I hope that you and your family had a fantastic and stress free holiday season. I am feeling very optimistic for the real estate market to start to improve over the next year. More and more articles are coming out with positive projections for this year. Read the article below for more information . Personally, I have seen an increase in buyer traffic and our office has as well. Let’s hope it continues!
In addition, if the property tax amendment for the state of Florida passes, I strongly believe that this bill will have a noticeable impact on the real estate market, so get out there and vote Floridians!
Monday, January 21, 2008
Don’t Forget to Vote on January 31st for the Property Tax Amendment
Floridians, our fate is in our hands. Passage of Amendment 1 will return money to homeowners right away and put nearly $10 billion back into Florida’s economy over the next five years.
This tax cut is in addition to the $15 billion property tax cut created during a June special legislative session that rolled back property taxes to 2006 levels.
Amendment 1 benefits those who want to move into a different home, seniors seeking to downsize, and business owners facing rising property values.
Have you been dreaming of moving into a bigger house because your family is growing? Have you lived in your home for years and are looking to buy a smaller home because the kids have grown up and moved to a new city? The scenarios below can help explain how the property tax cut from Amendment 1 will save your money.
Looking for a larger house?
If you bought a house for $95,000 in 1995 and its current market value now is $300,000 and the assessed value is only $150,000-- you could transfer the full $150,000 difference to buy a more expensive home.
If the purchase of your new home costs $400,000, you would be paying about $6,300 in taxes without portability. But with the tax savings from Amendment 1 including the Save our Homes portability and the double homestead exemption, the new annual taxes would be about half or $3,600.
Want to downsize?
Under the new tax plan, portability also will apply if you want to move to a less expensive property. Instead of transferring the difference, your transfer will be your existing Save our Home percentage.
For example, if you live in a $300,000 house with an assessed value of $150,000, you pay taxes on $125,000 or about $2,100. If you wanted to move to a $200,000 condo the savings will be significant.
In this case, you would bring 50% or $100,000 in savings that reduces your assessed value to $100,000 on the new property. With the newly increased $50,000 homestead exemption from Amendment 1, the taxable value for all local government taxes other than school taxes would fall to $50,000. The new total annual tax bill would be about $1,000 or about half of the old tax bill.
-visit
A Bright Outlook for Florida Real Estate in 2008!
Moving in the Right DirectionAs we begin a new year, Florida real estate professionals are looking for a market upturn. And thanks to the state’s positive demographic and economic trends, the prospects for 2008 appear favorable, especially in the second half of the year.In 2008, more than 300,000 people will move to Florida, generating a demand for 150,000 for-sale and rental homes. Meanwhile, the state’s economy is likely to add 175,000 new jobs, strongly outperforming national averages. And a significant percentage of Florida’s 80 million domestic and international visitors will consider buying second homes in the Sunshine State. “Florida will continue to lure retirees and entrepreneurs looking for a warm climate where they can enjoy an active lifestyle,” says Linda C. Loomis, sales associate, John R. Wood Inc./Realtors® in Naples. “With golf, boating, fishing, tennis, beach going, swimming and a host of other outdoor activities at their doorstep, Florida offers a healthy and appealing lifestyle.”Economists and real estate experts interviewed by Florida Realtor® are cautiously optimistic about the state’s growth prospects for 2008. Sean Snaith, director, Institute for Economic Competitiveness (IEC) at the University of Central Florida, Orlando, expects the state’s growth rate to pick up in 2008. The institute’s recent “Florida & Metro Forecast, 2007-2010” says the state will see a distinct pickup in economic activity with a 2.1 percent increase in new jobs in 2008—nearly double the 1.2 percent projected for the United States as a whole. “Florida continues to grow,” says Snaith, “with Orlando, Tampa Bay and Jacksonville at the top of the list in terms of employment growth through 2010.”In the real estate sector, Snaith notes, rising prices on Florida’s coasts are shifting historic migration patterns toward the center of the state. “People are still coming to Florida,” he says, “but it’s the interior counties that are most likely to attract new residents and businesses.” For Florida real estate professionals, understanding the trends affecting their local markets is essential to success in the year ahead, according to economist Lewis Goodkin, president, Goodkin Consulting, Miami. “The more knowledgeable you are, the more opportunities you have to profit. It’s essential to demonstrate that you have the answers that people are seeking.”Here’s a closer look at the regional markets around the state.
