Home prices go negative for first time in 11 years

Home prices fell from December to January in 17 of the 20 cities; only Miami showed any price gains. Prices were flat in Charlotte, N.C., and Seattle. Prices were falling fastest in January in San Diego, down 1.7%, or a 22.4% annual rate. Prices dropped 1.1% in Los Angeles, or a 14% annual rate.

Fed Leaves Interest Rates Alone

The Federal Reserve yesterday left the key federal funds rate at 5.25 percent — unchanged since last June.

But in a discussion of future changes, the Fed took a more neutral stance than in previous statements, saying "future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth.” Observers view this as opening the door to cutting interest rates in the coming months if economic growth decelerates further.

Ian Shepherdson, chief U.S. economist at High Frequency Economics, says it is normal for inflation to ease when an economic expansion is decelerating — and for the Fed to show "equivocation." When the Fed's expectation of "moderate" growth fails to materialize, he says, "expect rapid easing" with the first cut by August

It's bargain time for homebuyers

Two years of stormy real estate markets appear to have created an ideal climate for bargain-minded house hunters who know where to look.

Real estate experts say a switch in the psychology of the housing market has helped buyers to see the silver lining around the market's storm clouds and usher in the fine shopping weather.

"We are now in a solid buyer's market," says David Lereah, the chief economist for the National Association of Realtors (NAR). "It has been a seller's market for many years, but now we are seeing people across the country making deals and bringing prices down."

Property taxes: a guide for our readers

Property tax reform is one of the major issues before the state Legislature this year. Here are answers to frequently asked questions. Click on the title link for answers.

What is the problem with the property tax system in Florida?

What is Save Our Homes?

What's wrong with that?

How are property-tax rates determined?

What is millage?

What is a homestead exemption?

My house is valued at $200,000 and my millage rate is eight. But my taxes are a lot higher than $1,600. Why?

My county has lowered the millage rate. Why are my taxes still going up?

How much money will the tax reform proposals save me?

Why are counties and cities opposed to the House Republican plan?

How likely is it that we would do away with property taxes?

Why does it take a constitutional amendment?

School districts rely on property taxes. What impact would the House sales tax plan have on schools?

I have seen figures that show commercial property owners benefit the most under some plans. Why?

What impact does the House Republican plan have on snowbirds and owners of second homes?

Will local governments increase other taxes and fees to make up for the lost tax revenues?

What does the governor think about all this?

Why doesn't the Senate have a plan?

What about the proposal to make the Save Our Homes savings portable to another home?

Democrats' proposal would sharply raise homestead exemption

Under the Democrats' plan, the state would base tax exemptions on the median assessed value for single-family homes in each county. Owners of primary homes would get a homestead exemption equal to half that amount, plus the existing $25,000 exemption.

For example, in Miami-Dade County, the median assessed value of a single-family home is $226,580, so homeowners would, at a minimum, receive an exemption of $113,290 plus $25,000, for a total of $138,290. In Broward County, the median assessed value is $230,730, so homeowners could get a minimum exemption of $140,365.

New law should give home insurance savings up to 50 percent

TALLAHASSEE, Fla. – March 2, 2007 – Homeowners could see average property insurance savings ranging from around 10 percent in the Panhandle to more than half in South Florida because of a new law meant to lower rates, state insurance regulators said Thursday.