pay a real estate licensee to market their property. This agreement to pay is usually required in writing. A buyer’s agent typically receives payment from the seller or from the listing agent. Increasingly, it is common for buyer’s agents to have buyers sign agreements as well. These agreements can provide for the buyer to pay the broker, and may or may not credit the buyer for all or part of the compensation the buyer’s agent receives from the seller or seller’s agent. As practices vary widely throughout the world, it is important to ask your clients what their expectations are, and then be prepared to explain why your compensation model is legally required or beneficial for them, when compensation is expected, and the effect, if any, on agency relationships. Sometimes, buyers can expect that someone they know will be compensated by you because of a referral, involvement in the transaction, or simply because that person has a real estate license. Determining this early allows you to explain your policy, and explore allowable and legally permissible compensation arrangements.

Disclosure
It is quite possible that some foreign clients will be unfamiliar with the concept of seller disclosure because their home country operates on the basis commonly referred to as “buyer beware.” A buyer who is aware of seller disclosure laws in your state may confuse seller disclosure with seller warranty or seller guarantee. It is important to educate your clients about what disclosure requirements are imposed via the contract, common law, or legislation, and about the effect these requirements have on the buyer’s duty to use due diligence.

Conclusion
Since the world is becoming smaller all the time, your representation of foreign buyers of U.S. real property will only increase in the future. While some issues differ significantly from those you are used to addressing with U.S. clients, many are the same. Regardless, it is important to understand your client's expectations and be able to bring relevant information to your client’s attention. You don’t have to know everything about all cultures worldwide—just those that affect your client. There are plenty of places to get help. As a member of the CIPS Network, you may want to start by calling upon one of your fellow CIPS who has the expertise you’re seeking. Check out the CIPS Web site at www.realtors.org/international. It has a vast amount of information and resources.

One of the most important things to remember when working with foreign buyers of U.S. real property is to simply treat them as you would a local client. Pay attention to them. Learn what you can about their wants, needs, and interests. Ask questions. Listen to their responses. Show respect. Be prepared to demonstrate why and how you can help them with one of the most important decisions of their life.

1 www.worldproperties.com/AboutICREA.aspx
2 www.usda.gov
3 www.bea.doc.gov
4 www.treas.gov/offices/enforcement/ofac/

Neil Kalin is an Assistant General Counsel with the California Association of REALTORS®, a CIPS and an arbitrator and mediator for the American Arbitration Association. He is a graduate of UCLA School of Law and University of Illinois and a previous contributor to Global Perspectives. Reach him at +1.213.739.8341 or at neilk@car.org.

What Kind of House will $1,000,000.00 Buy?