Palm Beach/Treasure CoastOne of the state’s most dynamic submarkets is northern Palm Beach County, which is beginning to enjoy the benefits of a growing biotechnology cluster focused on Scripps Florida in Jupiter.“We’re beginning to see significant job-creation activity,” says Brad Hunter, director, South Florida region, MetroStudy in Boca Raton. “It’s not the cavalry coming over the hill, but the biotech corridor will grow and create a solid foundation of high-wage jobs northward into St. Lucie County. That will definitely enhance the long-term value of residential properties.”Also stimulating commercial development are new St. Lucie interchanges on the Florida Turnpike and Interstate 95. Fishkind says more than 15 million square feet of commercial space is planned along Becker Road in Port St. Lucie, including a 2 million-square-foot regional mall. “If you look at the big suburban office nodes on I-95—Fort Lauderdale, Cypress Creek, Boca Raton, West Palm Beach and PGA Boulevard—you’ll see the next one will be in Port St. Lucie,” he says. “Some of the residential builders got ahead of themselves, but the strength of demand and a drop in new construction will help absorb the excess inventory in 2008. This is a market to watch for the future.”Along with new jobs and development, the region will also benefit from the timeless appeal of its warm-weather lifestyle. As Marc Blasi, sales associate with Luxury Homes Florida, Palm Beach, says, “Unless people stop boating, fishing, playing golf or just lying on the beach, I think we’re pretty safe down here real estate–wise.” -from Florida Realtor Magazine, January 2008 by Richard Westlund page 32
-Click Here for Information on Other Florida Areas
Palm Beach/Treasure CoastOne of the state’s most dynamic submarkets is northern Palm Beach County, which is beginning to enjoy the benefits of a growing biotechnology cluster focused on Scripps Florida in Jupiter.“We’re beginning to see significant job-creation activity,” says Brad Hunter, director, South Florida region, MetroStudy in Boca Raton. “It’s not the cavalry coming over the hill, but the biotech corridor will grow and create a solid foundation of high-wage jobs northward into St. Lucie County. That will definitely enhance the long-term value of residential properties.”Also stimulating commercial development are new St. Lucie interchanges on the Florida Turnpike and Interstate 95. Fishkind says more than 15 million square feet of commercial space is planned along Becker Road in Port St. Lucie, including a 2 million-square-foot regional mall. “If you look at the big suburban office nodes on I-95—Fort Lauderdale, Cypress Creek, Boca Raton, West Palm Beach and PGA Boulevard—you’ll see the next one will be in Port St. Lucie,” he says. “Some of the residential builders got ahead of themselves, but the strength of demand and a drop in new construction will help absorb the excess inventory in 2008. This is a market to watch for the future.”Along with new jobs and development, the region will also benefit from the timeless appeal of its warm-weather lifestyle. As Marc Blasi, sales associate with Luxury Homes Florida, Palm Beach, says, “Unless people stop boating, fishing, playing golf or just lying on the beach, I think we’re pretty safe down here real estate–wise.” -from Florida Realtor Magazine, January 2008 by Richard Westlund page 32
-Click Here for Information on Other Florida Areas
MORTGAGE RATES DOWN FOR THE THIRD CONSECUTIVE WEEK
30-Year AND 15-Year FRM At Lowest Level Since July 2005
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.69 percent with an average 0.5 point for the week ending January 17, 2008, down from last week when it averaged 5.87 percent as well. Last year at this time, the 30-year FRM averaged 6.23 percent.
The 15-year FRM this week averaged 5.21 percent with an average 0.4 point, down from last week when it averaged 5.43 percent. A year ago at this time, the 15-year FRM averaged 5.98 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"The latest retail sales report indicated that shoppers scaled back spending in December, as retail sales declined by 0.4 percent from November's level," said Frank Nothaft, Freddie Mac vice president and chief economist. "Particularly weak were sales of building materials, garden equipment and supply stores, which fell by 2.9 percent from the previous month. The declines aggravated concerns about the well being of the economy and exerted downward pressure on mortgage rates.
"Mortgage rates moved down across loan products for the third consecutive week. Average rates on 30-year fixed-rate mortgages (FRMs) and 15-year FRMs are at their lowest since July 2005. The results from this week's survey mark the first time in seven years that the average rate on the 15-year FRM is lower than the average rate on 1-year adjustable-rate mortgages (ARMs)."
