South Florida’s housing sector asserted its independence from national trends in July as a key measure of the real estate market improved year-over-year, with the region’s international buyers and still-drooping prices propping up the local housing market.

In July, pending home sales in Miami-Dade County stood at 10,113, up 40.5 percent from July of 2009, according to figures released Tuesday by the Miami Realtors. In Broward, pending sales stood at 7,830 in July, up 25.4 percent from a year earlier.

Pending home sales refer to the number of housing contracts that have been signed, and offer an early indicator of sales activity because typical sales have a one- to two-month lag between a sales contract and a completed deal.

South Florida sizes up well when compared to the national picture, where the pending home sales index hit a record low 75.7 in June, according to the National Association of Realtors. It was the second monthly falloff after the April 30 deadline to enter the federal homebuyer tax credit program, with June’s pending sales down nearly 19 percent from the same month a year earlier.

The local market hasn’t been completely immune from the post-tax-credit slump. In the past three months, pending home sales are down 3.2 percent in Miami-Dade and down 5.1 percent in Broward.

“We are encouraged by the statistics for pending home sales in the South Florida real estate market even after the expiration of the homebuyer tax credit,” Jack H. Levine, chairman of the board of the Miami Realtors, said in a statement. “While the number of pending sales has dropped slightly month-over-month, they are still significantly higher than they were a year ago.”

With financing still difficult to obtain, all-cash buyers and deep discounts on distressed properties are propping up sales, said Peter Zalewski, a principal at Bal-Harbour-based Condo Vultures.

About 60 percent of South Florida sales have gone to foreign buyers, who are more likely to pay with cash and were never eligible for the tax credit.

Additionally, more than half of recent sales in Miami-Dade and Broward counties involve short sales or bank-owned home sales. In the last 12 months, the number of bank-owned condos and single-family homes sold has more than doubled.

A short sale occurs when a home is sold for a price that is less than the value of the outstanding mortgage. In what has become a notoriously lengthy process, both the seller and the bank must agree to the price.

Banks have recently become more willing to allow sellers to pursue short sales, which now account for one in four South Florida sales.

There were 944 short sales in Miami-Dade and Broward in June, up from only 379 a year earlier, according to analysis by Esslinger-Wooten-Maxwell Realty.

That’s a reason to be cautious while interpreting pending homes sales data in a market like South Florida’s, said Doug DeWitt, Miami-based real estate broker.

Many short sale contracts are rejected by the bank after a seller agrees to sell for a price below what they owe, meaning those pending sales don’t lead to closings.

Additionally, because short sales take months to process, many remain in the “pending” stage longer than normal, boosting pending sales numbers for multiple months.

Read more: http://www.miamiherald.com/2010/08/03/1760066/for-s-fla-market-a-hopeful-sign.html#ixzz0vfJULtON

Alan Zibel, AP Real Estate Writer, On Thursday July 1, 2010, 10:59 am
WASHINGTON (AP) — Mortgage rates have sunk to the lowest level in more than five decades, but consumers aren’t rushing to refinance their loans or buy homes.

Mortgage company Freddie Mac said Thursday the average rate for 30-year fixed loans sank to 4.58 percent this week.

That’s down from the previous record of 4.69 percent set last week and the lowest since the mortgage company began keeping records in 1971. The last time they were cheaper was the 1950s, when most long-term home loans lasted just 20 or 25 years.

Rates have fallen over the past two months. Investors wary of the European debt crisis and the stock market have shifted money into the safety of Treasury bonds, driving down yields. Mortgage rates tend to track the yields on long-term Treasurys.

On Wednesday, the yield on the benchmark 10-year Treasury note dropped to 2.95 percent. That was the first time it has fallen below 3 percent since April 2009, when the markets were beginning to recover from the financial crisis.

But tighter lending standards and declining home equity have made it difficult for many borrowers to refinance. Many who do qualify have already done so over the past 18 months.

Applications for mortgages rose nearly 9 percent last week from a week earlier, the Mortgage Bankers Association said Wednesday. But they remain at only about half the level of early 2009.

