This article in the Miami Herald yesterday says it all and I highly urge you to read it. We are in another housing boom and it won't be long before many will be priced out of the market, again.
Friday, December 21, 2012
Thursday, December 13, 2012
2013: The Year of the Housing Recovery
As 2012 comes to a close its time to prepare for the coming year. A lot has happened this year in the housing market, and I hope my Blog has helped you navigate those waters.
I'm optimistic for the coming year, and based on the data I've been collecting I think 2013 may be the first real "housing recovery" year since the crash of 08'.
Home prices rise in Oct. by most in 6 years
Multiple offers empower South Florida home sellers
Top economists: Fla.’s housing market growing stronger, U.S. on same trend
Monday, December 3, 2012
Is Now the Time to Buy: Part VI (Why the end of the year is the best time to buy)
Over the last decade I've sold a fair amount of property in the last quarter of the year, particularly in December/January. So I thought I would put together a quick post highlighting the benefits of buying (either putting under contract or closing) before the end of the year.
1. Banks want to close loans by the end of the year. There is always a mad push to close loans before December 31st.
2. Banks want to sell off as much REO inventory by the end of the year and there are deals to be had. This is a very important point as Special Assets are closing their books for the year and will try and move as much inventory as possible in the month of December.
3. Sellers want to close by the end of the year and start the new year fresh.
4. Some Sellers have capital gains issues and thus want to close before the end of the year. Further, the current political establishment is hell bent on raising taxes and capital gains is one area they have been eyeing So any seller with a capital gains issue wants to close and get paid BEFORE the rates on capital gains goes up
5. Most people are not seriously looking during the "holidays" (most of December) so its an excellent time to go after a property. Particularly in an aggressive "sellers market" like we have currently here in Miami. There are far fewer buyers vying for the same properties in December thus the multiple offer scenarios we've all become accustomed to tapers off some.
I've done many deals in December simply because my clients took advantage of the "slow period" in Real Estate.
Many buyers fall into the "its the holidays so I'll start looking again after the New Year" viewpoint. This is normal, its that time of year.
But my experience has told me that this is the BEST time to go looking for property. There's less competition and most sellers (banks included) are more motivated to sell/do a deal.
Tuesday, November 20, 2012
Fla.’s housing market continues positive trends in Oct. 2012
ORLANDO, Fla – Nov. 19, 2012 – Pending sales, closed sales and median prices rose, while the inventory of homes and condos for sale dropped in Florida’s housing market in October, according to the latest housing data released by Florida Realtors®.
“With Thanksgiving just around the corner, we have a lot to be thankful for here in Florida,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “The state’s latest unemployment rate fell to 8.5 percent, the lowest in nearly four years – and combined with the momentum of the housing market, it clearly shows that Florida is on a positive path and has been for months. Pending sales, closed sales and prices are trending up.”
Statewide closed sales of existing single-family homes totaled 17,779 in October, up 25.3 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. Closed sales typically occur 30 to 90 days after sales contracts are written.
Meanwhile, pending sales – contracts that are signed by not yet completed or closed – of existing single-family homes last month rose 56.7 percent over the previous October. The statewide median sales price for single-family existing homes in October was $145,000, up 9 percent from a year ago.
According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in September 2012 was $184,300, up 11.4 percent from the previous year. In California, the statewide median sales price for single-family existing homes in September was $345,000; in Massachusetts, it was $294,900; in Maryland, it was $244,357; and in New York, it was $225,000.
The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.
Looking at Florida’s year-to-year comparison for sales of townhomes-condos, a total of 8,252 units sold statewide last month, up 16.4 percent compared to October 2011. Meanwhile, pending sales for townhome-condos in October increased 47.1 percent compared to the year-ago figure. The statewide median for townhome-condo properties was $107,000, up 20.2 percent over the previous year. NAR reported that the national median existing condo price in September 2012 was $181,000.
The inventory for single-family homes stood at a 5.2-months’ supply in October; inventory for townhome-condo properties was also at a 5.2-months’ supply, according to Florida Realtors. Industry analysts note that a 5.5-months’ supply symbolically represents a market balanced between buyers and sellers.
“Once again, everything that should be going up in the market is going up, and everything that should be going down is going down,” said Florida Realtors Chief Economist Dr. John Tuccillo. “As impressive as the year-over-year gains for October are, far more impressive are year-to-date gains of 2012 over 2011. They indicate the depth and resilience of this recovery.”
The interest rate for a 30-year fixed-rate mortgage averaged 3.38 percent in October 2012, down from the 4.07 percent averaged during the same month a year earlier, according to Freddie Mac.
To see the full statewide housing activity report, go to Florida Realtors website and click on the Research page; then look under Latest Housing Data, Statewide Residential Activity and get the October report. Or go to Florida Realtors Media Center and download the October 2012 data report PDF under Market Data.
© 2012 Florida Realtors®
Thursday, November 1, 2012
Is Now the Time to Buy: Part V
Over this past week a slew of new indicators have come out all pointing to a vigorous rebound in South Florida housing. Over the past year I have been running this series in the hope to help my clients keep up with the voluminous data about the housing market.
