|
|
| Click here to receive reports on Foreclosures, Short Sales and REOs directly to your inbox!  Florida’s climate is business-friendly, says FAR
ORLANDO, Fla. – July 2, 2009 – As the Sunshine State, Florida’s warm and sunny weather draws residents and visitors eager to experience all the state has to offer, including the many opportunities and strong support it provides for business and industry.
“Not only is Florida a great place to call home, it’s a great place to do business,” says Cynthia Shelton, 2009 president of the Florida Association of Realtors® (FAR). “Our state has made it a priority to not only encourage new businesses and industries to come to Florida, but to provide the kind of supportive climate that entrepreneurs and businesses need to succeed and prosper. Florida is the fourth most populous state in the U.S., with a large and diverse population fueling innovation in industry, and providing a creative and highly skilled workforce.”
A broker/salesperson with Colliers Arnold Associates Inc. in Orlando, Shelton has more than 30 years of experience in the real estate industry, including residential, ownership, management, development and commercial sectors. With her extensive business background, Shelton understands the state’s appeal to business owners and entrepreneurs. With no state income tax and a favorable tax environment for corporations, she points out that Florida is an attractive location for people who want to own their own business and raise their families in a desirable place close to their livelihood.
Enterprise Florida, a public-private partnership devoted to statewide economic development, notes Florida’s business strengths on its Web site (http://www.eflorida.com) along with a list of recent accolades the state has received.
For example, did you know:
• Florida continues to be one of the best states for business, ranking No. 1 in the nation for workforce; among the top 10 for technology, innovation and access to capital; and third overall in Chief Executive’s survey of the best places for jobs and business growth. (Chief Executive, March 2009)
• Four Florida metros, Orlando, Miami-Ft. Lauderdale, Cape Coral-Fort Myers and Jacksonville, are among the nation’s best places to start a small business. (Bizjournals, Feb 2009)
• Florida has the second highest number (tied with Washington) of leading metropolitan areas on the Milken Institute/Greenstreet Real Estate Partners Best Performing Cities 2008 - 2009 Largest Metros Index. Florida consistently ranks among the top states in this annual report, which measures economic growth, job creation and technology growth. (Milken Institute, September 2008)
• Florida continues to gain ground among the nation’s top states for entrepreneurship, moving up to rank fourth overall in the 2008 Small Business Survival Index. Florida’s low tax rates have helped improve its ranking from sixth in 2006 and fifth in 2007. (Small Business & Entrepreneurship Council, December 2008)
• Florida earned top spots on Site Selection’s 2008 Top State Business Climate rankings. The state’s business climate ranked fourth among executives and sixth overall. (Site Selection, November 2008)
• Florida continues to rank among the top five states for best tax climates for business, according to a Tax Foundation survey. With no state income tax, low corporate taxes, a low unemployment insurance tax rate and sales tax exemptions for certain business transactions, Florida has remained among the top five U.S. states since the survey’s inception. (The Tax Foundation, October 2008)
• Florida’s economic climate ranks No. 1 in the U.S., according to Forbes’ Best States for Business. Ranking eighth overall, Florida also scored among the top five in the Labor and Growth Prospects categories. (Forbes, August 2008)
© 2009 FLORIDA ASSOCIATION OF REALTORS
Florida’s $8K program effective today but not available yet TALLAHASSEE, Fla. – July 1, 2009 – Florida created a program to help first-time homebuyers get their federal tax credit early, allowing them to use up to $8,000 toward a downpayment. The effective date for the program is July 1; however, it will probably be another few weeks before the funds are available. As a result, some Realtors struggling to help homebuyers find the system confusing.
While most first-time homebuyers qualify for the tax credit (given by the government as an income tax rebate regardless of tax owed), they once had to buy a home first, submit the info to the IRS through their tax return, and wait for the $8,000 rebate. To help these buyers get the money early enough to use it as a downpayment, the State of Florida created a program of bridge loans, the Florida Homebuyer Opportunity Program (FLHOP), where money can be borrowed from the state and then paid back after the new homeowner receives his tax credit.
Under a different federal program, the Federal Housing Administration (FHA) has done something similar, yet with a significant difference: The federal program applies to FHA loans only, and buyers must still come up with a minimum downpayment of 3.5 percent.
“FAR’s Office of Public Policy has been getting a lot of questions from across the state regarding downpayment assistance for those who qualify for the federal first-time homebuyer tax credit,” says Florida Association of Realtors (FAR) Vice President of Public Policy John Sebree. “Given that there is a state downpayment plan and a federal downpayment plan (and at least one special exemption), it definitely gets confusing, and details have been slow to emerge. Many Florida Realtors say local housing authorities don’t have all the information they need to move forward with the state program, and some Realtors report that bankers are steering clear of the downpayment assistance programs altogether.”
Florida Homebuyer Opportunity Program (FLHOP)
The Florida Legislature created the state program during the recent legislative session, and it’s part of the 2010 budget effective July 1, 2009. Many details remain sketchy, but Sebree reports the following:
• Money for homebuyers may not be available until the first week of August. Lawmakers funded the program through doc stamp taxes applicable in the new fiscal year rather than through a lump sum commitment; and since today is the start of the new fiscal year, the program won’t be fully funded until the state collects new doc stamp taxes.
