State loan program offers financial aid for low-, middle-income home buyers

After years of watching prices soar out of their reach, help may be on the way for low- and middle-income families looking to buy a home. READ MORE

Real estate industry could be 'brought to its knees' by property tax disparity, official says

The real estate industry would be "brought to its knees" if homeowners aren't allowed to take a property tax break with them when they move, Palm Beach County Property Appraiser Gary Nikolits said Wednesday. READ MORE

Lennar lifts profit in slowing real estate market by lowering prices

Stuart Miller, Lennar's chief executive, said the company is offering incentives to buyers and sales agents and reducing prices in certain markets to deal with the softening real estate market in South Florida and nationwide. READ MORE

The great American condo glut

The number of available condos is at an all-time high -- and there aren't enough buyers to snatch them up. If you're staying put for the next five years, it could be the time to buy. READ MORE

Sellers adding perks to deals

How do you lure home buyers in a slowing real estate market? Try a five-day cruise, $2,500 for furniture and even a one-year buyback guarantee as perks to make properties more appealing than the rest flooding South Florida. READ MORE

3 Simple Steps to Reel In Buyers

Think like a potential buyer and your mission becomes clear, an expert renovator says. That means fixing what can be seen (or, ugh, smelled) first. READ MORE

S. Florida home sales slow, forcing prices to level off

Welcome to the new reality.

South Florida's once-blistering housing market continued to cool in February as sales slowed and price increases leveled off, according to statistics released Thursday by the Florida Association of Realtors. READ MORE

Florida's existing home sales ease in February

ORLANDO, Fla. -- March 23, 2006 -- Rising inventory levels and still-low mortgage rates continued to affect Florida's housing market, which is adjusting to a better balance between buyers and sellers following a five-year run of record-pace sales. Statewide, sales of single-family existing homes totaled 13,539 in February compared to 16,916 homes a year ago, for a 20 percent decrease, according to the Florida Association of Realtors® (FAR).

Realtors from across the state report that the supply of homes available for sale in their markets is improving, offering buyers more housing opportunities. The statewide median price for single-family existing homes last month was $244,200, up 24 percent from the February 2005 statewide median of $197,700.

In February 2001, the statewide median sales price was $118,200, which shows an increase of about 106 percent over the five-year period, according to FAR records. The median is a typical market price where half the homes sold for more, half for less.

Sales of existing condominiums in Florida also decreased last month, with a total of 4,342 condos sold statewide compared to 5,643 in February 2005 for a 23 percent decline, according to FAR. The statewide median sales price for condos rose 11 percent to $218,700 last month; a year ago, it was $197,000. The national median existing condo price was $216,900 in January 2006.

Home prices are out of kilter

Everyone knows that housing prices are out of sync with reality. It's the quiet little secret no one wants to talk about. READ MORE

DO-IT-YOURSELF STAGING

Sellers shouldn’t look at the cost of staging a home. Instead, they should consider how much more it will allow them to make on their house, says Peggy Selinger-Eaton, who has recently published a book and DVD entitled, "Stage Your Home for Profit." Here are Selinger-Eaton’s suggestions for do-it-yourself stagers:

• Remove clutter except for a few wisely chosen accessories (candles, fresh flowers, crystal).

• Bedrooms should have beds: If you're a bed short, use an inflatable mattress and some boxes to create a faux bed.

• Light and more light: Raise window blinds and remove screens from windows to let in as much natural light as possible.

• Modernize fixtures: Replace boring or tarnished light fixtures. Trade in old lampshades for new ones. Replace sink and tub fixtures with modern, shiny ones.

• Deep-six shabby furniture. Selinger-Eaton recommends buying cheap-chic replacements at Target.

• Create life: Set the table, leave on the big-screen TV, play background music.