2005-11-07T20:48:00.000-04:00

Steve and Shaina Markulin came to Winter Park from San Francisco a few months ago, searching for a more relaxed lifestyle and a luxury home for less than $1 million. They got the lifestyle they were looking for -- along with a little sticker shock. After a long search, they landed a house across the street from Lake Virginia for $1,075,000. It is a nice house with a great view, but it needs work. It's a bit small for the area. And the roof leaks. "You'd think at a million dollars, everything would all be fixed," Steve Markulin said. "But we're going to remodel." The Markulins are one of the growing, new breed of million-dollar homeowners who have taken advantage of high profits from sales of previous homes and current lower mortgage rates to move into seven-figure houses. It's a realm that once seemed the private preserve of celebrities, sports figures and well-known business tycoons. As sales have exploded, however, the luxury market has seen its own boomlet of million-dollar homes. There were 687 sales of homes for $1 million or more in Orange and Seminole counties from January 2002 through July of this year, according the Orlando Regional Realtor Association. An Orlando Sentinel analysis of Central Florida home sales during the past three years shows continued growth of million-dollar homes in established high-end neighborhoods such as Winter Park and the Butler Chain of Lakes in Orange County and the Heathrow and Alaqua areas of Seminole County. But seven-figure homes also are showing up in downtown Orlando, on the eastern edge of Orange and scattered throughout the surrounding counties. They usually surpass 4,000 square feet but also can be less than 2,400 square feet, as the Markulins found. And they're no longer set solely on lush lakefronts or golf-course hideaways. Though some observers think the housing market may be leveling off, million-dollar homes keep going up, and there are about 200 houses in Orange County for sale for more than $1 million. A recently released Census Bureau study shows that, for the first time, there are more than a million homes valued at $1 million or more in the United States. That's more than twice the number counted in 2000. Florida ranks third among the states, with 62,700 homes surpassing the million-dollar mark in 2004. Orange County leads Central Florida, with 1,701 such high-end luxury homes.
Real-estate milestone
Real-estate agent Scott Hillman remembers when his company -- Fannie Hillman and Associates -- sold its first million-dollar home. The house was on Lake Maitland. The time was 20 years ago. And the sale was something like breaking the sound barrier. "It was a real celebration," he said. By 2000, local home values had risen so high that when he showed potential buyers a million-dollar home that was not on a lake, they no longer stared at him and asked: "Are you crazy?" Several factors have been driving the million-dollar-home market in Central Florida.
Fast-paced growth here led to competition for desirable homes. A period of lower mortgage rates and acceptance of the new interest-only mortgages has allowed some buyers to afford higher prices. In addition, many baby boomers and members of Generation X have moved into higher salary ranges or come to realize that their first home has appreciated and can be turned into a large down payment on a luxury home. With the generation ahead of them dying off, some home buyers have an additional source from inheritance. Though homeowners buy with the idea of seeing their investment appreciate, Ken Hanson with Kelly Price & Co. said he hasn't heard of many cases of people buying million-dollar homes with the intent of selling quickly for profit, as has happened recently in the condo market.
But another factor -- foreign buyers, especially from Great Britain, Germany and Central America -- has come into play in recent years, said Ed Wentzel, senior vice president for SunTrust regional mortgages. Skyrocketing prices in Florida may still seem like a bargain to the wealthy in other nations, depending on currency rates. "It's such a radical new market," said Bob Hennen, director of sales for Castle & Cooke, developers of Keene's Pointe near Windermere. Not only did Hennen see his group sell more than 30 $1 million-plus homes this year, he saw buyers enter a lottery for the right to buy $800,000 homes while the structures were less than half-completed.
And Hennen, who has been in the real-estate business for more than 20 years, said $1 million no longer means a cavernous mansion or a lakefront estate. "It doesn't equate with size." A price tag of $1 million at Keene's Pointe today brings 3,000 to 3,500 square feet of air-conditioned living space on about one-third of an acre. And no lakefronts. "Lakefront lots [without homes] are $1 million," said Hennen, who called the market "beyond my wildest dreams." Though many of today's million-dollar homes may not contain enormous space, Realtors say the houses can offer many lavish extras: elegant pools with waterfalls and -- a new trend -- extensive and luxurious outdoor patios.
Those patios are likely to have polished-wood ceilings that hang over outdoor kitchens replete with stainless-steel appliances, granite countertops, elaborate grills and exquisite flooring. And it's not unusual to find an entertainment area with a big-screen TV. "They [buyers] will sacrifice square footage, if necessary," Hennen said, "to get a unique home." Neil Woodward doesn't think he sacrificed any comfort to live at Keene's Pointe near Windermere in an area of gated communities, imposing vine-covered walls and extensive lakes and golf courses in southwest Orange.
He considers his $1.23 million, 5,000-square-foot home something of a bargain. He's surrounded by even more expensive homes and, considering current neighborhood prices, he figures his home already may be worth $2 million -- a year after he purchased it. Born in England, Woodward came to the United States about 15 years ago with his wife, Karen. They created a successful business called Florida Choice that manages, rents and sells vacation homes.
"It's strange that a million-dollar home is where you start in some communities," said Woodward, who moved to Keene's Pointe from Polk County with his wife and two daughters. "But I know that house was worth every penny."
Upscale downtown
Daryl Williams just sold his downtown home for more than a million. Not because he wants to move out of the area. Not because he wants to move to another street. Not because he didn't like the house. Just because he thought he could. And could then build something even better. Two doors down. Neither home fronts a lake, golf course or park.
But his just-sold home increased in value by more than 40 percent in the 2 1/2 years since Williams got it for $730,000. He decided to move downtown to avoid the commute from Maitland. Having grown up in Orlando, Williams was getting frustrated with traffic on roads that had once been so easy to travel. Living downtown, he said, makes his commute easy and fun. Some days he bikes to his office at EMPAC, the emergency-medical insurance company he founded. Indeed, Williams likes living downtown so much that he bought the lot two doors down from his old home for $250,000. He knocked down the 1,800-square-foot duplex and plans to replace it with a $1.5 million home on the one-quarter-acre lot. He expects to move in next February or March. "It's amazing -- this downtown real estate," Williams said. "When I bought a couple years ago, I thought it would be a 10-year turnaround before I could do this."
Realizing dreams
To be sure, million-dollar homes remain out of reach for most Floridians. Perhaps 2 percent of Floridians could qualify for the typical million-dollar mortgage, and most of those would have to earn more than $225,000 a year.
Minorities still are not well-represented in the high-end housing market. A national study by the Joint Center for Housing at Harvard University shows that though minorities own 16 percent of all homes, they own just 1.8 percent of million-dollar homes and 9 percent of half-million-dollar homes. Tony Rey knows about moving from the bottom of the market to the top. He escaped from Cuba on a small boat in 1970 and made his way to Orlando, where he had an aunt who knew someone willing to give him a job with a cabinetmaker. Rey learned the trade, then learned enough to start his own business -- home building and development -- called the Rey Group. Looking back, even he is astonished by the housing market he helped fuel. In 1999, he was building 1,200-square-foot homes for $99,000. Now his cheapest homes start at $300,000 for 1,900 square feet. Meanwhile, he is completing his own home on the east side of Orange County on about 2 acres that likely will be appraised at $1 million. He's proud of what that number means. It's an emblem of a dramatic success story in a country he loves. Even so, he's not sure he could have built the new home without a little help. His longtime suppliers gave him good deals. "Otherwise," he said, "I couldn't afford it either." Rey has concerns, however, about the quickly appreciating market. One of the things he loved about building homes was seeing average families get into their first home to grab their own piece of the American dream. He doubts wages in Central Florida's service economy have kept up with home prices so that the same sort of folks who bought his $99,000 homes could afford his $300,000 starter home today. But with construction costs rising, he doesn't think he can make money with the lower-priced homes. "We don't feel it's the best thing for the local market," Rey said of the ever-inflating prices. "It limits who can buy. It's creating a gap in the starter-home segment, and people in the service industry are feeling the pinch."