• Florida’s downpayment loan program can work with FHA loans. Florida Housing Finance Corporation (FHFC) – the state agency that funnels housing money to local housing agencies – received confirmation from FHA that borrowers who access the $8,000 tax credit through a state or local government program may use it to make up the required 3.5 percent downpayment, unlike the FHA downpayment loan program through private lenders.
• Florida’s local housing administrators will oversee the downpayment funds at the local level. (To find the administrator in your area, go to: http://apps.floridahousing.org/StandAlone/FHFC_ECM/AppPage_SHIPLGContacts.aspx). For local housing authorities, the program is similar to the SHIP program (State Housing Initiatives Partnership) with one major difference – the income limits. Currently, SHIP uses Area Median Income (AMI) and those are typically lower, and calculated differently, than the federal tax credit limit of $75,000. The $75,000 for a single income tax filer ($150,000 for joint filers) will be used for FLHOP.
• Realtors can start to promote the program to potential homebuyers. It takes time to close on a home, and local housing authorities should be taking applications now.
• FHFC says they’ve trained local administrators on procedures for the Florida downpayment program. Local housing authorities will have flexibility over the $8,000 loan, be able to include penalties, and create a structure dictating how the new homebuyer will pay back the money.
“It’s important to note that this money is a bridge loan to buyers; but once it’s repaid, local governments and housing authorities can keep the money and use it locally for affordable housing projects,” Sebree says. “This is a win/win for them. If the offices seem unwilling to work with Realtors, they probably don’t understand the program themselves yet.”
For specific questions about the $8,000 tax credit, homebuyers should consult a tax professional.
Resources for understanding the tax credit and bridge loans
FAR’s Homebuyer Center: http://www.floridarealtors.org/AboutFar/homebuyercenter/index.cfm
NAR’s The Basics: 2009 First-Time Home Buyer Tax Credit: http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit?lid=ronav0019.
© 2009 FLORIDA ASSOCIATION OF REALTORS® Florida’s quality of life means ‘home sweet home,’ says FAR ORLANDO, Fla., July 1, 2009 – What does Florida have to offer? Pick up a travel brochure and some benefits are clear: Beautiful beaches. Miles of scenic parks and nature preserves. Oceans, rivers and lakes offering boating, fishing, swimming and other water recreation. A rich and varied history, which includes the city of St. Augustine, the oldest permanent European settlement in the mainland United States. Unique entertainment parks and other family-friendly attractions. Cultural activities that offer residents and visitors fine theater, music, dance and arts events. Then there is Florida’s climate featuring an average annual high of 81 degrees Fahrenheit and an average annual low of 60 degrees, giving the Sunshine State its well-known nickname and reputation.
“Florida is a great place to live and I feel privileged to call it home,” said 2009 Florida Association of Realtors® (FAR) President Cynthia Shelton. “There is so much to see, to experience and to enjoy in Florida, from the distinctive white sugar sand beaches of Destin in the north, to the family fun offered by Orlando’s theme parks and attractions, to the leisurely, laid-back lifestyle in the Keys. Whatever you like to do, you’ll find it here in Florida. We have visitors coming here from around the world to vacation in Florida. But they only get to sample what Florida offers for a brief time; when you’re lucky enough to be a Florida homeowner, there’s no end to the possibilities!”
State officials, Florida Realtors® and business recruiters agree: Florida’s unique quality of life is one of the state’s best assets. Enterprise Florida, a public-private partnership devoted to statewide economic development, notes on its Web site (http://www.eflorida.com) many of the amenities found in the Sunshine State.
• Florida beaches were awarded more top 10 spots than any other state, including the No. 1 beach in the U.S., Caladesi Island State Park, on America’s Best Beaches list for 2008. This internationally recognized ranking by Dr. Stephen P. Leatherman (aka Dr. Beach) is based on 50 criteria including number of sunny days, sand softness, algae and pollution content, safety record, and more. Leatherman is a Ph.D. coastal scientist, professor of environmental studies and director of the Laboratory for Coastal Research at Florida International University in Miami.
• The state’s park system, one of the largest in the U.S., has 160 parks covering more than 700,000 acres and 100 miles of Florida’s beaches.
• Seven of Relocate-America’s Top 100 Places to Live in 2008 were Florida cities, including one, Flagler Beach, which was named to the Top 10. These rankings attest to Florida’s high quality of life, and are based on a combination of economic data and feedback from people who live in each area.
• In many ways, Florida’s cost of living is below that of other states with similar economic growth and in-migration rates. For example, the state’s homeownership rate currently stands at about 70 percent, well above the national average. And, with data from the Florida Association of Realtors showing that $187,800 was the statewide median price for an existing home at year-end 2008, housing prices compare well to other similar states.
• Noted for its outstanding statewide system of trails, Florida was named the Best Trails State in America, winning the biennial National Trails Award in this past November from the national nonprofit organization American Trails.
• Five Florida universities were named to the Best Values in Public Colleges list for 2009 by Kiplinger’s Personal Finance. The schools are University of Florida, ranking No. 2 in the nation; New College of Florida, No. 8; Florida State University, No. 17; University of Central Florida, No. 42; and the University of South Florida, No. 75. Among other criteria, these rankings recognize schools with top academics and affordable costs.