Source: Christian Science Monitor, Keith Rockmael (03/13/2006)

Home Financing Center Highlights of the Week

Where's the housing market heading? While there is evidence that buyers will likely have more options in 2006, the south Florida housing market remains strong. The aspects that predict housing values are related to population, economic and unemployment trends. Supply and demand is totally local in nature and the housing values in each locality are based on that particular areas supply and demand ratio. If you're a buyer or a seller, and want clear concise understanding of YOUR local market, contact us today. We'll tell you about:

Special financing programs that help buyersqualify for more
Special interest rates for borrowers withblemished credit
Options for reduced mortgage insurancepremiums
Cash rebate programs that can save you $$$ of purchase price
Flat fee selling agreements
How much your home could sell for intoday's market
READ MORE

Breaking a lease could cost renters thousands under new legislative bill

TALLAHASSEE -- Allowing landlords to impose thousands of dollars of penalties on tenants who break their leases threatens renters with undue financial misery, consumer advocates warned on Monday. READ MORE

Educate Homebuyers: Specialty Mortgages & Traditional Mortgages

Two new pamphlets help prospective buyers make informed decisions on which type of mortgage is best for them.Specialty Mortgages: What are the Risks and AdvantagesProduced jointly by NAR and the Center for Responsible Lending, this 5-panel brochure is one more way you can help prospective buyers make an informed decision about the kind of home financing that is best for them. It will help your clients assess the risks and advantages of interest-only, negative amortization, payment option ARM, and 40-year mortgages. Available in English and Spanish.Learn more

Traditional Mortgages: Understanding Your Options
When shopping for a mortgage, consumers have more choices than ever before. Many lenders now offer specialty mortgages that help make homeownership more affordablebut have risks that consumers should fully consider. But for most consumers, the traditional fixed-rate mortgage and adjustable-rate mortgage (ARM) continue to be excellent options. Available in English.Learn more

Housing Market Readjusting To Normal Balance

(March 13, 2006) – A lower level of home sales expected this year will create a more level playing field for buyers and sellers on the heels of a five-year sellers’ market, according to the National Association of Realtors®.

S. Florida to become 'paved paradise' in the next 25 years, FAU study shows

South Florida communities will keep pushing the westernmost limit of development.

International investment will help the region remain a prosperous urban place to live, with benefits of this wealth trickling down to most. READ MORE

State fund may help residents get zero-interest loans to hurricane-proof homes

TALLAHASSEE· -- Zero-interest loans to help Floridians retrofit homes to stand up better against hurricanes appears certain to be a part of the Legislature's attempt to deal with consumer complaints about rising insurance costs. READ MORE

Homebuyers can dress for success

Fashion tips? Who cares what you look like? "If you appear well-groomed and understated and wear home-price-range-appropriate clothes, you could pay less than the tattooed, big-hair, over-jeweled and torn-blue-jean buyer you're in competition with," Nash says. READ MORE

Thank you Clifford

Robert Thanks for your Briefings.

I read the news about real estate in my paper, watch TV, etc.

But, your posting is the most timely and informative of all.

In my informed opinion you are on top of the latest trends and your predictions I believe are on target.

Keep up the good work and continue informing me as I still have real estate to sell.

Sincerely,

Cliff Trott

Major credit agencies adopt uniform credit score

NEW YORK -- March 14, 2006 -- The three major consumer credit reporting agencies announced Tuesday that they have created a new credit score aimed at simplifying the loan process for both lenders and borrowers. READ MORE

Buyer beware on new homes

Here are some tips before signing a pre-construction contract on a home:

Look for clauses that outline how the rise in material costs affects the sales price.

Find out how much of the down payment is reimbursable.

Identify clauses that allow you or the developer to break the contract.

When in doubt, have an attorney review the contract.

Source: Brenda Talbert, executive vice president of the Gold Coast Builders Assocation

As prices soar, some builders backing out of bargain contracts for new homes

Most everything was in boxes as Dottie and Gary Sahadeo prepared to move out of their Coconut Creek home to a more spacious, custom-built house west of Boynton Beach.