An Investment and a Life Style (Canada)

2005-11-05T10:54:00.000-04:00

Motel & Home for Sale Holyrood Nfld
Offered at $369,500.00 Canadian
Property consists of two buildings---one 20x200---the second 26x48. There are ten one-bedrooms in the first and two-two bedroom units in the second bldg. All twelve efficiency units have their own meter and they come fully furnished. There is also an above ground swimming pool for the enjoyment of guests. There is also laundry facilities on site.
Located 50 km from historic St.John's. These units overlook the Marina and Holyrood Harbour. One bedroom units rent for $60/day and two bedroom units rent for $80/day. Amenities: cablevision, swimming pool, restaurant nearby, golfing nearby, walking trails, sport fishing, tennis nearby, boating, barbeques, picnic tables, berry picking, Visa and Mastercard accepted.

Offered at $209,500.00 Canadian
This spacious four bedroom home boasts quality and size throughout. The ideal family home with all large rooms, hardwood floors on the main, A recently redone kitchen w/bleached oak cabinets and built-in appliances. Master w/full ensuite and Jacuzzi. Views of the bay from several points throughout the house. Small office in bsmt for the 12-unit motel next door. This is also available on MLS 104160.This home would make an excellent complement residence to the owner/operator of this motel. This residence is also a registered Bed and Breakfast.

Details and photos here

I’d be remiss if I didn’t share this investment

2005-11-05T10:30:00.000-04:00

The Basics
I went to Georgia and bought a piece of land for investment reasons.

