Metas
Naples Real Estate News 05/30/08
REAL ESTATE TAX PORTABILITY
State and local government lawyers stood before a federal judge yesterday and argued in favor of January’s Amendment 1 that created Save Our Homes portability, among other things. Recent homebuyers from three Florida cities are challenging the Florida amendment, saying it is unconstitutional under U.S. laws.
ENVIRONMENT
Federal, state and local governments are boosting spending on open space and parks while other programs are getting trimmed in response to sluggish tax revenue in a weak economy. In Florida, for example, the Legislature recently extended Florida Forever, the biggest state open-space program in the nation, for 10 years at $300 million annually.
MORTGAGES
Why do some buyers pay closing costs that are thousands of dollars higher than other buyers? A just-released study finds that some discrepancies can be traced to education level, geography, race and ethnicity; but big discrepancies even exist between consumers with almost identical traits and credit histories.
MORTGAGE RATES
Rates on 30-year mortgages jumped this week to an average of 6.08 percent - the highest level since mid-March, according to Freddie Mac’s weekly nationwide survey, as investors began to worry about Federal Reserve actions to combat growing inflation pressures.
HURRICANE SEASON
As several states recover from the destruction and loss of life caused by recent tornadoes, floods and wildfires, Floridians prepare for the 2008 hurricane season, which begins Sunday and runs through November. You should prepare your home or condo in Naples, Bonita Springs or Estero now.
Naples Real Estate News 05/29/08
HOMEOWNERS INSURANCE
Governor Charlie Crist yesterday signed property insurance reform into law. The final version of the bill included other bills that were added as amendments, and it’s the biggest insurance change to come out of the 2008 legislative session. It offers a number of protections and upgrades for Florida homeowners.
Hurricane season begins June 1, and it’s important for homeowners to shop around to find the best insurance, understand what is covered and what isn’t, and consider purchasing federal flood insurance. Be sure your Naples, Bonita Springs or Estero home has flood insurance, we are in a sub-tropical environment where heavy rains in short periods of time are possible, creating local flooding.
ISSUE FOR CONDO AND HOA FEES
Delinquent fees at condo and homeowner associations are an outgrowth of the mortgage crisis, leaving associations scraping to pay for landscaping, maintenance, pools, recreation centers and other amenities. In Florida, homeowner groups surveyed by the Community Association Leadership Lobby complained that even some banks fail to pay association fees after foreclosing on homes.
ECONOMY
The U.S. economy grew at a slightly better pace in the first quarter, clocking in at a 0.9 percent growth rate instead of the estimated 0.6 percent. However, it was still a weak showing that underscored caution on the part of consumers and businesses struggling with housing, credit and financial problems.
REAL ESTATE SCAMS
An old scam is back, but upgraded using today’s technology: An anonymous buyer in Pasco County is buying undesirable slivers of land at a tax sale, marking up the price, and then advertising it on Craigslist as a way to coerce nearby homeowners to buy it.
NEW LAW
Governor Crist yesterday signed SB 464 into law, which prohibits private transfer fees on real estate sales - a costly problem for future homebuyers. Here’s how the scheme works: In a property’s covenants, codes and restrictions, a property owner reserves the right to receive a percentage of all future sales - usually 1-2 percent. But buyers and sellers are often unaware of this fee until they’ve entered into a purchase contract. The practice artificially devalues property and impedes the sales process.
Naples Real Estate News 05/28/08
RECENT FORECLOSURE AND CREDIT SCORES
Potential buyers with a recent foreclosure may want to make sure they can get a mortgage before jumping back into the market. New federal guidelines generally call for a five-year wait, a 680 FICO score minimum, and the ability to make at least a 10 percent deposit.
FED INTEREST RATES
Federal Reserve officials are putting out the word that further interest rate cuts are unlikely. Policymakers hope that the previous cuts, along with the government’s relief plan of tax rebates and breaks, will help lift the economy in the second half of this year.
MORTGAGES
John Dugan, the United States comptroller of the currency, opposes an agreement for Fannie Mae and Freddie Mac to stop buying mortgages involving lenders’ in-house appraisers, a deal intended to protect buyers from fraudulently inflated home prices. Dugan says the deal violates federal law and could have an unintended negative impact on the mortgage industry.
FLORIDA CONSUMER CONFIDENCE
Florida’s consumer confidence in May fell one point to 65, according to the latest statistics from the University of Florida. All components of the index fell except for a marginal increase in consumers’ expectations about economic conditions over the next year, and overall confidence rose for lower-income households and the elderly. The survey director also predicts that Florida housing markets will bottom out by July.
