Saying it would help boost the economy in Florida and other states, supporters are once again lobbying the federal government to establish a retirement visa that would allow foreigners to stay longer than six months at a time. FAR offered support for such a proposal back in 2006.
Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n3-030409.cfm
Wednesday, March 4, 2009
Saturday, February 28, 2009
Mortgage Interest Deduction
NAR, which generally supports the Obama administration's housing and stimulus plans, announced opposition to one budget proposal that would water down the mortgage interest tax deduction (MID) for thousands of higher-income families.
Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n1-022709.cfm
Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n1-022709.cfm
Thursday, February 26, 2009
FHA Loan Max Back to 2008 Price For Sarasota!
HUD announced changes to FHA's single-family loan limits yesterday, the result of initiatives within the American Recovery and Reinvestment Act of 2009. For 2009, the maximum mortgage limit for an area is either the 2008 limit or 2009 limit - whichever is higher. The new loan limits, effective for any loan closed in calendar year 2009, remain in effect through Dec. 31, 2009. Note, however: Because an area's new loan limit is the highest value out of two years, HUD no longer has a process for appealing the limit. To view HUD's complete mortgagee letter online, go to: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee.
To find the FHA limit for your area, go to: https://entp.hud.gov/idapp/html/hicostlook.cfm or email/call me for help.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
To find the FHA limit for your area, go to: https://entp.hud.gov/idapp/html/hicostlook.cfm or email/call me for help.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
January Sales Stats
*The following press release was sent to local media on Feb. 25 at 11:00 a.m.
January 2009 pending sales jump almost 18 percent
In the face of national economic doom and gloom, pending sales in the Sarasota real estate market rose to 683 in January 2009 as reported by members of the Sarasota Association of Realtors®, topping the 500 level for the 13th month in a row. Pending sales last month were much higher than the 516 reported in January 2008, which indicates that local real estate has bucked the national downward to some extent.
Pending sales reflect contracts executed by buyers and sellers. The recent numbers demonstrate a steady, strong pattern, indicating buyers have become more active in the Sarasota market as the traditional season heats up.
"These are certainly historic times for our nation's economy, and we must be realistic and understand that higher unemployment and the recession impacts everyone," said 2009 SAR President Bill Geller. "But we must also understand that even during downturns, opportunities exist for savvy buyers. The Sarasota market is blessed with tremendous, high quality properties, and the lower prices have made this area a goldmine of opportunity. With the guidance of a well-trained, professional local Realtor®, buyers can be assured that they will find the perfect property in today's market environment."
Overall closed sales in the first month of 2009 stood at 319, compared to 327 in January 2008, a year-to-year decline of only 2.4 percent. Sales totaled 406 December 2008, but the monthly decline was expected, especially during a four-year election cycle, when real estate activity often sees a lull prior to a new administration taking office.
The recent signing of the $787 billion American Recovery and Reinvestment Act, plus the Obama administration's enactment of the $75 billion Housing Support and Foreclosure Prevention program should help improve the real estate markets even more in the months ahead, said Geller.
"We are clearly seeing a focus by this administration on the root of the economic problems - the real estate downturn," said Geller. "There have been several initiatives adopted which include suggestions by the National Association of Realtors®, and we are hopeful these programs will help us back on the road to recovery."
For instance, first-time homebuyers who meet eligibility requirements and purchase a home this year prior to Dec. 1 are eligible for a tax credit of $8,000. Unlike the 2008 tax credit, this one does not have to be repaid. Combined with historically low interest rates, experts expect this program to generate an increase in sales.
"And the ripple effects of expenditures for household items, moving costs, furnishings and so on should provide a needed shot in the arm for our local economy," said Geller.
The median sale price for single family homes declined to $149,950 in January 2009 after coming in at $175,000 in December 2008, for a 14 percent decline. Condominium prices fell to $220,000 in January 2009 from the December 2008 figure of $255,000, also 14 percent decline. While statistics have not been tabulated breaking down the number of short sales and foreclosures, many local agents and brokers have indicated these sales have dominated their recent business, which tends to impact the median sales prices substantially.
Another important market tracker - the absorption rate of properties on the market - continues to track lower than last year at this time for both single family homes and condominiums. Absorption rate is the number of months it would take to sell the entire remaining listed inventory in a particular category, based upon the sales for that particular month.
For January 2009, the absorption rate for single family homes stood at 25.3 months, compared to 39.0 months in January 2008. For condominiums, the absorption rate was at 38.4 months in January 2009, substantially lower than the 52.0 months reported in January 2008.
