Daily Real Estate News March 26, 2008
Countrywide's Former CEO Takes New JobThe former president of Countrywide Financial Corp., the nation’s largest mortgage lender, is the new chairman and CEO of a company that plans to acquire and restructure distressed mortgages.Stanford Kurland will head Private National Mortgage Acceptance Co. LLC, also known as PennyMac. The company was established to help borrowers restructure loans in order to avoid foreclosure.“We’ll look to restructure mortgages and as soon as the loans are performing, we’ll look to resell,” Kurland said. “Other properties that may take longer, we’re prepared to hold for five to seven years.”Analysts recognized the irony. "He won't be the first or the last person trying to make money on both sides of a trade," said Frederick Cannon, an analyst at Keefe, Bruyette & Woods Inc., who covers Countrywide.
Source: The Associated Press, Ryan Nakashima (03/24/08)
Now this was a smart move! He knows the affect on one...so let's see what will happen!
www.InvestSmarter.com
www.Panama-City-Beach-Florida-Condominiums.com
www.RandBCoastalRealEstate.com
Saturday, March 29, 2008
Refinancing Giving Breathing Room To Some
Daily Real Estate News March 26, 2008
Refinancing Boosts Mortgage Applications
Borrowers hoping to refinance their home mortgages pushed mortgage applications up 50 percent last week, according to the Mortgage Bankers Association’s weekly survey.The index rose 48.1 percent to a seasonally adjusted 965.9 last week compared to the previous week. On an unadjusted basis, the index increased 46.1 percent and was up 41.1 percent compared with the same week a year ago.The refinance index rose 82.2 percent to 4255.2 from 2335.2 the previous week, while the purchase index increased only 10.6 percent. In all, the refinance share of mortgage activity increased to 62 percent of the total.“The Federal Reserve acted last week to bring some stability to the mortgage-backed securities market and we saw an immediate impact with a drop in mortgage rates. "With a drop in the 30-year fixed rate of at least a quarter of a point, we saw a sharp increase in refinance applications, but applications for home purchases also increased over where they have been the last few weeks, although still below where they were this time last year,” said Jay Brinkmann, MBA’s Vice President of Research and Economics.Mortgage rates were down:
30-year fixed-rate mortgages decreased to 5.74 percent from 5.98 percent;
15-year fixed-rate mortgages decreased to 5.23 percent from 5.24 percent;
1-year ARMs increased to 7.02 percent from 6.99 percent.
Source: Mortgage Bankers Association (03/26/2008)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Panama-City-Beach-Florida-MLS.com
Refinancing Boosts Mortgage Applications
Borrowers hoping to refinance their home mortgages pushed mortgage applications up 50 percent last week, according to the Mortgage Bankers Association’s weekly survey.The index rose 48.1 percent to a seasonally adjusted 965.9 last week compared to the previous week. On an unadjusted basis, the index increased 46.1 percent and was up 41.1 percent compared with the same week a year ago.The refinance index rose 82.2 percent to 4255.2 from 2335.2 the previous week, while the purchase index increased only 10.6 percent. In all, the refinance share of mortgage activity increased to 62 percent of the total.“The Federal Reserve acted last week to bring some stability to the mortgage-backed securities market and we saw an immediate impact with a drop in mortgage rates. "With a drop in the 30-year fixed rate of at least a quarter of a point, we saw a sharp increase in refinance applications, but applications for home purchases also increased over where they have been the last few weeks, although still below where they were this time last year,” said Jay Brinkmann, MBA’s Vice President of Research and Economics.Mortgage rates were down:
30-year fixed-rate mortgages decreased to 5.74 percent from 5.98 percent;
15-year fixed-rate mortgages decreased to 5.23 percent from 5.24 percent;
1-year ARMs increased to 7.02 percent from 6.99 percent.
Source: Mortgage Bankers Association (03/26/2008)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Panama-City-Beach-Florida-MLS.com
Market Trend Reports For Panama City and Panama City Beach Florida Area
The Panama City and Panama City Beach Area real estate markets always seem to be changing, but a steady growth is beginning to be developed. Please feel free to review the sales trends below to find out more about the area and the trends for not only residential detached single family, but condomininums and attached single family property in Panama City and Panama City Beach Florida.
FLORIDA
Panama City
2008 Resale Housing Trend Report
2007 Resale Housing Trend Report
Panama City Beach
2008 Resale Housing Trend Report
2007 Resale Housing Trend Report
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
www.Panama-City-Beach-Florida-Commercial-Real-Estate.com
FLORIDA
Panama City
2008 Resale Housing Trend Report
2007 Resale Housing Trend Report
Panama City Beach
2008 Resale Housing Trend Report
2007 Resale Housing Trend Report
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
www.Panama-City-Beach-Florida-Commercial-Real-Estate.com
Thursday, March 27, 2008
Curb Appeal Sells Homes, Survey Says
Daily Real Estate News March 27, 2008
Curb Appeal Sells Homes, Survey Says
A survey of almost 500 real estate agents commissioned by JELD-WEN Windows & Doors indicates the increasing importance of curb appeal in selling a home. According to the Real Estate Agent Community Trends survey, 82 percent of practitioners polled said buyers unimpressed with a home's exterior will not want to look inside. The results also found that 90 percent of respondents said a sale depends on first impressions of the front entry, while 91 percent said the home's exterior is just as important as what is inside. Additionally, 75 percent of those surveyed said natural light is important; while the appearance of windows and doors and the presence of energy-efficient products were mentioned by 71 percent and 63 percent, respectively. Universal design features are gaining in popularity as well, according to 65 percent of agents. Source: BuildingOnline (03/18/08)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
Curb Appeal Sells Homes, Survey Says
A survey of almost 500 real estate agents commissioned by JELD-WEN Windows & Doors indicates the increasing importance of curb appeal in selling a home. According to the Real Estate Agent Community Trends survey, 82 percent of practitioners polled said buyers unimpressed with a home's exterior will not want to look inside. The results also found that 90 percent of respondents said a sale depends on first impressions of the front entry, while 91 percent said the home's exterior is just as important as what is inside. Additionally, 75 percent of those surveyed said natural light is important; while the appearance of windows and doors and the presence of energy-efficient products were mentioned by 71 percent and 63 percent, respectively. Universal design features are gaining in popularity as well, according to 65 percent of agents. Source: BuildingOnline (03/18/08)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
Wednesday, March 26, 2008
Million Dollar Homes at Bargain Prices
Daily Real Estate News March 25, 2008
Million Dollar Homes at Bargain Prices
Now could be a great time to buy a million dollar home in a nice area at a bargain price.Forbes magazine has identified Rancho Santa Fe, Calif., Marco Island, Fla., Castle Rock, Colo., Annandale, Va., and Bergen County, N.J., as five high-end areas where million dollar foreclosures abound.Traditionally good borrowers with strong credit scores previously purchased a lot of these homes. In many cases, the foreclosure has come about because the homes are now worth significantly less than the inflated prices the owners originally paid. The homes have sunk into negative equity situations and the previous owners don’t want to make the payments, so they walk away, says Wendell Cox, founder of Demographia, a housing research company.But foreclosures are not all bad news for the high-end real estate market. Nelson Gonzalez, a practitioner with Esslinger-Wooten-Maxwell, specializing in Miami Beach, says that the rash of foreclosures in Florida, which has the second-highest foreclosure rate in the country, has driven interest from out-of-town and foreign buyers looking to snag a deal. "They think that every house in Florida is in foreclosure," he says. "The offers we're getting are fairly decent, but the sellers are not coming down yet."Source: Forbes, Matt Woolsey (03/13/08)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
Million Dollar Homes at Bargain Prices
Now could be a great time to buy a million dollar home in a nice area at a bargain price.Forbes magazine has identified Rancho Santa Fe, Calif., Marco Island, Fla., Castle Rock, Colo., Annandale, Va., and Bergen County, N.J., as five high-end areas where million dollar foreclosures abound.Traditionally good borrowers with strong credit scores previously purchased a lot of these homes. In many cases, the foreclosure has come about because the homes are now worth significantly less than the inflated prices the owners originally paid. The homes have sunk into negative equity situations and the previous owners don’t want to make the payments, so they walk away, says Wendell Cox, founder of Demographia, a housing research company.But foreclosures are not all bad news for the high-end real estate market. Nelson Gonzalez, a practitioner with Esslinger-Wooten-Maxwell, specializing in Miami Beach, says that the rash of foreclosures in Florida, which has the second-highest foreclosure rate in the country, has driven interest from out-of-town and foreign buyers looking to snag a deal. "They think that every house in Florida is in foreclosure," he says. "The offers we're getting are fairly decent, but the sellers are not coming down yet."Source: Forbes, Matt Woolsey (03/13/08)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
Monday, March 24, 2008
Condos May Flood Overloaded Areas
Daily Real Estate News March 24, 2008
Condos May Flood Overloaded Areas
Thousands of condos are expected to further flood the market this year as the units on which construction was begun during the housing boom hit the market.Reis Inc., a real estate research firm, says more than 4,000 new units are expected to be up for sale in Atlanta and Phoenix this year; developers in Miami and Fort Lauderdale, Fla., are about to release 10,000 more units; San Diego will add 2,500 units.The deluge is bad news for developers and the lenders that provided the money. Lenders of all sizes have $42 billion tied up in condominiums, according to Foresight Analytics. Between the third and fourth quarters of 2007, delinquency on that debt rose to 10 percent from 5.9 percent.Some buyers who have put down a deposit are expected to walk away as prices drop.Source: The Wall Street Journal, Jennifer S. Forsyth and Jonathan Karp (03/22/2008)
www.InvestSmarter.com
www.Destin-Florida-Condominiums.info
www.Panama-City-Beach-Florida-Condominiums.com
Condos May Flood Overloaded Areas
Thousands of condos are expected to further flood the market this year as the units on which construction was begun during the housing boom hit the market.Reis Inc., a real estate research firm, says more than 4,000 new units are expected to be up for sale in Atlanta and Phoenix this year; developers in Miami and Fort Lauderdale, Fla., are about to release 10,000 more units; San Diego will add 2,500 units.The deluge is bad news for developers and the lenders that provided the money. Lenders of all sizes have $42 billion tied up in condominiums, according to Foresight Analytics. Between the third and fourth quarters of 2007, delinquency on that debt rose to 10 percent from 5.9 percent.Some buyers who have put down a deposit are expected to walk away as prices drop.Source: The Wall Street Journal, Jennifer S. Forsyth and Jonathan Karp (03/22/2008)
www.InvestSmarter.com
www.Destin-Florida-Condominiums.info
www.Panama-City-Beach-Florida-Condominiums.com
Friday, March 21, 2008
Market Sales Trends-March 21st-Panama City and Panama City Beach Florida area
Below are the market trends for the Panama City and Panama City Beach Florida area. The breakouts include single family, multi family and condominiums. Please visist the sites listed below for more information on what is available on the market.
