Real Estate Outlook: Real Estate Market Is Active

This week it's all about sales. They're up in all four major regions of the country, and we're even seeing bidding wars breaking in some scattered markets, according to the latest survey from the National Association of Realtors.

Sales of single family homes, townhouses, condos and co-ops surged by a little over 10 percent in October, and were 24 percent above where they were a year before.

Closed transactions rose by nearly 12 percent in the Northeast, 14. 4 percent in the Midwest, 12.7 percent in the South and by 1.6 percent in the West.

Why the big jump in activity? The number one reason, according to Dr. Lawrence Yun chief economist for the National Association of Realtors, was that first time buyers rushed to wrap up deals before the scheduled November 30th original expiration date of the $8,000 federal tax credit

That program has now been extended through next June 30th.

Another factor: The near record-breaking affordability of housing - as measured by the prices of homes in local markets around the U.S. compared with household incomes and monthly payments at current mortgage interest rates.

The affordability equation is now at its most favorable point for buyers since 1970. Interest rates for 30-year fixed loans have been hovering around five percent for weeks -- and recently dropped below that into the upper four percent range. A year ago, by comparison, the average 30-year rate was 6.2 percent.

House prices meanwhile have remained well below where they were a year ago -- down by 7 percent to a median price of about $173,000. In the southwestern states, Florida and the suburbs of Washington D.C., low prices, especially for entry-level houses, are triggering multiple-bid situations -- something that hasn't been seen since the heady days of the housing boom in 2004 and 2005.

The Realtors' Yun warns, though, that encouraging though this may appear, the market is not static and some of these dynamics could change in the months ahead.

Prices are flattening out and could even move up surprisingly in some areas in the coming months, if the economy cooperates. Interest rates could rise next Spring if the Federal Reserve phases out its program of heavy-duty investing in mortgage securities, as it says it plans to do.

In the meantime, inventory levels of unsold houses continue to drop ... and are now down to just a seven month supply nationwide on average. Since a six month supply is considered to be a balanced market, favoring neither sellers nor buyers, it looks like we're not too far off.

Source: Kenneth R. Harney http://realtytimes.com/rtpages/20091201_realestateoutlook.htm

South Florida, statewide home sales rise

Existing home sales rose both in Florida and nationwide as the housing market continues to show signs of stabilization.

Statewide, year-over-year existing home sales shot up 45 percent last month, with a total of 15,160 homes sold, up from 10,444 homes sold in October 2008, according to Florida Realtors.

Between September and October, existing home sales increased 5.1 percent.

Florida's median sales price for existing homes last month was $140,300, down 17 percent from a year ago, when it was $169,700.

Sales of existing single-family homes in West Palm Beach rose the most in the tri-county area – up 36 percent, to 841 from 618. The median sales price also fell the least – down just 8 percent, to $243,600 from $264,600.

Existing home sales in Fort Lauderdale rose 32 percent in October, to 826 from 625 a year ago. The median sales price slid 16 percent, to $211,600 from $252,500.

Sales in Miami grew the least – up 26 percent, to 571 from 453 – while prices fell the most – down 28 percent, to $178,500 from $246,800.

Statewide existing condo sales rose to 5,398 in October, up 82 percent from 2,958 a year prior and up 6.1 percent over September. The median sales price of an existing condo in Florida fell 29 percent, to $105,200 in October from $147,900 a year ago.

Fort Lauderdale saw the biggest increase in sales of existing condo sales in the tri-county area in October – up 68 percent, to 926 from 551 a year ago. The median price fell 28 percent, to $83,200 from $115,200. West Palm Beach recorded a 59 percent hike in existing condo sales, to 766 from 481. The median price fell 20 percent, to $109,300 from $135,800. And in Miami, existing condo sales rose 47 percent, to 647 in October from 439 in the year-ago period. The median sales price of a condo in Miami fell 30 percent to $138,400 from $197,400.

Nationwide, exiting home sales in October jumped a record 10.1 percent as buyers continued to take advantage of the first-time homebuyers credit.

Patrick Newport, U.S. economist with IHS Global Insight, suggested in a news release that “sales will drop in the first quarter of 2010, payback from the first tax credit. Sales will take a second hit in the third quarter of 2010, payback from the second tax credit. Overall, sales in 2010 will be about the same as in 2009.”

Source: http://southflorida.bizjournals.com/southflorida/stories/2009/11/23/daily5.html

Consumers are more conscientious about healthy

Consumers are more conscientious about healthy living than ever before and this awareness is making its way to the homebuilding industry, particularly in the custom home market, says Michael Lenahen who owns Ponte Vedra, Fla.-based Aurora Custom Homes.