Follow this link for a two page stats chart:
http://rs6.net/tn.jsp?et=1102476640349&e=001nCg2Z8ryvYWDzD_YmAYDMflbXHhMmH2kFiAwCVunqeve-U7ht-hiAsyc1Z9ArCn03i6_3ImHM9p5_OENrdyC_QdU8OETq0QbAScbn_X27BM932CqLoq-O3kRAulE2UD_zEhWcPgzw0yzrezlJGzqf-CRruTgRIJt
January 2009 pending sales jump almost 18 percent
In the face of national economic doom and gloom, pending sales in the Sarasota real estate market rose to 683 in January 2009 as reported by members of the Sarasota Association of Realtors®, topping the 500 level for the 13th month in a row. Pending sales last month were much higher than the 516 reported in January 2008, which indicates that local real estate has bucked the national downward to some extent.
Pending sales reflect contracts executed by buyers and sellers. The recent numbers demonstrate a steady, strong pattern, indicating buyers have become more active in the Sarasota market as the traditional season heats up.
"These are certainly historic times for our nation's economy, and we must be realistic and understand that higher unemployment and the recession impacts everyone," said 2009 SAR President Bill Geller. "But we must also understand that even during downturns, opportunities exist for savvy buyers. The Sarasota market is blessed with tremendous, high quality properties, and the lower prices have made this area a goldmine of opportunity. With the guidance of a well-trained, professional local Realtor®, buyers can be assured that they will find the perfect property in today's market environment."
Overall closed sales in the first month of 2009 stood at 319, compared to 327 in January 2008, a year-to-year decline of only 2.4 percent. Sales totaled 406 December 2008, but the monthly decline was expected, especially during a four-year election cycle, when real estate activity often sees a lull prior to a new administration taking office.
The recent signing of the $787 billion American Recovery and Reinvestment Act, plus the Obama administration's enactment of the $75 billion Housing Support and Foreclosure Prevention program should help improve the real estate markets even more in the months ahead, said Geller.
"We are clearly seeing a focus by this administration on the root of the economic problems - the real estate downturn," said Geller. "There have been several initiatives adopted which include suggestions by the National Association of Realtors®, and we are hopeful these programs will help us back on the road to recovery."
For instance, first-time homebuyers who meet eligibility requirements and purchase a home this year prior to Dec. 1 are eligible for a tax credit of $8,000. Unlike the 2008 tax credit, this one does not have to be repaid. Combined with historically low interest rates, experts expect this program to generate an increase in sales.
"And the ripple effects of expenditures for household items, moving costs, furnishings and so on should provide a needed shot in the arm for our local economy," said Geller.
The median sale price for single family homes declined to $149,950 in January 2009 after coming in at $175,000 in December 2008, for a 14 percent decline. Condominium prices fell to $220,000 in January 2009 from the December 2008 figure of $255,000, also 14 percent decline. While statistics have not been tabulated breaking down the number of short sales and foreclosures, many local agents and brokers have indicated these sales have dominated their recent business, which tends to impact the median sales prices substantially.
Another important market tracker - the absorption rate of properties on the market - continues to track lower than last year at this time for both single family homes and condominiums. Absorption rate is the number of months it would take to sell the entire remaining listed inventory in a particular category, based upon the sales for that particular month.
For January 2009, the absorption rate for single family homes stood at 25.3 months, compared to 39.0 months in January 2008. For condominiums, the absorption rate was at 38.4 months in January 2009, substantially lower than the 52.0 months reported in January 2008.
Follow this link for a two page stats chart:
http://rs6.net/tn.jsp?et=1102476640349&e=001nCg2Z8ryvYWDzD_YmAYDMflbXHhMmH2kFiAwCVunqeve-U7ht-hiAsyc1Z9ArCn03i6_3ImHM9p5_OENrdyC_QdU8OETq0QbAScbn_X27BM932CqLoq-O3kRAulE2UD_zEhWcPgzw0yzrezlJGzqf-CRruTgRIJt
Wednesday, February 25, 2009
Worth The Bankruptcy Risk?
More than one million distressed homeowners would benefit from filing for bankruptcy under proposed legislation allowing bankruptcy judges to modify mortgages on primary residences, according to the Congressional Budget Office. Of that million, the office estimates about 350,000 homeowners would take advantage of the proposed change over the next 10 years.
Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n4-022509.cfm
Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n4-022509.cfm
Monday, February 23, 2009
More Bonus For First-Time Homebuyers!?!