FLORIDA
Panama City2008 Resale Housing Trend Report 2007 Resale Housing Trend Report
Panama City Beach2008 Resale Housing Trend Report 2007 Resale Housing Trend Report
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
www.Panama-City-Beach-Florida-Commercial-Real-Estate.com
FLORIDA
Panama City2008 Resale Housing Trend Report 2007 Resale Housing Trend Report
Panama City Beach2008 Resale Housing Trend Report 2007 Resale Housing Trend Report
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
www.Panama-City-Beach-Florida-Commercial-Real-Estate.com
Wednesday, March 19, 2008
Tips for Buying at Auction
Daily Real Estate News March 18, 2008
Tips for Buying at AuctionBen Anderson, a real estate auctioneer and member the National Auctioneers Association, predicts auctions may make up as much as 15 percent to 20 percent of all real estate sales given nationwide foreclosure rates. Traditionally, auctions represent just 8 percent to 10 percent of such sales.Here are his tips for buying at auction:
Conduct due diligence in advance of the auction. Inspect the property. Review any available documentation, such as previous inspections, appraisals, and seller disclosure statements.
Review the title search. The seller's representative usually requests this at the time of the listing.
Arrange for financing. Clarify with the lender the qualifications and the amount available for a loan.
Know the market. Check comparable properties and what they have sold for, and analyze nearby listings.
Review the terms and conditions of the auction. Before auction day get a copy of the purchase agreement and the auctioneer's terms and conditions. Read and understand them.Source:
Denver Post, Christian Toto (03/16/08
www.InvestSmarter.com
www.Panama-City-Beach-Florida-MLS.com
www.30a-Florida-MLS.com
www.Panama-City-Beach-Florida-Commercial-Real-Estate.com
Tips for Buying at AuctionBen Anderson, a real estate auctioneer and member the National Auctioneers Association, predicts auctions may make up as much as 15 percent to 20 percent of all real estate sales given nationwide foreclosure rates. Traditionally, auctions represent just 8 percent to 10 percent of such sales.Here are his tips for buying at auction:
Conduct due diligence in advance of the auction. Inspect the property. Review any available documentation, such as previous inspections, appraisals, and seller disclosure statements.
Review the title search. The seller's representative usually requests this at the time of the listing.
Arrange for financing. Clarify with the lender the qualifications and the amount available for a loan.
Know the market. Check comparable properties and what they have sold for, and analyze nearby listings.
Review the terms and conditions of the auction. Before auction day get a copy of the purchase agreement and the auctioneer's terms and conditions. Read and understand them.Source:
Denver Post, Christian Toto (03/16/08
www.InvestSmarter.com
www.Panama-City-Beach-Florida-MLS.com
www.30a-Florida-MLS.com
www.Panama-City-Beach-Florida-Commercial-Real-Estate.com
IRA and Real Estate
Daily Real Estate News March 19, 2008
Seek Property Bargains for Your IRA
Real estate practitioners who are spying good deals these days and who are confident real estate isn’t far from a turnaround might consider investing their Individual Retirement Account funds in property.“A lot of people prefer real estate. That's where they've been successful and that's what they're comfortable with,” says Bill Humphrey, principal of Entrust New Direction, based in suburban Denver. The office is a member of The Entrust Group, a national firm that serves as an administrator in nontraditional IRA investing.Compared to buying stocks or mutual funds, investing a retirement account in real estate is complex and riddled with IRS regulations. Working with a knowledgeable self-directed IRA administrator is important.Places to turn for more information include:
How to Invest in Real Estate With Your IRA and 401(k) & Pay Little or No Taxes, by Hubert Bromma. McGraw Hill, 2007.
IRS Publication 590: Individual Retirement Arrangements
The Entrust Group's real estate website: Enturst GroupSource: Denver Post, Tom LaRocque (03/09/08)
www.RandBCoastalRealEstate.com
www.InvestSmarter.com
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
Seek Property Bargains for Your IRA
Real estate practitioners who are spying good deals these days and who are confident real estate isn’t far from a turnaround might consider investing their Individual Retirement Account funds in property.“A lot of people prefer real estate. That's where they've been successful and that's what they're comfortable with,” says Bill Humphrey, principal of Entrust New Direction, based in suburban Denver. The office is a member of The Entrust Group, a national firm that serves as an administrator in nontraditional IRA investing.Compared to buying stocks or mutual funds, investing a retirement account in real estate is complex and riddled with IRS regulations. Working with a knowledgeable self-directed IRA administrator is important.Places to turn for more information include:
How to Invest in Real Estate With Your IRA and 401(k) & Pay Little or No Taxes, by Hubert Bromma. McGraw Hill, 2007.