The logic
First and foremost my idea is to try and find an undeveloped area where real estate is reasonable and escalating prices very probable. I believe a good area is to be found in Northern Georgia in an area called Ellijay about an hour north of Atlanta. It’s in the foothills of the Blue Ridge Mountains.
The area is starting to become a destination for Atlanta residents to get away to the cottage etc... The area is within several hours of about 7 million residents. Here’s a link to the area. (Click or copy and paste to your browser)
http://www.gilmerchamber.com/

The developments (Click or copy and paste to your browser)
http://atlanticcanada.info/mt.htm way it works in a nut shell is. Of the number of developments in development, one struck us a “no lose” situation. The International Village is on the main 4 lane highway leading through Ellijay. This is not being marketed as of yet but will in 8 to 12 months. To get on the priority list we had to purchase at another development Cedar Rock which is part of the Talking Rock Creek Properties. We bought 1.3 acres at a list of $39,000. (10% down and low payments. We used their lender but you can use who you’d like) Cedar Rock is now about 80% sold out. Even if we were not able to exchange for the International Village, it would still be a good investment. By the Village a few months ago a new shopping center was built. It houses a Wal-Mart, Lowes, and an additional 20 to 30 stores and restaurants. Behind the shopping center (On the hill/mountain) will be a major hotel (Probably a Hilton), health spa (European style with plastic surgeon), a condo-hotel (Which we’re considering), rental Pedestal Homes
http://atlanticcanada.info/mt.htm

The plan
The way it works in a nut shell is. Of the number of developments in development, one struck us a “no lose” situation. The International Village is on the main 4 lane highway leading through Ellijay. This is not being marketed as of yet but will be in 8 to 12 months. To get on the priority list we had to purchase at another development Cedar Rock which is part of the Talking Rock Creek Properties. We bought 1.3 acres at a list of $39,000. (10% down and low payments. We used their lender but you can use who you’d like) Cedar Rock is now about 80% sold out. Even if we were not able to exchange for the International Village, it would still be a good investment.

International Village
A few months ago a new shopping center was built. It houses a Wal-Mart, Lowes, and an additional 20 to 30 stores and restaurants. Behind the shopping center (On the hill/mountain) will be a major hotel (Probably a Hilton), health spa (European style with plastic surgeon), a condo-hotel (Which we’re considering), rental Pedestal Homes Across the 4 lane road will be a major area hospital. I really believe this area will take off as doctors and professionals move into the area.

The Marketing,
Ulike most property marketing these folks tend to think that spreading the word amongst Realtors is the way to go! The usual method is; Attend a dinner meeting. (Free food followed by a 1 hour presentation), Ask some questions. Fill out a form of about 10 lines with which you either express an interest or not. If there is no interest that’s fine. (Absolutely no pressure) If there is an interest you mark some dates that you could go up and look at the place. The marketing company pays for a couple of nights in a local hotel but not travel expenses. (This is not a Time Share and they do not use Time Share tactics) When you arrive you spend a day or two viewing the properties and you possibly will be offered an incentive to do something. If you decide to move on something, good! If you decide not to act, there is no pressure at all. You can think about it, go back, or simply do nothing. The most you’ll be out is travel expenses.

The Results
The sales results are possibly 70% or more. Lots of people do nothing but many people buy several lots.

What to do?
If you have some questions I’ll try and answer them. Contact me.
If you are in Florida (Brevard County or Orlando area) email or call and I will set you up with the next presentation on Nov 9, 2005.
If you are not local, call or email and I will pass along your information to the local representative who will contact you. (Presentations are also done on site)

What’s in it for me?
Two things are in it for me. If I hook someone up and they end up buying, I get a little something. (Perhaps enough to fill my gas tank)
More importantly, the more people that buy will move the additional developments closer to opening! When the hospital, spa, and hotel are started it will move very fast.

I just want to get into the International Village, build a Pedestal Home, lease it back to the developer, and flip it in a couple of years and walk away with cash!

I’ve attached one picture to give you an idea of what the area looks like concerning the hills and mountains.

Please pass this along regardless of your interest. This very well might be an opportunity someone you know has been looking for.

Cyril Beaton
Real Estate Advisor
Signature GMAC Real Estate

Humor; How everyone sees your property

2005-11-05T10:23:00.000-04:00

Have you played with Google Earth to see your property?

