Real Estate Information

Pending home sales declined on the heels of a weakening economy and with some buyers waiting for clarity on housing stimulus provisions, according to the National Association of Realtors^®.
 

Let’s take a look at the Miami Beach real estate sales statistics for February compared to February 2008 to see how the market is looking in South Florida:

Condo/Coop/Townhouse/Villa Sales in Miami Beach

February 2008 market statistics for condo/townhouses etc. in Miami Beach showed an increase in sales with sold listings up by 39.4 percent compared to 2008. New listings decreased by 11.5 percent. The average sales price dropped 40.3 percent to $440,979 and the year-to-date sales price dropped 10.4 percent to $554,137.

Statistics provided by the Realtor Association of Miami-Dade County and are deemed reliable, but not guaranteed.  

If you want to learn more about South Florida real estate, please contact us at 888-SFL-TEAM or visit HomeInSouthFlorida.com. To begin searching for South Florida homes, please use our complimentary MLS search. 

Guest blogger, Justin Miller, further explains something that everybody seems to be talking about, and that is What Is The 787 Billion Dollar Stimulus Package? I am still trying to get my mind around how many zeros would be in billion! Read on as Justin breaks is down for us!
P.S. Wondering what property values in the Miami Area including foreclosures, HUD homes and short sales are? Check out Market Snapshot!

Ellen Bithell, CRS, CREO, SSS (short sale specialist)
SELLING SOUTH FLORIDA

Just signed and sealed…a $787 Billion Stimulus Plan made up of tax cuts and spending programs aims at reviving the US economy. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II.

Homeowners and potential homebuyers stand to gain from key provisions in this stimulus plan. Here is what we know as of today...

Tax Credit for Homebuyers

First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit.  Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.  Buyers will have to repay the credit if they sell their homes within three years.

Additional Housing-Related Provisions

Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization.  According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing—This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.  Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance—This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

More Help for Homeowners in the Future

Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage.

According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster.

While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That’s because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices.

The Economic Stimulus Plan is huge, and impacts a number of industries. I’ve highlighted some of the major provisions that may impact you now and in the future.

As always, if you have any questions or would like to discuss how this may specifically impact you, I’d be happy to sit down with you. Just call or email me to set up an appointment.

Thanks

Justin Miller

FROM  MY INBOX: Reading through the mass of emails I get I am always drawn to the blog posts from Deborah Boza-Valledor from the Realtor Association of Greater Miami and the Beaches.  She continually posts timely blogs, and this one is no exception.   Interest rates are at historic lows and whether you are looking to purchase or refinance I have never seen interest rates like these!  I got a call from my father in CA who was considering refinancing an investment property he and my mother have. 

By the time they signed the documents last week their monthly payment had been reduced significantly and they were able to shorten the term of the loan as well.  This inspired my father to urge my younger brother to go from being a renter to a homeowner; something previous prices prevented him from pursuing.  Jon (my brother) is now looking at properties and the pride and excitement in his voice during the numerous conversations we have had about it are evident.  So if you have been on the fence, take the leap of faith! Please look at Market Snapshot to see homes in the areas you may be considering!

Ellen Bithell, CRS, CREO, SSS (short sale specialist)

SELLING SOUTH FLORIDA 

Mortgage rates drop to record low

Mortgage Rate Trend Index

This week, half of the mortgage industry experts polled by Bankrate.com believe mortgage rates will rise over the next 35 to 45 days. The other half are split equally (25 percent each) between those who think rates will fall and those who believe they will remain relatively unchanged.

WASHINGTON – March 27, 2009 – Rates on 30-year mortgages fell this week to the lowest level on record after the Federal Reserve launched a new effort to assist the staggering U.S. housing market.

Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.85 percent this week, from 4.98 percent last week. It was the lowest in the history of Freddie Mac’s survey, which dates back to 1971 and was down a full percentage point from a year ago.

The previous record low of 4.96 percent was set in the week of Jan. 15. Rates fell after the Fed last week said it will pump $1.2 trillion into the economy in an effort to lower rates on mortgages and loosen credit.

Rates on 30-year mortgages traditionally track yields on long-term government debt.