IRS Publication 590: Individual Retirement Arrangements
The Entrust Group's real estate website: Enturst GroupSource: Denver Post, Tom LaRocque (03/09/08)
www.RandBCoastalRealEstate.com
www.InvestSmarter.com
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
Monday, March 17, 2008
Fed Slashes Rates Again
Daily Real Estate News March 17, 2008
Fed Slashes Rates
In an effort to boost market liquidity, the Federal Reserve lowered the discount rate to 3.25 percent from 3.5 percent and launched a new lending program through which money will be moved from securities dealers to the securitization markets. The effort — the latest attempt to stabilize prices of bonds backed by residential loans as delinquencies continue to escalate and home prices tumble — will provide financing for JPMorgan Chase & Co.'s acquisition of Bear Stearns Cos. for approximately $270 million, or about $2 per share. Meanwhile, the central bank could reduce the interest rate affecting consumers and businesses to 2 percent at its March 18 meeting, marking a decline of a full percentage point. Source: Dallas Morning News (03/17/08)
www.Panama-City-Beach-Florida-MLS.com
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
Fed Slashes Rates
In an effort to boost market liquidity, the Federal Reserve lowered the discount rate to 3.25 percent from 3.5 percent and launched a new lending program through which money will be moved from securities dealers to the securitization markets. The effort — the latest attempt to stabilize prices of bonds backed by residential loans as delinquencies continue to escalate and home prices tumble — will provide financing for JPMorgan Chase & Co.'s acquisition of Bear Stearns Cos. for approximately $270 million, or about $2 per share. Meanwhile, the central bank could reduce the interest rate affecting consumers and businesses to 2 percent at its March 18 meeting, marking a decline of a full percentage point. Source: Dallas Morning News (03/17/08)
www.Panama-City-Beach-Florida-MLS.com
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
Friday, March 14, 2008
Panama City and Panama City Beach Florida Trends-March 14th
FLORIDA
Panama City
2008 Resale Housing Trend Report 2007 Resale Housing Trend Report
Panama City Beach
2008 Resale Housing Trend Report 2007 Resale Housing Trend Report
For more information on available properties in these areas please feel free to visit the following:
www.InvestSmater.com
www.RandBCoastalRealEstate.com
For more information and available properties in Panama City and Panama City Beach Florida please visit the following:
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
www.Panama-City-Beach-Florida-Commercial-Real-Estate.com
Panama City
2008 Resale Housing Trend Report 2007 Resale Housing Trend Report
Panama City Beach
2008 Resale Housing Trend Report 2007 Resale Housing Trend Report
For more information on available properties in these areas please feel free to visit the following:
www.InvestSmater.com
www.RandBCoastalRealEstate.com
For more information and available properties in Panama City and Panama City Beach Florida please visit the following:
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
www.Panama-City-Beach-Florida-Commercial-Real-Estate.com
Foreclosures Dip But Remain High
Foreclosures Dip But Remain High
Foreclosures in February were down 4 percent from January, but the rate of foreclosures remain high year-over-year. The February rate was up 57 percent from February 2007. “The year-over-year increase this February was significantly higher than the 19 percent year-over-year increase in February 2007, indicating we have still not reached the peak of foreclosure activity in this cycle," says James J. Saccacio, CEO of RealtyTrac, which markets foreclosed properties.The 10 states with the highest foreclosure rates were, in order, Nevada, California, Florida, Arizona, Colorado, Michigan, Ohio, Georgia, Indiana, and Tennessee.The 10 states with the most foreclosures were, in order, California, Florida, Texas, Michigan, Ohio, Arizona, Illinois, Georgia, Colorado, and Nevada.Source: RealtyTrac (03/13/2008)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
Foreclosures in February were down 4 percent from January, but the rate of foreclosures remain high year-over-year. The February rate was up 57 percent from February 2007. “The year-over-year increase this February was significantly higher than the 19 percent year-over-year increase in February 2007, indicating we have still not reached the peak of foreclosure activity in this cycle," says James J. Saccacio, CEO of RealtyTrac, which markets foreclosed properties.The 10 states with the highest foreclosure rates were, in order, Nevada, California, Florida, Arizona, Colorado, Michigan, Ohio, Georgia, Indiana, and Tennessee.The 10 states with the most foreclosures were, in order, California, Florida, Texas, Michigan, Ohio, Arizona, Illinois, Georgia, Colorado, and Nevada.Source: RealtyTrac (03/13/2008)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
Wednesday, March 12, 2008
Commercial Fundamentals are Steady
Daily Real Estate News March 12, 2008
Commercial Fundamentals are SteadyCommercial real estate market fundamentals are fairly stable, although investment is waning following a record year in 2007, according to the latest Commercial Real Estate Outlook of the NATIONAL ASSOCIATION OF REALTORS® .NAR Chief Economist Lawrence Yun says the commercial real estate market is holding essentially even. “We’re seeing no significant changes in vacancy rates or rent growth, so the fundamentals in commercial real estate still seem to be respectable,” he says. “Under normal circumstances, near-full occupancy coupled with positive rent growth would be of strong interest to investors, but we’re not seeing that. The credit crunch has filtered into the commercial real estate market.” Patricia Nooney of St. Louis, chair of the REALTORS® Commercial Alliance Committee, said the investment cycle appears to be turning. “It looks like investors are taking a wait-and-see attitude,” she says. “Even with fairly stable fundamentals and capital available from institutional investors, it appears investor confidence has declined, and some private investors have had problems obtaining financing. Commercial real estate investment set a new record in 2007, but now that we’re in a period of economic uncertainty, transaction volume is likely to decline.” Investment in commercial real estate in 2007 was $427.2 billion, up 39.2 percent from the previous record of $306.8 billion in 2006; that total does not include transactions valued at less than $5 million or investments in the hospitality sector, based on analysis of data from Real Capital Analytics. NAR projects the investment dollar volume this year could drop by 30 to 40 percent, comparable to 2006 levels.The NAR forecast in four major commercial sectors analyzes quarterly data for various tracked metro areas. The sectors are the office, industrial, retail and multifamily markets. Historic metro data were provided by Torto Wheaton Research and Real Capital Analytics.Office MarketThere is a lag factor in the current office market to backfill space by tenants who moved into newly constructed space. At the same time, concerns about the overall economy are causing some tenants to put expansion or relocation plans on hold. These present a challenge to timely and cost-effectively lease space in older office buildings.Since the level of new supply will be greater this year, office vacancies are expected to rise to 13.3 percent in the fourth quarter from 12.5 percent in the last quarter of 2007. Annual rent growth in the office sector is forecast at 3.5 percent in 2008, following an 8.0 percent gain last year.Estimates for the first quarter show areas with the lowest office vacancies include New York City; Honolulu; Long Island, N.Y.; and San Francisco, all with vacancy rates of 9.4 percent or less.Net absorption of office space in 57 markets tracked, which includes the leasing of new space coming on the market as well as space in existing properties, should total 38.5 million square feet in 2008, down from 57.3 million last year.Office building transaction volume in 2007 totaled a record $211.0 billion, compared with $133.5 billion for 2006. Equity funds accounted for 40 percent of office investment last year. Foreign investors purchased a record $17.7 billion in office buildings last year.Industrial Market Industrial activity remains strong in port and distribution hubs, with relative weakness around many manufacturing centers. International trade continues to play a pivotal role in industrial real estate.Vacancy rates in the industrial sector will probably average 9.6 percent in the fourth quarter of 2008, up from 9.4 percent in the same period last year. Annual rent growth is projected at 3.3 percent by the fourth quarter, down from 3.6 percent at the end of 2007. The areas with the lowest industrial vacancies include Los Angeles; San Francisco; Tucson, Ariz.; Salt Lake City; Orange County, Calif.; and Portland, Ore., all with vacancy rates of 6.1 percent or less. Los Angeles is expected to remain a landlord’s market for the next four to five years.Net absorption of industrial space in 58 markets tracked is likely to total 134.7 million square feet in 2008, up from 120.2 million last year. Industrial transaction volume in 2007 was a record $46.0 billion, compared with $38.9 billion in 2006.Retail MarketThe supply of new retail space is finally being held in check, although secondary markets might be growing because new space often follows population growth. As secondary and tertiary market populations continue to grow, it will become necessary to track those markets in addition to monitoring older retail centers.Vacancy rates in the retail sector are expected to decline to 8.8 percent in the fourth quarter from 9.2 percent in the fourth quarter of 2007. Average retail rent is forecast to grow by 1.4 percent in 2008, compared with a 3.2 percent rise in 2006.Retail markets with the lowest vacancies include Orange County, Calif.; San Francisco; San Jose, Calif.; Washington, D.C.; Las Vegas; Honolulu; and Los Angeles, all with vacancy rates of 5.9 percent or less. Net absorption of retail space in 53 tracked markets is forecast at 24.8 million square feet this year, up from 11.1 million in 2007. Retail transaction volume in 2007 totaled a record $71.6 billion, up from $46.9 billion in 2006. REITs accounted for a quarter of retail transaction volume last year.Multifamily MarketThe apartment rental market—multifamily housing—is attracting risk-averse institutional investors. Of the record $98.6 billion spent in this sector last year, 40 percent of acquisitions were from institutional investors such as pension funds and life insurance companies. Private investors were equally active, accounting for another 40 percent of transactions.Many potential first-time home buyers continue to rent, placing downward pressure on vacancy rates and upward pressure on rents. The number of new multilfamily units remains relatively high, due in part to the conversion of condo projects into rental buildings, notably in the Washington, D.C., area and South Florida.Multifamily vacancy rates should average 4.8 percent in the fourth quarter, down from 5.1 percent in the fourth quarter of 2007.
Average rent is seen to rise 5.3 percent in 2008, up from a 3.1 percent increase in 2007.
Multifamily net absorption is estimated at 245,800 units in 59 tracked metro areas in 2008, up from 234,400 last year.The current national vacancy rate is 4.7 percent, below the 5.0 percent level which is considered landlord’s market. The areas with the lowest apartment vacancies include Northern New Jersey, San Jose, Miami, Salt Lake City and San Diego, all with vacancy rates of 2.9 percent or less.— REALTOR® magazine onlineRead additional news about NAR's commercial activities.For more economic news and research reports, visit NAR's Research division at REALTOR.org.