© 2009 FLORIDA ASSOCIATION OF REALTORS
Florida’s Existing Home, Condo Sales Rise in April 2009
ORLANDO, Fla., May 27, 2009 – Florida’s existing home sales rose in April – the eighth consecutive month that sales activity increased in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). April’s statewide sales showed gains over the previous month’s sales level in both the existing home and existing condominium markets. Existing home sales rose 18 percent last month with a total of 13,111 homes sold statewide compared to 11,133 homes sold in April 2008, according to FAR. April’s statewide existing home sales were slightly higher than statewide activity in March. Florida Realtors also reported a 21 percent rise in statewide sales of existing condos in April; existing condo sales last month increased 6.2 percent over the total units sold in March. Fourteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in March and 11 MSAs also showed gains in condo sales. A majority of the state’s MSAs have reported increased sales for 10 consecutive months. Florida’s median sales price for existing homes last month was $138,500; a year ago, it was $199,500 for a 31 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note, however, a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less. The national median sales price for existing single-family homes in March 2009 was $174,900, down 11.5 percent from a year earlier, according to NAR. In California, the statewide median resales price was $253,040 in March; in Massachusetts, it was $255,000; in Maryland, it was $264,302; and in New York, it was $222,500. According to NAR’s latest housing industry outlook, it could take a few months for the housing market to gain momentum, though there are signs of stabilization. “The share of lower priced home sales has trended up, indicating a return of many first-time buyers,” said NAR Chief Economist Lawrence Yun. “Buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit. By early summer we should be seeing a positive impact on home sales from record-low mortgage interest rates in addition to the stimulus provisions.” In Florida’s year-to-year comparison for condos, 4,660 units sold statewide compared to 3,862 units in April 2008 for a 21 percent increase. The statewide existing condo median sales price last month was $106,600; in April 2008 it was $178,900 for a 40 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $177,600 in March 2009. Interest rates for a 30-year fixed-rate mortgage averaged 4.81 percent last month, down significantly from the average rate of 5.92 percent in April 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written. Among the state’s smaller markets, the Pensacola MSA reported a total of 316 homes sold in April compared to 272 homes a year ago for a 16 percent increase. The existing home median sales price was $143,300; a year ago, it was $157,400 for a 9 percent decrease. In the year-to-year comparison for the existing condo market, 48 units sold in the MSA last month, up 9 percent compared to 44 condos sold the previous April. The market’s existing condo median price remained level at $250,000. Two charts showing statistics for Florida and the state’s MSAs are attached. One chart compares the volume of existing, single-family home sales and median sales prices in April 2009 to April 2008 based on Realtor transactions; the other compares the volume of existing, condominium sales and median sales prices April 2009 to April 2008 based on Realtor transactions. FAR study looks at Florida’s present and futureTALLAHASSEE, Fla. – June 3, 2009 – Migration – the movement of people into and out of a geographic area – impacts a state’s economy and real estate market. Because birth and death rates are usually low and stable, migration often accounts for the largest changes in population growth, decline and redistribution. Migration patterns have a big impact on real estate professionals, and Florida has one of the greatest levels of domestic migration. Florida’s total population was 18.3 million in 2008, and, according to the Census Bureau estimates, will reach 19.3 million by July 2010, and approximately 23.4 million by 2020. The Census Bureau estimates a 79 percent increase in total population between 2000 and 2030, ranking Florida third highest in projected population growth. Twenty-two percent of the state’s population in 2007 was under 18 years old, and 17 percent was 65 years and older. By 2015, 21 percent of the state’s population is projected to be under 18 years of age, and 19.5 percent will be 65 years and older. Furthermore, Florida is a favorite state for many second home buyers, both from other areas in the U.S. as well as from abroad. While the state still attracts retirees, it also appeals to many young college graduates. A Florida Association of Realtors®’ study conducted by the National Association of Realtors® analyzes mobility and migration trends for Florida, and includes information on recent second home purchase activity. It includes projections for future migration patterns, including expected housing demand by different demographic segments, states with high volumes of in-migration to Florida, and expected changes in the existing home sales. The report also compares Florida second home purchases to other states; mortgage data on second home purchases compared with primary residences; and recent changes in purchases by income and race. The complete study is available on floridarealtors.org at: http://www.floridarealtors.org/LegislativeCenter/Research/index.cfm© 2009 FLORIDA ASSOCIATION OF REALTORS®
First-time homebuyers: How to get the $8,000 tax credit Tax Credit details Every homebuyer has unique circumstances and specific questions. The National Association of Home Builders (NAHB) has launched a consumer Web site with detailed information and an extensive list of frequently-asked questions. To find out more about the $8,000 tax credit, go here.