It seems all the indicators continue to indicate strengthening: with prices up, foreclosures down, construction way up, and housing starts way up; further strengthen my position that if your in the market to buy (or are thinking about it) now is the time to do it.
Home vacancy rate falls to pre-housing bubble levels
Foreclosure rates and mortgage delinquency down in August
Contracts for future construction jump 66% through September
South Florida housing starts jump 41% in Q3
Home prices rise in August
If you have any questions please contact me. I'm hear to help you take advantage of the new housing "boom"
Tuesday, October 23, 2012
Homes are selling faster (reprinted from floridarealtors.org)
Homes were listed on average 95 days, according to September housing data. That is down from 107 days a year earlier.
Homes sell fastest in Oakland, Calif., where the median age of the inventory averages 21 days – 57 percent below one year ago. Denver, Colo., boasts a median age inventory of only 38 days, followed by fast-selling markets of Stockton-Lodi, Calif., with 43 days, and San Francisco with 44 days.
As the median age of the inventory is falling, inventories of for-sale homes continue to hover at record lows too, dropping 18 percent last month compared to a year ago.
“There’s a recovery,” Curt Beardsley, vice president of Realtor.com, told BusinessWeek. “Our market times are low and there’s actually a compression of inventory.”
Homebuyer demand is increasing, with housing affordability still high and ultra low mortgage rates that have pushed homebuyers’ purchasing power higher. The rise in demand has caused asking prices to also rise. Last month, the median asking price was $191,500, up 0.8 percent compared to a year earlier, Realtor.com reports.
Source: “Listings of Homes for Sale Drop as U.S. Housing Recovers,” BusinessWeek (Oct. 15, 2012) and REALTOR® Magazine Daily News
© Copyright 2012 INFORMATION, INC. Bethesda, MD (301) 215-4688
Friday, October 19, 2012
Fla.’s housing market continues upswing in Sept. 2012 (reprinted from Florida Realtors® website)
ORLANDO, Fla. – Oct. 19, 2012 – Florida’s housing market had higher pending sales, higher median prices and a reduced inventory of homes for sale in September, according to the latest housing data released by Florida Realtors®.
“Florida’s real estate market is no longer in recovery mode – stability and growth gain solid footing,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “Realtors across the state are reporting consistent increases in home sales and median prices, and multiple offers from buyers isn't unusual. In fact, increasing buyer demand in many local markets is creating inventory shortages – and that’s putting pressure on prices. For sellers who may have been reluctant to enter the market, it’s now time to reconsider. Conditions are turning to a sellers’ market.”
Statewide closed sales of existing single-family homes totaled 15,643 in September, up 2 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. Closed sales typically occur 30 to 90 days after sales contracts are written.
Meanwhile, pending sales – contracts that are signed by not yet completed or closed – of existing single-family homes last month rose 40.1 percent over the previous September. The statewide median sales price for single-family existing homes in September was $145,000, up 7.4 percent from a year ago.
According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in August 2012 was $188,700, up 10.2 percent from the previous year. In California, the statewide median sales price for single-family existing homes in August was $343,820; in Massachusetts, it was $317,750; in Maryland, it was $255,498; and in New York, it was $225,000.
The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.
Looking at Florida’s year-to-year comparison for sales of townhomes-condos, a total of 7,329 units sold statewide last month, down slightly (-2.9 percent) from those sold in September 2011. Meanwhile, pending sales for townhome-condos in September increased 30.6 percent compared to the year-ago figure. The statewide median for townhome-condo properties was $105,736, up 18.8 percent over the previous year. NAR reported that the national median existing condo price in August 2012 was $176,700.
Last month, the inventory for single-family homes stood at a 5.2-months’ supply; inventory for townhome-condo properties was also at a 5.2-months’ supply, according to Florida Realtors. Industry analysts note that a 5.5-months’ supply symbolically represents a market balanced between buyers and sellers.
“The onward march of Florida's housing market continues,” said Florida Realtors Chief Economist Dr. John Tuccillo. “Inventories have now tilted to the point where we truly have a sellers’ market forming. Prices are up smartly and have been for quite a while. It’s getting to the point where Florida is the place to buy, but it may soon move out of reach for many households.”
The interest rate for a 30-year fixed-rate mortgage averaged 3.47 percent in September 2012, lower than the 4.11 percent averaged during the same month a year earlier, according to Freddie Mac.
To see the full statewide housing activity report, go to Florida Realtors website (www.floridarealtors.org) and click on the Research page; then look under Latest Housing Data, Statewide Residential Activity and get the September report. Or go to Florida Realtors Media Center (http://media.floridarealtors.org/ and download the September 2012 data report PDF under Market Data. (http://media.floridarealtors.org/market-data)
© 2012 Florida Realtors®
Thursday, October 18, 2012
Wednesday, October 17, 2012
Is Now the Time to Buy: Part IV
I track weekly indicators in the housing market so I can best represent my clients. As a buyers agent its important for me to keep abreast of the latest trends and statistics. After-all I only make money when I sell houses. So I want to sell lots of them.