www.InvestSmarter.com
www.Panama-City-Beach-Florida-Condominiums.com
www.Destin-Florida-Condominiums.info
Commercial Fundamentals are SteadyCommercial real estate market fundamentals are fairly stable, although investment is waning following a record year in 2007, according to the latest Commercial Real Estate Outlook of the NATIONAL ASSOCIATION OF REALTORS® .NAR Chief Economist Lawrence Yun says the commercial real estate market is holding essentially even. “We’re seeing no significant changes in vacancy rates or rent growth, so the fundamentals in commercial real estate still seem to be respectable,” he says. “Under normal circumstances, near-full occupancy coupled with positive rent growth would be of strong interest to investors, but we’re not seeing that. The credit crunch has filtered into the commercial real estate market.” Patricia Nooney of St. Louis, chair of the REALTORS® Commercial Alliance Committee, said the investment cycle appears to be turning. “It looks like investors are taking a wait-and-see attitude,” she says. “Even with fairly stable fundamentals and capital available from institutional investors, it appears investor confidence has declined, and some private investors have had problems obtaining financing. Commercial real estate investment set a new record in 2007, but now that we’re in a period of economic uncertainty, transaction volume is likely to decline.” Investment in commercial real estate in 2007 was $427.2 billion, up 39.2 percent from the previous record of $306.8 billion in 2006; that total does not include transactions valued at less than $5 million or investments in the hospitality sector, based on analysis of data from Real Capital Analytics. NAR projects the investment dollar volume this year could drop by 30 to 40 percent, comparable to 2006 levels.The NAR forecast in four major commercial sectors analyzes quarterly data for various tracked metro areas. The sectors are the office, industrial, retail and multifamily markets. Historic metro data were provided by Torto Wheaton Research and Real Capital Analytics.Office MarketThere is a lag factor in the current office market to backfill space by tenants who moved into newly constructed space. At the same time, concerns about the overall economy are causing some tenants to put expansion or relocation plans on hold. These present a challenge to timely and cost-effectively lease space in older office buildings.Since the level of new supply will be greater this year, office vacancies are expected to rise to 13.3 percent in the fourth quarter from 12.5 percent in the last quarter of 2007. Annual rent growth in the office sector is forecast at 3.5 percent in 2008, following an 8.0 percent gain last year.Estimates for the first quarter show areas with the lowest office vacancies include New York City; Honolulu; Long Island, N.Y.; and San Francisco, all with vacancy rates of 9.4 percent or less.Net absorption of office space in 57 markets tracked, which includes the leasing of new space coming on the market as well as space in existing properties, should total 38.5 million square feet in 2008, down from 57.3 million last year.Office building transaction volume in 2007 totaled a record $211.0 billion, compared with $133.5 billion for 2006. Equity funds accounted for 40 percent of office investment last year. Foreign investors purchased a record $17.7 billion in office buildings last year.Industrial Market Industrial activity remains strong in port and distribution hubs, with relative weakness around many manufacturing centers. International trade continues to play a pivotal role in industrial real estate.Vacancy rates in the industrial sector will probably average 9.6 percent in the fourth quarter of 2008, up from 9.4 percent in the same period last year. Annual rent growth is projected at 3.3 percent by the fourth quarter, down from 3.6 percent at the end of 2007. The areas with the lowest industrial vacancies include Los Angeles; San Francisco; Tucson, Ariz.; Salt Lake City; Orange County, Calif.; and Portland, Ore., all with vacancy rates of 6.1 percent or less. Los Angeles is expected to remain a landlord’s market for the next four to five years.Net absorption of industrial space in 58 markets tracked is likely to total 134.7 million square feet in 2008, up from 120.2 million last year. Industrial transaction volume in 2007 was a record $46.0 billion, compared with $38.9 billion in 2006.Retail MarketThe supply of new retail space is finally being held in check, although secondary markets might be growing because new space often follows population growth. As secondary and tertiary market populations continue to grow, it will become necessary to track those markets in addition to monitoring older retail centers.Vacancy rates in the retail sector are expected to decline to 8.8 percent in the fourth quarter from 9.2 percent in the fourth quarter of 2007. Average retail rent is forecast to grow by 1.4 percent in 2008, compared with a 3.2 percent rise in 2006.Retail markets with the lowest vacancies include Orange County, Calif.; San Francisco; San Jose, Calif.; Washington, D.C.; Las Vegas; Honolulu; and Los Angeles, all with vacancy rates of 5.9 percent or less. Net absorption of retail space in 53 tracked markets is forecast at 24.8 million square feet this year, up from 11.1 million in 2007. Retail transaction volume in 2007 totaled a record $71.6 billion, up from $46.9 billion in 2006. REITs accounted for a quarter of retail transaction volume last year.Multifamily MarketThe apartment rental market—multifamily housing—is attracting risk-averse institutional investors. Of the record $98.6 billion spent in this sector last year, 40 percent of acquisitions were from institutional investors such as pension funds and life insurance companies. Private investors were equally active, accounting for another 40 percent of transactions.Many potential first-time home buyers continue to rent, placing downward pressure on vacancy rates and upward pressure on rents. The number of new multilfamily units remains relatively high, due in part to the conversion of condo projects into rental buildings, notably in the Washington, D.C., area and South Florida.Multifamily vacancy rates should average 4.8 percent in the fourth quarter, down from 5.1 percent in the fourth quarter of 2007.
Average rent is seen to rise 5.3 percent in 2008, up from a 3.1 percent increase in 2007.
Multifamily net absorption is estimated at 245,800 units in 59 tracked metro areas in 2008, up from 234,400 last year.The current national vacancy rate is 4.7 percent, below the 5.0 percent level which is considered landlord’s market. The areas with the lowest apartment vacancies include Northern New Jersey, San Jose, Miami, Salt Lake City and San Diego, all with vacancy rates of 2.9 percent or less.— REALTOR® magazine onlineRead additional news about NAR's commercial activities.For more economic news and research reports, visit NAR's Research division at REALTOR.org.
www.InvestSmarter.com
www.Panama-City-Beach-Florida-Condominiums.com
www.Destin-Florida-Condominiums.info
Lending Standards Will Stay Tight
Daily Real Estate News March 12, 2008
Lending Standards Will Stay TightThe loan a borrower qualifies for on Monday is likely to be out of reach on Tuesday because lenders are changing the rules hourly, industry observers say. For those who can meet the rapidly changing lending standards, the plan announced Tuesday by the Federal Reserve to loosen credit by providing $200 billion to the financial services sector should make plenty of money available at lower interest rates, says David Wyss, chief economist at Standard & Poor’s.Last year a borrower could get complete financing on a $300,000 home with a mortgage alone or in combination with a home equity loan or line of credit. Today, that same borrower likely needs $60,000 for a down payment, plus a credit score higher than 680."Credit is the gateway right now," says Dan Green, a certified mortgage planning specialist and author of TheMortgageReports.com. "Weak credit is cost prohibitive."Source: The Associated Press (03/11/2008)
www.Panama-City-Beach-Florida-MLS.com
www.Destin-Florida-MLS.com
Lending Standards Will Stay TightThe loan a borrower qualifies for on Monday is likely to be out of reach on Tuesday because lenders are changing the rules hourly, industry observers say. For those who can meet the rapidly changing lending standards, the plan announced Tuesday by the Federal Reserve to loosen credit by providing $200 billion to the financial services sector should make plenty of money available at lower interest rates, says David Wyss, chief economist at Standard & Poor’s.Last year a borrower could get complete financing on a $300,000 home with a mortgage alone or in combination with a home equity loan or line of credit. Today, that same borrower likely needs $60,000 for a down payment, plus a credit score higher than 680."Credit is the gateway right now," says Dan Green, a certified mortgage planning specialist and author of TheMortgageReports.com. "Weak credit is cost prohibitive."Source: The Associated Press (03/11/2008)
www.Panama-City-Beach-Florida-MLS.com
www.Destin-Florida-MLS.com
Buy Now, says Foreclosure Expert
Daily Real Estate News March 12, 2008
Buy Now, says Foreclosure ExpertNow’s the time to pick up properties at fire sale prices, says Ralph R. Roberts, author of Foreclosure Investing for Dummies and Flipping Houses for Dummies."Properties could double in value over the next 10 years. But you have to be willing to go in, buy them, and hang on for the longer term," he advises.Roberts, owner of Ralph Roberts Realty in suburban Detroit, who says he has bought and sold more than 2,000 foreclosed properties in his career, believes profitable investing in foreclosures requires exhaustive records searches in advance.Roberts recommends that buyers of foreclosures create a file that contains a range of property information that will establish what the property is worth and help avoid bureaucratic snafus. Here is his list of must-have information:
A copy of the foreclosure notice, or notice of default;
Title commitment and a 24-month history in the chain of title or the last two recorded documents
Deed with the current homeowners' names.
Last recorded first mortgage, so you know how much the current homeowners owe.
Documentation of all liens against the property, including property tax liens.
Map showing the location of the property.
Exterior home inspection (with photos and videos), plus neighborhood photos.
City worksheet on the property showing all repairs, inspection reports and other information.
MLS data showing how much comparable homes are selling for in the area;
Tax bills.
SEV (standard equalized value) of the property, on which property taxes are based.
Any notes documenting conversations with neighbors.Source: ThinkGlink.com, Ilyce Glink (03/07/2008)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
Buy Now, says Foreclosure ExpertNow’s the time to pick up properties at fire sale prices, says Ralph R. Roberts, author of Foreclosure Investing for Dummies and Flipping Houses for Dummies."Properties could double in value over the next 10 years. But you have to be willing to go in, buy them, and hang on for the longer term," he advises.Roberts, owner of Ralph Roberts Realty in suburban Detroit, who says he has bought and sold more than 2,000 foreclosed properties in his career, believes profitable investing in foreclosures requires exhaustive records searches in advance.Roberts recommends that buyers of foreclosures create a file that contains a range of property information that will establish what the property is worth and help avoid bureaucratic snafus. Here is his list of must-have information:
A copy of the foreclosure notice, or notice of default;
Title commitment and a 24-month history in the chain of title or the last two recorded documents
Deed with the current homeowners' names.
Last recorded first mortgage, so you know how much the current homeowners owe.
Documentation of all liens against the property, including property tax liens.
Map showing the location of the property.
Exterior home inspection (with photos and videos), plus neighborhood photos.
City worksheet on the property showing all repairs, inspection reports and other information.
MLS data showing how much comparable homes are selling for in the area;
Tax bills.
SEV (standard equalized value) of the property, on which property taxes are based.