Though the yield on the benchmark 10-year Treasury note initially plunged by about 0.5 percentage points after the Fed’s move, lenders did not pass the entire drop on to borrowers. Bond yields rose after worries about what some saw as lackluster demand at a government debt auction Wednesday.

“There was a honeymoon effect initially” after the central bank’s announcement, said Greg McBride, senior financial analyst with Bankrate.com. “The reality of large government deficits and the need for substantial government borrowing is setting in with investors.”

Mortgage applications surged last week, mostly from borrowers looking to refinance and save money on their monthly payment. The Mortgage Bankers Association said Wednesday its weekly application index climbed more than 30 percent for the week ended March 20.

Nearly 80 percent of applications came from borrowers seeking to refinance home loans at lower rates, rather than purchase homes.

In Freddie Mac’s survey, the average rate on a 15-year fixed-rate mortgage dropped to 4.58 percent this week, down from 4.61 percent last week.

Rates on five-year, adjustable-rate mortgages fell to 4.96 percent, compared with 4.98 percent last week. Rates on one-year, adjustable-rate mortgages rose fell to 4.85 percent, from 4.91 percent.

The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point last week for all mortgages in Freddie Mac’s survey except for one-year adjustable mortgages, which had an average fee of 0.6 point.

FROM  MY INBOX: Reading through the mass of emails I get I am always drawn to the blog posts from Deborah Boza-Valledor from the Realtor Association of Greater Miami and the Beaches.  She continually posts timely blogs, and this one is no exception.  It is about now being a great time to buy, and I could not agree more.  Last week I was on the phone with my younger brother, Jon, who lives in Southern California and for the first time housing there is affordable. 

He is looking to be a first time home buyer and with the $8,000 first time home buyer tax credit, large inventory and historically low interest rates, if now is not the time, then what is?  If you are thinking about buying and want to know how what is available please visit: www.NewSouthFloridaListings.com for free emails of homes as they come on the market including foreclosures, HUD homes and short sales.

Ellen Bithell, CRS, CREO, SSS (short sale specialist)

SELLING SOUTH
  
Survey: Households say Now Is A Good Time To Buy

March 28, 2009 by Deborah Boza-Valledor

    *ORLANDO, Fla. – March 27, 2009 – Out of 1,000 potential first-time home buyers, 78 percent say that now is a good time to buy a home, despite widespread concern about the economy. And 68 percent think now is a better time to buy than six months ago. The survey was conducted in early March for the Century 21 First-Time Home Buyer Survey.

Prices are the driving motivation for potential first-time home buyers, with more than eight of 10 first-time home buyers (85 percent) saying they consider current home prices affordable, and 73 percent citing current prices as a major factor in their decision to buy now. However, potential first-time buyers are still split between “being willing to consider an offer now” (42 percent) and “waiting for prices to go down before they seriously consider making a purchase” (48 percent).

“Current pricing, rates and incentives, such as the First Time Homebuyer Tax Credit, provide tremendous opportunities for first-time home buyers to get into the market,” says Tom Kunz, Century 21 Real Estate president and CEO. “Our research shows that while consumers still have concerns about the future of the economy, many are actively considering their options as we move into the spring selling season.”

Among the survey’s other key findings:

• Bargains in the marketplace provide additional options for buyers to consider. Fifty-six percent of potential first-time home buyers are considering a foreclosed or short sale home, and 63 percent are open to a “fixer-upper” or “as-is” home.

• When asked to rate the features that they look for when choosing a home, price is the primary consideration, with 87 percent saying this feature is “very important,” followed closely by neighborhood safety (80 percent) and the home’s condition (71 percent).

• Having enough money for a downpayment is a top concern of potential first-time home buyers, as nearly half (46 percent) said they are “very worried” about the issue.

• Most respondents (86 percent) are in the market for single family homes.

Source: Century 21

© Copyright 2009 INFORMATION, INC. Bethesda, MD

FROM MY INBOX:  HUD PRODUCES VIDEO MESSAGES FOR THE DEAF AND HARD OF HEARING

Deborah Boza-Valledor of Realtor Association of Miami and the Beaches (RAMB) send me the following blog, which I thought contained such great information.  It is so important during these economic times that we reach out to everyone that we can in any venue that we can.  A big shout out to HUD for keeping up with the times and going outside of the box to reach consumers.