To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

Rates on 15-year fixed-rate mortgages fell to an average of 4.04 percent, the lowest on records dating to September 1991 and down from 4.13 percent a week earlier.

Rates on five-year adjustable-rate mortgages averaged 3.79 percent, down from 3.84 percent a week earlier. That was also the lowest on Freddie Mac’s records, which date back only to January 2005.

Average rates on one-year adjustable-rate mortgages rose to 3.8 percent from 3.77 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for all types of loans in Freddie Mac’s survey averaged 0.7 a point.

Refinancing is generally considered worthwhile for homeowners who can shave at least three-quarters of a percentage point off the rates they pay now and plan to stay in their homes for a long time.

Besides the fees for the mortgage broker or lender, there are fees for title insurance, a new appraisal, document processing and other charges. In “no fee” mortgages, costs are often added to the loan amount, or the interest rate is higher.

Real estate market sees strengthening – From the News Press, June 18, 2010

Snowbird season is over, and now it’s time for the summer selling season.

Yes, there is a summer selling season. In fact, for the last three years the second quarter (April through June) was the strongest selling season in Cape Coral, followed by the third quarter (July through September). But all in all they were quite consistent all four quarters. So when is it a good idea to sell in Cape Coral? When the reason for selling is right for you!

In good times and in challenging times, one factor you cannot remove from the Cape Coral real estate market is the waterfront appeal. The old adage “Location, Location, Location” will never change in the world of real estate. And we’ve got the best of locations – 400 miles of canals, continuous sunshine, close to beaches/airport and affordable home values. These factors are the propulsion behind our strengthening real estate market.

In 2009 we saw the strongest market ever. This year is also off to a strong start. For the five months of the year, sales are more than 90 percent over sales at this time last year.

Foreclosures

The number of foreclosures in Cape Coral is falling. Buyers looking for foreclosure opportunities have fewer to choose from and steady competition from many buyers. For the first five months of this year, non-distressed sales accounted for almost 40 percent of the total sales. In all of 2009, non-distressed sales were only 27 percent of the homes sold. As the inventory of foreclosures and eventually short sales declines in the market, prices will rise and the regular (old fashioned) real estate transaction shall return.

The foreclosure media attention has certainly brought baby boomers to our area earlier than they may have intended to buy their retirement home. The baby boomers have recognized the value of buying their retirement home early and at wholesale prices. We all know that their money sitting in retirement accounts isn’t earning them anything, so it’s a no-brainer to buy your retirement home at the bottom of the market.

Inventory levels

The most important factor in any market recovery is the equalization of supply and demand. Fortunately for Cape Coral, we have seen a tremendous adjustment in supply in a favorable downward direction. For the past two years demand has been stronger than ever. Inventory levels are about one third the level they were at the beginning of 2006. This year is off to a great start. Sales continue to be aggressive even after the sunset of the homebuyer tax credit. The historically low interest rates and prices still far below replacement cost make this an excellent time to buy.

The housing future of Cape Coral continues to be much brighter than most of the entire country. Despite the economy, people will always want what we are blessed to enjoy every day – a warm, sunny and tropical waterfront living community.

Expiring tax credits spur 7.6 percent jump in April home sales and increase in home prices

Alan Zibel and Martin Crutsinger, AP Business Writers, On Monday May 24, 2010, 10:19 am
WASHINGTON (AP) — Home sales surpassed expectations for April as government incentives provided a temporary boost to the housing market.

The National Association of Realtors said Monday that sales of previously owned homes rose 7.6 percent to a seasonally adjusted annual rate of 5.77 million. That was the best showing in five months and better than the 5.63 million units economists had expected.

The increase in sales sparked a rise in home prices. The median price for a new home rose to $173,100, up 4 percent from a year ago.

The federal government provided a big boost to home sales this spring by offering first-time buyers a tax credit of up to $8,000. Homeowners looking to upgrade were able to qualify for a credit of up to $6,500. The deadline for getting a signed sales contract was April 30.

