Naples Real Estate News 06/27/08
MORTGAGE RATES
Rates on 30-year mortgages rose again this week - to 6.45 percent - climbing to the highest level in more than nine months, reflecting concerns about how the Federal Reserve will respond to higher inflation pressures.
HOMESTEAD EXEMPTION
As county budgets shrink, officials are becoming more aggressive seeking out owners who lie about their living status in order to get a homestead exemption. If caught, a tax lien is typically placed on an owner’s property. The owner also faces a fine: 50 percent of the unpaid taxes for each year and interest at 15 percent per year.
FORECLOSURES
A series of lawsuits accuse mortgage lenders of disregarding bankruptcy laws. The lawsuits typically allege that mortgage-servicing firms mishandle borrower payments, triggering unwarranted late charges or defaults; bill homeowners for more than they owe; and charge for unneeded and expensive property insurance.
DOWNTOWN REVITALIZATION
The condo boom gave cities hope that they could revitalize downtown areas with a fresh mix of homes, stores and offices. When the real estate slowdown hit, however, plans went on hiatus, though officials hope for a payoff when things again turn around.
Naples Real Estate News 06/26/08
HOME SALES
A total of 12,175 existing single-family homes sold in May, up 8.7 percent over the previous month when 11,200 homes changed hands statewide, according to FAR. Existing condo sales statewide rose 3 percent, with a total of 4,018 units sold in May compared with 3,900 condos in April.
In Naples during the month of May 256 homes sold versus in April 214 for an increase of 19.6 percent. A total of 216 condominiums were sold in May a decrease of 8.1 percent from the April sales of 235 units.
Homes sold in Bonita Springs for May totaled 65, which was an increase over April’s 48 or an increase of 35.4 percent. In May 59 condos were sold, 12 less units than in April when 71 units were sold. This represents a decrease of 16.9 percent.
The Estero area saw 29 homes sold, a decrease of 9.4 percent from April closings of 32 homes. The condo market had 23 closed sales, while in April the closings totaled 25, which is a decrease of 8%.
FLOOD INSURANCE
Nationwide Insurance has asked Congress for permission to sell insurance that covers damage from both wind and flood water in a single policy, saying it’s a way for insurers and homeowners to avoid costly litigation after disasters like Hurricane Katrina.
INTEREST RATES
The Federal Reserve’s aggressive period of cutting interest rates is over, and nothing changed at yesterday’s meeting. But could the central bank keep rates unchanged for a considerable period? Many analysts say yes, predicting little change until next spring; but other economists worry that the Fed will start ratcheting up rates much sooner.
FLORIDA ECONOMY
It isn’t easy being an economist these days. Everyone wants a rosy report and in true kill-the-messenger fashion, people who hear Regions Bank’s chief economist speak sometimes accuse him of dragging down the economy by giving his honest impressions. But without accurate information, he counters, people can’t take the appropriate actions.
Naples Real Estate News 06/25/08
MORTGAGES
No downpayment mortgages have largely disappeared as a financing option from private lenders. But they are still available - and growing more popular - using existing Federal Housing Administration programs in conjunction with nonprofit groups’ downpayment assistance programs - Nehemiah Corporation and AmeriDream.
FLORIDA CONSUMER CONFIDENCE
Higher gas and food prices, continued declines in housing prices and last month’s large increase in unemployment caused Florida’s consumer confidence to fall six points in June to 57. The University of Florida survey notes, however, that housing prices seem to have hit bottom in some areas of the state.
HOUSING AID
The federal mortgage rescue plan could pass the Senate as soon as today; however, President Bush is threatening a veto and Democrats are fighting each other over key details, which will probably delay any final deal until mid-July.
COUNTRYWIDE
Bank of America Corp.’s takeover of Countrywide Financial Corp. could be wrapped up as early as next week, but first it must clear one last hurdle - getting the OK from the struggling mortgage lender’s shareholders, though approval is widely expected today.
NEW HOME SALES
New home sales fell nationwide for the sixth time in seven months, according to the United States Commerce Department. But while sales fell 11.6 in the West and 7.9 percent in the Northeast, they rose 5.1 percent in the Midwest and 0.4 percent in the South. This is an example of how real estate is local and the national picture can misconstrue local market conditions.
Naples Real Estate News 06/24/08
HURRICANE MITIGATION
Naples, Bonita Springs, and Estero homeowners take note: If you want a free hurricane home inspection courtesy of the State of Florida, sign up now. Most homeowners save money on property insurance following an inspection, but the program will achieve its goals and probably stop taking new applications later this summer.
REAL ESTATE TAXES
The Amendment 5 real estate tax reform that voters will consider in November, the opposition officially kicked off its campaign yesterday. John Sebree, notes that the opposition group’s anti-amendment campaign has not offered any alternative solutions to Florida’s current property tax crisis. “Is any property tax relief good to them?” he asks.
The opposition is coming from businesses in the health care industry, agriculture, as well as, public schools.
ENVIRONMENT
The nation’s largest producer of cane sugar is set to go out of business in a $1.7 billion deal to sell its land to the state of Florida for Everglades restoration, Govenor Crist announced this morning.