But in order to do that, I need to know what is going on in the marketplace. When and where to buy is often just as important as what to buy.
In the first three parts of this series (Is Now the Time to Buy) I covered some of the key factors for buyers like: the inventory shortages, the affect of supply and demand on rising prices, the shadow inventory, the cost of capital, the 10 year lows in median home prices, and the cost benefit analysis between renting vs. buying vis-a-vis mortgage rates.
This week two more indicators from major media outlets confirm my theory that now IS the time to buy.
CNN Money is predicting another housing boom. According to them: Signs of recovery have been evident in the recent pick ups in home prices, home sales and construction. Foreclosures are also down and the Federal Reserve has acted to push mortgage rates near record lows.
They further cite a recent Barclays Capital report "forecasting that home prices, which fell by more than a third after the housing bubble burst in 2007, could be back to peak levels as soon as 2015".
This makes sense as it coincides with the same 2015 time frame announced by the FED a few weeks ago regarding interest rates remaining at record lows, coupled with the supply and demand pressures that are currently driving up prices, as well as the "inevitable" inflation that the FEDs QE policies will trigger, driving up prices even higher.
A few days later the Washington Post ran a story about how "house flipping" is again on the rise because "a market where home prices are appreciating is much more forgiving for flippers than a market where prices are depreciating", driving a renewed interest in this industry.
Not to be confused with the illegal version which involves collusion, inflated appraisals, and fraud, "house flipping" is a genuine business engaged in by savvy entrepreneurs across the country. Buying, fixing and reselling goods for a profit is as old as apple pie.
For the last few years HUD has yearly extended its waiver against its own anti-flipping rule of 2003, to encourage private investors to help absorb and reintegrate the surplus of foreclosed and otherwise abandoned or unused homes. This waiver expires at the end of 2012 so they would have to renew it again for another year, but I'm betting they will.
Not to be confused with the illegal version which involves collusion, inflated appraisals, and fraud, "house flipping" is a genuine business engaged in by savvy entrepreneurs across the country. Buying, fixing and reselling goods for a profit is as old as apple pie.
For the last few years HUD has yearly extended its waiver against its own anti-flipping rule of 2003, to encourage private investors to help absorb and reintegrate the surplus of foreclosed and otherwise abandoned or unused homes. This waiver expires at the end of 2012 so they would have to renew it again for another year, but I'm betting they will.
Private real estate investors who buy, fix, and sell homes are the perfect mechanism to help banks liquidate their remaining inventories, and the fact that "flippers" are coming back into the market place is a very good thing vis-a-vis inventory (which affects the supply side of the pricing curve).
However more flippers means more buyers, which means more competition, which means more demand, which means rising prices.
But as I see it we are on the bottom of this upward trend (for a loose comparison buying now would be like buying in 2001 or 2002 before the last housing boom of 2005-2006).
So from my perspective there seems to be more and more evidence pointing toward an increasingly stronger housing market, at least in the short term.
I still have to answer emphatically YES, now is the time to buy!
As always I look forward to your thoughts and feedback.
Friday, October 12, 2012
Two Visions Come Into Focus (reprinted from Realtor Mag)
President Barack Obama and former Gov. Mitt Romney hold starkly different views on recent reforms—and on the best way to preserve the American dream.
President Barack Obama and Republican challenger Mitt Romney, the former Massachusetts governor, agree on this: Home ownership is central to the American dream. But in an exclusive REALTOR® Magazine Q&A, the 2012 presidential candidates offer differing takes on how to keep that dream alive. Obama says he has a two-part focus—to prevent a repeat of the lax mortgage practices that led to the housing crisis and ensure that financing remains available to responsible home buyers. Romney says the path to restoring home ownership is through a vibrant economy, which he wants to spur using an across-the-board cut in tax rates and by trimming burdensome rules. Obama also provides a vigorous defense of his signature legislative accomplishment, health care reform, while Romney calls for reforms that promote competition without government intervention.
The federal government has historically supported home ownership as a central value of the United States. To what extent do you support preserving federal home ownership incentives, such as the mortgage interest deduction?
Romney: I believe in the American dream of home ownership. The best way to get the housing market going again is to get the economy moving in the right direction. What most struggling home owners need is good, quality jobs, not confusing regulations imposed on lenders. We need policies such as 20 percent across-the-board cuts in tax rates, sensible regulation, and open markets that create a growing economy. Policies like these will help Americans achieve their economic goals, including buying a home.
Obama: Home ownership is a critical component of economic opportunity, and I am committed to keeping responsible home owners in their homes and to ensuring Americans have a fiscally responsible path to home ownership. One of the policies I signed into law as president was an expansion of the first-time homebuyer tax credit that helped more than 2.5 million families purchase a home for the first time. Since I took office, I’ve taken action that—combined with private-sector efforts my administration helped catalyze—enabled more than 5 million home owners to get mortgage modifications, while expanding access to refinancing and targeting investments in the communities hardest-hit by the housing crisis. Now, I’ve put forward a plan to help responsible borrowers refinance their mortgages and save $3,000 per year.
