Here is a recent article from RISMEDIA.....
In the Sacramento Delta suburbs east of San Francisco - where home
prices soared and fell as viciously as anywhere in the country - a
housing market rebound is feverishly under way.
A 1,600-square foot rancher listed for $179,000 - after last selling
for $425,000 in 2004 - drew multiple offers last month with a high of
$210,000 in cash. The topper: The property was a “short sale” whose
owner needs lender approval to sell for less than the mortgage owed-and
which buyers wouldn’t touch just three months ago.
“My phone was ringing off the hook, my voice mail was on overload
and people were coming into the office receptionist saying they
couldn’t reach me,” said Christy Howard, a Coldwell Banker Coon and
McCreary agent who listed the Antioch house. “Everyone was waiting for
the bottom, and the problem is they waited to long, because the bottom
has already come and gone.”
Spurred by markdowns up to 80% from market highs, first-time buyers
and investors both American and foreign descended en masse in the last
three months on San Francisco’s hardest-hit hinterlands as Wall Street
and the economic climate improved. They’re picking clean the Delta
region’s banked-owned inventory as soon as properties hit the market
and are engaged in unprecedented bidding wars even on short sales.
The panicked buying - fueled by buyers’ fear they’ll miss out on
fire-sale prices - belies the doom-and-gloom evoked by recent reports
of rising mortgage delinquency rates and foreclosure activity. It is
one of several overlooked signs the U.S. housing-market turnaround has
started in the nation’s hardest-hit markets, which is critical to
driving an overall recovery:
- After spending most of the 1990s in
the $250,000 range, the median-priced home that was sold in the
seven-county San Francisco area rose to a staggering $850,000 by its
May 2007 peak. It since fell to a low of $399,000 in February - a 53%
drop in just 21 months - before posting its first monthly gain in
March, albeit a 1% uptick. The median is expected to continue rising at
a healthy clip in months ahead since it’s now at the level of nine
years ago, before the bubble began inflating.
- California’s statewide inventory of
unsold homes - based on the number on the market divided by the present
monthly sales rate - stood at a 15.2 months supply in February, 2008.
That figure was down to 5.8 months in March, near the historic average.
- At roughly 22,000 units, Las Vegas’
inventory is not far off its recent record high. Yet total sales closed
in March showed flourishing demand, the fourth best on record. That
monthly record - set during the height of the boom - is expected to be
broken this summer.
“Things have been looking up but it’s going unnoticed,” says Forrest
Barbee, a board member with the Greater Las Vegas Association of
Realtors and a broker for Prudential American Group Realtors. “It’s
just going to take the data a little longer to catch up with reality.”
Listen to one analyst’s thoughts about housing having hit bottom.
Adds Rick Sharga, senior vice president of RealtyTrac, which
compiles home sales and foreclosure data: “We’ve overshot the market in
places like Las Vegas and Arizona in terms of fair value and buyers are
bidding prices up again on many properties. The challenge is going to
be whether there is enough financing to eat up the inventory that’s yet
to come.”
The specter of rising foreclosures - born now of the recession
rather than just overleveraged subprime borrowers - is the wild card in
future health of the U.S. housing market and the economy by extension.
Read about the difficulty borrowers are having with mortgage
modifications.
The number of U.S. homeowners behind on payments or in foreclosure
shattered the record in the first quarter, the Mortgage Bankers
Association reported last week. Nearly one in eight mortgage holders
were either delinquent or in the foreclosure process - and prime
mortgages in trouble for the first time outnumbered subprime loans on a
percentage basis. Read more on the record jump in foreclosures in the
first quarter.
Yet the number of pending sales of existing U.S. homes took a
surprising upswing in April, rising 6.7% in the biggest monthly gain in
more than seven years, the National Association of Realtors reported
Tuesday. That increase lags the 9.2% jump in October 2001, but that
spike owed to buyers temporarily putting off home shopping following
9/11. See the latest data on pending home sales.
And in an overlooked report that belies the first-quarter
delinquency numbers, defaults on privately insured mortgages - where
borrowers are more than 60 days behind - fell 3% in April and were down
24% from a record 106,482 in February, the trade group Mortgage
Insurance Companies of America reported Friday.
