Naples Real Estate News 06/09/08
PENDING SALES
The National Association of REALTORS’ Pending Home Sales Index, based on contracts signed in April, rose 6.3 percent to stand at 88.2 from a reading of 83.0 in March - the highest index since last October. According to the National Association Realtors’ latest forecast, a modest gain in home sales is possible over the next couple months, and the second half of this year should see some improvement as more buyers are able to access affordable mortgages.
How is this reflected within the local real estate market? Naples had pending sales a total of 608 properties pend in April, while in March the total was 600. In the Bonita Springs area pending sales for April was 143 versus 144 in March. For April the Estero area had pending sales of 73 versus 60 for the month of March. The home buying season in many parts of the country starts in the spring, whereas, the buying season in southwest Florida runs from October and culminates in April.
REAL ESTATE TAXES
Contrary to popular opinion, city and county governments cannot easily raise tax rates to make up for any income deficit created by January’s passage of Amendment 1. A local tax increase now requires approval by a super-majority of officials, and it must be called a "tax increase" if considered.
HOMEBUYER TAX CREDIT
Representatives of the National Association of REALTORS testified Thursday that a temporary tax credit would be the best incentive to move hesitant homebuyers into the market, basing its support on the success of a 1975 temporary tax credit that jump-started a slow housing market.
LENDER-OWNED PROPERTIES (REO)
Lenders stung by the housing bust are slashing prices to rid themselves of an unprecedented number of foreclosed properties, sparking bidding wars in some places that may signal the bottom is near. The trend is most dramatic in many parts of Florida, California, Nevada and Arizona.
CREDIT TIGHTENING
The credit crisis triggered by bad home loans is spreading to other areas, forcing banks to tighten credit and probably extending the economic impact into next year. As a result, consumers are going to have an increasingly difficult time getting bank loans for car purchases, credit cards, home equity credit lines, student loans and even commercial real estate, experts say.
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“Tightening Credit”
You are a prophet. How could you foresee the extreme tightening of credit we are now suffering? I imagine you will point to the few pundits who forecast this credit crisis a long time ago. Still, you called it in June.
Your blog is a valuable resource. What do you see in your crystal ball now?
Yes, I do a lot of reading about the economy and how it will affect the real estate market.
I wish I had a crystal ball - but with this bailout, one has to think about is it a conspiracy by the big companies holding so many bad loans because they can exert so much pressure on the congress and other law makers.
Would love to know what companies are getting the $700 billion and how much each one is getting.