Gov. Charlie Crist on Friday proposed property tax breaks up to $5,000 for first-time homebuyers, and further easing of the tax burden on businesses, landlords and snowbirds. In a video available online, Crist also noted the need for stimulating home sales and the role Florida Realtors play in the recovery process.
Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n1-022309.cfm.
Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n1-022309.cfm.
Saturday, February 21, 2009
Florida Votes Against New Septic Tank Rules
A septic tank rule opposed by FAR was voted down yesterday by a state advisory panel. The proposed rule covers the Wekiva River area of Central Florida, but it's also a possible blueprint for new septic system rules throughout the state. If enacted as written, one area of concern to Realtors is timing: It would mandate a septic system inspection as part of every home sale; and since most septic systems would fail the seepage test, they'd have to be replaced. While the advisory panel's decision carries some weight and is applauded by FAR, the vote is not binding. The Florida Department of Health will make a final decision later.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Thursday, February 19, 2009
Rent V. Buy Part 2
Just six months ago, with Florida home prices in a steady fall, the decision to buy or rent was clear for many prospective homebuyers - keep on renting. Today, however, homeownership is a cheaper option for some potential buyers, including many in South Florida.
Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n3-021809.cfm
Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n3-021809.cfm
Tuesday, February 17, 2009
Discounted Insulation Upgrade From FPL?
See if you qualify for a free FPL Home Energy Survey and if FPL thinks you need more insultion, you'll get a discount of 11 cents per square foot!
Check it out: http://www.fpl.com/residential/savings/energy_advisor/building_envelope/guide_insulating.shtml?WT.ac=HMRB03?WT.mc_id=NSL2172009EM01&wt.mc_ev=EmailClick&acctnum=1618029266.
If your home was built before 1982, chances are you need to upgrade your ceiling insulation. FPL has an incentive program to help you pay for it. Check out our insulation guide for more information.
Check it out: http://www.fpl.com/residential/savings/energy_advisor/building_envelope/guide_insulating.shtml?WT.ac=HMRB03?WT.mc_id=NSL2172009EM01&wt.mc_ev=EmailClick&acctnum=1618029266.
If your home was built before 1982, chances are you need to upgrade your ceiling insulation. FPL has an incentive program to help you pay for it. Check out our insulation guide for more information.
Latest Stimulus Package Update As It Pertains To Real Estate
American Recovery and Reinvestment Act of 2009
H.R. 1, the “American Recovery and Reinvestment Act of 2009,” passed the United States House and United States Senate on February 13, 2009. President Obama is expected to sign the bill TODAY. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.
The mix of provisions of interest to REALTORS® changed frequently throughout the legislative process, with changes continuing to be made just hours before the measure was released prior to the vote. In the end, the elements of NAR’s housing agenda were included. Congress and the President have announced that a finance and housing package (including tax provisions) will be the next “big” initiative, so Congress has by no means finished its work as it affects the housing industry and REALTORS®.
The bill includes the following provisions:
Homebuyer Tax Credit – The bill provides for an $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
FHA, Fannie Mae and Freddie Mac Loan Limits -The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e. an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.
The inclusion of these loan limit provisions in the final bill is a victory for homeowners, buyers and REALTORS®.
Neighborhood Stabilization – Division A, Title XII of the bill provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2089 (Public Law 110–289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties. After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income. By leveraging their expertise in partnership with others from both the public and private sector, REALTORS® in many communities have been making important contributions to their local communities’ neighborhood stabilization programs.
Commercial Real Estate - Commercial real estate is impacted primarily through those provisions of the bill focused on green building and energy efficiency as well as business tax incentives. H.R. 1 provides significant funds for state energy programs, which could be used to support commercial property owners' investment in energy efficiency upgrades while commercial property owners seeking to invest in alternative energy systems for onsite power generation would benefit from the Department of Energy Renewable Energy Loan Guarantees Program. Of particular benefit to small businesses would be certain provisions of the bill that provide tax relief in the area of bonus depreciation and capital expenditures, as well as the 5-Year carryback of net operating losses for small businesses.
Rural Housing Service – The bill provides an additional $500 million to existing USDA Rural Housing programs. The RHS provides both a guaranteed loan program and a direct housing loan program for those meeting the program’s eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners.
Low Income Housing Grants - Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations.
Tax-Exempt Housing Bonds - Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds.