WASHINGTON – Feb. 17, 2009 – How does a first-time homebuyer take advantage of the $8,000 tax credit that President Obama is expected to sign into law tomorrow? It comes with a few rules. According to the most recent analysis, the following rules will apply – though things could change as tax professionals weigh the details: • The deduction is worth 10 percent of a home’s value up to $8,000, which means all homes worth more than $80,000 could qualify for the maximum amount. • There is an income limit to qualify. A married couples’ modified adjusted gross income (MAGI) should be under $150,000 and single filers’ MAGI should be less than $75,000. • Partial tax credits may be available for married couples with MAGI incomes over $150,000 but under $170,000, and single filers with incomes over $75,000 but under $95,000. • If married couples file separately, they can both claim 5 percent of the home purchase ($4,000 each for a home over $80,000) on their tax returns. • It’s a tax credit, not a deduction. That means the entire amount goes back to the first-time homebuyer unlike deductions, such as mortgage interest, that are subtracted from gross income before tax is calculated. If qualified for $8,000, the buyer gets $8,000, even if they would not owe that much in taxes otherwise. • The tax credit applies to homes purchased from Jan. 1, 2009, through Nov. 30, 2009. • The tax credit does not have to be paid back, providing the homebuyer keeps the property for at least 36 months and resides in the home. • To qualify as a first-time homebuyer, the purchaser cannot have owned a home within the previous three-year period. However, ownership of a vacation home or rental home does not disqualify the buyer. • If purchasing a new home, the effective date to receive the credit is the first day the homeowner actually lives in the house. If construction began in 2008, that buyer could still qualify. And if construction begins in 2009 but the owner does not take possession until 2010, the buyer would not qualify. • The tax credit can be claimed on 2008 income tax forms even though the purchase took place in 2009. A buyer could close on a home the same day that President Obama signs it into law, fill out their income tax forms the next day, and receive the tax credit fairly quickly. The tax credit is not a downpayment, but it could be used toward a downpayment if first-time homebuyers plan ahead. U.S. taxpayers have money withheld from every paycheck for income taxes. If they owe more tax than the amount deducted, they pay the IRS; if they owe less, they get a tax refund. By anticipating at least an $8,000 refund in early 2010 when they file 2009 taxes, these buyers could cut down on their tax withholding this year and save the money toward a downpayment. There is one caveat, however: Should they not buy a home in the qualifying period, they would still owe the IRS the money, and reducing their withholding amount could result in a high bill at tax time. Questions? Call FAR’s Legal Hotline at 407-438-1409. It’s a free call for members except for long distance phone charges, if any. © 2009 FLORIDA ASSOCIATION OF REALTORS® 10 steps to negotiating an affordable loan modification
DETROIT – Feb. 12, 2009 – Ralph R. Roberts, consumer advocate and spokesperson for Federal Loan Modification Law Center, LLP, released a list of the top 10 steps homeowners can take to negotiate an affordable loan modification. The following steps apply to homeowners working directly with a lender, as well as to those teaming up with an attorney or alternative third-party representative.
1. Come clean. It can be tempting to bend the truth when you are trying to convince a lender to approve a loan modification. Only by laying all your cards on the table and disclosing the truth can you begin to develop and implement solutions that will put you back on the path to long-term financial health.
2. Understand your lender’s point of view. As far as your lender is concerned, it all boils down to money. You are most likely to be approved if you can show modifying your loan will cost the lender less than a foreclosure.
3. Keep a cool head. Expressing anger toward your lender puts you in an extremely disadvantageous position. For example, your lender may decide that you are unreasonable and that foreclosing would be less costly overall.
4. Give them what they need. In order to expedite the situation, find out exactly which forms you need to fill out and which documents your lender needs to process your application. Make sure you provide everything to your lender or representative in the manner specified.
5. Ask for what you want. Before meeting with your lender, make sure you spend some time figuring out what you want and need. For example, how much can you realistically afford to pay each month?
6. Let them do their job. Loan modifications typically take between 30-90 days from start to finish. During this time, avoid the temptation to micromanage the process. To alleviate unnecessary anxiety, ask your lender for an anticipated timeline.
7. Get your financial house in order. Put a tracking system in place today and start developing a budget to ensure you are not spending more money than you are earning.
8. Keep everyone posted of any changes. If anything changes related to your financial situation, be sure to keep your loan modification representative or lender in the loop.
9. Make sure the lender’s offer is truly affordable. If the loan modification is unaffordable or makes your budget so tight that you are only one car repair or medical bill away from defaulting again, head back to the negotiating table to try to work out a better deal.
10. Hold up your end of the bargain. The key to success is discipline and commitment. All the effort you spend setting up a plan is of no use if you don’t follow the plan you created or agreed to.
© 2009 FLORIDA ASSOCIATION OF REALTORS® U.S. government: Home prices up 1.7 percent month-to-monthWASHINGTON, DC – March 25, 2009 – U.S. home prices rose 1.7 percent on a seasonally-adjusted basis from December to January, according to the Federal Housing Finance Agency’s (FHFA) monthly House Price Index. In December, the FHFA first reported a 0.1 percent increase, which was later revised to a 0.2 percent decline. FHFA ( www.fhfa.gov) regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks as authorized by the Housing and Economic Recovery Act of 2008. For the 12 months ending in January, U.S. prices fell 6.3 percent, and the U.S. index is 9.6 percent below its April 2007 peak. The FHFA monthly index is calculated using the purchase price of houses sold or guaranteed by Fannie Mae or Freddie Mac. For the nine Census Divisions, seasonally-adjusted monthly price changes from December to January ranged from -0.9 percent in the Pacific Division to +3.9 percent in the East North Central Division. Month-to-month changes in the geographic mix of sales activity explain most of the unexpected rise in prices in January. Home sales disproportionately occurred in areas with the strongest markets, according to the release issued by FHFA. “While it is difficult to perfectly control for changing geographic mix in estimating house price indexes, the data suggest that if one were to remove those effects, the change in home prices in January, while still positive, would have been far less dramatic,” according to the FHFA release. Reported sales volume, in absolute terms, was relatively low in January. As a result, the FHFA warns that relatively large revisions could occur later. © 2009 FLORIDA ASSOCIATION OF REALTORS® HUD plans for $13.6B in stimulus money
WASHINGTON – Feb. 20, 2009 – The American Recovery and Revitalization Act pumps $13.6 billion into the Department of Housing and Urban Development (HUD). Shaun Donovan, the new HUD secretary, explained yesterday how the money will be used.