Sales were up in all parts of the country except the West. The gains were led by a 21.1 percent jump in the Northeast and a 9.9 percent rise in the Midwest. Sales also rose 8.6 percent in the South.

The only region of the country that saw sales decline was the West, where sales dropped by 6.2 percent from March.

The big question facing the housing market is what happens now that the government’s tax credits have expired.

“No doubt there will be some temporary fallback in the months immediately after it expires,” said Lawrence Yun, chief economist at the Realtors.

But Yun said that the improving economy has led to an upswing in consumer confidence, which should help support sales in the months ahead.

Many people have the idea that 1031 exchanges are complicated; that these are exact details rules which must be met. While the rules are different from what taxpayers are accustomed to seeing in other areas of the law, there really is a simple logic to them
Most of you remember the old law (which actually was repealed some years ago) dealing with the sale of your personal residence. When you sold your old house, you had two years to buy a new one and as long as you bought equal or up, the gain rolled over from the old house to the new one. That was Section 1034. Section 1031 sits right next to it in the Internal Revenue Code, and does the same thing for investment property that Section 1034 did for your personal residence (i.e. the gain rolls over from the old to the new).
There are six differences between old Section 1034 and Section 1031 that you need to be aware of when you consider a 1031 exchange.
1. Both your “OLD” property and your “NEW” property have to be investment property. Rental property, raw land or vacation homes are examples of investment property. If you meet this test, you can sell any type of deeded property (say an apartment building) and buy any other type of deeded property (say an office building).
2. From the date of closing on the sale of your old property, you have 45 days to come up with a list of properties you would like to purchase. That is called your “45 day list” and it is recommended that this list contain two or three potential properties.
3. Also, from the date of closing, you have 180 days to close the purchase of wherever property you are buying.. And what you are buying must be included on your 45 day list. Make a note, it is NOT 45 days and an additional 180 days. It is 180 days TOTAL.
4. You cannot touch the money. By law, the money must be held by a “Qualified Intermediary, (sometimes called as Accommodator” or a Facilitator”) who is responsible for the preparation of the paperwork required by the IRS to document the exchange. This paperwork must be in place before closing.
5. Title has to stay the same. Whoever held title to the old property has to end up as the titleholder of the new property.
6. You have to reinvest all of your cash, and your new property has to be at least equal to the net sales price of the old property. If not, you pay tax on the difference.

Follow these simple rules and you can enjoy one of the last loopholes in the tax code.

Please remember, I am NOT an attorney or an accountant. See your attorney or your accountant for your personal investment questions.

Here is a great site for information about the Southwest Florida area. You can check out information on Fort Myers, Cape Coral and Lee county. It is a very useful web site. Information about the housing market, schools, shopping and especially city and county government.

It is important to know that if you are buying in Lee county and leasing your home for less than 6 months, the seller needs to collect a tourist room tax of 6%. Lee county watches that very closely

So here is the web site for all your information about Lee County

www.snoopzone.com.info/

enjoy your seaches.