Naples Real Estate News 05/27/08
NEW HOME SALES RISE
Sales of new homes in the U.S. rose in April for the first time in six months, moving up by 3.3 percent, according to a Department of Commerce report. The median price of a new home dropped to $246,100 in April, down 4.2 percent from April 2007.
MORTGAGES MORE AVAILABLE
The availability of credit has improved "modestly," according to a United States Treasury official, who says the global credit crunch is gradually calming following efforts by the Federal Reserve and other central banks.
HOPEFUL SIGNS FOR REAL ESTATE MARKET
Analysts see hopeful signs for the housing market. For example, some areas, such as Fort Myers, now report sales increases from bargain-hunting buyers who have been lured back into the market. "I think we are at the beginning of the end of the housing downturn, but it is going to be a long and painful end," says Mark Zandi, chief economist at Moody’s Economy.com.
CONSUMER CONFIDENCE DIPS
Soaring gas prices and weakening job prospects made shoppers gloomier about the U.S. economy. The national Consumer Confidence Index’s May reading marks the fifth straight month of decline and is the lowest since October 1992.
Naples Real Estate News 05/23/08
HOME SALES
Florida Realtors reported an upswing in existing home and condo sales from March to April 2008, according to the Florida Association of REALTORS’ latest housing statistics. A total of 11,200 existing single family homes sold statewide in April, a 20 percent increase over March sales activity, while statewide existing condo sales rose 21.6 percent over the same time period.
In Naples during April 214 single family homes were sold or an increase of 26.6 percent over March sales. The number of condos sold in Naples during April was 235 - an increase over March of 13.5 percent.
The single family home market in Bonita Springs saw 48 homes sold an increase of 9.1 percent, while there were 71 condominiums sold or an increase of 29.1 percent over March.
Estero single family homes sold in April were 32 or increase of 39.1 percent over March. The condo market saw 24 units closed about 9.1 percent increase over March.
HOME PRICES
The United States Office of Federal Housing Enterprise Oversight said Thursday that home prices fell 3.1 percent in the first quarter of 2008 compared with the first three months of 2007. The study tracks mortgage loans of $417,000 or less bought or backed by Fannie Mae and Freddie Mac.
MORTGAGE RATES DIP
Rates on 30-year mortgages dipped below 6 percent this week to average 5.98 percent, the lowest level in five weeks, according to Freddie Mac’s weekly nationwide survey.
MORTGAGE FRAUD
According to an Federal Bureau of Investigation’s report released yesterday, the 1,204 mortgage fraud cases pursued in fiscal year 2007 resulted in 321 indictments and court orders for $595.9 million in restitution. Fiscal 2006 saw only 818 cases of mortgage fraud with 263 indictments and court orders for $388.9 million in restitution.
HURRICANE SEASON
Government forecasters officially predict six to nine hurricanes in 2008, with up to five becoming major storms. However, forecasters say the chances for an above-average season are about 65 percent; the chances for a normal season about 25 percent; and the chances for a slow season about 10 percent, making the outlook sound almost like a guess. Coupled with two recent years of above-average forecasts and below-average storms, Floridians may be getting confused. Two major points must be made, however: One, it doesn’t matter if there is only one major storm in 2008 should that one major storm hit your home. Two, less-than-accurate forecasts could make Floridians apathetic about hurricane preparations and forget that they live on a peninsula that sticks out into the ocean like a giant hurricane "Kick Me" sign. Every state homeowner should prepare for the worst even as they hope for the best.
Naples Real Estate News 05/22/08
HOMEOWNERS INSURANCE
Florida’s Hurricane Catastrophe Fund has yet another concern: a possible credit problem. According to A.M. Best, the nation’s current credit crunch could impact the Cat Fund’s ability to sell bonds on Wall Street should it need to reimburse insurers following a major hurricane.
CHARITY
The foreclosure problem has given something good to the country’s best-known housing charity: Cheap properties for sale. Some Habitat for Humanity chapters have seized the buying opportunities.
BE ‘FIREWISE’
Here is some good advice for residents of Golden Gate Estates. - Fire researchers say that even 30 feet of defensible space around a home can greatly decrease the probability of structure damage or loss due to a wildfire - a constant danger during Florida’s dry season. Florida Agriculture and Consumer Services Commissioner Charles H. Bronson urges state residents to take action and points to three problem areas that can be corrected inexpensively:
• Roof and gutters: Remove all dead leaves, pine needles, small twigs and palm fronds - anything that can ignite easily by falling embers.
• Sides of the home: Remove dead vegetation and combustibles such as firewood piles.