“As more consumers begin to realize how much their home affects every aspect of their health, they are beginning to see the importance of improving its environmental quality with products to benefit their health and that of their family,” Lenahen said. “The new emphasis toward healthy living focuses around four main categories – air, water, odor/fumes and lighting.”

According to the U.S. Green Building Council, pollutants are often two to five times higher indoors than outdoors and this can significantly affect air in the home causing breathing problems and respiratory diseases. When it comes to the quality of the air, Lenahen said several products are available on the market that homeowners should incorporate into their home such as:

-Advanced allergy filters to control dust particles and pollutants
-Dehumidification devices to manage the humidity in the home
-Variable speed air handlers to maintain the circulation of air throughout the home and ventilation fans to introduce fresh air into the home while removing stale, humid air

Improving the water quality in a home is just as important as the air quality, Lenahen said. Several products are available to improve the quality and efficiency of a home’s water flow and usage, including:

-Carbon filter and reverse osmosis units to purify drinking water by removing particulate matter and harmful minerals
-Whole-house water softeners to remove calcium and other harmful minerals while providing added benefit to the home’s appliances and pluming fixtures. Water softeners also improve skin tone and texture by removing calcium, magnesium and iron from the water.
-Underground cisterns to collect rainwater from the gutter and downspouts to use for irrigating the lawn and landscapeHealthy home living is also improved by the use of low Volatile Organic Compound (VOC) materials, which emit lower levels of gasses into the home from everyday materials such as paints, sealants, cabinets and flooring materials. Lenahen said homeowners should use the lowest emitting VOC products for custom homebuilding and remodeling projects, thereby reducing the negative health impact the products may have on the occupants. Low VOC products will have labeling to help homeowners find the healthiest option.

Better lighting solutions can also foster healthier living. Traditional light fixtures typically include high wattage bulbs, which waste electricity while adding excessive heat into the home. Suggested improvements include:

-Decorative light fixtures with less wattage requirements and soft-light emitting globes
-Compact florescent light (CFL) bulbs or L.E.D. fixtures and bulbs for longer life usage
-Next generation skylights, such as Velux Sun Tunnel or Solatube, that bring natural light into the home, reducing the need for artificial light and energy consumption

“These are just some of the many changes that can be made to current homes or built into new homes that will greatly improve the quality of life and health of its occupants,” Lenahen said. “The more consumers become aware of the positive affects of healthy living within the home, the more products will enter the mainstream of standard building practices.”

About Aurora Custom Homes
Aurora Custom Homes was founded in 1997 by Michael Lenahen with a mission to build custom homes of uncompromised elegance. Driven by passion and purpose, Aurora Custom Homes provides its clients with a truly custom building experience where the customer becomes an integral part of the building team.

For more information, visit www.AuroraBuilders.com.

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Read more: http://rismedia.com/2009-11-29/9-home-improvements-to-promote-healthy-living-in-your-home/#ixzz0YMdrUjWk

Q&A clears the air about homebuyer tax credits

If you’re in the market for a home, the world is your oyster. Interest rates are at record lows. Housing prices in many parts of the country are still depressed. And you may be eligible for a generous tax break, even if the home you buy isn’t your first.

On Nov. 6, President Obama signed legislation that provides a $6,500 tax credit for some current homeowners who buy another home. The law also extends the $8,000 tax credit for first-time homebuyers, scheduled to expire Nov. 30, until next spring.

A lot of people are interested in taking advantage of this tax break, but the expanded credit also has whipped up a lot of confusion. Here are some answers to frequently asked questions:

Q: How do I qualify for the $6,500 credit?

A: This credit is available for homebuyers who sign a binding contract on a new or existing home by April 30, 2010, and settle by July 1 (deadlines that also apply to the first-time homebuyer credit). You must have lived in your existing home for five consecutive years out of the last eight. The home you purchase must be your primary residence. However, the law doesn’t require you to sell your old home, says Bob Meighan, vice president at TurboTax, the tax software provider. You can use it as a second home or a rental and still claim the credit, he says.

Q: I sold a home I had lived in for more than five years and bought a new one in August. Do I qualify for a tax credit?

A: No. For existing homeowners, the $6,500 credit is limited to homes purchased after Nov. 6.

Q: Does the home I buy have to be more expensive than the one I own now?

A: No. While the real estate industry is hopeful that homeowners will use this credit to buy a nicer place, there’s no prohibition against using it to downsize, Meighan says. That makes this credit particularly useful for seniors who are interested in moving into a smaller home.

If you are planning to move up, keep in mind that you can’t claim the credit if the purchase price of the home exceeds $800,000. Unlike some other tax credits, this one doesn’t slowly phase out once you exceed the threshold, Meighan says. If you buy a home for more than $800,000 – and that refers to the purchase price, not the assessed value or the amount of your mortgage – you are ineligible for the credit, period.