Any notes documenting conversations with neighbors.Source: ThinkGlink.com, Ilyce Glink (03/07/2008)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
Why It's Smart to Invest Now
Now is a great time to buy a home, say the financial gurus at the Wall Street Journal.
The Journal calls it a buyers market and offers these suggestions for first-timers getting their feet wet. While their advice is solid, it’s not revolutionary, but some potential customers might find it reassuring.Remember this is a place to live not a stock market investment, they say. Lenders want buyers to spend no more than 28 percent of their gross monthly income on mortgage payments, real estate taxes, and home insurance. Buyers shouldn’t count on stretching further because lenders won’t approve their loans.
Cash is king. Having enough money in the bank to pay closing costs that are typically an additional 2 percent to 3 percent of the price of the home is necessary.
Location. Location, location. As any good real estate professional knows, homes in good school districts where the crime is low are much more likely to hold or increase their value.
Compare. Besides just looking at the comps, buyers should examine what it would cost to rent a similar house in the same area and they might consider what it would cost to buy land and build a comparable home.
Think long haul. It will probably take at least six or seven years of living in the house to be able to sell and come out ahead.Source: The Wall Street Journal, Shelly Banjo (03/11/08)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
The Journal calls it a buyers market and offers these suggestions for first-timers getting their feet wet. While their advice is solid, it’s not revolutionary, but some potential customers might find it reassuring.Remember this is a place to live not a stock market investment, they say. Lenders want buyers to spend no more than 28 percent of their gross monthly income on mortgage payments, real estate taxes, and home insurance. Buyers shouldn’t count on stretching further because lenders won’t approve their loans.
Cash is king. Having enough money in the bank to pay closing costs that are typically an additional 2 percent to 3 percent of the price of the home is necessary.
Location. Location, location. As any good real estate professional knows, homes in good school districts where the crime is low are much more likely to hold or increase their value.
Compare. Besides just looking at the comps, buyers should examine what it would cost to rent a similar house in the same area and they might consider what it would cost to buy land and build a comparable home.
Think long haul. It will probably take at least six or seven years of living in the house to be able to sell and come out ahead.Source: The Wall Street Journal, Shelly Banjo (03/11/08)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
Monday, March 10, 2008
Lease To Own
Daily Real Estate News March 10, 2008
Lease-to-Own PrimerLease-to-own agreements can help sell a hard-to-sell property during a sluggish housing market.
Here’s how they work:
A seller agrees to rent a property to an interested buyer for a set period of time, usually one to three years. At the end of the lease, the buyer has the option to purchase the home at a preset price.
A portion of the monthly rent paid during the lease is usually counted toward the down payment. To cover that, the seller charges a rent increment or monthly premium of $200 to $300 compared to comparable rentals.
Many owners also charge an option fee for taking the property off the market, usually 1 percent to 2 percent of the sale price. This may be applied toward the purchase.
Sellers have no guarantee that renters will buy at the end of the term, but if they don’t, they keep the option fee and the amount of the rent that would have gone toward the down payment.Source: Orlando Sentinel (03/09/08)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
http://www.investsmarter.com/forum/showthread.php?p=1#post1
Lease-to-Own PrimerLease-to-own agreements can help sell a hard-to-sell property during a sluggish housing market.
Here’s how they work:
A seller agrees to rent a property to an interested buyer for a set period of time, usually one to three years. At the end of the lease, the buyer has the option to purchase the home at a preset price.
A portion of the monthly rent paid during the lease is usually counted toward the down payment. To cover that, the seller charges a rent increment or monthly premium of $200 to $300 compared to comparable rentals.
Many owners also charge an option fee for taking the property off the market, usually 1 percent to 2 percent of the sale price. This may be applied toward the purchase.
Sellers have no guarantee that renters will buy at the end of the term, but if they don’t, they keep the option fee and the amount of the rent that would have gone toward the down payment.Source: Orlando Sentinel (03/09/08)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
http://www.investsmarter.com/forum/showthread.php?p=1#post1
Even Second Homes Qualify
Daily Real Estate News March 7, 2008Tax Benefits of Owning a HomeBefore a home owner curses the troubled housing market, he or she should take solace in the U.S. tax code, which makes buying a home a good deal for almost everyone.Here’s why:Mortgage interest deductions, including in some cases mortgage insurance premiums, reduce home owners’ tax liability by reducing income. The deduction includes interest paid on both a first and a second home. Interest on home equity loans is also deductible — whether the borrower uses the money to remodel the kitchen or to take a vacation to Disney World.Profits from selling a house are potentially a huge windfall. When a home owner sells a primary residence, any profit on the sale of the property is tax free up to $250,000 for single home owners and $500,000 for married home owners filing. Any profit above that is nearly always a long-term capital gain taxed at 15 percent — less if the seller’s tax rate is less than 20 percent.Home owners can itemize. That opens up opportunities to deduct a host of other items that wouldn’t be deductible if the taxpayer took the standard deduction.Source: The Boston Globe, Leonard Wiener (03/02/08
www.Panama-City-Beach-Florida-Condominiums.com
www.Panama-City-Beach-Florida-Condominiums.com
Interest Rates Drop Again
Daily Real Estate News March 7, 2008Mortgage Rates Drop This WeekFreddie Mac says the 30-year fixed mortgage rate fell to 6.03 percent during the week ended March 6, from 6.24 percent the prior week. Interest on 15-year, fixed-rate mortgages also declined, falling to 5.47 percent from 5.72 percent over the same period. The five-year adjustable mortgage rate dipped to 5.34 percent from 5.43 percent, while the one-year ARM dropped to 4.94 percent from 5.11 percent. Freddie Mac chief economist Frank Nothaft attributes the decrease in mortgage rates to reports of weakness in the job market, manufacturing sector, and consumer confidence. Source: San Diego Union-Tribune (03/07/08)
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-MLS.com
Landlords Facing Foreclosure
HOUSING MARKET
Tenants: Be aware of landlords facing foreclosure
Landlords have always asked potential tenants about their financial situation. But in today's housing market, renters may need to ask if potential landlords are facing foreclosure
BY SCOTT ANDRON
sandron@MiamiHerald.com
function PopupPic(sPicURLx, sHeight, sWidth) {
var sPicURL = "/top_stories/v-morephotos/story/450445.html";
y=Math.floor((screen.availHeight-sHeight)/2);
x=Math.floor((screen.width-sWidth)/2); window.open(sPicURL,"slideshow","width="+sWidth+",height="+sHeight+",top="+y+",left="+x+",scrollbars=auto,resizable=yes").focus(); }
DAVID ADAME / FOR THE HERALD
One night last fall, a process server went to Dan Dixon's house and gave him papers informing him of the foreclosure. Dixon stands in front of the house he continues to rent even though the bank has foreclosed on the owner. He is moving soon.
Audio Attorney Samira Ghazal explains the challenges renters are facing when their landlords undergo foreclosure
What to do before you rent
Rent vs. buy: Decision is personal
Would-be home buyers become renters
While South Florida's falling housing prices may favor renting rather than buying right now, the recent real estate bubble is also creating new risks for tenants.
Plenty of homes and condos are available for lease because their owners can't sell them, giving renters a variety of options. The problem is that many of the owners may not be on steady financial footing.
If they end up in foreclosure, tenants can be kicked out -- despite having a lease.
''That's happening. A lot of people are losing their homes,'' said Samira Ghazal, a Miami consumer lawyer. ``They don't know if the landlord is paying the mortgage or not. Then they end up getting evicted.''
Even if they are not formally evicted, many tenants are forced to move prematurely, resulting in unplanned moving expenses and family disruptions.
Katina Scott is a case in point.
About 10 months ago, she and her five children moved into a new four-bedroom home in the Blue Waters subdivision, near Cutler Ridge in South Miami-Dade County. Scott said the landlady promised her the house would be available for two years.
Then, one night in October, shortly before 11 p.m., a process server came to the house with court papers indicating that the place was in foreclosure.
Scott plans to move soon, but it's a nuisance, especially if the children have to change schools. ''I can't just up and leave like that,'' she said.
A few blocks away, Dan Dixon is in the same situation with a different landlord. Dixon was planning to move soon anyway, but his landlord's foreclosure still has him a bit worried.
''My fear is coming home one day and finding a padlock on my door,'' he said.
Why is this happening?
RELUCTANT LANDLORDS
Many landlords never planned to be landlords. They bought condos and houses, planning to resell them quickly at a profit. Or they needed to move out of the area but can't afford to without making some money on the property. They became landlords reluctantly when condo and house prices started to fall.
Most of these people seem to be paying more in monthly mortgage payments, condo fees and taxes than they can possibly charge in rent. Some have mortgages with low first-year interest rates that rise dramatically later. And as prices fall, some will find themselves owing more than their property is worth.
This all can mean foreclosure for the landlord -- and an unplanned, mid-lease move for the tenant.
FINANCIAL TROUBLE
It's hard to say how many tenants are in this situation.
But what is clear is that tens of thousands of South Florida properties are in serious financial trouble.
In Miami-Dade and Broward counties, more than 70,000 residential property owners failed to pay their 2006 property-tax bills, according to a Miami Herald analysis in November.