Visit www.freddiemac.com for more information
Thursday, December 6, 2007
What Buyers Need to Know to Get a Loan
Credit score primer: What buyers need to know to get a loanDALLAS – Dec. 5, 2007 – In the wake of the credit crisis, lenders have become much pickier about whom they lend to. Here are some basic facts that will help potential borrowers understand what they face.The measurement that most lenders use to assess applicants’ credit risk is the FICO score developed by Fair Isaac Corp. The score ranges from 300 to 850.There’s not one FICO score. Buyers have three: one for each of the three credit bureaus, Experian, TransUnion and Equifax.Each credit score is based on information the credit bureau keeps on file. Since credit bureaus don’t share their data with one another, the three FICO scores may differ, sometimes by as much as 100 points.The components of a FICO score are:• Payment history: 35 percent• Amounts owed: 30 percent• Length of credit history: 15 percent• New credit: 10 percent• Types of credit used: 10 percentA consumer with a 580 credit score might qualify under FHA requirements, but, generally, in order to qualify for a prime loan, a borrower must have a credit score above 620 for a conventional loan at all, and above 720 for a loan at terms and rates most borrowers would consider desirable.Source: The Dallas Morning News, Pamela Yip (12/03/07)© Copyright 2007 INFORMATION, INC. Bethesda, MD
Yes, you can still buy a home for 0% Down!
Using the Nehemiah Program, home sellers can
legally gift buyers with up to 6% of the final contract price for FHA Loans. That 6% can go towards up to a 3% downpayment, closing costs, loan points and more. The maximum FHA Loan amount in St. Lucie County and Martin County is $267,640.00.
Thanks to The Nehemiah Program ®, more than 230,000 individuals and families now own homes.
Let us help you achieve the American dream:
Gift funds up to 6% of the final contract sales towards your downpayment and/or closing costs
Gift funds for both first time and repeat homebuyers
(Nehemiah charges a nominal processing fee that may be paid by the seller, homebuyer, or lender.)
Gift funds for both new construction and resale homes
No repayment of gift money
No income or asset limits
No geographical restrictions
If you are a qualified homebuyer using an eligible loan program, such as an FHA loan, you may be able to move into your new home with zero cash out of pocket! The Nehemiah Program can help you become a homeowner!
www.getdownpayment.com
legally gift buyers with up to 6% of the final contract price for FHA Loans. That 6% can go towards up to a 3% downpayment, closing costs, loan points and more. The maximum FHA Loan amount in St. Lucie County and Martin County is $267,640.00.
Thanks to The Nehemiah Program ®, more than 230,000 individuals and families now own homes.
Let us help you achieve the American dream:
Gift funds up to 6% of the final contract sales towards your downpayment and/or closing costs
Gift funds for both first time and repeat homebuyers
(Nehemiah charges a nominal processing fee that may be paid by the seller, homebuyer, or lender.)
Gift funds for both new construction and resale homes
No repayment of gift money
No income or asset limits
No geographical restrictions
If you are a qualified homebuyer using an eligible loan program, such as an FHA loan, you may be able to move into your new home with zero cash out of pocket! The Nehemiah Program can help you become a homeowner!
www.getdownpayment.com
30-Year Rates Are Lowest In More Than Two Years
McLean, VA –Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.10 percent with an average 0.5 point for the week ending November 29, 2007, down from last week when it averaged 6.20 percent as well. Last year at this time, the 30-year FRM averaged 6.14 percent. The 30-year FRM has not been lower since the week ending October 13, 2005, when it averaged 6.03 percent.
“Interest rates for U.S. Treasury securities have been drifting lower this month over market concerns that the housing slump and stress in the credit markets could slow future economic growth,” said Frank Nothaft, Freddie Mac vice president and chief economist. “As a result, interest rates for fixed-rate mortgages had room to slip lower this week. In addition to these concerns, the Federal Reserve also noted in its November 28th Beige Book that the glut of available homes continued, keeping downward pressure on prices and construction activity.
“Add to this the S&P/Case-Shiller® 20-composite index showing house prices falling 4.95 percent in the 12-months ending September, with 15 of the metropolitan areas showing annual declines and the overall picture does, indeed, appear glum with no immediate relief in sight.”
-November 29, 2007 www.FreddieMac.com
McLean, VA –Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.10 percent with an average 0.5 point for the week ending November 29, 2007, down from last week when it averaged 6.20 percent as well. Last year at this time, the 30-year FRM averaged 6.14 percent. The 30-year FRM has not been lower since the week ending October 13, 2005, when it averaged 6.03 percent.
“Interest rates for U.S. Treasury securities have been drifting lower this month over market concerns that the housing slump and stress in the credit markets could slow future economic growth,” said Frank Nothaft, Freddie Mac vice president and chief economist. “As a result, interest rates for fixed-rate mortgages had room to slip lower this week. In addition to these concerns, the Federal Reserve also noted in its November 28th Beige Book that the glut of available homes continued, keeping downward pressure on prices and construction activity.
“Add to this the S&P/Case-Shiller® 20-composite index showing house prices falling 4.95 percent in the 12-months ending September, with 15 of the metropolitan areas showing annual declines and the overall picture does, indeed, appear glum with no immediate relief in sight.”
-November 29, 2007 www.FreddieMac.com
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