Most important for gauging the strength of the nationwide market is
how conditions are improving in the most-depressed regional markets.
With those markets now stabilizing, banks are no longer anxious to
dump real-estate owned properties, as houses in their foreclosure
portfolios are called, fearing they’ll get appreciably less three
months from now for their foreclosed properties.
As a result, they’ll be more judicious about the pace at which they
release foreclosures onto the market. The new goal: To maximize the
value of supplies in hand rather than unload it helter-skelter and
torpedo the housing market like they did while they were shell-shocked
by the devastation they’d wrought.
With the banks themselves now somewhat more stable, they’ll also be
less likely to want to part with their “toxic assets” knowing the
most-scorched, still-serviceable mortgages will be the most valuable on
a credit-risk markup once the economy recovers. In fact, the price
stabilization in the most-depressed U.S. markets will allow a clearer
valuation of the toxic assets we now all hold by virtue of bank
bailouts - a modicum of certainty that will hasten the overall recovery.
Homeowners in most of America know by their own property’s value
that the spike in U.S. median home values was driven in considerable
measure by soaring prices and volume in major markets, especially in
California, Florida, Nevada and Arizona. By virtue of their climates
and economic-growth rates, those four states have been on the extremes
of the U.S. boom-and-bust housing cycle since the 1950s.
You can’t discount how critical an upturn in those states will be,
considering they account for 46% of foreclosures nationwide. If
foreclosures there are more quickly consumed as they’re starting to be
now - fueled in part by foreign buyers who recognize their value -
we’ll all reap a return on our bailout money a lot faster.
“The banks are getting smarter and realizing that if they don’t sell
it in a short sale, they lose more money going the foreclosure route,”
Barbee said.
Adds Sharga: “The banks will be very particular and thoughtful about
how they’ll release new foreclosures, because they know now how
flooding the market will have a disastrous effect.”
That, and if the chastened lenders would just swallow crow and pony
up for rights to an encouraging Beatles song to play on their
delinquent-payers’ hold line: “We can work it out.”
Just Released.. June 10, 2009. US News & World Report Magazine Names St Augustine Florida as one of the top ten places to live in the U.S
"As the nation's longest continually inhabited European-founded
city, St. Augustine, Fla., considers itself the oldest city in the
United States. Founded in 1565 by Spanish Adm. Pedro Menéndez de
Avilés, this community of 13,000 residents on Florida's northeastern
coast has managed to maintain its colonial charm. Take the Castillo de
San Marcos, for example. This remarkable stone-and-mortar fort is
located right in the heart of St. Augustine's cobblestoned historic
district. And even though 300 years of violent storms and enemy
firepower couldn't penetrate its walls, visitors can enter the
20.5-acre monument site today for just $6.
But St. Augustine's appeal extends beyond the history books. With a
highly educated workforce, world-class golfing nearby—the immaculate
TPC Sawgrass course is located just up the road—and that refreshing
Atlantic breeze, this "ancient city" offers enough activities to
satisfy even the most fanatical outdoor sports enthusiast. "Fishing,
kayaking, boating—we have just about everything," says Donald Edwards,
a clerk at the Avid Angler fishingshop. "I wouldn't live anywhere else."
To see full article.... go to U.S. News & World Report
Since short sale properties are typically sold in "As-Is" condition
many buyers mistakenly believe they shouldn't seek out an inspector.
Before going it alone, it is important to know what type - or types - of
inspections you need and what they can - and can't -do for you.
For the purpose of this article, we will be discussing optional home
inspections. The scenario usually goes something like this; you find a
potential short sale property and have decided to make an offer --
contingent upon the inspection. After all, you want to make sure you have the
required funds to bring the property up to par with the local area
either for resale or rental.
Having a thorough inspection is also another excellent negotiations
tool for use with both the buyer and bank; banks dislike properties in
need of extensive repairs because they recognize the additional time and
cost required to make the property appealing to potential buyers. So,
being the savvy short sale investor, you decide to hire an inspector.