Energy Efficient Housing Tax Credits & Grants - The bill provides state and local governments with $6 billion in energy efficiency and conservation grants for energy audits, retrofits and financial incentives. Through 2010, homeowners will be able to claim a 30% tax credit (up from 10%) for purchases of new furnaces, windows and insulation. Another $5 billion will be available to modernize the nation’s electricity grid and install smart meters on homes that help to save consumers money. There is also $5 billion for weatherization assistance for low income households and $2 billion for federally assisted housing (section 8) efficiency efforts.
Transportation Investments - The bill provides $46.7 billion to states and localities for capital investment for surface transportation projects including highways, bridges, transit, and rail projects. NAR policy supports increased spending on the types of transportation infrastructure addressed in the bill with the exception of Amtrak and high-speed inter-city rail where NAR has no policy. These investments will tend to moderate traffic congestion and support a variety of transportation alternatives which will improve the quality of life of American communities and bolster the value of real estate.
Source: John M. Sebree, Vice President of Public Policy at the Florida Association of REALTORS®
H.R. 1, the “American Recovery and Reinvestment Act of 2009,” passed the United States House and United States Senate on February 13, 2009. President Obama is expected to sign the bill TODAY. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.
The mix of provisions of interest to REALTORS® changed frequently throughout the legislative process, with changes continuing to be made just hours before the measure was released prior to the vote. In the end, the elements of NAR’s housing agenda were included. Congress and the President have announced that a finance and housing package (including tax provisions) will be the next “big” initiative, so Congress has by no means finished its work as it affects the housing industry and REALTORS®.
The bill includes the following provisions:
Homebuyer Tax Credit – The bill provides for an $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
FHA, Fannie Mae and Freddie Mac Loan Limits -The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e. an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.
The inclusion of these loan limit provisions in the final bill is a victory for homeowners, buyers and REALTORS®.
Neighborhood Stabilization – Division A, Title XII of the bill provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2089 (Public Law 110–289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties. After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income. By leveraging their expertise in partnership with others from both the public and private sector, REALTORS® in many communities have been making important contributions to their local communities’ neighborhood stabilization programs.
Commercial Real Estate - Commercial real estate is impacted primarily through those provisions of the bill focused on green building and energy efficiency as well as business tax incentives. H.R. 1 provides significant funds for state energy programs, which could be used to support commercial property owners' investment in energy efficiency upgrades while commercial property owners seeking to invest in alternative energy systems for onsite power generation would benefit from the Department of Energy Renewable Energy Loan Guarantees Program. Of particular benefit to small businesses would be certain provisions of the bill that provide tax relief in the area of bonus depreciation and capital expenditures, as well as the 5-Year carryback of net operating losses for small businesses.
Rural Housing Service – The bill provides an additional $500 million to existing USDA Rural Housing programs. The RHS provides both a guaranteed loan program and a direct housing loan program for those meeting the program’s eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners.
Low Income Housing Grants - Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations.
Tax-Exempt Housing Bonds - Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds.
Energy Efficient Housing Tax Credits & Grants - The bill provides state and local governments with $6 billion in energy efficiency and conservation grants for energy audits, retrofits and financial incentives. Through 2010, homeowners will be able to claim a 30% tax credit (up from 10%) for purchases of new furnaces, windows and insulation. Another $5 billion will be available to modernize the nation’s electricity grid and install smart meters on homes that help to save consumers money. There is also $5 billion for weatherization assistance for low income households and $2 billion for federally assisted housing (section 8) efficiency efforts.
Transportation Investments - The bill provides $46.7 billion to states and localities for capital investment for surface transportation projects including highways, bridges, transit, and rail projects. NAR policy supports increased spending on the types of transportation infrastructure addressed in the bill with the exception of Amtrak and high-speed inter-city rail where NAR has no policy. These investments will tend to moderate traffic congestion and support a variety of transportation alternatives which will improve the quality of life of American communities and bolster the value of real estate.
Source: John M. Sebree, Vice President of Public Policy at the Florida Association of REALTORS®
Monday, February 16, 2009
Possible Septic Sorrows
A move by the Florida Department of Health to limit nitrogen seepage through septic systems could force some homeowners to install new and expensive septic systems. However, questions remain, and one component worries Realtors: It calls for a septic inspection at the time of a home sale and a likely septic tank replacement. The Department will hold a meeting on Feb. 19 in Orlando, and the public may attend and comment.
Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n2-021609.cfm.
Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n2-021609.cfm.
Thursday, February 12, 2009
Loan Modification Advice
How should a homeowner renegotiate a loan? Be honest, realistic, and patient, says a spokesperson for Federal Loan Modification Law Center who created 10 steps consumers should follow.
Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n4-021209.cfm
Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n4-021209.cfm
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