Four years after the collapse of the mortgage market, banks continue to limit the availability of mortgage financing in both residential and commercial real estate markets. On the residential side, bank standards often exceed those set by the FHA, Fannie Mae, and Freddie Mac. What steps should the federal government take to change this dynamic, given the broader economy’s reliance on a healthy real estate sector?
Obama: We need to restore trust in the underlying foundation of the mortgage market so borrowers have the confidence to purchase a home and lenders have the confidence to issue a loan, and that’s why we’re mobilizing all tools available to fix our nation’s broken mortgage servicing and foreclosure processing system. To do this, we need to reduce uncertainty in the market so lenders once again provide credit consistent with the standards set forward by the FHA, Fannie Mae, and Freddie Mac. That’s why we’re working through the FHA and with the Federal Housing Finance Agency (the conservator of Fannie Mae and Freddie Mac) to provide greater clarity about lenders’ obligations in making FHA- or GSE-backed loans. We’re also working hard to reduce barriers to refinancing for responsible borrowers, and we’re committed to the same objectives for new originations.
Romney: The most important step the federal government can take to help creditworthy borrowers is to repeal and replace the Dodd-Frank Wall Street Reform Act. Banks and financial institutions are paralyzed: Regulators are simultaneously directing lenders to reduce risk (i.e., tighten underwriting) and to loosen standards. And many community banks face thousands of pages of new rules (over 8,000 pages at last count), and half of the expected rules proposed by this administration haven’t even been finalized yet. In short, banks are hiring lawyers, not making loans. The rules of the road need to be clarified so that responsible borrowers have access to mortgage credit.
Federal banking regulators have drafted rules that would go beyond lenders’ restrictive lending policies by setting a minimum down payment amount for home mortgage loans to be considered safe and therefore available at more affordable rates. Where do you stand on the federal government mandating minimum down payment amounts and credit requirements for lenders to apply in their underwriting standards?
Romney: A big part of the problem is that the government, and not the private sector, is the dominant force in mortgage finance today. With taxpayers still on the hook for trillions in mortgage loans, of course the government will continue to play a role in setting some basic minimum lending standards. However, we need to encourage private markets to provide mortgage loans at reasonable interest rates across all market conditions, with simple and understandable contracts for home buyers.
Obama: We’re committed to the goals of Wall Street reform, which includes ending an era of reckless lending by banks without adequate skin in the game. At the same time, we’re committed to maintaining widespread access to mortgage credit for responsible American families, which is the key to providing the middle class with access to home ownership and the key to returning to a robust, but sustainable, housing market recovery.
The recent U.S. Supreme Court ruling to preserve the Affordable Care Act’s individual mandate says the penalty for individuals who fail to purchase health insurance falls under the federal government’s authority to levy taxes. If Congress repeals the law, what steps do you propose to address the REALTORS® and millions of other small-business owners and independent contractors for whom affordable health insurance isn’t available in the market?
Obama: Before the Affordable Care Act, too many people went without health care. Self-employed individuals were some of the hardest hit and often vulnerable to being denied coverage based on a pre-existing condition. Because of the law now, it will be illegal for insurance companies to deny you coverage or charge more because of a pre-existing condition. When the law is fully implemented, people who don’t get insurance through an employer, as well as small businesses trying to find coverage for their employees, will be able to shop in new exchanges, where they’ll have the same purchasing power as big businesses and be eligible for tax credits that make coverage affordable. The law isn’t perfect. We are always willing to work with people of both parties to strengthen it, but we cannot go backwards.
Romney: We can fix the challenges facing our health care system with reforms that emphasize market competition and patient choice. By putting patients at the center of our health care system and making insurers and providers compete against each other for our business, we can lower health care costs and protect Americans’ access to the care they need, including the doctor they choose.
Earlier this year the U.S. Supreme Court ruled in favor of home owners who were told by the EPA to undertake costly mitigation and monitoring of their property before they could get a hearing to determine the presence of wetlands on their property (Sackett v. EPA, 10-1062, March 21, 2012). What steps can the federal government take so that future environmental disputes like this don’t end up in court?
Romney: Respect for private property, clear laws, fair enforcement, and the right to be heard before being deprived of money or property are bedrock principles of our free society. I will modernize our outdated and ambiguous environmental laws, regulations, and enforcement practices to advance our common commitment to natural resource stewardship in ways that restore these principles to prominence. Such actions include providing a speedy and objective process to resolve technical disputes without subjecting our citizens to the senseless delay and expense of going to court.
Obama: With the regulatory process, we’ve made strides to increase transparency, encourage public participation, and promote accountability. The net benefits of regulations issued in the first three years of my administration exceed $91 billion, including both savings and new revenue—25 times greater than in the same period of the previous administration. We are also revisiting rules on the books to see if they make sense so we can continue to produce far greater savings. Agencies have already issued hundreds of regulatory reform proposals, just a fraction of which are expected to save businesses $10 billion over the next five years.
Although the economy is struggling, and government at all levels is wrestling with budget deficits, is there a place for public investment in infrastructure, including transit projects, which historically has helped pave the way for private investment in communities?