Time for a Reality Check
At this point you might assume the inspector will crawl through every
crook and cranny searching for every minor detail and defect. If you
have ever sold your own home it can certainly feel that way. The actual
quality of the inspection is highly dependent upon the individual hired
but in every case you can expect to pay an additional charge if you
desire things like water quality testing, testing of the septic or sewer
system for anything other than major defects, and general testing of
electric, AC/Heat etc...most basic inspections only test whether the unit
comes on not whether it works efficiently or not. This brings us to the
first important point to keep in mind...if you want more then make sure
you stipulate it and expect to pay more.
No Guarantee
Many people unwisely assume an inspection provides a 'guarantee' but
read the fine print -carefully. If a major problem is missed during the
inspection you will still be out the cost of repairs. The vast majority
of home inspectors will refund your service charge if they miss
anything - but specifically state they are not responsible for further damages
or costs. Don't assume they are flawless- instead, use inspections
like a negotiation tool.
In many cases the seller might be unaware or just grown accustomed to a
problem and the bank is more likely to consider a low offer on a
property in need of improvement or repairs. Having an inspection
performed...even on an "As-Is" sale, provides an objective measures and
negotiation strategy to make the buyer and bank aware of potential problems and
the likelihood that other buyers will encounter the same.
Rather than thinking of independent inspections as a "security" or some
type of "insurance," instead consider them a tool in your negotiation
strategy.
When you are ready to buy your next home in Northeast Florida, including St Augustine, Ponte Vedra, and South Jacksonville, visit http://www.NorthFloridaHomeSearch.com
Concerned about a once in a decade economic crisis, the
Federal Reservecut its
federal funds rate by half a percent to 1%, its lowest level
since the period of June 2003 to June 2004, a time when the country was
battling the risk of deflation. With gas prices much lower than
before, the Fed is less concerned about inflation and more concerned about
the overall economic outlook for the country.
Lower rates free up cash to allow consumers to buy, and lower
short
term rates may stimulate commercial loan activity which often is tied to
short term rates. "The pace of economic activity appears to have slowed
markedly, owing importantly to a decline in consumer expenditures,"
the
Federal Open Market Committee said in its statement after voting
unanimously to approve the rate reduction. The prime rate, the rate that
banks charge its best customers, will now become 4%.
Applications for home loans are on the rise. The Mortgage Bankers
Association mortgage application index showed that mortgage applications
jumped from an eight year low last week. The index jumped 16.8% to 476.7
in the week ending
October 24, which is up from the prior week's 16.6%
decline. The group's purchase index was up 8.5% to 303.1 while its
refinancing index was up 28.5% to 1,489.4.
If you are looking for a house, townhome or condo in the Northeast Florida area, including St Augustine, Ponte Vedra, and South Jacksonville, visit
http://www.NorthFloridaHomeSearch.com
Here is the latest news from the Florida Association of Realtors (FAR):
For the first time in almost three years, Florida’s existing home sales rose in September, noting a 24 percent increase in activity in the year-to-year comparison; last month’s sales of existing condos statewide increased 11 percent in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR).
A total of 10,817 existing homes sold statewide last month, up 24 percent over the 8,725 homes sold in September 2007, according to FAR. The last time Florida Realtors reported higher statewide existing single-family home sales was for year-end 2005, FAR records found. In July of this year, six more homes sold statewide than in July 2007, but that increase was statistically insignificant.
“The September sales report from the Florida Association of Realtors shows a 24 percent increase in the sales of existing homes in the state; this represents the sixth month in a row that the sales figure has exceeded its 12-month moving average (average of the previous 12 months),” says Dr. Sean Snaith, economist and director of the University of Central Florida Institute for Economic Competitiveness. “This is a clear sign that the significant price declines that have occurred across the state are leading to a more rapid absorption of the housing inventory.”
Nationally, sales of new homes also recorded an unexpected increase in September as median home prices dropped to the lowest level in four years.
The Commerce Department reported Monday that sales of new single-family homes rose by 2.7 percent last month to a seasonally adjusted annual rate of 464,000 homes. Economists had expected sales would drop from the August level.