In a letter to HUD employees, Donovan said the housing investments serve four main purposes:
• The Recovery Act invests $5.85 billion in a range of housing and community development activities, with $4 billion of it going to the public housing program for the renovation and retrofitting of this critical inventory. The Act provides an additional $510 million for the Native American program, and $250 million for assisted housing programs. The Community Development Block Grant program receives $1 billion while HUD’s lead based paint hazard reduction and abatement activities receive $100 million.
Donovan says these activities “can happen quickly, are labor-intensive, create jobs where they are needed most, and will lead to lasting housing and neighborhood benefits.”
• The Recovery Act invests $4.25 billion to spur recovery in the housing sector through targeted interventions. The Act contains $2 billion for a second round of investments in the Neighborhood Stabilization Program to mitigate the impact of foreclosures in some of the hardest hit communities in the country. The Act also contains $2.25 billion in a special allocation of HOME funds to revive the low income housing tax credit market and accelerate the production and preservation of affordable housing.
• The Recovery Act invests $1.5 billion in programs to prevent homelessness.
“I am particularly gratified by this significant investment,” Donovan says. “Many homeless experts are gravely concerned that the economic downturn will trigger a major spike in homelessness due to job dislocation and the eviction of low and moderate renters and homeowners.”
• The Recovery Act provides $2 billion to ensure full 12-month funding for Section 8 project-based contracts.
“I share the president’s confidence and strongly believe that this agency can play a critical role in economic recovery,” Donovan adds.
© 2009 FLORIDA ASSOCIATION OF REALTORS® FAR releases latest report on Florida home buyers and sellers
ORLANDO, Fla. – Jan. 6, 2009 – What did the typical Florida homebuyer look like in 2008? The answer lies within the pages of the 2008 Profile of Home Buyers and Sellers Florida Report released by FAR and compiled by NAR, which is now available at floridarealtors.org. Because the real estate market evolves, it’s important for real estate professionals to have a clear picture of today’s home buyers and sellers. The 2008 Profile of Home Buyers and Sellers describes the characteristics and motivations of recent home buyers and sellers in Florida to help real estate professionals track the changing demands of consumers in a dynamic market. Characteristics of home buyers • The median age of home buyers was 43 years old. Among first-time buyers, the median age was 32. • The median 2007 household income of home buyers in Florida was $68,500 compared to $74,900 among home buyers nationally. • Sixty-seven percent of home buyers had no children under age 18 residing in the home. • Fifty-eight percent of home buyers were married couples, 18 percent single females, 13 percent single males, and 9 percent were unmarried couples. • Seventeen percent of home buyers reported they were born outside the United States, compared to 9 percent nationally. • First-time home buyers accounted for 43 percent of recent home purchases. • Forty-eight percent of first-time home buyers were between 25 and 34 years old. • The median income of first-time home buyers was $58,400 compared to $60,600 among all first-time buyers nationally. • Thirty percent of first-time buyers identified their race or ethnicity as non-white. • The primary reason for the recent home purchase was a desire to own a home for 60 percent of first-time buyers. • For the timing of the home purchase, 34 percent reported it was just the right time for them, 19 percent noted they had to purchase when they did, and 29 percent reported it was either due to improved affordability of homes or availability of homes for sale. Only 7 percent stated they wished they had waited to buy. • Forty-six percent of home buyers reported using social networking Web sites, such as MySpace, Facebook, LinkedIn, and Friendster. Among home buyers aged 18 to 24, 85 percent reported using social networking sites, and 50 percent reported using them every day or nearly every day. Characteristics of homes purchased • New home purchases were 25 percent of recent home purchases. • Seventy percent of homes purchased were detached single family homes. • The typical home buyer purchased a home 15 miles from their previous residence. • The median price of homes purchased was $207,000 compared to $204,000 in the U.S. • The typical buyer purchased a home that was 1,760 square feet in size. The median size of home purchased by first-time buyers was 1,570 square feet • Commuting costs were considered as very or somewhat important by 79 percent of buyers when considering which home to purchase. • Recent home buyers plan to live in their home a median of 10 years. The home search process • Twenty-nine percent of recent buyers reported that their first step in the home-buying process was looking online for properties for sale. Thirteen percent of first-time buyers and 19 percent of repeat buyers reported their first step was to contact a real estate agent. • Eighty-four percent of home buyers used a real estate professional during their home search. • Among home buyers, the typical Internet searcher was 41 years old and visited a median 12 homes. The typical home buyer who did not use the Internet to search for homes was 54 years old and saw a median 7 homes. • Forty percent of home buyers first learned about the home they purchased from a real estate professional; 24 percent first learned about the home they purchased through the Internet. • Real estate agents were viewed as a very useful information source by 79 percent of buyers, and as a somewhat useful information source by an additional 19 percent of buyers searching for a home. • Six percent of buyers purchased a foreclosed home. 48 percent considered buying a home in foreclosure, but either could not find the right home, or found the purchase process to be too difficult or complex. Home buying and real estate professionals • Seventy-eight percent of home buyers purchased their home through a real estate agent or broker. • Thirty-seven percent of first-time buyers were referred to their agent by a friend, family member, neighbor or