To receive properties (including HUD homes and foreclosures) as they come on the market please visit: www.NewSouthFloridaListings.com

Ellen M Bithell, CRS, CREO, SSS (short sale specialist)

SELLING SOUTH FLORIDA 

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Read on….

HUD produces video messages for the deaf and hard of hearing

March 11, 2009 by Deborah Boza-Valledor

WASHINGTON – March 11, 2009 – The U.S. Department of Housing and Urban Development (HUD) announced today that it produced videos for YouTube and Facebook designed to educate deaf and hard-of-hearing consumers about their fair housing rights, housing counseling services, and loan programs offered by the Federal Housing Administration (FHA).

In one video, a HUD employee uses sign language to tell his story of refinancing his home through FHA, the largest government insurer on mortgages. In another video, he explains that it’s illegal to discriminate in housing based on race, religion, sex, national origin, disability or family status. All videos encourage viewers to contact HUD by visiting its website, www.hud.gov for help or more information.

Reaching out to consumers on YouTube and Facebook gives HUD another avenue for delivering content to users, particularly those who are deaf and hard of hearing. Videos posted on these sites get a different level of exposure than just being posted on HUD’s Web site. Because people usually circulate videos through their own distribution lists, users are more likely to be informed about a video from a friend than by searching for it on their own. However, videos are also searchable by using keywords related to the topic.

© 2009 FLORIDA ASSOCIATION OF REALTORS®

THE NEW STIMULUS PACKAGE, HOW DOES IT IMPACT SOUTH FLORIDA?

That is a question I have been getting for the past couple of weeks.  The plan was announced on 3/4/09 and I went to a meeting yesterday where we went over the plan and how it would affect homeowners in the Miami area that are facing foreclosure.

The plan is 3 fold, and we went over the first to parts of it, the third part is largely bureaucratic.

The first part offers refinancing options to homeowners with Fannie Mae and Freddie Mac loans.  The borrowers must not be late and must be credit worthy.  The banks will have the option of opting in to this voluntary program, but if they do not, they will not be entitled to any of the federal governments funds.

The second part covers loan modifications.  A homeowner can be late and still have a loan modification if they have the ability to pay a decreased amount on a monthly basis. The modification will be for the term of five years and none of the principal will forgiven, but the modification will reduce the monthly payment allowing homeowners that want to stay in their homes the opportunity to get through this financial crisis.

The Web site created for the Obama Administration's housing plan offers a complex, detail-by-detail breakdown of the new program, a summary of the program, and step-by-step instructions for homeowners checking to see if they qualify for a mortgage rate reduction. It also includes contact information for Fannie Mae and Freddie Mac, since only loans under those government-sponsored enterprises qualify. Complete information can be found at: http://financialstability.gov/makinghomeaffordable/

If you need assistance with a short sale please visit: www.southfloridarealestateshortsale.com

Looking forward to hearing your thoughts.

Ellen Bithell, CRS, CREO, SSS (short sale specialist)

SELLING SOUTH FLORIDA 

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FROM MY INBOX:  Like all of us I get tons of emails these days and try to quickly sort out the garbage from the gold.  Since President Obama signed the $8,000 tax credit into law a couple of weeks ago I have been getting a lot of questions about it and this blog from Debra Boza-Valledor of RAMB explains it really well.  Please read on and don’t hesitate to give me a call or send me an email with any comments, questions or concerns.  I look forward to hearing from you!  If you would like to receive emails of new properties as they hit the market including foreclosures, short sales and HUD homes please visit: www.NewSouthFloridaListings.com


Ellen Bithell, CRS, CREO, SSS (short sale specialist)


SELLING SOUTH FLORIDA


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How to Get the $8,000 First-Time Homebuyer's Tax Credit


March 9, 2009 by Deborah Boza-Valledor


How does a first-time homebuyer take advantage of the $8,000 tax credit that President Obama is expected to sign into law tomorrow? It comes with a few rules. According to the most recent analysis, the following rules will apply – though things could change as tax professionals weigh the details:


• The deduction is worth 10 percent of a home’s value up to $8,000, which means all homes worth more than $80,000 could qualify for the maximum amount.


• There is an income limit to qualify. A married couples’ modified adjusted gross income (MAGI) should be under $150,000 and single filers’ MAGI should be less than $75,000.