The $800,000 cap also applies to first-time homebuyers, but only those who purchase a home after Nov. 6. First-time homebuyers who bought a home for more than $800,000 between Jan. 1 and Nov. 6 can still claim the credit, assuming they meet the other criteria, Meighan says.

Q: I’m an existing homeowner, and would like to build a new home. Can I claim the credit?

A: Yes, but make sure your builder is good at meeting deadlines. You can claim the credit as long as you have a binding contract in place by April 30 and close by July 1. In the case of a new home, the closing date is the day you move in, Meighan says. If your home isn’t habitable by June 30, you won’t be able to claim the credit, he says.

Q: I bought a home in 2008 and claimed the old $7,500 first-time homebuyers credit, which must be repaid over 15 years. Did the new law change that rule?

A: No. That credit, which was available for homes purchased between April 9, 2008, and Dec. 31, 2008, must still be repaid.

The $8,000 first-time homebuyer credit, available for homes purchased after Dec. 31, 2008, doesn’t have to be repaid as long as you remain in the home for at least three years. Existing homeowners who qualify for the $6,500 credit don’t have to repay that money, either, as long as they meet the three-year requirement.

Q: We have a rental home and would like to sell it to our son, who has never owned a home. Would he qualify for the first-time homebuyer credit?

A: No. The legislation specifically prohibits taxpayers from claiming the credit if the sale is between “related parties,” Meighan says. A home sale to a parent, grandparent, child or grandchild would fall into that category.

Q: I sold my home this year and have been renting since. If I buy a new home, do I qualify for the expanded credit?

A: Yes, as long as you meet all of the other requirements, says Mel Schwarz, partner with Grant Thornton in Washington, D.C. The eight-year period used to determine eligibility ends on the day you buy your new home, he says.

Copyright © 2009 USA TODAY. All rights reserved.
Source: http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=227710

The upside of Florida real estate: 15 market positives

1. Great prices. Statewide, home prices have fallen about 20 percent in the past year. Florida Association of Realtors® statistics show the existing-home median sales price was $185,400 in the third quarter of 2008, compared with $233,200 in third quarter 2007. By the way, those numbers are still significantly higher than in the early years of the decade. In 2003, the third-quarter sales price was $163,700, which reflects an increase of about 13.3 percent over the five-year period. (The median is a typical market price where half the homes sold for more, half for less.)

2. The time is right. Home sales volumes are rising again -- a signal that the market recovery may be underway. In third quarter 2008, statewide sales of existing single-family homes were up 5 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 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 American Recovery and Reinvestment Act has increased the First-Time Homebuyer Tax Credit from $7,500 to $8,000 for purchases on or after Jan. 1, 2009, and before Dec. 1, 2009. Talk to a local mortgage lender about state and federal incentive programs.

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 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 favorite retirement destination.

9. A diverse economy. Florida's economy, like the rest of the nation, is impacted by the recession. Some business sectors, though, appear promising for the Florida economy. The healthcare and technology sectors are quickly becoming an important economic force in South and Central Florida. 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. 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 fourth quarter 2008 survey, the investment outlook for various types of Florida properties declined from the third quarter of 2008, although it is noted that the investment outlook remains higher than it was at times in 2006 and 2007. "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," says Director Dr. Wayne Archer, when referencing the 2008 third quarter results.

11. Homeownership has value. Realtors® believe -- and research supports the belief -- that homeownership provides a variety of tangible and intangible benefits to the community and homeowners. Studies show that home equity is still the largest single source of household wealth.

12. Greater sense of well-being. 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 self-esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.

13. Beneficial for kids. Studies show that children raised in homes owned by their families are more likely to stay in school and graduate high school. They're also shown to have a higher lifetime annual income.

14. Community involvement. 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 more with their neighbors and communities. Compared to renters, homeowners join up to 41 percent more civic and/or nonprofessional organizations, 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.

15. 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 the Sunshine State in the top three of Harris Poll's "Most Desirable Places to Live" survey

Source: http://www.orlandosentinel.com/classified/realestate/foreclosure/orl-foreclosures-upside-realestate-story,0,7584976.story

Preparations Prior To Miami Real Estate Home Selling

Selling a home need a lot of preparation and plan, there are many factors that are need to be considered if you want to have a quick sell. In Miami real estate market, there are lots of homes that are for sale which you need to learn about before giving out your asking price.

Considering other people who are selling their home in the area, you need to prepare your home. Take time to tour around the area and see those homes for sale so you can have an idea on how you will be planning the

Most of the time home sellers focus on the physical appearance of their home that is why they do home improvement to make their home look appealing and attract prospect buyer. Maintaining cleanliness and fixing things inside your home is really needed to give buyer good impression on your home. And the best way to do it is to repaint your home with different color combination or use two colors that can blend each other.