Romney: There is a place for public investment in infrastructure. However, we must be mindful of our budgetary constraints when making these investments. To that end, there are many things apart from spending that the government can do to ensure that public investment in infrastructure is possible—eliminating burdensome regulations, for example, or speeding up project approvals and engaging in private-sector partnerships.
Obama: So much of our infrastructure is in need of repair, and we need all of it to deliver American products around the world. There are hundreds of thousands of construction workers who’ve never been more eager to get back on the job. That’s why I’ve proposed a six-year surface transportation plan to improve the nation’s highways, transit, and rail infrastructure. The proposal is fully paid for, with part of the savings from ramping down overseas military operations. And last September I put forward the American Jobs Act, a set of proposals to create jobs now. Congress passed two of the proposals—cutting payroll taxes by $1,000 for a typical family and extending unemployment insurance—but it left on the table more than half of the plan, comprising infrastructure investments that independent economists estimated could create as many as 1 million jobs. I’ll continue fighting for these and for Project Rebuild, another part of the American Jobs Act, which would help repair our housing infrastructure by putting construction workers back on the job rehabilitating and repurposing distressed properties in hard-hit communities.
Home Ownership Incentives
The federal government has historically supported home ownership as a central value of the United States. To what extent do you support preserving federal home ownership incentives, such as the mortgage interest deduction?
Romney: I believe in the American dream of home ownership. The best way to get the housing market going again is to get the economy moving in the right direction. What most struggling home owners need is good, quality jobs, not confusing regulations imposed on lenders. We need policies such as 20 percent across-the-board cuts in tax rates, sensible regulation, and open markets that create a growing economy. Policies like these will help Americans achieve their economic goals, including buying a home.
Obama: Home ownership is a critical component of economic opportunity, and I am committed to keeping responsible home owners in their homes and to ensuring Americans have a fiscally responsible path to home ownership. One of the policies I signed into law as president was an expansion of the first-time homebuyer tax credit that helped more than 2.5 million families purchase a home for the first time. Since I took office, I’ve taken action that—combined with private-sector efforts my administration helped catalyze—enabled more than 5 million home owners to get mortgage modifications, while expanding access to refinancing and targeting investments in the communities hardest-hit by the housing crisis. Now, I’ve put forward a plan to help responsible borrowers refinance their mortgages and save $3,000 per year.
Lending Standards
Four years after the collapse of the mortgage market, banks continue to limit the availability of mortgage financing in both residential and commercial real estate markets. On the residential side, bank standards often exceed those set by the FHA, Fannie Mae, and Freddie Mac. What steps should the federal government take to change this dynamic, given the broader economy’s reliance on a healthy real estate sector?
Obama: We need to restore trust in the underlying foundation of the mortgage market so borrowers have the confidence to purchase a home and lenders have the confidence to issue a loan, and that’s why we’re mobilizing all tools available to fix our nation’s broken mortgage servicing and foreclosure processing system. To do this, we need to reduce uncertainty in the market so lenders once again provide credit consistent with the standards set forward by the FHA, Fannie Mae, and Freddie Mac. That’s why we’re working through the FHA and with the Federal Housing Finance Agency (the conservator of Fannie Mae and Freddie Mac) to provide greater clarity about lenders’ obligations in making FHA- or GSE-backed loans. We’re also working hard to reduce barriers to refinancing for responsible borrowers, and we’re committed to the same objectives for new originations.
Romney: The most important step the federal government can take to help creditworthy borrowers is to repeal and replace the Dodd-Frank Wall Street Reform Act. Banks and financial institutions are paralyzed: Regulators are simultaneously directing lenders to reduce risk (i.e., tighten underwriting) and to loosen standards. And many community banks face thousands of pages of new rules (over 8,000 pages at last count), and half of the expected rules proposed by this administration haven’t even been finalized yet. In short, banks are hiring lawyers, not making loans. The rules of the road need to be clarified so that responsible borrowers have access to mortgage credit.
Underwriting Mandates
Federal banking regulators have drafted rules that would go beyond lenders’ restrictive lending policies by setting a minimum down payment amount for home mortgage loans to be considered safe and therefore available at more affordable rates. Where do you stand on the federal government mandating minimum down payment amounts and credit requirements for lenders to apply in their underwriting standards?
Romney: A big part of the problem is that the government, and not the private sector, is the dominant force in mortgage finance today. With taxpayers still on the hook for trillions in mortgage loans, of course the government will continue to play a role in setting some basic minimum lending standards. However, we need to encourage private markets to provide mortgage loans at reasonable interest rates across all market conditions, with simple and understandable contracts for home buyers.
Obama: We’re committed to the goals of Wall Street reform, which includes ending an era of reckless lending by banks without adequate skin in the game. At the same time, we’re committed to maintaining widespread access to mortgage credit for responsible American families, which is the key to providing the middle class with access to home ownership and the key to returning to a robust, but sustainable, housing market recovery.
Health Insurance
The recent U.S. Supreme Court ruling to preserve the Affordable Care Act’s individual mandate says the penalty for individuals who fail to purchase health insurance falls under the federal government’s authority to levy taxes. If Congress repeals the law, what steps do you propose to address the REALTORS® and millions of other small-business owners and independent contractors for whom affordable health insurance isn’t available in the market?