Of those, roughly two-thirds were investors, second-home owners, and others with no homestead exemption, the analysis showed. Some of those dwellings are rental properties.
People looking to rent right now may want to ask some questions of their prospective landlord and check county records, available online, to see whether the property is in foreclosure. A little advance research could prevent headaches later.
If you're in a rental that's in foreclosure, bear in mind that your lease probably won't prevent you from being kicked out.
In most cases, foreclosure wipes out the lease, enabling the lender to evict tenants.
The good news: There is usually plenty of notice. At the beginning of the foreclosure, a process server comes to the house, as happened with Scott.
At that point, the tenant can write a legal ''answer'' and send it to the court. That would make you a party to the case, with the right to be kept up to date with developments and attend hearings.
Lawyers say the typical foreclosure can take three months to a year to resolve. The tenant can't stop the foreclosure but might be able to negotiate for more time.
EXTRA EXPENSES
Foreclosures can create expenses for tenants, such as moving costs. If the foreclosure forces you to move before your lease expires, you can demand that the landlord pay your moving expenses. If the landlord refuses, you can sue in small-claims court, said Janet Portman, managing editor of legal self-help publisher Nolo Press and author of several books on landlord-tenant law.
''The landlord promised you the place for a year,'' she said. Foreclosure ``doesn't excuse him for failing to deliver that property.''
It might be hard to get money out of someone who can't pay the mortgage, however, and suing can drain a lot of time and emotional energy. Tenants need to weigh that against the amount of money that might be recovered, said Ghazal, the consumer lawyer. Each case is different.
''Sometimes it's better to lick your wounds and move on,'' Ghazal said.
EYE ON FORECLOSURE
While the chances of recovering money from your landlord may be hard to size up, this much is clear: Tenants should not ignore news that their landlord is in foreclosure.
That could lead to disaster, Ghazal said: ``They end up with their stuff in the middle of the street.''
var comment_headline=$('#storyBody > h1:first').text ();
Join the discussionThe Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from personal comments and remarks that are off point. In order to post comments, you must be a registered user of MiamiHerald.com. Your username will show along with the comments you post. Not a registered user? It's Free! Register here. Thank you for taking the time to offer your thoughts.
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
Tenants: Be aware of landlords facing foreclosure
Landlords have always asked potential tenants about their financial situation. But in today's housing market, renters may need to ask if potential landlords are facing foreclosure
BY SCOTT ANDRON
sandron@MiamiHerald.com
function PopupPic(sPicURLx, sHeight, sWidth) {
var sPicURL = "/top_stories/v-morephotos/story/450445.html";
y=Math.floor((screen.availHeight-sHeight)/2);
x=Math.floor((screen.width-sWidth)/2); window.open(sPicURL,"slideshow","width="+sWidth+",height="+sHeight+",top="+y+",left="+x+",scrollbars=auto,resizable=yes").focus(); }
DAVID ADAME / FOR THE HERALD
One night last fall, a process server went to Dan Dixon's house and gave him papers informing him of the foreclosure. Dixon stands in front of the house he continues to rent even though the bank has foreclosed on the owner. He is moving soon.
Audio Attorney Samira Ghazal explains the challenges renters are facing when their landlords undergo foreclosure
What to do before you rent
Rent vs. buy: Decision is personal
Would-be home buyers become renters
While South Florida's falling housing prices may favor renting rather than buying right now, the recent real estate bubble is also creating new risks for tenants.
Plenty of homes and condos are available for lease because their owners can't sell them, giving renters a variety of options. The problem is that many of the owners may not be on steady financial footing.
If they end up in foreclosure, tenants can be kicked out -- despite having a lease.
''That's happening. A lot of people are losing their homes,'' said Samira Ghazal, a Miami consumer lawyer. ``They don't know if the landlord is paying the mortgage or not. Then they end up getting evicted.''
Even if they are not formally evicted, many tenants are forced to move prematurely, resulting in unplanned moving expenses and family disruptions.
Katina Scott is a case in point.
About 10 months ago, she and her five children moved into a new four-bedroom home in the Blue Waters subdivision, near Cutler Ridge in South Miami-Dade County. Scott said the landlady promised her the house would be available for two years.
Then, one night in October, shortly before 11 p.m., a process server came to the house with court papers indicating that the place was in foreclosure.
Scott plans to move soon, but it's a nuisance, especially if the children have to change schools. ''I can't just up and leave like that,'' she said.
A few blocks away, Dan Dixon is in the same situation with a different landlord. Dixon was planning to move soon anyway, but his landlord's foreclosure still has him a bit worried.
''My fear is coming home one day and finding a padlock on my door,'' he said.
Why is this happening?
RELUCTANT LANDLORDS
Many landlords never planned to be landlords. They bought condos and houses, planning to resell them quickly at a profit. Or they needed to move out of the area but can't afford to without making some money on the property. They became landlords reluctantly when condo and house prices started to fall.
Most of these people seem to be paying more in monthly mortgage payments, condo fees and taxes than they can possibly charge in rent. Some have mortgages with low first-year interest rates that rise dramatically later. And as prices fall, some will find themselves owing more than their property is worth.
This all can mean foreclosure for the landlord -- and an unplanned, mid-lease move for the tenant.
FINANCIAL TROUBLE
It's hard to say how many tenants are in this situation.
But what is clear is that tens of thousands of South Florida properties are in serious financial trouble.
In Miami-Dade and Broward counties, more than 70,000 residential property owners failed to pay their 2006 property-tax bills, according to a Miami Herald analysis in November.
Of those, roughly two-thirds were investors, second-home owners, and others with no homestead exemption, the analysis showed. Some of those dwellings are rental properties.
People looking to rent right now may want to ask some questions of their prospective landlord and check county records, available online, to see whether the property is in foreclosure. A little advance research could prevent headaches later.
If you're in a rental that's in foreclosure, bear in mind that your lease probably won't prevent you from being kicked out.
In most cases, foreclosure wipes out the lease, enabling the lender to evict tenants.
The good news: There is usually plenty of notice. At the beginning of the foreclosure, a process server comes to the house, as happened with Scott.
At that point, the tenant can write a legal ''answer'' and send it to the court. That would make you a party to the case, with the right to be kept up to date with developments and attend hearings.
Lawyers say the typical foreclosure can take three months to a year to resolve. The tenant can't stop the foreclosure but might be able to negotiate for more time.
EXTRA EXPENSES
Foreclosures can create expenses for tenants, such as moving costs. If the foreclosure forces you to move before your lease expires, you can demand that the landlord pay your moving expenses. If the landlord refuses, you can sue in small-claims court, said Janet Portman, managing editor of legal self-help publisher Nolo Press and author of several books on landlord-tenant law.
''The landlord promised you the place for a year,'' she said. Foreclosure ``doesn't excuse him for failing to deliver that property.''
It might be hard to get money out of someone who can't pay the mortgage, however, and suing can drain a lot of time and emotional energy. Tenants need to weigh that against the amount of money that might be recovered, said Ghazal, the consumer lawyer. Each case is different.
''Sometimes it's better to lick your wounds and move on,'' Ghazal said.
EYE ON FORECLOSURE
While the chances of recovering money from your landlord may be hard to size up, this much is clear: Tenants should not ignore news that their landlord is in foreclosure.
That could lead to disaster, Ghazal said: ``They end up with their stuff in the middle of the street.''
var comment_headline=$('#storyBody > h1:first').text ();
Join the discussionThe Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from personal comments and remarks that are off point. In order to post comments, you must be a registered user of MiamiHerald.com. Your username will show along with the comments you post. Not a registered user? It's Free! Register here. Thank you for taking the time to offer your thoughts.
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
Thursday, March 6, 2008
Raise the GSE Limit! Please!!!
Daily Real Estate News March 6, 2008
NAR Urges Increase in National Loan Limits The NATIONAL ASSOCIATION OF REALTORS® today called on the U.S. Senate to enact reform legislation for the nation’s government-sponsored enterprises (GSEs) that will protect the vibrancy, liquidity and stability of the U.S. housing finance system.In testimony before the Senate Committee on Banking, Housing and Urban Affairs, NAR urged the Senate to permanently raise the national GSE conforming loan limits to $625,000 with an additional increase of 125 percent of the local median home-sales price in high-cost areas. “We believe this move will boost the housing market and the economy by bolstering home buyer confidence and bringing families back into the marketplace,” says Vince Malta, chair of NAR’s Public Policy Coordinating Committee and a broker-owner from San Francisco. “That would increase home sales by nearly 350,000, lower inventories, and increase home prices by two to three percent. It would also result in as many as 210,000 fewer foreclosures, and more than 500,000 borrowers would be able to refinance into lower interest rate loans.”NAR reiterated its eagerness for the committee to pursue GSE reform legislation similar to the Federal Housing Finance Reform Act of 2007 passed last year in the House, which, in addition to raising loan limits, would create a strong regulator and sound governance principles, preserve and protect the GSEs vital housing mission, and allow flexibility for new program approval.“Fannie Mae and Freddie Mac provide liquidly and stability in the mortgage market and are vital to the housing sector,” says Malta. “Targeted reform should strengthen and expand their presence in the housing finance system, especially now when we need them the most. The recent problems in the credit markets show just how vital the GSEs’ housing mission is to America’s families and to our nation. We all must work together to sustain and improve the performance and safety of Fannie Mae and Freddie Mac.”