CONSUMER CONFIDENCE
The Conference Board Consumer Confidence Index declined again in June to 50.4. Lynn Franco, director of The Conference Board Consumer Research Center, noted that consumers’ assessment of present-day conditions “suggests the economy remains stuck in low gear.”
REAL ESTATE ECONOMY
According to the latest housing report from Harvard University’s Joint Center for Housing Studies, the picture isn’t pretty. “We’ve never had so much information or data in uncharted water,” says Eric Belsky, the Joint Center’s executive director, who does not predict a quick recovery. However, the report expects immigration growth to be a key factor in rejuvenating the housing market.
A Friend in Need - Helping Other People
Yesterday, I was informed of a very close and dear friend, Charles Richey, had been hospitalized with Guillain-Barre Syndrome. This particular disease afflicts the nervous system and the inflicted individual looses the use of all their limbs and ability to swallow.
Charles has helped me with my website on many occasions and has always been there to just to talk or give me encouragement when things were rough for me. There are many real estate agents through the United States that have benefited from his assistance. In addition, Charles, is very active in the Las Vegas area with animal rescue organizations. Many times when we talk he will tell me about a new dog that he has staying with him until a home can be found.
Charles does not have any health insurance at this time and with the overall real estate market not as strong as it has been, he will be incurring substantial hospital, physician, and after inpatient care - if you have been hospitalized you may have some idea of what Charles will be facing in the future.
On the Internet, we meet many people and may not meet them in person. So when a call goes out to help another- the internet is a power vehicle to get the word out. I have been lucky to meet Charles and his wife Jacqui in person and have had dinner with them.
You may not know Charles Richey from Las Vegas, but perhaps you know someone that has been striken with this disease and can offer comforting words of advice for this family or if you are so inclined to assist Charles you can visit this site or click on the graphic below.
Donate to the Charles Richey Fund
Thank you for reading this post and any assistance you can offer Charles Richey from Las Vegas.
Naples Real Estate News 06/23/08
DOCUMENTARY STAMPS
Effective June 1, the state stopped requiring real estate buyers and sellers to reveal their sales price in sworn government documents, leading local officials to worry about an increase in tax cheats and a decrease in income from documentary stamp taxes. “It’s typical state government: penny-wise and pound-foolish,” says Broward County Property Appraiser Lori Parrish. “Most people are honest, and we have to hope they continue to do the right thing.”
Documentary stamps paid on the deed based upon the sales price of the property is $0.70 per $100 or faction thereof.
ONLINE HOME VALUES
Consumers love real estate Web sites that offer an immediate estimate of a home’s worth, and some Internet users are almost addicted to seeing fluctuations in their home’s value. One problem, however: The percentage of error is still “very large,” making any single home’s estimate almost worthless.
My personal experience with these web sites is that my personal Naples home was overvalued by about 20 percent based upon current market conditions.
HOUSING AID
Negotiators are working to reach a deal with the White House on a massive housing rescue package, hoping to get the initiative passed this summer. President Bush has threatened a veto, but lawmakers in both parties say the housing legislation is a political imperative. “The American people expect us to provide effective and timely solutions,” Treasury Secretary Henry M. Paulson said.
VACANT HOMES
One of the chief frustrations that cities face in dealing with the nation’s foreclosure crisis is collecting on liens for code violations. In the hopes of finding some solutions to the growing problem of vacant and abandoned properties, mayors of cities across the nation attended the U.S. Conference of Mayors in Miami Sunday.
WATER RIGHTS
As Florida’s population grows, water increasingly becomes a political issue. Last week, Florida said it would sue the Army Corps of Engineers for violating the Endangered Species Act, a move that could further complicate strained relations over shared water resources between Florida and Georgia.
Naples Real Estate News 06/20/08
MORTGAGE RATES
Rates on 30-year mortgages kept surging this week, rising to 6.42 percent - the highest level in nearly nine months, reflecting more concerns about what the Federal Reserve will do to combat a growing inflation threat.
HOUSING AID
A bipartisan coalition in Congress that supports a massive foreclosure rescue proposal beat back GOP efforts to gut it Thursday, defying a White House veto threat. Under the plan, the FHA would provide $300 billion in new, cheaper mortgages for distressed homeowners.
HOMEOWNERS INSURANCE
The Board of Governors’ chairman for the state-created homeowners insurance company, Citizens Property Insurance, is stepping down, effective July 31, 2008, when all board members are either reappointed or replaced.
FLOOD FACTS
With two mouse clicks, a homeowner - or homebuyer thinking about making an offer - can find a property’s potential risk from flooding. FEMA keeps a record of every address in America at http://www.floodsmart.gov. For a floodplain map, go to http://msc.fema.gov . To apply for flood assistance or get more information, visit FEMA’s Web site at: http://www.fema.gov
MORTGAGE FRAUD
At least 22 people in Miami-Dade have been arrested on federal mortgage fraud charges in recent weeks, pushing the total to 102 people charged since September. In 2007, there were 47,000 "suspicious activity reports" in Florida, which leads the nation in the number of reports. In 2003, there were only 7,000 - an increase of more than 570 percent.
