Archive for August, 2008
Housing Market indicators will turn positive in 1Q2009
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hiAlthough we will not know for sure until we have 12 months of data , I have predicted that all indicators will turn positive for Florida Gulf Coast real estate in March 2009. In meetings with Tampa Bay business entrepreneurs I have forecast an increase in housing starts, unit home sales, average selling price and first time buyers. This would be coupled with a decrease in actual foreclosures and wholesale bankruptcy auctions and the like.
But I believe that any change to limit the legal US Immigration flow, continued credit tightening, increase in capital gains taxes or repealing the Bush Tax Plan could change the beginning of a recovery for at least 12 months. When asked about the basis for my prophecy, I have explained that all of the many indicator trend lines that I track, are starting to cross each other and that will cause the bounce off the bottom needed on the Florida Gulf Coast and Florida Real Estate in General.
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A Glimmer of good news in the Housing Market !
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hiGlimmers of good news in US housing reports
NEW YORK (AP) – While no one is ready to call the bottom of the worst housing collapse in decades, there were glimmers this week that the severity is waning.
The decline in home prices is starting to ease and in some cities values are starting to rise again. Existing home sales rose slightly from June to July, and the glut of newly built homes on the market fell to a five month low last month.
“The bottom of the housing downturn is coming into view,” said Moody’s Economy.com Chief Economist Mark Zandi.
A surprising 2.4 percent increase in new home sales from June to July reported Tuesday was really an accounting bounce because June was worse than first measured.
Home prices in 14 cities in a Case-Shiller index of 20 across the country showed improvement from May to June. Nine even recorded positive returns, including Dallas, Minneapolis, and Cleveland.
Some say the worst may be over for some markets like Boston, Chicago and Denver where prices have come down enough to be more line with local incomes and rents.
This is good news for Florida real estate buyers and sellers. Stability is key in decisions on bith sides.
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Florida’s existing home sales stay flat year on year
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hiORLANDO, Fla. – Aug. 25, 2008 – Single-family existing home sales rose in Florida for the first time in more than two years: While only six more homes sold in July 2008 than in July 2007, it could indicate stabilization in Florida’s housing sector, according to the latest housing statistics released by the Florida Association of Realtors® (FAR).
A total of 11,498 existing homes sold statewide last month while 11,492 homes sold in July 2007, maintaining the same level of sales activity in the year-to-year comparison, according to FAR. The last time statewide sales of existing homes outpaced the previous year’s sales figure was in the year-end 2005 report, according to FAR records, when sales were up 2 percent over year-end 2004.
Florida’s median sales price for existing homes last month was $193,600; a year ago, it was $238,900 for a 19 percent decrease. But, looking back to July 2003, the statewide median sales price for single-family homes has increased 18 percent over the five-year-period, according to FAR records – at that time, the statewide existing-home median price was $164,000. The median is the midpoint; half the homes sold for more, half for less.
Industry analysts predict that the housing stimulus bill recently passed by Congress should help boost the housing sector’s recovery. Existing home sales nationwide are expected to show some modest improvement in the coming months, according to the latest housing outlook from the National Association of Realtors® (NAR). With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009
More than half of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in July; seven MSAs also showed gains in condo sales. Realtors around the state reported increased business activity, including more telephone calls, more home showings and a rise in pending sales.
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VA raises loan cap to $729,000
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hiWASHINGTON – Aug. 25, 2008 – The Department of Veterans Affairs (VA) is raising ceilings on its no-downpayment home loans from the current $417,000 to as much as $729,000.
The increases are effective immediately under legislation recently enacted with President Bush signing the Housing and Economic Recovery Act of 2008.
That law also improved VA’s Specially Adapted Housing Program. It raises primary grants from $50,000 to $60,000 toward constructing a new home or modifying an existing home to meet adaptive needs of veterans or active duty service members with certain service-connected disabilities.
One new feature is a provision in the law that will assist burn victims. It will allow veterans with certain service-connected disabilities resulting from severe burns to receive the adaptive housing grants. The new law also makes future increases in ceilings on the Specially Adapted Housing Program automatic.
The increased limits in the general home loan program for all veterans’ home purchases or construction will be based on local housing costs, tied to the similar locality adjustments of the Federal Home Loan Mortgage Corp., Freddie Mac.
VA home loans are available for veterans to purchase or construct single-family homes, and to purchase condominiums or cooperative apartments. There are about 2.3 million existing VA home loans, more than 90 percent made with no downpayment.
Source: Department of Veterans Affairs (08/21/2008)
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Mortgage Forgiveness Debt Relief Act Reminder
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hiDon’t forget, on December 18, 2007 Congress passed new legislation (H.R.3648) to eliminate taxes on mortgage debt. The legislation was signed into law by President Bush on Dec. 20 and will provide a temporary, three-year change to the tax code to eliminate any taxes homeowners might face when banks renegotiate the terms of a home loan and forgive a portion of the outstanding mortgage debt. The change in the tax law will cap untaxable forgiven debt at $2 million and apply only to principal residences. It removes the tax burden on mortgage indebtedness, encourages loan restructuring between lenders and homeowners, and discourages foreclosures. I have found there are still many that are not aware of this. The Florida real estate market holds many opportunities for both buyers and sellers to reach equitable agreements to serve both party’s goals. One to move in and the other to move on !
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