— REALTOR® magazine onlineThe economic stimulus package that President Bush signed into law in February includes increases in loan limits for Fannie Mae, Freddie Mac, and the FHA. To read more of what impact this will have on REALTORS® visit REALTOR.org.
www.InvestSmarter.com
www.Panama-City-Beach-Florida-Condominiums.com
www.Destin-Florida-Condominiums.com
NAR Urges Increase in National Loan Limits The NATIONAL ASSOCIATION OF REALTORS® today called on the U.S. Senate to enact reform legislation for the nation’s government-sponsored enterprises (GSEs) that will protect the vibrancy, liquidity and stability of the U.S. housing finance system.In testimony before the Senate Committee on Banking, Housing and Urban Affairs, NAR urged the Senate to permanently raise the national GSE conforming loan limits to $625,000 with an additional increase of 125 percent of the local median home-sales price in high-cost areas. “We believe this move will boost the housing market and the economy by bolstering home buyer confidence and bringing families back into the marketplace,” says Vince Malta, chair of NAR’s Public Policy Coordinating Committee and a broker-owner from San Francisco. “That would increase home sales by nearly 350,000, lower inventories, and increase home prices by two to three percent. It would also result in as many as 210,000 fewer foreclosures, and more than 500,000 borrowers would be able to refinance into lower interest rate loans.”NAR reiterated its eagerness for the committee to pursue GSE reform legislation similar to the Federal Housing Finance Reform Act of 2007 passed last year in the House, which, in addition to raising loan limits, would create a strong regulator and sound governance principles, preserve and protect the GSEs vital housing mission, and allow flexibility for new program approval.“Fannie Mae and Freddie Mac provide liquidly and stability in the mortgage market and are vital to the housing sector,” says Malta. “Targeted reform should strengthen and expand their presence in the housing finance system, especially now when we need them the most. The recent problems in the credit markets show just how vital the GSEs’ housing mission is to America’s families and to our nation. We all must work together to sustain and improve the performance and safety of Fannie Mae and Freddie Mac.”
— REALTOR® magazine onlineThe economic stimulus package that President Bush signed into law in February includes increases in loan limits for Fannie Mae, Freddie Mac, and the FHA. To read more of what impact this will have on REALTORS® visit REALTOR.org.
www.InvestSmarter.com
www.Panama-City-Beach-Florida-Condominiums.com
www.Destin-Florida-Condominiums.com
Another Rate Cut?
Daily Real Estate News March 6, 2008
Another Rate Cut Expected SoonThe Federal Reserve is expected to again cut key interest rates – now at 3 percent – at its next meeting on March 18. Futures market investors are betting the cut will be at least a half-percentage point. Some have predicted a three-quarter-percentage point cut, but most analysts believe the Fed doesn’t view the situation as dire enough for that and the Fed has said it fears fueling inflation.The Fed's quarterly Beige Book report, released this week, said housing markets in just about every area of the country were weak, and were characterized by low demand, high inventories, and falling prices. It also found consumers and businesses are growing more cautious.
www.Panama-City-Beach-Florida-MLS.com for your Panama City and Panama City Beach Needs
www.Destin-Florida-MLS.com for your Destin Florida and surrounding area needs
Another Rate Cut Expected SoonThe Federal Reserve is expected to again cut key interest rates – now at 3 percent – at its next meeting on March 18. Futures market investors are betting the cut will be at least a half-percentage point. Some have predicted a three-quarter-percentage point cut, but most analysts believe the Fed doesn’t view the situation as dire enough for that and the Fed has said it fears fueling inflation.The Fed's quarterly Beige Book report, released this week, said housing markets in just about every area of the country were weak, and were characterized by low demand, high inventories, and falling prices. It also found consumers and businesses are growing more cautious.
www.Panama-City-Beach-Florida-MLS.com for your Panama City and Panama City Beach Needs
www.Destin-Florida-MLS.com for your Destin Florida and surrounding area needs
Home Sellers Seek Conversions
Home sellers seeking conversions
More Sarasota property owners want to turn their houses into office space
var ArticleTools_Title ='Home%20sellers%20seeking%20conversions';
By Zac Anderson
Published Thursday, March 6, 2008 at 4:30 a.m.
The house next door could soon become your local doctor's office, as homeowners in high-traffic areas, stung by the housing boom and subsequent slump, look for alternative property uses.
Sarasota County is experiencing an upswing in applications to rezone residential property into office space, with 19 conversions planned in Englewood, Venice and Sarasota.
Three of the six rezoning petitions before the Sarasota County Planning Commission today seek to convert homes into offices.
In most cases, the primary factor driving conversions is the region's explosive growth over the past decade, which has eroded the residential character of some roads, said Crystal Allred, manager of current planning for the county.
The housing downturn may also be playing a role, as property owners unable to sell their homes as residences seek other options.
Some homeowners worry that the trend could add more traffic, bring vagrants and otherwise hurt the character of their neighborhoods. Proponents argue that offices increase property values in blighted residential areas and serve as a quiet, daytime property use.
Sarasota land planner Brian Lichterman negotiated an agreement recently in which the property owners arranged with neighbors to provide increased security around offices planned for two homes on Beneva Road.
"We're trying to make this work for everyone," Lichterman said.
The changing land use patterns and neighborhood tensions are nothing new, Allred said.
High-traffic areas such as along Bee Ridge Road and University Parkway switched to commercial from residential years ago. But more roads have been expanded to accommodate recent growth.
Lichterman said his clients have trouble renting out their homes on four-lane Beneva.
"Nobody wants to live on a busy arterial road," he said. "And we consider office space a step-down land use between commercial and residential."
Sarasota land planner Peter Dailey has a client with two homes on Laurel Road that are not selling. The homes, next to a 7-Eleven on the busy four-lane street, are ripe for office conversion, Dailey said.
"These people are trying to find a good use for their properties, and offices make sense in that area," Dailey said.
As these areas grow, changes in land use are inevitable, Lichterman argues. The decline in the housing market is just speeding the process along.
"With residential development waning, people are turning their attention to things like office space," he said.
Allred said her job is to balance the integrity of residential neighborhoods with changes that are occurring.
"It's a real tough call," she said. "In some areas residential stays workable, and in some areas it doesn't. We have to look at a lot of factors."
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
More Sarasota property owners want to turn their houses into office space
var ArticleTools_Title ='Home%20sellers%20seeking%20conversions';
By Zac Anderson
Published Thursday, March 6, 2008 at 4:30 a.m.
The house next door could soon become your local doctor's office, as homeowners in high-traffic areas, stung by the housing boom and subsequent slump, look for alternative property uses.
Sarasota County is experiencing an upswing in applications to rezone residential property into office space, with 19 conversions planned in Englewood, Venice and Sarasota.
Three of the six rezoning petitions before the Sarasota County Planning Commission today seek to convert homes into offices.
In most cases, the primary factor driving conversions is the region's explosive growth over the past decade, which has eroded the residential character of some roads, said Crystal Allred, manager of current planning for the county.
The housing downturn may also be playing a role, as property owners unable to sell their homes as residences seek other options.
Some homeowners worry that the trend could add more traffic, bring vagrants and otherwise hurt the character of their neighborhoods. Proponents argue that offices increase property values in blighted residential areas and serve as a quiet, daytime property use.
Sarasota land planner Brian Lichterman negotiated an agreement recently in which the property owners arranged with neighbors to provide increased security around offices planned for two homes on Beneva Road.
"We're trying to make this work for everyone," Lichterman said.
The changing land use patterns and neighborhood tensions are nothing new, Allred said.
High-traffic areas such as along Bee Ridge Road and University Parkway switched to commercial from residential years ago. But more roads have been expanded to accommodate recent growth.
Lichterman said his clients have trouble renting out their homes on four-lane Beneva.
"Nobody wants to live on a busy arterial road," he said. "And we consider office space a step-down land use between commercial and residential."
Sarasota land planner Peter Dailey has a client with two homes on Laurel Road that are not selling. The homes, next to a 7-Eleven on the busy four-lane street, are ripe for office conversion, Dailey said.
"These people are trying to find a good use for their properties, and offices make sense in that area," Dailey said.
As these areas grow, changes in land use are inevitable, Lichterman argues. The decline in the housing market is just speeding the process along.
"With residential development waning, people are turning their attention to things like office space," he said.
Allred said her job is to balance the integrity of residential neighborhoods with changes that are occurring.
"It's a real tough call," she said. "In some areas residential stays workable, and in some areas it doesn't. We have to look at a lot of factors."