But with construction almost complete, the Sahadeos received an unwelcome call: Their developer was canceling their contract, requesting $150,000 more to finish the work. READ MORE

More Americans are losing their homes

Risky borrowing is catching up with a number of homeowners across the U.S. Foreclosures rose 45% in January compared to a year ago, and experts only expect the pace to accelerate. READ MORE

Setting the Stage

Homeowners don't have to spend a fortune on decorating to impress potential buyers. Los Angeles decorator Jonathan Fong says there are many easy and affordable ways to transform a home from dull to dashing. For those on a tight budget, he offers these four decorating ideas that are sure to boost the "wow" factor of any home:

• Eliminate those white walls. The bolder, the better. And don't forget to paint the ceiling. Carrying the color scheme throughout the house makes the rooms look bigger.

• Place a new area rug over an existing carpet or floor. Remnant pieces from carpet or home work just fine.

• Light up the room. Make sure it shines day and night with lamps, wall lights, hanging fixtures or a combination. A ceiling fan with a light kit will be selling point for some buyers.

• Don't underestimate the power of accessories. Votive candles, plants and even colorful switch plates for lights can add a flourish to a plain room.

Source: Associated Press, Christine Elliott (03/05/2006)

Best time to buy a home might be now

As sales decline across the region and home price appreciation levels return to single-digit increases, the timing is right to consider buying a home if you plan to live in it, experts say. READ MORE

22 nailed in sting, accused of lacking licenses

Police and building officials say they are trying to stop shady contractors before the hurricane season rolls around in less than three months. They also wanted to use the sting as a way of warning consumers that making home repairs with unlicensed workers could result in disasters. READ MORE

Median prices for existing homes in South Florida rose 23.9 percent in 2005

The real estate group said 72 areas had double-digit increases in their median price -- the price at which half the houses sold went for more, and half sold for less. Included was the Miami-Fort Lauderdale area with a 23.9 percent increase. The biggest run-ups, more than 40 percent, were in Phoenix; around Cape Coral-Fort Myers.; and in Orlando. READ MORE

Counties get home-buying aid: Home buyers in 13 Florida counties, including Broward and Miami-Dade, affected by last year's hurricanes could get help.

TALLAHASSEE, Fla. -- March 6, 2006 -- Eligibility rules for a statewide program providing financial assistance to Florida residents wanting to buy a home are being loosened to help those in Miami-Dade, Broward and 11 other counties affected by last year's hurricanes.

The Florida Housing Finance Corporation, which administers state and federal housing programs, said the program -- usually restricted to first-time home buyers -- will now allow any prospective home buyer to apply for 30-year, fixed-rate mortgages through the state's housing bond program.

It is making available $77 million statewide.

"We've had two seasons of four hurricanes per season, which is unprecedented in the history of the state," said Steve Auger, the corporation's executive director.

"That's creating a lot of extra challenges for homeowners looking for affordable housing."
The $77 million is being made available through the Single Family Mortgage Revenue Bond program.

The Gulf Opportunity Zone Act, approved by Congress following last year's hurricane season, relaxed some rules to qualify in those areas affected by the storms.

It is waiving the requirement that participants be first-time homebuyers and raising purchase price and income limits.

In Broward and Miami-Dade counties, the income ceiling for a one- or two-person household will be $63,060; the purchase price of a home can be no greater than $405,263.

The 13 Florida counties targeted by the act are Brevard, Broward, Collier, Glades, Hendry, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Palm Beach, and St. Lucie.

Local housing finance authorities, such as the Miami-Dade Housing Finance Authority, also fund their own bond programs that are eligible for the same waivers under the act.

"This is fantastic news for Dade County because we do have a crisis in housing, and this will be one of the ways to alleviate it," said Miami Dade County Mayor Carlos Alvarez.

How to list your home to earn top sales price

Spring is traditionally the peak home sales season. Home sellers know if they want to earn top sales price, they must have their house or condo in tip-top condition during this best home sale time of the year when the largest number of buyers are in the market. READ MORE

First home can be a debt trap for unwary

By Carolyn Bigda
Your Money staff reporter

As home prices accelerate at double-digit rates, many first-time buyers have relied on interest-only or zero-down-payment loans in order to afford a home. And though not paying toward principal, buyers have built equity riding the same wave of rising home prices. READ MORE

'Exotic' mortgages tempt more buyers

Planet Realtor

BOSTON -- March 3, 2006 -- The cheap mortgages that fueled America's real-estate boom are beginning to hurt the homeowners they once helped. Higher interest rates and the end of honeymoon periods for too-good-to-be-true teaser rates are causing payment shock for those who said "I do" to exotic loans.