• Partial tax credits may be available for married couples with MAGI incomes over $150,000 but under $170,000, and single filers with incomes over $75,000 but under $95,000.


• If married couples file separately, they can both claim 5 percent of the home purchase ($4,000 each for a home over $80,000) on their tax returns.


• It’s a tax credit, not a deduction. That means the entire amount goes back to the first-time homebuyer unlike deductions, such as mortgage interest, that are subtracted from gross income before tax is calculated. If qualified for $8,000, the buyer gets $8,000, even if they would not owe that much in taxes otherwise.


• The tax credit applies to homes purchased between Jan. 1, 2009, and Dec. 1, 2009.


• The tax credit does not have to be paid back, providing the homebuyer keeps the property for at least 36 months and resides in the home.


• To qualify as a first-time homebuyer, the purchaser cannot have owned a home within the previous three-year period. However, ownership of a vacation home or rental home does not disqualify the buyer.


• If purchasing a new home, the effective date to receive the credit is the first day the homeowner actually lives in the house. If construction began in 2008, that buyer could still qualify. And if construction begins in 2009 but the owner does not take possession until 2010, the buyer would not qualify.


• The tax credit can be claimed on 2008 income tax forms even though the purchase took place in 2009. A buyer could close on a home the same day that President Obama signs it into law, fill out their income tax forms the next day, and receive the tax credit fairly quickly.


The tax credit is not a down payment, but it could be used toward a down payment if first-time homebuyers plan ahead. U.S. taxpayers have money withheld from every paycheck for income taxes. If they owe more tax than the amount deducted, they pay the IRS; if they owe less, they get a tax refund.


By anticipating at least an $8,000 refund in early 2010 when they file 2009 taxes, these buyers could cut down on their tax withholding this year and save the money toward a down payment. There is one caveat, however: Should they not buy a home in the qualifying period, they would still owe the IRS the money, and reducing their withholding amount could result in a high bill at tax time.


Tax Credit details


Every homebuyer has unique circumstances and specific questions. The National Association of Home Builders (NAHB) has launched a consumer Web site with detailed information and an extensive list of frequently asked questions. To find out more about the $8,000 tax credit, go here (http://www.federalhousingtaxcredit.com)


© 2009 FLORIDA ASSOCIATION OF REALTORS®

On 3/5/09 I attended an informative seminar hosted by the Community Redevelopment Associates of Florida.  The topics covered included:

1.      Foreclosure Prevention

2.      Free Government Money to Purchase a Foreclosed Property

3.      Rental Assistance

Since these three topics were covered in a one and a half hour seminar it is not possible for me to convey the information in one blog.  Therefore I will write a series of blogs starting with this one where I will cover Foreclosure Prevention.

The cities of Pembroke Pines, Miramar and Plantation (all north of Miami Beach, FL) are offering one time foreclosure prevention assistance to qualifying homeowners.

The cities will pay 100% of the delinquent mortgage amount up to $10,000.

Applicants must show the reason for non-payment and ability to maintain their mortgage payment after assistance is given.

I think the cities of Pembroke Pines, Miramar and Plantation, FL deserve a big shout out for their forward thinking and pro-active program.

I look forward to seeing other cities roll out similar plans and would encourage you to send me an email, give me a call at 954-862-2631or visit:  www.SouthFloridaRealEstateShortSale.com
so that I may be of service to you if you need or anticipate needing foreclosure prevention assistance.

Look for my next blog on purchasing a foreclosed property at a discount with the help of free government money.

Visit www.NewSouthFloridaListings.com today for a free list of homes for sale including foreclosures, short sales and HUD homes.

Ellen Bithell, CRS, CREO, SSS (short sale specialist)

SELLING SOUTH FLORIDA 

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This weeks guest blogger, Justin Miller, of Resource Mortgage tackles an issue that can be confusing to many, remember that you can look at Broward County property values at: www.bcpa.net and use their tax estimator if considering a purchase.  Additionally, if considering a purchase please visit: www.NewSouthFloridaListings.com and receive properties as they come on the market (including foreclosures and hud homes).

Ellen Bithell, CRS, CREO, SSS (short sale specialist)

SELLING SOUTH FLORIDA 

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How Does An Appraiser Come Up With A Property Value?