Fix broken fixtures inside your home make sure that all faucets are all in a good working condition. If there are leaks, you may need to replace defective faucet. Check all door knobs if are working, faded wall paint must be repainted. In short make sure that all things inside your home are well maintain and in good condition. You should also clean your backyard, cut those tall grasses and remove unnecessary things around your home. If you have a garden, make sure that plants are well cared because it can help in giving a beautiful impression on your home.

In doing these home improvement, make sure that your home will stand out with other homes that are also for sale in the area. You can also ask some assistance on a real estate agent in looking for a buyer. Miami real estate is a place where real estate competition is really tight, preparing and planning for your home selling is really a must, and you have to study every aspect that can affect your Miami real estate home selling.

And before selling or accepting offer from a buyer make sure that you have considered the expenses you have done with home improvement. But in making home improvement make sure that the expenses you will incur is reasonable enough in making your Miami real estate home look beautiful.

Source: Allison Ayson Miami Real Estate http://luxurylivingrealty.net/

Homeowners feel abandoned by builders who used Chinese drywall

Builders abandon them, customers say, but firms say it is more complicated.

About 10 families in The Oaks development west of Boca Raton gathered at a neighbor's house last week to commiserate about the tainted Chinese drywall contained in most of their homes.

The homeowners have contacted their builder, Albanese-Popkin Group, hoping the company would pay to fix their properties or find them rental housing. But they say the builder has abandoned them – while at the same time marketing deeply discounted homes for sale in the upscale community along Clint Moore Road.

Albanese-Popkin says it is pursuing legal action against subcontractors and suppliers and seeking coverage from insurance carriers. The company also notes that federal agencies have not yet established a protocol for repairing homes with Chinese drywall.

The stalemate over the problem drywall is common across Florida, where as many as 36,000 homes could be affected. Homeowners want answers and are filing lawsuits, while builders insist their hands are tied as state and federal officials determine how to fix the homes and whether the drywall poses any health risk.

"There are thousands of people out there begging their builders to help them," said Allison Grant, a Boca Raton attorney who is representing three homeowners in The Oaks and more than 200 statewide.

If builders aren't yet able to fix the homes, they should pay for temporary housing or allow homeowners to live in unsold units, she said. They also can help residents obtain mortgage relief on loans the builders originated.

"Just do something," Grant said.

Kevin Rosen and his wife and two small children moved out of their house at The Oaks this summer, shortly after discovering it had the defective wallboard.

Rosen continues to pay his mortgage and maintenance fees, and he says Albanese-Popkin has not responded to his requests for help. He filed a lawsuit seeking compensation for fixing the four-bedroom house he bought for more than $1 million in 2006.

"Where's the good faith?" said Rosen, 39. "They didn't even organize a meeting in the neighborhood. They have not taken the initiative to help homeowners resolve the problem. The people here are basically on their own."

Albanese-Popkin, a partnership of Leonard Albanese and Edward Popkin, says it has spent three decades building custom estate homes in South Florida and Colorado. In response to The Oaks residents, the company issued a statement, which said, "This is a terrible situation for everyone who is caught up in it. We wish we could do more and had the answers that homeowners want. Given the circumstances, we are taking all the steps we can."

Some industry observers worry that builders agreeing to fix homes with problem drywall immediately could be held liable if the repairs don't work or if they aren't consistent with government guidelines that may come out.

But homeowners say builders are using the lack of government guidelines as an excuse to get out of having to pay millions of dollars for repairs.

Sunrise-based GL Homes and Lennar Corp. of Miami have agreed to fix homes at no cost to the homeowners. The builders are ripping out the drywall and rebuilding homes from the studs out – a method endorsed by scientists who spoke at a state Chinese drywall symposium in Tampa last week.

"We just can't wait" for the government to issue a protocol, said Heather Keith, a lawyer for GL who attended the symposium.

Large volume builders have the resources to more easily help homeowners, said Edie Ousley, spokeswoman for the Florida Home Builders Association.

Lennar, for instance, told federal regulators this summer it set aside roughly $40 million to repair 400 homes with Chinese drywall. That works out to about $100,000 per home.

Ousley said many smaller builders don't have that kind of money and would be forced out of business if they had to fix homes.

"They're just financially unable to do so," she said.

But Rosen's Coral Gables lawyer, Ervin A. Gonzalez, doesn't buy it.

Generally speaking, he said, smaller builders typically set up and fund corporations to build houses. They take the profits as salaries and give bonuses to shareholders, ultimately depleting the corporations of any money that could go to help homeowners repair defective homes.

"It's not illegal," Gonzalez said, "but it sure smells to high heaven."

Source: Paul Owers can be reached at Powers@Sunsentinel.com or 561-243-6529.
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