Some homeowners are switching to safer, and slightly costlier, fixed-rate loans.

But others are taking on even more risk by opting for ultra-low payments that actually increase the loan balance. The result: A growing number of Americans have little equity in their homes, making them vulnerable to a housing slump.

"Because you don't accumulate any equity in your house when you take out these interest-only mortgages, if house prices don't go up, or go down, then you have negative equity, and a lot of these people who had speculated are going to lose money," says Jack Guttentag, a professor of finance emeritus at the Wharton School of the University of Pennsylvania, who provides mortgage advice at mtgprofessor.com. "There could be a rise in the foreclosure rate."

Signs of slumping home values became more evident this week in some regions. In Massachusetts, the median price for single-family homes fell 2.4 percent in January from December's prices. In California, values nudged up just 0.5 percent.

Mr. Guttentag and others acknowledge that nontraditional loans help many people afford homes. But mortgage ads, they say, often emphasize only the low, introductory rates. Consumers often get stuck with risky loans, ignorant of the complex factors that could raise their payments down the road.

"A lot of people who've taken on exotic loans don't understand them," says Scott Hanson, a senior financial planner at Hanson McClain, based in Sacramento, Calif. "The mortgage industry has sold these loans as a way to buy more house than you'd otherwise afford. Anyone who goes out today and gets an adjustable rate has got to be loony."

A year ago, however, it didn't seem so loony, particularly in premium real estate markets such as California. With home values skyrocketing, buyers tried to maximize the purchase - and minimize the monthly payment - with lower-cost adjustable-rate mortgages (ARMs). During periods of double-digit price appreciation, like most of last year, that strategy can pay off, either through selling for a quick profit, or by tapping into the home equity as a source of income.

But when values stall, as they now seem to be doing, those prospects disappear. Instead, buyers may face mounting difficulties. Many cheap loans carry flexible-payment options, such as interest only, or even negative amortization, which can increase the homeowner's debt load.
Those flexible-payment options used to be the province of the very wealthy. But during the real-estate boom, brokers marketed them aggressively to regular homebuyers as a way to improve cash flow or finance a second home.

In 2001, 1.5 percent of borrowers nationwide took out a loan with an interest-only option, according to data from LoanPerformance, a research firm in San Francisco. Last year, one-third did.

"The buyer can get much more home for their money," says Ron Porter, a buyer's broker serving California's Silicon Valley area. But "it may burn them in the long run. We make sure our buyers take a good look at their [financial] future."

Indeed, financial experts are sounding the alarm.
"We are really seeing people pushing their finances to the absolute limit," says Erica Sandberg of Consumer Credit Counseling Service of San Francisco. "They're using every dollar of their paycheck."

Some observers blame lenders for predatory practices, seducing consumers with introductory rates that hide the true cost of home loans. At least one lender has been sued for allegedly misleading consumers. And federal regulators are trying to make it harder for people to qualify for exotic loans, warning of the risk they pose to banks and borrowers.

Despite the hand-wringing, some see signs of assurance. Former Federal Reserve Chairman Alan Greenspan, for example, expressed concern in a speech last fall about the popularity of exotic mortgages. But, he added, "the vast majority of homeowners have a sizable equity cushion with which to absorb a potential decline in house prices."

"I don't see a doomsday scenario here," says Alex Clark, with Hill & Co. Real Estate in San Francisco, who edits sfnewsletter.com. "People are not buying homes to stay in them forever."
The increased mobility of younger homebuyers and the frequent turnover in the housing market probably mean exotic mortgages are here to stay, even if they cause financial hardship for some.