relative. • Ninety-seven percent of buyers ranked honesty and integrity as a “very important” factor when choosing a real estate professional to assist with a home purchase. • When asked about their agent’s performance on those qualities considered important, 84 percent reported they were “very satisfied” with the honesty and integrity of their agent. • Seventy-two percent of recent buyers will definitely use their agent again and 16 percent will probably use the agent again or recommend to others. Financing the home purchase • Eighty-eight percent of home buyers financed their home purchase; 95 percent of first-time home buyers financed the purchase of their home compared to 82 percent of repeat buyers. • Savings was the chief source of the downpayment for 65 percent of first-time buyers. • Forty-two percent of repeat buyers used proceeds from the sale of their primary residence toward the downpayment; 44 percent relied on savings for a portion of the downpayment. • 48 percent of home buyers reported they have made some sacrifices to be able to make their home purchase, such as reducing spending on luxury items, entertainment or clothing. • Forty-seven percent of all buyers believe that their home purchase was a better financial investment than stocks, and an additional 30 percent of buyers feel their home purchase was at least as good an investment as stocks. Home sellers and their selling experience • The median age of home sellers was 52 years; they had a median income of $80,600. • Sixty-nine percent of home sellers were married and 72 percent had no children under 18 years old living at home. • Thirty-eight percent of sellers traded up to a larger home when purchasing their next home. • The typical home seller owned their home for 6 years. • The typical home was on the market for 12 weeks. Thirty-one percent of home sellers did not reduce their asking price before their home sold. • Recent sellers typically sold their homes for 92 percent of the listing price. • Forty-four percent of sellers offered incentives to attract buyers, most often assistance with closing costs and home warranty policies. • Eighty-five percent of sellers used an agent or broker to sell their home. • Forty-nine percent of all sellers were very satisfied with the selling process. Home sellers and real estate professional • Fifty-seven percent of sellers contacted only one agent before selecting one to help assist in the sale of their home. • When selecting a real estate professional, 38 percent of sellers received a recommendation from a friend, neighbor or relative. • The reputation of the agent was the most important factor when choosing a real estate professional for 34 percent of recent sellers. • Nineteen percent of sellers used the same agent for their home purchase. • For 23 percent of sellers, their most important expectation was that the real estate agent would help price home competitively; 24 percent reported that their most important expectation was that the agent help sell the home within a specific timeframe. • Ninety percent of sellers reported their home was listed or advertised on the Internet. • Seventy-nine percent of sellers used an agent that provided a broad range of services and managed most aspects of the sales transaction. • Sixty-four percent of sellers reported they would definitely use the same real estate agent again. For sale by owner sellers (FSBO) • Twelve percent of sellers sold their home without the assistance of an agent compared with 13 percent of sellers nationally. Among all sellers, 5 percent were FSBO sellers who knew the buyer. • Fifty-nine percent of FSBO sellers reported that they had some difficulty in selling their home themselves, in performing tasks such as understanding and performing the necessary paperwork to complete the transaction, preparing the home for sale, and getting the price right. To download the 23-page 2008 Profile of Home Buyers and Sellers Florida Report in PDF format, visit floridarealtors.org at: http://www.floridarealtors.org/LegislativeCenter/Research/index.cfm © 2009 FLORIDA ASSOCIATION OF REALTORS® Survey says Americans still eager to buyWASHINGTON – March 24, 2009 – Nearly 25 percent of adults say they plan to purchase a home in the next five years and half of those (53.5 percent) will be first-time homebuyers, according to a survey commissioned by Move Inc., operator of Realtor.com. More than 18 percent cite the $8,000 tax credit as a motivating factor. Potential homebuyers with higher incomes are more interested in the tax credit than those in lower income brackets, with 43.4 percent of potential first-time buyers who earn $50,000 or more saying they plan to use the tax credit. According to the survey, half of all Americans (49.6 percent) are paying more attention to home values today than they were a year ago, especially those ages 25 to 34 (61.9 percent). The median age of first-time homebuyers is 30 years old. The Move survey uncovered changing attitudes toward owning a home. About two-thirds (62.5 percent) now consider their home primarily a place to live as opposed to an investment. Adults earning up to $20,000 and between $30,000 and $39,900 annually are significantly more likely to feel most strongly that a home is more of a place to live than an investment as compared to those earning $50,000 or more. When presented with a list of amenities, homeowners wanted it all – with more space leading the list (about 10 percent chose that option). Other amenities that were high on many shoppers’ lists included energy saving features (6.8 percent), bigger or nicer yard (6.1 percent), a better location (4.2 percent) or updated amenities (3.4 percent). The Move survey also found that 18 percent plan to take advantage of the Obama administrations program to prevent foreclosures. But even for those who are not in foreclosure, they reported the following: • 21 percent of all homeowners with a mortgage contacted a lender in the last 12 months to restructure their loans. • 10.6 percent received help; 5 percent are still waiting for an answer. • 27 percent know someone who is likely to face foreclosure. • 25.6 percent know someone whose mortgage is underwater. Source: Move Inc. (03/23/2009) © Copyright 2009 INFORMATION, INC. Bethesda, MD (301) 215-4688 | |
| International Real Estate Experts You will enjoy taking advantage of & benefiting from our wealth of knowledge & experience.