– Home sales rose more than expected in March, reversing three months of declines, as government incentives drew in buyers and kicked off what’s expected to be a strong spring selling season.
Sales of previously occupied homes rose 6.8 percent to a seasonally adjusted annual rate of 5.35 million last month, the highest level since December, the National Association of Realtors said Thursday. February’s sales figures were revised downward slightly to 5.01 million.
“The spring selling season will be a success and probably the most active we’re seen in years,” said Stuart Hoffman, chief economist at PNC Financial Services Group.
Sales had been expected to rise 5.2 percent to 5.28 million, according to economists surveyed by Thomson Reuters.
The results show the housing market is stabilizing after a devastating bust. But the true test will be whether the market can stand on its own after federal tax credits expire at the end of this month.
Sales rose in every region, surging more than 7 percent in the Midwest and South, 6.6 percent in the West and 6 percent in the Northeast.
“It’s a very broad-based recovery,” said Lawrence Yun, the Realtors’ chief economist.
The median sales price was $170,700, up almost 4 percent from $164,600 a month earlier and nearly unchanged from $170,000 in March 2009.
The inventory of unsold homes on the market was up 1.5 percent at 3.6 million. That’s an eight month supply at the current sales pace.
Sales nationally had declined over the winter, eroding gains made last fall and summer. The downward direction troubled economists because the government has taken unprecedented steps to support the housing sector.
For several months, home shoppers didn’t feel rushed after lawmakers extended the deadline to qualify for tax incentives. The government is offering a $8,000 credit for first-time buyers and $6,500 for current homeowners willing to buy and move into another property.
But now time is running out. Buyers must sign contract offers by April 30 to qualify, and real estate agents say that’s spurring sales.
“Many people who otherwise wouldn’t be on the market for a home want to take advantage of these tax credits,” said Kathi McLeod, sales manager for Windermere Real Estate in Boise, Idaho. “You have buyers who have been looking and looking at properties and realizing that it’s almost too late, so they’re really scrambling and jumping into deals.”
The Realtors group is not pushing for an another extension of the tax credit. Yun said he believes there will be enough demand in the second half of the year without a government subsidy.
Still, some housing market experts predict the market will take a dramatic “double-dip” once the government’s supports are gone. But others argue that there is enough pent-up demand to keep the market chugging. And prices have fallen dramatically since the boom years — as much as 50 percent in some places. So buyers can pick up bargain-priced foreclosures

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Get ready for summer….Everyone wants to cut down on their energy bill. The average American spends about 40 percent of their summer energy bill on air conditioning. This means that any leak in your air conditioning system translates into a leak in your wallet. Think of the air that passes through your house as money actually floating through air vents and rooms. Naturally, you don’t want any “money” breaking out of the circuit. And this is the very first thing you should check on. Not a leak in your system, but leaks through your windows.

No matter how well an air conditioning system is, windows that are not sealed properly leads to one thing, another escape route for your money. For the truly concerned homeowner, worried about your wallet and the environment, checking the tightness of window settings is paramount to keeping a reasonable energy bill.

If you are satisfied with your windows, what do you need to know about air conditioning systems?

Air conditioners have developed quite a bit in the last 10 years. First, check how old your system is. Older units have a SEER (seasonal energy efficient ratio) of 6 or 7. Nowadays, most air conditioners come with a rating between 10 or 11 and as high as 13. Doubling up the SEER score equals to cutting back on spending.

If you are going to have an older unit replaced, verify that you are getting a new one with the Energy Star label. This is a government certified rating used on appliances from computers, to windows, to air conditioning units. If you need to speak to a heating and cooling professional look for licensed and insured contractors in your area.

Installation is another part of this equation. Some companies sell a lower-end model but emphasize quality installation, sealing ducts and proper sizing. The flip side is a high-end model that is not fit properly. Do you want a corvette if the engine is mounted wrong? No. And it is the same with air conditioners. Indeed, no matter what kind of model or how much the price is, please, verify that you are using a trusted professional. There is nothing worse than looking at a brand new sports car spit and sputter down the road.

Getting the most out of your system? Consider monthly check ups. Regular filter changes will prolong the life of your system and improve the quality of the cooling. If your system is installed outside, be sure it has space to breathe. Don’t install it near trees or shrubs as this will clog up your filters faster.

I hope this information helps to keep you cooler this summer for less money…

Attention shoppers: You have barely a month left before the homebuyer tax credit expires. But depending on where you live, you might not want to rush out to buy.
First-time homebuyers may qualify for up to $8,000, while those who are trading up could get as much as $6,500. But either way, buyers have to ink sales contracts by the end of April and close before July 1 to see the refund.