ECONOMY
The economy, hobbled by higher fuel and food prices, tighter credit and a depressed housing market, is limping along at a snail’s pace. "But latest data suggest the economy has not fallen into a contraction and may not undergo one in the second half of the year," says Ken Goldstein, a New York-based Conference Board economist.
Real Estate News 06/19/08
FLORIDA NO. 2 FOR NEW RESIDENTS
About 40 million Americans move each year, and Florida is the No. 2 spot for relocation, second only to California, according to a survey conducted by Relocation.com. The survey finds that 19 percent of those relocating went from owning their own homes to renting, with only 15 percent shifting the other way. Only 14 percent of the 1,237 respondents owned their previous residence and moved to a newly purchased home, and the majority (52 percent) went from one rental situation to another. The survey shows that most people relocate for a new job, a transfer within their current job or to seek a new lifestyle, including retirement. About half the moves were from one state to another. Two-thirds moved more than 100 miles and 54 percent moved more than 500 miles away. California is the number one destination state with 6 percent of the total sample moving there from another state, while 5 percent of all relocations move to Florida, followed by Texas (4 percent), New York (3 percent) and Georgia (2 percent).
Source: Relocation.com
FLOOD INSURANCE
The recent Midwest flooding caught many property owners unprotected, and it could happen in Florida. People generally pass on federally-backed flood coverage because they don’t realize it falls outside standard home insurance or they underestimate the risk. Yet a house has a 26 percent chance of flood damage during a 30-year mortgage, according to the National Flood Insurance Program. It is highly recommended by this REALTOR® for those that own a home or first floor condominium in Naples, Bonita Springs, or Estero they seriously consider purchasing flood insurance, due to the sub-tropical environment where we are located.
HOMEBUYERS
The cost of gas is redefining the definition of "location, location, location." After potential buyers weigh commuting expenses, demand goes up for homes near jobs, bus terminals or train stations. If gas prices continue to rise, some neighborhoods could experience price gains at the expense of other neighborhoods that see a drop in demand.
OFFSHORE DRILLING
President Bush has jumped into the election-year debate over high gas prices, outlining a plan for more domestic production that could include lifting the ban on offshore oil drilling near Florida’s Gulf Coast. Opponents denounce the proposals, saying they’re nothing more than a favor to oil companies.
CONDOS
Property managers for some of the toniest addresses in South Florida’s luxury condo market are dealing with a slew of new troubles resulting from vacant foreclosures: Impostor landlords leasing units they do not own, a rash of vandalism and squatters taking up residence.
Naples Real Estate News 06/18/08
NEW LEGISLATION
Governor Charlie Crist signed a bill authorizing “electronic” foreclosure sales. Previously, foreclosure sales had to be conducted in person; now they may be done online.
LENDING REFORM
Six trade groups on Tuesday told federal lawmakers that a comprehensive housing bill would impose too-strict standards on lenders. They say the bill, if passed, would expose lenders to potential lawsuits and force them "to reduce the number and type of products to consumers."
GULF OIL DRILLING
Governor Charlie Crist dropped his long-standing support for the federal government’s moratorium on offshore oil drilling, endorsing presidential candidate John McCain’s proposal to let states decide. "I mean, let’s face it, the price of gas has gone through the roof, and Florida families are suffering," Crist said yesterday.
FORECLOSURES
As the federal government discusses ways to help struggling homeowners, a growing number of cities are taking matters into their own hands. "We can’t wait on the federal government," says Douglas Palmer, president of the U.S. Conference of Mayors. "We’re taking action."
Naples Real Estate News 06/17/08
HOUSING AID
Major mortgage lenders have agreed to streamline and speed up the process for assisting distressed homeowners following criticism that they’re too slow and sometimes unresponsive. Under new guidelines, homeowners seeking help can expect an answer within 45 days.
GULF OIL DRILLING
With high gas prices squeezing many consumers, there’s more pressure to lift the ban on oil and gas drilling in the waters off Florida’s Gulf Coast - a move that could threaten the state’s pristine beaches and $65-billion-a-year tourism industry. But according to United States Senator Bill Nelson, Democrat from Florida, drilling proponents are using high gas prices "to scare the public into thinking coastal drilling offers a real solution to our dependency on oil." Probably would be much better if we reduced the consumption of petroleum related products and spent more on the development of alternative fuels.
HOUSING STARTS
The Census Bureau reported this morning that May housing starts fell by 3.3 percent compared to April numbers.
FORECLOSURES
A few buyers with good credit have discovered the "buy and bail" strategy: Buy a second home at a good price, tell the new lender that you plan to rent out the first home, and then walk away from the original home, leaving the first lender holding the bag. This strategy is not recommended - you will be negatively impacting your credit score, exposing yourself to a possibly deficiency judgment (depends upon the state laws and mortgage), as well as, the possibility of signing an unsecured promissory note for any deficiency.