Obama: Before the Affordable Care Act, too many people went without health care. Self-employed individuals were some of the hardest hit and often vulnerable to being denied coverage based on a pre-existing condition. Because of the law now, it will be illegal for insurance companies to deny you coverage or charge more because of a pre-existing condition. When the law is fully implemented, people who don’t get insurance through an employer, as well as small businesses trying to find coverage for their employees, will be able to shop in new exchanges, where they’ll have the same purchasing power as big businesses and be eligible for tax credits that make coverage affordable. The law isn’t perfect. We are always willing to work with people of both parties to strengthen it, but we cannot go backwards.
Romney: We can fix the challenges facing our health care system with reforms that emphasize market competition and patient choice. By putting patients at the center of our health care system and making insurers and providers compete against each other for our business, we can lower health care costs and protect Americans’ access to the care they need, including the doctor they choose.
Environmental Regulations
Earlier this year the U.S. Supreme Court ruled in favor of home owners who were told by the EPA to undertake costly mitigation and monitoring of their property before they could get a hearing to determine the presence of wetlands on their property (Sackett v. EPA, 10-1062, March 21, 2012). What steps can the federal government take so that future environmental disputes like this don’t end up in court?
Romney: Respect for private property, clear laws, fair enforcement, and the right to be heard before being deprived of money or property are bedrock principles of our free society. I will modernize our outdated and ambiguous environmental laws, regulations, and enforcement practices to advance our common commitment to natural resource stewardship in ways that restore these principles to prominence. Such actions include providing a speedy and objective process to resolve technical disputes without subjecting our citizens to the senseless delay and expense of going to court.
Obama: With the regulatory process, we’ve made strides to increase transparency, encourage public participation, and promote accountability. The net benefits of regulations issued in the first three years of my administration exceed $91 billion, including both savings and new revenue—25 times greater than in the same period of the previous administration. We are also revisiting rules on the books to see if they make sense so we can continue to produce far greater savings. Agencies have already issued hundreds of regulatory reform proposals, just a fraction of which are expected to save businesses $10 billion over the next five years.
Infrastructure
Although the economy is struggling, and government at all levels is wrestling with budget deficits, is there a place for public investment in infrastructure, including transit projects, which historically has helped pave the way for private investment in communities?
Romney: There is a place for public investment in infrastructure. However, we must be mindful of our budgetary constraints when making these investments. To that end, there are many things apart from spending that the government can do to ensure that public investment in infrastructure is possible—eliminating burdensome regulations, for example, or speeding up project approvals and engaging in private-sector partnerships.
Obama: So much of our infrastructure is in need of repair, and we need all of it to deliver American products around the world. There are hundreds of thousands of construction workers who’ve never been more eager to get back on the job. That’s why I’ve proposed a six-year surface transportation plan to improve the nation’s highways, transit, and rail infrastructure. The proposal is fully paid for, with part of the savings from ramping down overseas military operations. And last September I put forward the American Jobs Act, a set of proposals to create jobs now. Congress passed two of the proposals—cutting payroll taxes by $1,000 for a typical family and extending unemployment insurance—but it left on the table more than half of the plan, comprising infrastructure investments that independent economists estimated could create as many as 1 million jobs. I’ll continue fighting for these and for Project Rebuild, another part of the American Jobs Act, which would help repair our housing infrastructure by putting construction workers back on the job rehabilitating and repurposing distressed properties in hard-hit communities.
Thursday, October 11, 2012
Nat’l foreclosures hit 5-year low in Sept. (reprinted in its entirety from Florida Realtors® website)
WASHINGTON – Oct. 11, 2012 – RealtyTrac issued its foreclosure report for September and the third quarter. Nationally, the news is good: Foreclosure filings – default notices, scheduled auctions and bank repossessions – decreased 7 percent from the previous month and dropped 16 percent in one year. It was the lowest U.S. total since July 2007.
Florida, however, rose to the top of the list for foreclosure starts (LIS) for the first time since 2005. According to RealtyTrac, much of the reason stems from Florida’s status as a judicial foreclosure state. The foreclosure process takes less time in states that don’t require court involvement; as a result, many non-judicial states have already cleared out much of their real estate owned (REO) housing stock.
While an increase in foreclosures appears to be a threat to Florida’s housing recovery, many Realtors say they don’t have enough foreclosures – and that an increase would be welcome.
“Right now, we’re seeing very, very few foreclosures coming onto the market,” Scott Agran, head of Lang Realty in Broward and Palm Beach counties told the Sun Sentinel. “We’re starving for inventory. We could take as much as the banks want to give us.”
National findings
• The monthly and quarterly decrease was driven mostly by big drops in non-judicial foreclosure states, such as California, Georgia, Texas, Arizona and Michigan.
• Several judicial foreclosure states – including Florida, Illinois, Ohio, New Jersey and New York – registered substantial year-over-year increases.