"The average life of a loan is only four years," says Teresa O'Dette, owner of O'Dette Mortgage Group in Tahoe City, Calif. "So why go 30-year [fixed-rate]?"

Go fixed, others say, because the difference in interest rates between an ARM and a fixed loan is so low these days. But in expensive markets across California, an option ARM may be the only way to afford a home. One-quarter of all the new mortgages and refinances in California last year had the negative-amortization option.

High home prices and exotic loans, experts say, are mutually reinforcing. Interest-only loans have been so popular in California because home prices had been appreciating so fast, says Kathy Matt, a senior loan officer with Associated Mortgage Group. "It's a completely different approach than our parents [had]."

That generational difference is worrisome to Mr. Hanson, the financial planner. "My biggest concern with these products is that yesterday's generation wanted to be debt free," he says. "Today's generation is very different."

Red Hot Market Cooling Off

VIDEO: See and hear it for yourself

For Sale By Owner - No More!

FSBO NO MORE

Home sellers are discovering that they don’t like the waiting game when trying to sell their homes without the assistance of a real estate professional.

In Orlando, for instance, an unprecedented 29 percent of the homes sold in the city -- more than 10,000 properties -- were by unrepresented owners in 2005, according to the Orlando Regional Realtor Association. But that number is expected to drop significantly this year and be more on level with the national average of FSBO sales, which is 13 percent of homes.

The expected drop is attributable to a change from last year's seller's market -- when Orlando was one of the hottest real estate markets in the country -- to more of a buyer's market
so far this year. By January, more than 6,000 homes were listed for sale, about double the number of a year ago. Overall, there are more than 12,000 homes in the metro inventory now. At the highest level last year, only a few thousand were available.

Another satisfied customer

"My wife and I found this unique real-estate experience to rank as the best!"

"There was no pressure no false promises just results."

"Robert, you should be commended for your professionalism and knowledge of Coral Gables Unique Old Spanish Home Market."

"We had it listed almost a year with no results and within a few weeks and some good advise the house sold and closed in less than 2 months...........WOW!"

"I will refer you to anyone and everyone. Please feel free to use our name and use us as a reference....Again a great appreciative thanks!"

Alex and Maria

Study warns 'American dream is fading' in Broward as affordable housing disappears

Years of skyrocketing real estate prices and low-paying jobs have placed the American dream of home ownership out of reach for much of Broward County, the first-ever comprehensive study of the area's housing market concludes. READ MORE

Housing in Broward called way too costly

Housing affordability is a huge problem in Broward, two reports by the Broward Housing Partnership confirm. They urge grass-roots pressure. READ MORE

Keep credit cards before home borrowing

NEW YORK -- March 1, 2006 -- Homebuyers uneasy about their credit scores sometimes cancel credit cards before applying for their mortgage. Is that a good idea?

No, say credit specialists. Such a move drives up the amount of their debt as a percentage of how much credit they have available to them, explains Craig Watts of Fair Isaac Corp., which created the widely used FICO credit scoring system.

Here's why canceling cards can hurt a mortgage applicant:

Let's say your buyer, Mr. Smith, has five credit cards and a $10,000 limit on each of them, giving him $50,000 in available credit. Let's suppose Mr. Smith owes $25,000 total. That means he's using 50 percent of his available credit. If he cancels one credit card on which he owes nothing, he reduces his credit limit to $40,000 without reducing his debt. At the same time, having one fewer card means he's using 62.5 percent of his available credit.

The bottom line: by canceling a card, Mr. Smith has given himself less wiggle room and cuts his credit score, says Watts.

The boom is gone: Home sales falling while price hikes slowing

South Florida's five-year housing boom is over.

Prospective home buyers are finding prices falling to more affordable levels. Sellers are waiting impatiently as their houses sit on the market for weeks and months, only to receive tepid interest before reducing their asking prices. READ MORE

S. Florida, kiss the seller's market goodbye

January saw double-digit percentage drops in home sales for Miami-Dade and Broward counties, and price increases stalled -- further evidence that the red-hot housing market has cooled. READ MORE