• Area within 30 feet of the home: Remove dead vegetation, keep grass cut and watered, remove any vines stretching from wild land to the home or into trees, and prune dead limbs from trees and bushes.
For more "Firewise" tips, visit the Florida Division of Forestry web site at http://www.fl-dof.com
Naples Real Estate News 05/21/08
HOUSING AID
Democrats and Republicans banded together yesterday to push a home loan rescue plan through the Senate Banking Committee on a 19-2 vote, boosting the bill’s chances for a broad election-year housing aid package.
FLOOD INSURANCE
Federal Emergency Management Administration has revamped its 20 percent premium discount rule for flood insurance, which will impact some Florida communities. The new rule stipulates that homes with first-floor living space that is one foot or more below FEMA’s base flood elevation are ineligible for the discount.
Naples Real Estate News 05/20/08
HOMEOWNERS INSURANCE
Many homebuyers want a property insurer they can trust, and that usually means a name they’ve heard before, such as State Farm or Allstate. But according to the Florida Office of Insurance Regulation, small companies offer equivalent coverage and, on average, are just as reliable as the big ones. And you may find the premiums significantly less than the well known named companies. Sometimes you pay for the brand more than the actually product or service.
HOUSING AID
The U.S. Senate Banking Committee is expected to approve a bipartisan homeowner rescue bill today that could help a half-million struggling borrowers get Federal Housing Administration - backed mortgages. However, it’s not clear whether President Bush will sign the agreement.
FANNIE MAE
Fannie Mae’s decision to allow 5 percent downpayments in declining markets, such as many areas in Florida, will "help encourage buyers to come back into the housing market," according to National Association of REALTORS’ President Dick Gaylord. NAR Chief Economist Lawrence Yun went even further: "The Fannie Mae decision is huge and will have a positive impact, perhaps significantly, on the housing market," he says. "We are very appreciative to Fannie Mae for listening to us and agreeing." NAR and other organizations have been calling on both Fannie Mae and Freddie Mac to change the declining market downpayment policy, which disproportionately affects minorities and lower income families, as well as first-time homebuyers. "We heard the concerns of NAR and we reviewed and determined that changes in our policy were needed," Gwen MuseEvans, Fannie Mae vice president for credit policy and controls.
Naples Real Estate News 05/19/08
HOMEOWNERS INSURANCE
The surcharge Floridians pay to the Florida Hurricane Catastrophe Fund through their insurance policies is not enough, according to officials, and the state’s catastrophe fund needs more money to pay claims from past hurricanes.
INTERNATIONAL
Many international homebuyers consider this the perfect time to buy a South Florida condo and wait out the housing slump, because they think the region remains a powerful long-term draw. Figures suggest that activity is picking up as prices fall, and it could get even busier, analysts say.
International homebuyers should learn about how real estate is transacted, what the responsibilities of the real estate agent are, as well as, difference between a real estate agent and a REALTOR. The time spent discussing the aforementioned aspects will lead to a better purchase and a smooth easy real estate transaction.
ECONOMY
First the good news: The worst of the painful housing slump and the credit crunch may come to an end this year, according to the National Association for Business Economics. Now the bad: NABE also says the U.S. economy will weaken further and unemployment will rise; but a recession, if there is one, will be short and shallow.
Real Estate News 05/16/08
MORTGAGE RATES
Rates on 30-year mortgages edged down this week to their lowest point in a month, 6.01 percent, a spot of welcome news to would-be home buyers.
HOUSING STARTS
Construction of new homes in the U.S. posted the biggest increase in more than two years in April, rising by 8.2 percent. The unexpected strength came from a huge increase in apartment construction.
REAL ESTATE FORECAST
Home sales and prices throughout most of the U.S. are set to improve in the second half of 2008 and the recovery will vary by market, according to NAR Chief Economist Lawrence Yun. He blamed most of the housing market softness on the "subprime mess."
HOUSING AID
U.S. Sen. Christopher J. Dodd, (D-Conn.), chairman of the Senate Banking Committee, postponed action until next week on a housing aid package that could help half a million struggling borrowers get FHA-backed mortgages. But he says that negotiators within the Senate are close to a bipartisan deal.
MORTGAGE QUALIFICATION TO GET EASIER
Fannie Mae says it is doing away with higher downpayment requirements for borrowers in distressed real estate markets. The government-sponsored mortgage financier said Friday it will require downpayments of between 3 percent and 5 percent for all loans that it guarantees. That replaces a December policy requiring a higher downpayment if the loan was for a home in a market with declining real estate prices. Washington-based Fannie says the move is part of its effort to help resuscitate the flagging mortgage market.
Source: Associated Press