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
Wednesday, March 5, 2008
Florida Gulf Front Deals are Easier to Find
Daily Real Estate News March 5, 2008
Beachfront Bargains are EmergingIf you’re looking for a beach house, now could be the time to buy, says Fortune magazine reporter Jon Birger.Three years ago, Birger went in search of affordable beachfront property and was largely unsuccessful. This year, he says, beachfront property selling for less than $500,000 is more readily available, especially in Florida.In places like Cape Code and Hamptons that are enclaves for the fabulously wealthy, prices haven’t declined much, real estate practitioners told him. "It's a totally different mentality," Diane Saatchi, senior vice president at the Corcoran Group, says of her East Hamptons clientele. "The value of their real estate is just so insignificant compared with their overall wealth."But Florida is a different story. Prices have fallen 25 percent to 30 percent on the state’s Panhandle with beachfront condominiums widely available for about $400,000, says Kerry McNulty, a practitioners in Destin.Source: Fortune, Jon Birger (03/17/2008)
Hot Deals on Destin Condominiums can be found at http://www.destin-florida-condominiums.info/hot-destin-florida-condominium-deals/
Hot Deals on Panama City Beach Condominiums can be found at http://www.panama-city-beach-florida-condominiums.com/hot-panama-city-beach-florida-condo-deals/
Beachfront Bargains are EmergingIf you’re looking for a beach house, now could be the time to buy, says Fortune magazine reporter Jon Birger.Three years ago, Birger went in search of affordable beachfront property and was largely unsuccessful. This year, he says, beachfront property selling for less than $500,000 is more readily available, especially in Florida.In places like Cape Code and Hamptons that are enclaves for the fabulously wealthy, prices haven’t declined much, real estate practitioners told him. "It's a totally different mentality," Diane Saatchi, senior vice president at the Corcoran Group, says of her East Hamptons clientele. "The value of their real estate is just so insignificant compared with their overall wealth."But Florida is a different story. Prices have fallen 25 percent to 30 percent on the state’s Panhandle with beachfront condominiums widely available for about $400,000, says Kerry McNulty, a practitioners in Destin.Source: Fortune, Jon Birger (03/17/2008)
Hot Deals on Destin Condominiums can be found at http://www.destin-florida-condominiums.info/hot-destin-florida-condominium-deals/
Hot Deals on Panama City Beach Condominiums can be found at http://www.panama-city-beach-florida-condominiums.com/hot-panama-city-beach-florida-condo-deals/
Tuesday, March 4, 2008
Shores of Panama Files Bankruptcy
In an effort to continue operations after over 100 purchasers initiated the process to get out of their contracts, the Shores of Panama has filed for protection under Chapter 11 Bankruptcy.
The Shores of Panama consists of 709 condos in a 22 story building on Front Beach Road. When they were marketing and selling this project, huge emphasis was placed on the expansive resort-style amenity area. Situated right across from Laketown Wharf, the Shores of Panama is a beach-front U-shaped building.
Florida statue requires that condo developers stipulate in their purchase and sale contract that the building must be completed and ready to close within 24 months of the buyer signing the contract. If the buyer is unable to close within that time due to default on the part of the developer, the developer must offer reasonable compensation to the buyer and or allow the buyer to be released from the agreement. Much of the Shores of Panama resort was not ready to close within 24 months, therefore giving many buyers an out on their contract.
Charles Breland, the developer, is currently in arbitrary talks with the prime contractor, CJ Jordan Residential LLP of El Paso, TX for allegedly failing to perform in the agreed time-frame. Breland has accused CJ Jordan for the one year delay in construction.
As reported by the News Herald 550 condos closed with the developer reserving around 150 for future sales.
All information as reported by the News Herald.
For more information on Shores of Panama located in Panama City Beach Florida please see the following link:
http://www.panama-city-beach-florida-condominiums.com/shores-of-panama/
For other condominiums:
http://www.panama-city-beach-florida-condominiums.com/condominium-review/
For condominiums in Destin:
http://www.destin-florida-condominiums.info/destin-condo-review/
For condiminiums along 30A:
http://www.30a-florida-mls.com/
The Shores of Panama consists of 709 condos in a 22 story building on Front Beach Road. When they were marketing and selling this project, huge emphasis was placed on the expansive resort-style amenity area. Situated right across from Laketown Wharf, the Shores of Panama is a beach-front U-shaped building.
Florida statue requires that condo developers stipulate in their purchase and sale contract that the building must be completed and ready to close within 24 months of the buyer signing the contract. If the buyer is unable to close within that time due to default on the part of the developer, the developer must offer reasonable compensation to the buyer and or allow the buyer to be released from the agreement. Much of the Shores of Panama resort was not ready to close within 24 months, therefore giving many buyers an out on their contract.
Charles Breland, the developer, is currently in arbitrary talks with the prime contractor, CJ Jordan Residential LLP of El Paso, TX for allegedly failing to perform in the agreed time-frame. Breland has accused CJ Jordan for the one year delay in construction.
As reported by the News Herald 550 condos closed with the developer reserving around 150 for future sales.
All information as reported by the News Herald.
For more information on Shores of Panama located in Panama City Beach Florida please see the following link:
http://www.panama-city-beach-florida-condominiums.com/shores-of-panama/
For other condominiums:
http://www.panama-city-beach-florida-condominiums.com/condominium-review/
For condominiums in Destin:
http://www.destin-florida-condominiums.info/destin-condo-review/
For condiminiums along 30A:
http://www.30a-florida-mls.com/
Saturday, March 1, 2008
Market Trends for Panama City and Panama City Beach Florida
FLORIDA
Panama City
2008 Resale Housing Trend Report
2007 Resale Housing Trend Report
Panama City Beach
2008 Resale Housing Trend Report
2007 Resale Housing Trend Report
For more information on properties located throughout our Emerald Coast please use the following website to assist in your search:
www.RandBCoastalRealEstate.com
www.InvestSmarter.com
For a more specific look at Panama City Florida, Panama City Beach Florida, Lynn Haven Florida, Bay Point Florida, Callaway Florida, Springfield Florida, Tyndall Air Force and other properties located in Bay County please use the following sites to narrow your search to Residential Homes, Condominiums, and Commercial Real Estate in Panama City Florida and Panama City Beach Florida
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
www.Panama-City-Beach-Florida-Commercial-Real-Estate.com
We have developed a few Panama City Beach Florida and Panama City Florida Related Real Estate Websites along with sites for Destin Florida and the Niceville area. We would appreciate any feedback on these sites. Thanks and have a great day!!!
Panama City
2008 Resale Housing Trend Report
2007 Resale Housing Trend Report
Panama City Beach
2008 Resale Housing Trend Report
2007 Resale Housing Trend Report
For more information on properties located throughout our Emerald Coast please use the following website to assist in your search:
www.RandBCoastalRealEstate.com
www.InvestSmarter.com
For a more specific look at Panama City Florida, Panama City Beach Florida, Lynn Haven Florida, Bay Point Florida, Callaway Florida, Springfield Florida, Tyndall Air Force and other properties located in Bay County please use the following sites to narrow your search to Residential Homes, Condominiums, and Commercial Real Estate in Panama City Florida and Panama City Beach Florida
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
www.Panama-City-Beach-Florida-Commercial-Real-Estate.com
We have developed a few Panama City Beach Florida and Panama City Florida Related Real Estate Websites along with sites for Destin Florida and the Niceville area. We would appreciate any feedback on these sites. Thanks and have a great day!!!
Prices Are Down, But will time tell a different story?
Daily Real Estate News February 28, 2008
Too Much Recession Talk, Big Builder Says“Ceaseless talk” about recession is driving the housing market into a hole, says Robert Toll, chairman and CEO of luxury home builder Toll Brothers Inc.“For home buyers, we believe this drumbeat, coupled with concerns over mortgages, the direction of home prices, and foreclosures, has kept pent-up demand on the sidelines," Toll complained in a statement.Toll noted "glimmers of hope" in a few markets, including Naples, Fla., and the Washington, D.C., suburbs. The company also reported a decline in cancellations so far this year. It had 257 cancellations so far during the current quarter, down from 436 a year ago and 417 in the fourth quarter of fiscal 2007. But signed contracts dropped 37 percent from a year earlier to 647.The average price of a home sold in the latest quarter amounted to $634,000, down from $646,000 in the fourth quarter and $730,000 in the year-ago period. Toll blamed the decline on a shift in the product mix and more incentives.Source: Dow Jones Business News, John Spence (02/27/2008)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
Too Much Recession Talk, Big Builder Says“Ceaseless talk” about recession is driving the housing market into a hole, says Robert Toll, chairman and CEO of luxury home builder Toll Brothers Inc.“For home buyers, we believe this drumbeat, coupled with concerns over mortgages, the direction of home prices, and foreclosures, has kept pent-up demand on the sidelines," Toll complained in a statement.Toll noted "glimmers of hope" in a few markets, including Naples, Fla., and the Washington, D.C., suburbs. The company also reported a decline in cancellations so far this year. It had 257 cancellations so far during the current quarter, down from 436 a year ago and 417 in the fourth quarter of fiscal 2007. But signed contracts dropped 37 percent from a year earlier to 647.The average price of a home sold in the latest quarter amounted to $634,000, down from $646,000 in the fourth quarter and $730,000 in the year-ago period. Toll blamed the decline on a shift in the product mix and more incentives.Source: Dow Jones Business News, John Spence (02/27/2008)
www.InvestSmarter.com
www.RandBCoastalRealEstate.com
Subscribe to:
Comments (Atom)