• U.S. foreclosure starts in the third quarter decreased both from the previous quarter and a year ago, reversing a bump in foreclosure starts in the second quarter.
Florida findings
• Florida foreclosure starts (LIS) in September increased 24 percent on a year-over-year basis, the 11th consecutive month with an annual increase. The state’s foreclosure rate ranked highest nationwide for the first time since April 2005.
• In September, Florida bank repossessions (REO) increased 23 percent year over year – the ninth straight month with an annual increase.
• In the third quarter, all levels of Florida foreclosure activity increased 14 percent, but nine states saw a greater percentage increase. In New Jersey, foreclosure activity spiked 130 percent.
• In the third quarter, one of every 117 Florida homeowners with a mortgage was in some stage of the foreclosure process.
• In the third quarter, it took an average of 858 days in Florida to go through a complete foreclosure, which is a slight drop from 861 days in the previous quarter. It took longer in only two other states, New York (1,072 days) and New Jersey (931 days).
© 2012 Florida Realtors®
Florida, however, rose to the top of the list for foreclosure starts (LIS) for the first time since 2005. According to RealtyTrac, much of the reason stems from Florida’s status as a judicial foreclosure state. The foreclosure process takes less time in states that don’t require court involvement; as a result, many non-judicial states have already cleared out much of their real estate owned (REO) housing stock.
While an increase in foreclosures appears to be a threat to Florida’s housing recovery, many Realtors say they don’t have enough foreclosures – and that an increase would be welcome.
“Right now, we’re seeing very, very few foreclosures coming onto the market,” Scott Agran, head of Lang Realty in Broward and Palm Beach counties told the Sun Sentinel. “We’re starving for inventory. We could take as much as the banks want to give us.”
National findings
• The monthly and quarterly decrease was driven mostly by big drops in non-judicial foreclosure states, such as California, Georgia, Texas, Arizona and Michigan.
• Several judicial foreclosure states – including Florida, Illinois, Ohio, New Jersey and New York – registered substantial year-over-year increases.
• U.S. foreclosure starts in the third quarter decreased both from the previous quarter and a year ago, reversing a bump in foreclosure starts in the second quarter.
Florida findings
• Florida foreclosure starts (LIS) in September increased 24 percent on a year-over-year basis, the 11th consecutive month with an annual increase. The state’s foreclosure rate ranked highest nationwide for the first time since April 2005.
• In September, Florida bank repossessions (REO) increased 23 percent year over year – the ninth straight month with an annual increase.
• In the third quarter, all levels of Florida foreclosure activity increased 14 percent, but nine states saw a greater percentage increase. In New Jersey, foreclosure activity spiked 130 percent.
• In the third quarter, one of every 117 Florida homeowners with a mortgage was in some stage of the foreclosure process.
• In the third quarter, it took an average of 858 days in Florida to go through a complete foreclosure, which is a slight drop from 861 days in the previous quarter. It took longer in only two other states, New York (1,072 days) and New Jersey (931 days).
© 2012 Florida Realtors®
Tuesday, October 9, 2012
Is Now the Time to Buy: Part III
One of the biggest questions I field from my clients on a weekly basis is whether or not the market has "bottomed-out" and is now the time to buy.
There are many factors that go into answering such a question so I thought I would address a few of them here.
1). A few weeks ago the Federal Reserve said it would keep the federal funds rate at zero to 1/4 percent at least through mid-2015.
Notwithstanding what impact this will have on inflation after 2015, this effectively means that mortgage rates will stay at record lows over the coming years.
This is a major plus point for any buyer in today's real estate market as with the cost of money at record lows, buyers can buy "more house" than ever before.
2. Inventories are shrinking nationwide (and in my backyard) bolstering prices. Its a simple supply & demand equation. As the inventory drops (supply) and demand remains constant (or even rises) prices are going up.
The big question on this front is whether the shrinking inventory and subsequent increase in price is an artificial new bubble being created by the banks who are sitting on large #s of "shadow inventory".
There is no easy answer to this question but recently I did an analysis of the foreclosure filings in my back yard juxtaposed to the rate of distressed sales and I did find the lis pendens filings remained constant (actually slightly up) from 2011 to 2012 while the # of distressed sales has markedly decreased (over 40% in my area).
So on this point a buyer has to make a decision. Do they wait for the banks to bleed out the remaining distressed inventory, which could take years at the current rate, and possibly buy a home at a lower price per square foot, or do they buy now while prices are starting to tick up again, risking a potential future loss of equity should there be another crash.
This is a personal question each buyer, and their buying circumstances, must answer.
However there is one BIG caveat. Will the banks exhaust their shadow inventory before the FED raises interest rates in 2015 (and by all accounts eventually they must).
For when the rates rise, (and all accounts I read predict a rapid inflation in the future) then whatever gain in price drop by the "over supply" of banks dumping their remaining inventory, will be offset by the increase in the price of money.
By way of example, a mortgage of 200,000 at 3% is a P&I of $843 while that same mortgage at 6% jumps to $1199 a 27% jump in the cost of money. Homes would have to drop in value 27% just to have a net zero affect on a buyer.