• Determine the price range of the home you qualify for
• Find and show you the homes that match your family's needs
• Introduce you to the community and familiarize you with its schools, shopping, and opportunities
• Inform you of the seller's requirements
• Provide the financing information you need to make a sound decision
• Provide historical sales data from our state of the art computerized real estate database
• Present your offer to sellers and negotiate the best price and terms on your behalf
• Once you buy your property, we will help you advertise, market, lease and manage your new investment
Palace Properties International Blog Client Testimoials Working with Mark was such a pleasure! He is always willing to resolve any issues and continue to have open communication with us. After working with other area Realtors, deciding to do business with Palace Properties International was an easy and smart choice! Thanks again Mark for making moving and renting an enjoyable experience!
Melissa Haynes. Melbourne, Florida, USA. August 2008 Mark is a genuine friend! He remembered our anniversary and invites Dave to go surfing and play poker! He helped us narrow down our selection based on exactly what we were looking for and wasn't pushing us to a specific house or area. He worked really well with the other Realtor and we were both very impressed at how friendly he was with everyone we came in contact with during the whole process! We got our dream house and we have Mark to thank for that! We will absolutely go to Mark for any other real estate needs that we have! We absolutely recommend him to any family and friends that need to buy or sell!
-Robin and David, Viera, Florida, USA. May 2008 Hei, hei og takk for sist! Da vil vi få lov å takke for alt du har gjort for oss Mark. Du har sannelig brukt mye av din tid på oss, noe vi setter stor pris på. Nå gleder vi oss bare til å komme tilbake til Florida og ta i bruk vår nye leilighet. Det var veldig betryggende for oss å kunne ha en kontakt som bor i nærheten og som kjenner til systemet i USA når det gjelder investering i bolig etc. Vi satte også stor pris på at du tok oss med og viste oss parker og nærmiljøet slik at vi lettere kan se hva vi går til. Håper vi også kan få ta kontakt med deg når vi kommer neste gang. Ønsker deg en god tur til Norge og riktig god sommer!!
-Grethe og Bernt, Stavanger, Norway. Mai 2008 Etter mye surfing på internett og flere kontakter med andre eiendomsmeglere, fikk vi kontakt med Mark og her fikk vi en stor positiv overraskelse. Mark engasjerte med engang og fulgte oss opp hele veien. Han var oppriktig interessert i oss og vår behov. Etter mange e-mail, telefoner, med hurtige svar på alle våre spørsmål, fikk oss til Floridas Space Coast og ble bare overbevist om at her skulle vi kjøpe. Etter 2 dager på visning fant vi vårt drømmehus, takket være Mark. Han hørte hele tiden på oss, jobbede med oss som vi var de eneste i denne verden der skulle kjøpe bolig. Etter vi fant vårt hus, stod han der stadig med utstrakt hånd og hjalp oss gjennom alt det praktiske. For en person du er Mark, pålidelig, engasjerende, en fantastisk megler, som alle vil få stor glede av. Vi kan på det varmeste anbefale Mark til alle de som ønsker seg bolig på Floridas Space Coast og andre steder i Florida. Takk Mark !
-Rolf Helge Christensen & Susanne Soelling, Kristiansand, Norway. Mai 2008
Mark, you truly are the Somerset Oceanfront Specialist. I really appreciate the way you have worked with me as an owner of two units. I know listing with you is the right choice as you are well connected both in the local community and to the international buyers. Each time I talk to you, it seems you have my best interest in mind. Thank you!” S. Veal, MD 03/22/08 - Dr. Steven Veal, Medical Doctor and Real Estate Investor 3/23/08 I met Mark Palace at the Curves Vibrant Womens Conference and decided to have Palace Properties help me find a place to rent or buy. He had a place within an hour and I could see it that evening after work. Mark works hard for his clients and always kept in contact with me by e-mails and phone calls when I needed to talk to him. Never had to wait long for a call back. He is very professional, courteous and respectful. There are some realtors out there that should take lessons from Mark Palace, Palace Properties. - Patricia Kane, BRPH Architects/Engineers, Inc 7/24/07
We contacted Mark on a Friday, saw houses on a Sunday, and had a new address on Monday. Mark is very dedicated to continuously searching for appropriate properties, while keeping us updated with each new finding. His efforts significantly helped us with a stressful search for a new home. - Sam and Melissa Herron-Goldman, United States Air Force 7/12/07
Mark, Good morning…It has been a sincere pleasure working with you and I greatly appreciate your business. It is so refreshing to meet someone that treats their customers with respect and puts their customer’s interests FIRST! Your work ethic and high regard for your customers are in line with mine and I look forward to a long working relationship with you…this is why I feel confident recommending you to MY customers who have homes to sell. I know that they will be in good hands with you and you will do everything to move their home quickly so they can close…Thanks again for being my #1 choice for Realtors and for truly treating your customers like Royalty! - Darlene Salmon, Mercedes Homes 2/18/07
In March 2006, we were scheduled to move out of our hurricane-damaged home into a rental house. We had looked at the house and had discussed all the terms and conditions with the landlord. However, since the landlord had to leave to out of country, they left the leasing in the hands on a local rental lease company. The local rental lease company had standard lease agreements which includes terms which we had not agreed to with the landlord, however since the landlord was unable to be reached, our lease fell through the day we had the movers packing us. Panicking, we asked the movers to take a long lunch break and we went on line looking for a new place to rent. We came across a condo on the beach and in a matter of a day we had a new place to move into. That is thanks to Mark Palace of Palace Properties for his professional, friendly and fast service in getting all the terms worked out and helping us with our last minute need to move. We have never rented any place before (well, besides college dorms), and we are happy to have had our leasing transaction with Mark since he made it a great experience. We highly recommend Mark as a Realtor and as a leasing agent. - Moji and Jordan Thompson, Harris Corporation 1/15/07 | | Palace Properties International, Inc.™ Office phone: 321.441.3512 Fax number: 321.773.5344 2194 Highway A1A, Ste 105
Indian Hrbr Bch, FL 32937 Florida real estate: 20 market positives
Let’s take a look at some of the opportunities and positive indicators for the future of Florida’s real estate market.