2005-11-04T11:25:00.000-04:00

Ain't it the truth. Silly humor

2005-11-04T11:23:00.000-04:00

Prices Still Hot in Brevard County Florida

2005-11-04T11:17:00.000-04:00

For people worried about a drop in Brevard County real estate values, the good news Wednesday night was a general agreement that home prices probably aren’t going to fall.

For people concerned they can’t afford to get into the local real estate market, the bad news is home prices probably aren’t going to fall.

Those are the contrasting views of a local boom in real estate, as presented by local experts who took part in a FLORIDA TODAY Community Conversation called “Brevard’s Housing Market: The Impact of Rising Prices.”

About 275 people attended the 90-minute forum, held Wednesday night at FLORIDA TODAY. Four local panelists gave their take on the local housing market, then answered questions from audience members.

The looming questions on most people’s minds: Will local home costs continue to rise? Or will there be a substantial decrease in the market?

“Are the rates of price appreciation in real estate sustainable?” said panelist Michael Slotkin, associate professor of economics at Florida Tech. “In my opinion, probably not.”

Slotkin said prices “may flatten, or even retrench, for a time, as excessive speculation is weaned out of the market.”

“Long term, Brevard County is well-positioned for sensible real estate appreciation,” he said.

There are indications that some of the helium has left the local housing market. Inventories of homes for sale have grown substantially in the last few months. And figures released last month by the Florida Association of Realtors show median home resale prices in Brevard dropped more than 9 percent in September.

The median selling price for existing homes — the point at which half the homes sell for more, half for less — fell to $225,300 in September, down from $248,700 a month earlier.

Year over year, the median sales price in Brevard rose
21 percent from $186,700 in September 2004.

Another panel member, Brenda Muh, president and owner of Space Coast Realty Corp. in Palm Bay, repeated an often-heard statement that real estate prices in Brevard simply are catching up to other popular coastal, real estate markets in the South.

“Brevard County has been underpriced for a very long time,” Muh said.

Muh added that she didn’t think a modest rise in interest rates would dissuade a lot of people from taking part in the real estate market, particularly those who remember a time in the late 1970s, when interest rates reached 11.5 percent. They now average a little more than 6 percent for a 30-year, fixed-rate mortgage.

“We are in very good shape,” Muh said. “Do not complain that interest rates are too high.”

Something that definitely is too high are local rents — partially a result of the hot housing market — and entry-level home prices, said Chenita Joiner, assistant director of Housing and Human Services for Brevard County.

Wages simply aren’t keeping up with rising housing costs in Brevard, she said.

“This is a grim scenario for a county that has a median income that’s as low as ours,” Joiner said.

Paradise by the Ocean

2005-11-04T11:05:00.000-04:00

Beautiful 3 bedroom 3 bath direct ocean. One week minimum rental! Two elevators, central waste, storage room, shuffleboard, sundeck, game/party room, pool, ocean access and resident manager. There is no better view on the east coast then from this fourth floor balcony! Handicap accessible, pocket doors, assist rails, enhanced kitchen airflow. Marble in master bath, storm shutters removable blow-out bars. The third bedroom was converted to an office but easily changed back. The third bathroom is partially converted to a laundry room but easily changed back. Owner is re-locating to New Mexico and at that time the total unit will be professionally painted and detailed. A great place to retire or a great property for investment. Very close to everything! Great view, great home
Call 321-604-5823

CBeaton.com

About Cyril Beaton

2005-11-04T10:36:00.000-04:00

My Mission; I am neither "deal" hungry nor in any particular hurry. My mission is to be certain that a potential client is fully aware of all of their options and what the possible implications of each might be.

What Consumers Want is to find a competent, knowledgeable professional who isn't either an ego maniac, dumb as a stump, or a certified head case.

Trusted Advisors attract quality referrals through their character, competence, and highly professional demeanor. Despite the logic in my approach it is the road less traveled in the Real Estate industry. Many do not possess the attributes to be anything other then a salesperson. Salespeople are always promoting themselves . We see pictures of them with their kids, their cars, their golf clubs, standing in front of "Sold" signs, and flaunting multiple dollar producer designations on their business cards. In the words of Shania Twain,
"That don't impress me much"