Granted one can't predict what interest rates will be in 2 years, assuming inflation kicks in, but I think its highly unlikely prices will drop an additional 27% (especially after the 50+% they've already dropped since 2008).
Further, if rates go even higher (to even 8% which is not unrealistic) then all bets are off since that same 200,000 mortgage now costs in P&I $1467 or a 43% increase in the cost of money.
So as I have stated in previous posts (notwithstanding my inherent bias as a Realtor wanting to sell you a house) the facts and statistics seem to suggest NOW is still the time to buy and take advantage of historically low interest rates, even with lower inventories and rising prices.
As always I welcome your feedback. What do you think?
There are many factors that go into answering such a question so I thought I would address a few of them here.
1). A few weeks ago the Federal Reserve said it would keep the federal funds rate at zero to 1/4 percent at least through mid-2015.
Notwithstanding what impact this will have on inflation after 2015, this effectively means that mortgage rates will stay at record lows over the coming years.
This is a major plus point for any buyer in today's real estate market as with the cost of money at record lows, buyers can buy "more house" than ever before.
2. Inventories are shrinking nationwide (and in my backyard) bolstering prices. Its a simple supply & demand equation. As the inventory drops (supply) and demand remains constant (or even rises) prices are going up.
The big question on this front is whether the shrinking inventory and subsequent increase in price is an artificial new bubble being created by the banks who are sitting on large #s of "shadow inventory".
There is no easy answer to this question but recently I did an analysis of the foreclosure filings in my back yard juxtaposed to the rate of distressed sales and I did find the lis pendens filings remained constant (actually slightly up) from 2011 to 2012 while the # of distressed sales has markedly decreased (over 40% in my area).
So on this point a buyer has to make a decision. Do they wait for the banks to bleed out the remaining distressed inventory, which could take years at the current rate, and possibly buy a home at a lower price per square foot, or do they buy now while prices are starting to tick up again, risking a potential future loss of equity should there be another crash.
This is a personal question each buyer, and their buying circumstances, must answer.
However there is one BIG caveat. Will the banks exhaust their shadow inventory before the FED raises interest rates in 2015 (and by all accounts eventually they must).
For when the rates rise, (and all accounts I read predict a rapid inflation in the future) then whatever gain in price drop by the "over supply" of banks dumping their remaining inventory, will be offset by the increase in the price of money.
By way of example, a mortgage of 200,000 at 3% is a P&I of $843 while that same mortgage at 6% jumps to $1199 a 27% jump in the cost of money. Homes would have to drop in value 27% just to have a net zero affect on a buyer.
Granted one can't predict what interest rates will be in 2 years, assuming inflation kicks in, but I think its highly unlikely prices will drop an additional 27% (especially after the 50+% they've already dropped since 2008).
Further, if rates go even higher (to even 8% which is not unrealistic) then all bets are off since that same 200,000 mortgage now costs in P&I $1467 or a 43% increase in the cost of money.
So as I have stated in previous posts (notwithstanding my inherent bias as a Realtor wanting to sell you a house) the facts and statistics seem to suggest NOW is still the time to buy and take advantage of historically low interest rates, even with lower inventories and rising prices.
As always I welcome your feedback. What do you think?
Wednesday, February 22, 2012
Is Now the Time to Buy: Part II
Statistics don't lie (unless they are of course manipulated like the unemployment numbers we are fed monthly), and according to NAR's latest numbers the median home price is at a 10 year low.
This is an overall stat and it will vary from city to city. For instance prices are actually going UP in my back yard of Coral Gables, FL.
Most of the same factors I mentioned in a previous post still apply.
However if you are employed, have your debt to income under control, and a decent 620+ credit score, most likely you CAN get a loan.
This is an overall stat and it will vary from city to city. For instance prices are actually going UP in my back yard of Coral Gables, FL.
Most of the same factors I mentioned in a previous post still apply.
However if you are employed, have your debt to income under control, and a decent 620+ credit score, most likely you CAN get a loan.
Tuesday, February 21, 2012
Quick Real Estate Survey
I am doing a project to enhance my services and was hoping you’d answer a few quick questions.
1. What do you consider a Realtor should provide you?
2. What do you expect from your Realtor?
3. Are you planning to buy or rent in the next 12 months?
4. Anything else I should know?
Thanks for your time.
Ronald S. Meyerson P.A.
Realtor Lic #3044035
Melo Real Estate
email: ronmeyerson@gmail.com
Blog: www.theycallitlife.blogspot.com
Website: http://meyersonron.sef.mlxchange.com/
Video Chat: http://webvideocall.oovoo.com/callme/apache2112/245
1. What do you consider a Realtor should provide you?
2. What do you expect from your Realtor?
3. Are you planning to buy or rent in the next 12 months?
4. Anything else I should know?
Thanks for your time.
Ronald S. Meyerson P.A.
Realtor Lic #3044035
Melo Real Estate
email: ronmeyerson@gmail.com
Blog: www.theycallitlife.blogspot.com
Website: http://meyersonron.sef.mlxchange.com/
Video Chat: http://webvideocall.oovoo.com/callme/apache2112/245
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