1. Long-term economic and demographic trends continue to favor Florida. By 2010 it has been forecast that Florida will be the third most populated state in the country. Florida’s population is expected to increase about 75 percent by 2030. Florida demonstrates a long history of strong growth. It has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often it has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic growth such as new jobs and growing incomes. All of which is good for real estate.
2. People are continuing to move here. It’s estimated that 1,000 people move here every day (www.stateofflorida.com, “Florida Quick Facts”). No wonder Florida’s population has grown 13.4% since 2000, compared to only 6.4% for the rest of the country, according to census data.
3. Five of the top 15 cities in the Milken Institute’s 2007 “Best Performing Cities” survey, which looks at sustainable economic growth, are in Florida, including the No. 1 city, Ocala. A total of 13 Florida cities are in the top 50.
4. Low unemployment. Almost 120,000 jobs were created in Florida in the year between August 2006 and August 2007. Florida’s unemployment rate has hovered at or under 4% for a long time; and was 4% in August 2007, according to the latest data available from the U.S. Department of Labor. That not only puts it well below the national unemployment average, it also is the lowest unemployment rate among all ten of the most populous states.
5. Jobs are plentiful, and that trend will continue. A recent study by Bizjournals called “Where the Jobs Are” found that 7 of the hottest 15 job markets are in Florida.
6. Let’s take a look at the weather. If you think the hurricanes we experienced are going to have long-term effects on the Florida real estate market, consider this tidbit from Fortune Magazine. It recently reported, “Economists and geographers who have studied how natural disasters affect real estate values have generally found there to be no lasting impact.” Example #1: When Hurricane Hugo hit Charleston, S. C., home values were actually higher one year later. Example #2: That same year, 1989, a huge earthquake made big news in San Francisco, and the same thing happened—house prices went up.
7. Grant Thrall, a professor of what’s called Economic Geography, explains this phenomenon this way—residents move away and home prices fall only when natural disasters start becoming regular occurrences in an area, not when they happen periodically. And while the hurricane seasons of 2004 and 2005 may still be fresh in our minds, the fact is, historically it was a fluke. Eight storms hit the Florida mainland in those two years. But if you look back at the 50 years prior, only six Category 3 or higher storms hit the Florida mainland in half a century.
8. Gov. Charlie Crist, state lawmakers and business groups are committed to finding real solutions to the escalating costs and shortage of property insurance in Florida, as well as much-needed property tax reform. Florida Realtors will continue working closely with lawmakers to help resolve these complicated issues and keep the state’s economy moving forward. For example, 2007 FAR President Nancy Riley sits on the governor’s property tax reform commission, and 2005 FAR President Frank Kowalski served on the governor’s insurance reform commission.
9. Interests rates currently are still low, on a par with interest rates in the 1960s. And thanks to the Fed’s recent rate cut, we’re already seeing lower rates on home equity and mortgage loans, including jumbo loans. The Fed’s action effectively increases the number of homebuyers able to make a purchase, which should increase demand, and also help support home prices. Home prices continue to stabilize, inventory is plentiful and homebuyers have lots of options. 10. Homeownership has value: Realtors believe… and research supports that belief … that homeownership provides a variety of benefits, tangible and intangible, to the community as well as the individual homeowner.
11. Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group. Home value is the most important single aspect for homeowners.
12. Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.
13. Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.
14. People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact with their neighbors to gain wider influence over their neighborhoods and communities.
15. Homeowners join up to 41 percent more civic and/or nonprofessional organizations than renters, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.
16. 2007 Florida Association of Realtors® (FAR) President Nancy Riley says, “Florida Realtors know buying a home is a very personal investment – an investment in a family’s future. Although research shows it is the largest single investment most families make and helps to provide security for the future, owning a home isn't just a financial investment. Ownership is about having a place to call home: a place where families build a future and become part of a community.”
17. Over the past five years, the average homeowner has seen an increase of 50 percent in value, according to the National Association of Realtors® (NAR). Here in Florida, the statewide median home price has shown an increase of 52.5 percent from November 2002 to November 2007, according to FAR records. NAR housing industry analysts project that prices will rise about 2 percent next year, and in coming years, average home price appreciation should return to historical averages of around 6 percent.
18. Florida is a great place to live and work. According to Enterprise Florida Inc., the Sunshine State has one of the nation's strongest tourism industries; it is fourth in the nation in high-tech jobs; is the third largest exporter of high-tech goods and services; and is ranked as one of the best states in the nation to be an entrepreneur.
19. Orlando-based economist Dr. Hank Fishkind recently said in several media reports he believes that “the worst of the so-called housing crisis has probably been mitigated by the actions of the Fed. Recovery will take a while, but it has begun.” Another economist, Dr. Lawrence Yun, chief economist with the National Association of Realtors, predicts that the Florida housing market will get stronger in 2008 and will be booming again by 2010.
20. And let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put us at the top of Harris Poll’s “most desirable places to live” survey. Palace Properties International, Inc. | |
|