And this is absolutely, positively your last chance to claim the credit. (Probably.) So don’t wait, thinking the credit will be extended for a third time.
There is little sentiment for continuing this program, especially because many consider the latest iteration’s results to be disappointing. Even the Senate’s biggest proponent of the homebuyer tax credit, Johnny Isakson, R-Ga., is ready to let it end.
“He has no plans to introduce legislation to extend the credit,” said Isakson’s spokeswoman. “Part of the benefit of the tax credit was the urgency its sun-setting generated.”
That urgency was less pronounced after the latest extension, which was enacted last fall. While the first version, which just covered first-time homebuyers, netted huge sales jumps, the real estate market slumped over the winter and early spring.
That may be because some people believed that Congress would just keep adding time to the game clock, according to Nicolas Retsinas, director of Harvard’s Joint Center for Housing Study. That could have kept them home by the fireside instead of out house hunting.
Expect long delays in getting your $8,000 tax credit
“The credit’s influence and impact has waned considerably,” said Retsinas.
“You got a lot more bang for the buck on the first go round,” added Mike Larson, a real estate analyst with Weiss Research. “Most people acted on the presumption that the credit was going away.”

Let’s take a look at some of the opportunities for today and the future of Florida’s real estate market.
1. Great prices. Statewide, the existing-home median sales price was $161,200 in the fourth quarter of 2008; a year earlier, it was $216,600 for a decrease of 26 percent.
2. The time is right. Home sales volumes are rising again – a clear signal that today’s “buyers market” may be changing soon. In fourth quarter 2008, statewide sales of existing single-family homes were up 13 percent compared to the same period last year, according to FAR statistics.
3. High inventory levels. Conditions are ideal for buyers to find their dream home. Inventory is still plentiful in all price ranges. But as sales volumes increase, inventory levels are likely to shrink. That reality translates into this advice for buyers: Don’t wait too long.
4. Low mortgage rates. Mortgage rates are still at the lowest levels since the 1960s. Lower rates multiply a buyer’s financial power. Even half a percent can make a sizeable difference. For example, on a $200,000 home, half of 1 percent could save the homeowner about $815 a year. Buyers can get more home for the money, which is a perfect scenario for families looking to upsize.
5. Incentives to buy. Federal, state and local housing programs can help buyers make that big purchase. The U.S. Housing and Economic Recovery Act of 2009 includes an $8,000 tax credit for first-time buyers. President Obama’s 2009 economic stimulus package also identifies and offers incentives to help home buyers with mortgages. Talk to a local mortgage lender about state and federal incentive programs.
• How to get the $8,000 credit.
6. A long-term-growth state. Long-term economic and demographic trends continue to favor Florida. By 2010 economists forecast that Florida will be the third-most-populated state in the country. Florida’s population is expected to swell about 75 percent by 2030. Florida has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often the state has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic development, such as new jobs and growing incomes. All of these trends are positive indicators for real estate growth.
7. A migration magnet. Even with a slowdown in economic growth nationally, projections call for Florida’s population to return to more normal growth levels of about 317,000 a year between 2010 and 2020, similar to the 1980s and 1990s, said Stan Smith, director of the University of Florida’s Bureau of Economic and Business Research. That’s a lot of new buyers coming into the market.
8. A favored retirement destination. Over the long term, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. Demographic studies show that the Sunshine State’s mild climate and outdoor amenities continue to make Florida a top retirement destination.
9. Business-friendly state. Florida has always been a business-friendly state – no state income taxes, plus incentives from local municipalities encourage businesses to set up shop here. Even with the current economic downturn nationwide, Florida leaders continue to keep business needs in the forefront of planning for the state’s future. The Milken Institute/Greenstreet Real Estate Partners ranked five Florida communities on its “Best Performing Cities Index 2008,” which ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. Florida’s business climate ranked fourth among executives and sixth overall on “Site Selection” magazine’s 2008 Top State Business Climate rankings.
10. Positive investment outlook. Every quarter, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a survey of industry executives, market research economists, real estate scholars and other experts. In the third quarter 2008 survey, the investment outlook for various types of Florida properties remains steady. “People who have responded to our surveys have not lost their faith in Florida as a place to be and a place to invest,” said Dr. Wayne Archer, director. “We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in.”
THE BEST: . An unsurpassed lifestyle. Finally, 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 Florida in the top three of Harris Poll’s “Most Desirable Places to Live” survey