Florida’s median sales price for existing homes last month was $175,100; a year ago, it was $224,700 for a 22 percent decrease. But, looking back to September 2003, the statewide median sales price for single-family homes was $158,800 – an increase of 10.3 percent over the five-year-period, according to FAR records. The median is the midpoint; half the homes sold for more, half for less.
The latest housing outlook from NAR points out the importance of available credit to the mortgage market. “Home sales will be constrained without a freer flow of credit into the mortgage market,” says NAR Chief Economist Lawrence Yun. “The faster that happens, the sooner we’ll see a broad stabilization in home prices that in turn will help the economy recover.”
In Florida’s year-to-year comparison for condos, 2,878 units sold statewide compared to 2,595 sold in September 2007 for an 11 percent increase. The statewide existing condo median sales price last month was $153,800; in September 2007 it was $197,000 for a 22 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $212,600 in August 2008.
Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.04 percent, down from the average rate of 6.38 percent in September 2007, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
For the full report visit http://www.floridarealtors.org
To find yourself a bargain in Northeast Florida, visit http://www.NorthFloridaHomeSearch.com
Prairie Creek in St Augustine is a beautiful and historic community located on a high bluff above Moultrie Creek. The priority of the developer was to protect the environment and the integrity of this beautiful area. Residents enjoy watching deer come right up to their backyard. The homes are executive style, mostly brick. Prairie Creek homes are priced from $299,900 to $1,000,000. Homeowner association fees are only around $74 per month.
Prairie Creek is located off Wildwood Drive, west of U.S. 1. As you enter the community of Prairie Creek, you are greeted by the guard gate which offers 24 hour guard service, seven days a week. This was St Augustine's first gated community.
Prairie Creek is close to shopping, medical facilities, restaurants, schools, beaches, I-95, and Treaty Park, This park has nature trails, tennis, racquetball, baseball, basketball, a skateboard park, and much more.
To search for homes for sale in Prairie Creek in St Augustine, Florida visit http://www.NorthFloridaHomeSearch.com
ABC News' Good Morning America listed St. Augustine as the program's number-one selection of places Americans could go "to feel as though they had jetted across the Atlantic without breaking the bank".
Titled "Exotic Vacations on the Cheap: No passport required," the nationally broadcast news segment was prepared in cooperation with Travel & Leisure magazine and was designed to show Americans that, evein in tough economic times, they can experience European atmosphere without leaving the borders of the USA or spending a fortune.
For a Spanish vacation without buying a plane ticket to Madrid, try St Augustine, Florida,"said ABC News. "It's the nation's oldest city and is filled with Spanish-colonial architecture. It feels like Old World Spain complete with cobblestone streets, courtyards, and an old colonial quarter."
To see the news clip, visit www.ABCNews.go.com
To find yourself a home or condo in St. Augustine, Florida, visit http://www.NorthFloridaHomeSearch.com
Dog lovers, please take note! On August 1st, a city ordinance began that permits dogs in designated outside sections of restaurants. City Attorney Ron Brown stated it is part of a 3-yr pilot program.
All breeds are allowed in designated outside sections of restaurants
Participating restaurants will need to obtain a city permit
Employees of the restaurant will not be permitted to pet the dogs.Sanitary soup will be placed on the tables where dogs are allowed.
Restaurants must provide doggy bags for bathroom accidents, and employeed must clean the area immediately with disinfectant.
So next time you are going out to eat...... bring Fido along!
To find your own home in pet-friendly St Augustine, visit http://www.NorthFloridaHomeSearch.com
Perfectly located in a serene and historic setting on 2,325 acres along the beautiful Intracoastal Waterway, Palencia has quickly captured the imagination and hearts of some of the most discerning buyers as a place they want to call home.
This is the time to discover Palencia, and find out why this wonderful, growing community has gained the attention of astute buyers from across the nation. Spectacular million dollar homes, combined with the pristine estate home sites and resort-style amenities, make Palencia a much sought-after community.