 I have heard a lot of people commenting on the appraised value of their home whether for a purchase or a refinance.  Many state that the value has come in low because appraisers fear they might lose their license or the lender will get very cautious if the value is too high.  That couldn’t be further from the truth.

An appraiser is required in this market to find comparable sales within the last 3 months:  one within .5 miles from the property, one outside the neighborhood, and one active listing.  What are the most recent sales?  They are foreclosures and short sales.  That is what is selling so that is the fair market value.  Yes, it is artificially deflated but it is the “true value” in this market.

On a purchase transaction many want to see the appraised value $50,000 or more above the purchase price because they picked up a newspaper or turned on the TV and heard it’s a buyers market and so and so got this incredible deal.  Although this is great from a psychological standpoint, it means nothing.  Think about it for a second.  If you are buying a home for $300,000 and it appraises for $350,000, you are very excited because you feel you have an instant $50,000 of equity in your home.  Wrong.  Remember how an appraisal is done.  It is based on the most recent sales.  What is the most recent sale now?  You guessed it, your purchase transaction for $300,000.

This is a buyers market and buyers dictate the price of a home.  That means the “true value” of a property is the amount someone is willing to pay.  So whether your appraised value comes in $5,000 above your purchase price or $50,000 above it, that doesn’t necessarily determine how great a deal you got.

Most of the transactions that come across my desk do not have a large gap between the purchase price and appraised value.  What makes these transactions such a good deal is that they are the some of the lowest sales in the neighborhood.  Remember, you are not buying the market but you are buying a specific home, in a specific area, for a certain price.  Now please keep in mind that although I close a lot of transactions per month I am not the whole market.  That is why this is just my opinion.

Thanks

Justin Miller

www.milleronmortgages.com - Mortgage Blog

Southeast Regional Manager

Resource Mortgage Group formerly

JB Mortgage & Financial Services LLC

954-227-0211 Office

754-214-7449 Cell

954-227-0214 Fax

499 NW 70th Avenue

Plantation, FL 33317

www.resourcemortgage1.com

In December I teamed up with Credit Law Group and Amerifirst to put on a series of foreclosure prevention seminars.  The seminars were spearheaded by Mel Pollock of the Hollywood Council of Civic Associations (HCCA) and have been responsible for helping many attendees avoid foreclosure.
 Many people may not know that lenders really do not want to take properties back in our declining South Florida real estate market.  Lenders can’t sell those properties either!  The big problem for people facing foreclosure is that they are often so panicky that they do nothing to improve their position. In the case of foreclosure, time is not on their side.
 There are many options available to people that are having financial difficulty.  I will review a couple:

 1.      Loan Modification
This is when your lender may agree to modify the terms of your loan which can mean decreasing your interest rate, making a variable rate fixed, reducing the principle loan amount or any variation of the above.  In order to quality for a loan modification, home owners are typically required to provide a financial statement proving they can afford to pay the proposed modified payment.
 
2.      Short Sale
There may be some circumstances where the homeowner is unable to modify the terms of the loan due to loss of job, divorce or a desire to move elsewhere.  A short sale is when the home is put on the market for sale and the lender agrees to accept less then the loan amount owed to avoid the costly process of foreclosure.  Typically the owner is able to stay in the home during the short sale process and I see lenders more and more willing to approve short sales than in the past.
 This month I have teamed up with the City of Hallandale’s CRA Director, Bobby Robinson and Amerifirst to put host two foreclosure prevention seminars in Hallandale:
.    
February 23 from 6-8 pm
Hallandale Beach Cultural Center
410 SE 3rd Street
Hallandale, FL
 
February 26 from 6-8 pm
Austin Hepburn Center
750 NW 8th Avenue
Hallandale, FL
 
 If you are facing foreclosure, the worst thing you can do is nothing.  I would encourage you to meet with a professional that specializes in Short Sales and loan modifications so that you know your options.  When you know your options, you know your rights!
Please let me know if I can be of service.
 
If you want to purchase a foreclosed home use our FREE MLS and if you need assistance please call me today at 954-862-2631 or Email me.  It would be my pleasure to be of service to you!
 
 Ellen Bithell, CREO, CRS, SSS (Short Sale Specialist)
SELLING SOUTH FLORIDA
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