Since its inception eight years ago, the master-planned community by Hines, the international real estate firm, has lived up to the anticipation and has surpassed expectations. Situated on historic U.S. 1 between Jacksonville and St. Augustine, Palencia is now fostering new excitement to parallel a stunning natural landscape and numerous world-class amenities.
The location is perfect in a high-growth corridor with an emerging commercial business district including financial institutions, retail, dining, medical facilities and office space, plus convenient to all the wonderful attributes of the First Coast.
Palencia has become known for high-end, luxury residences as a primary or secondary home. An impressive array of affordable pristine home sites speaks volumes to the community’s commitment to maintain an environmental ambiance.
“Everyday we hear buyers comment that they came to Palencia because of our extra effort to preserve the environment and surrounding splendor,” said sales and marketing director Naomi Lumley. “They also talk about the innovative and family-oriented atmosphere. Now we are being thought of as the community where the million dollar dream homes have become a reality.”
A number of immaculate, golf, water, marsh front and heavily wooded lots provide the perfect picturesque setting. Build now or in the future. No time limit on construction allows you to realize your dream home when you are ready.
“We are genuinely excited about Palencia’s group of builders,” Lumley said. “All with great credibility, experience and commitment to quality. Each has earned a reputation for offering customers consummate value and service throughout the building process.”
Palencia’s roster boasts of some of the area’s finest builders, setting a historic high mark for multi million dollar plus homes to rival the unmatched beauty of the surrounding land:
- The Vintage Group
- Gordon’s Castle
- Jeff Chefan - Promenade Builders
- John Kenny Construction
- Artisan Homes
- ICI Construction
- Woodside Homes
Hines, the developer of Palenia, recognized the distinctiveness of the unique wilderness early on. Families are drawn to live in harmony with nature at Palencia, which is preserving the land and its unique characteristics.
The architectural style is in keeping with Palencia’s Spanish legacy. Spanish Colonialism influences the rich architectural design, similar to styles found in nearby St. Augustine. Tile roofs, coquina, terra cotta, rich colors, tall towers and wrought iron are seen throughout the community’s common areas, from the main entrance to the community’s central marketplace and covered pavilion areas.
Palencia Village, the center of the community, is home to the Palencia golf club, a swim and fitness center, the village green, a multi-court tennis center, a golf practice facility and nearby athletic fields.
“We built the village center to create a hub of activity early on in the community’s life,” Lumley said. “This is where residents can enjoy a variety of activities throughout the day and in the evenings.”
The swimming facility provides residents of all ages with aquatic fun and exercise from the elegant leisure adult pool to the wading pool and tower slide. The fitness center, complete with dedicated aerobics and weight rooms, well-appointed men’s and women’s locker rooms, sauna and steam rooms, a massage room and a children’s play room, gives the community access to another full-service amenity.
American Sports Builders Association recognized the state-of-the-art tennis complex, with 10 Har-Tru courts, as Soft-Court Facility of the Year. A fully stocked tennis pro shop, managed by seasoned United States Professional Tennis Association staff, offers clinics, private lessons, onsite equipment repair and restringing.
The tennis complex is open seven days a week and continually hosts clinics and tournaments. Junior camps, family socials and couples events round out an array of activities to both advance and entertain.
In addition to the tennis, the community’s championship golf course was designed by Arthur Hills and residents can enjoy a clubhouse with abundant social activities and dining.
There is the opportunity to interact with nature and enjoy the wonderful views by accessing an extensive network of boardwalks that reach out to a handful of preserved natural islands along the Intracoastal. Other neighborhood recreational choices include green spaces and nature trails, athletic parks with ball fields, pocket parks and playgrounds woven throughout the community.
To see Palencia, a Best in American Living Award winner, take U.S. 1 south to Palencia Village Drive, east of International Golf Parkway in St. Johns County. The Palencia Information Center is located approximately 1 mile inside the entrance.
For more information, visit www.VivaPalencia.com.
If you would like to schedule a Community Tour please call your Realtor, Sharon Stevens, who will arrange all details. Her number is 904-687-5220.
Or search online for properties for sale in Palencia at http://www.NorthFloridaHomeSearch.com
This is an important article from RISMEDIA---- PLEASE READ!
RISMEDIA, July 14, 2008-Amidst the gloom on Wall Street about housing someone forgot to check the stats. The National Association of Realtors® has now reported four straight months of rising housing prices, but it seems no one is listening.
According to NAR statistics, the median home price has fallen from a high of $230,200 in July 2006 to a low in February 2008 at $195,600, a drop of 15%. Since February, however, it has risen steadily every month. By May the index (which will be revised on July 24) had risen to $208,600, up $13,000 and a full 6.6%. Another indicator, the mean home price (otherwise known as the average home price), has also shown strength and has risen from a low of $242,000 also in February of this year to $253,100, a rise of $11,100 or 4.5%. It, too, has risen every month since February of this year.
“I just don’t know where Wall Street’s brains are today,” said David Michonski, CEO of Coldwell Banker Hunt Kennedy in New York City. “Everyone on the Street is wringing their hands over housing when in fact the average American has been out this spring buying homes and pushing the median price higher. This has got to go down as one of Wall Street and Main Street’s biggest disconnects in history.”
In addition, on an annualized basis the volume of home sales has also risen somewhat from a low of 4,890,000 homes in January to 4,990,000 in May.
“Rising prices on expanding volume should not a crisis make on Wall Street,” says Michonski.
So why the crisis?
“They say that there are bulls and bears on Wall Street but there are also pigs. Pigs try not just to profit from a crisis but create one to profit from. Today there are just so many people who have positioned themselves to profit from a crisis that they refuse to admit the reality of what is happening on Main Street. It might hurt their positions.”
Is this the bottom?
“No one can know for sure, but the hard data is clear. The median price has risen four straight months. The average American is out there taking advantage of bargains in their local real estate market. They are not listening to Wall Street but following their own belief that the best time to buy is when no one else is, and they are out there buying. If this keeps up, February may prove to have been the low in prices.”
“It is possible that it will not be Hank Paulson or Ben Bernanke who will pull this country out of a housing recession, but the good common sense of the average American whose affordability to buy a home is at a five year high and is acting on it.”
For more information visit RISMEDIA at http://rismedia.com/
Many homeowners are concerned and confused about everything within the mortgage industry these days. But at least there is a little relief concerning the tax liability on the forgiven debt in a short sale or foreclosure. There is tax relief available to struggling homeowners.
H.R. 3648, the “Mortgage Forgiveness Debt Relief Act of 2007” will ease some of that stress and worry about paying income tax on that amount of forgiven debt. But there are a few guidelines and qualifications within this “Act”.
- APPLIES ONLY TO FEDERAL TAX OBLIGATION!!!
- You may still owe your State Income Tax.
- It must be your primary/principal residence. Primary/principal residence means: go back 5 years from the date of the sale/foreclosure and if you lived in the home for a total of 2 years, it qualifies as a primary residence.
- Cannot be a rental property or business/investment property.
- It applies to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes.
- It applies to debt that was reduced by mortgage restructuring
- Debt used to refinance your home can qualify, IF the principal balance of your old mortgage would have qualified to begin with, before you refinanced.
- Applies only to debt forgiven in the year 2007 through the year 2009.
- You have to report the amount of the forgiven debt on tax Form 982 and submit it with your tax return.
- You cannot use this “relief” for debt forgiven on a second home, or on credit cards, or on car loans.
- The amount of the canceled debt cannot exceed $2 million. Or $1 million if filing separately.
There is another important provision to pay attention to in the Mortgage Forgiveness Debt Relief Act. It is the “insolvency” exclusion. You may still be able to qualify for the tax exclusion with this.
- You are “insolvent” when your total liabilities exceed your total assets.
- Forgiven debt that was discharged in a Title 11 Bankruptcy may qualify for exclusion also.
There are more insolvency qualifications that are listed on the tax Form 982. Be sure to research all your options.
And be sure to remember:
- NOT ALL STATES HAVE CONFORMED TO THIS “ACT” YET! Check whether or not your state has conformed.
- Always get tax advice from a qualified tax advisor.