John's Blog

New Ormond Farmer's Market

John Adams (Adams, Cameron & Co. Realtors) — Wed, 23 Sep 2009 20:30:10 -0700

Next Thursday, October 2nd, marks the first day of the Ormond Beach Farmer's Market, I'm told that Thursday is the traditional day of farmer's markets; I'm just glad to have one in Ormond Beach! For years Daytona Beach has offered a fantastic farmer's marketing on City Island on Saturday mornings. Flagler Beach has offered a great market on Fridays and a smaller solution on Saturdays. However, Ormond has been forced to head elsewhere.

No more! Ormond's Farmer's Market was established by Ormond Mainstreet, an organization dedicated to the furtherance of Ormond's downtown district. The new Farmer's Market is sanctioned by the City of Ormond Beach and should be a real asset to the community.

The Ormond Beach Farmer's Market will be headquartered at the Rockefeller Gardens. The location is at the corner of Granada (Ormond's mainstreet) and Riverside Drive, directly at the base of the Granada Bridge. The Rockefeller Gardens are so named because they were originally the garden area of the Casements (the winter and retirement home of John D. Rockefeller). The location is directly on the Intracoastal Waterway and has fantastic views.

The location has ample parking at the Casements (across Riverside from the park), Fortunato Park (John Anderson and Granada), and surrounding areas. Ormond Beach is unique in the area in that all four corners of the bridge across the Intracoastal Waterway are dedicated parkland.

Market hours are from 7:00 am to 1:00 pm. Visitors and locals alike are encouraged to visit the new Farmer's Market!

Fed Funds Rate and Mortgage Interest Rates

John Adams (Adams, Cameron & Co. Realtors) — Wed, 23 Sep 2009 19:38:39 -0700

Fed Funds Rate and Mortgage Interest Rates

June 10th, 2009 — 9:01am

Intro

The Federal Funds Rate is the interest rate that banks charge one another to lend money. The rate is set by the Chairman of the Federal Reserve and is a key way that the Fed can control the supply of money. A lower Fed Funds Rate can lead to lower interest rates charged by banks to consumers. Recently, interest rates on mortgages have been at historic lows. I thought it would be interesting to look at how the Fed Funds Rate corresponds.

Fed Funds Rate Data

The Federal Reserve conveniently provides a system for downloading data. This chart represents data from January 1970 through This post date.

Fed Funds Rate 1970 to current

As you’ll notice, the Fed Funds Rate varies from time to time. However, it has never been as low as it is right now. The rates truly are at an all-time low. You may also be interested in a closer look at recent data…

Fed Funds Rate 2005 to current

The recent data shows that the rates are not only at historic lows over a long period of time but are actually almos zero. They prbably can’t get any lower. A rate lower than zero would actually represent losing money when lending it.

Conventional Mortage Rates

I also wanted to revew the actual rates for conventional mortgages. When a buyer is purchasing a home, the interest rate on thier mortgage effects the monthly payment. A lower interest rate can have a tremendous amountof effect on the price of the home that a buyer can buy. Alternatively, it can reduce the monthly price on an existing home in order to make it more compelling to buy vs. rent.

This graph shows the convential mortgage interest rates from 1970 to this post date:

Interest Rates 1970-2009

Clearly, the effect of the Federal Reserve’s monetary policy and the effect of the Fed Funds Rate is visible in this graph. Also, you’ll note that today’s rates truly are the lowest in recent history. Lastly, to round things out, we can look at a closeup of recent interest rate history.

Interest Rates on Conventional Mortgages 2005-2009

Again you’ll note that while we have enjoyed lower interest rates for many years now, the rates have never been quite as good as they are right now.

Summary

Ultimately, there are numerous reports that discuss now being a good time to buy and that interest rates are at the lowest they have ever been. I wanted to look at the hard numbers. The numbers do, in fact, bear out the reports. With the interest rates as low as they are, far more people should be able to achieve home ownership. The $8,000 tax credit that has been offered by the government should help to stimulate that effect.

I’ll continue to review where we are in the life cycle of the market adjustment and some of the factors that help and hinder our recovery. After reviewing this data in more detail, interest rates should certainly be credited on the HELP side of the equation.

Home Sales Declining but Better than Expected

John Adams (Adams, Cameron & Co. Realtors) — Thu, 31 Jul 2008 13:35:47 -0700

I'm still trying to determine if I'm encouraged by the latest news from the Commerce Department that homes ales declined 0.6 per cent last month. The report states that the decline is less than half of what had been predicted. That sounds encouraging but makes me worry that July and August will come in week. Certainly I'm hopeful that we're seeing a reversal but I'm not so naive to stake my expectations on one month.

I like to put in light, however, of what we're seeing in our local market. We're starting to see the number of units moving picking up. At the same time, the trend that includes the true deals selling seems to also be increasing. The result of foreclosed or financially stressed homes in the market has been a continued price decline. Further, we're seeing that price decline accelerate. I don't necessarilly see that as a bad trend as we have long had too much inventory on the market and economic forces must eventually win over.

Ultimately, when I look at the information, our prices are currently in line with where we were before the huge price leaps of 2004, 2005, and even 2006 (when prices were going up while transactions were dropping off). Ultimately, if the pricing trend continues much longer, there will be investor steal showing up more and more frequently.

Flippers rejoice

John Adams (Adams, Cameron & Co. Realtors) — Mon, 16 Jun 2008 13:38:01 -0700

WASHINGTON - The Bush administration is suspending a 5-year-old rule intended to deter property flippers as part of an effort to help speed the sale of foreclosed properties.
For one year, the Federal Housing Administration will no longer impose a 90-day waiting period before foreclosed properties can be sold and receive government-backed loans.
The policy aimed to deter property flipping schemes, in which buyers are overcharged for foreclosures. But the surge in vacant properties resulting from borrowers who were unable to afford their mortgages has become a far more pressing concern.
- Associated Press

This short article came out today. I'm not certain that it will have much effect given the market today. Flippers are not quite as common place as they once were. However, government loans are clearly becoming more and more important. Ultimately, this is a possitive thing for the regular buyer who, for one reason or another, needs to sell a foreclosed home that they had bought.

Foreclosure liability

John Adams (Adams, Cameron & Co. Realtors) — Fri, 06 Jun 2008 09:29:48 -0700

I had an interesting conversation yesterday with a seller. The seller owns property in Florida which was purchased as an investment. The property's just value according to the property appraiser is about $225,000. The owner owes over $400,000. The proeprty has been listed for some time and I was discussing the possible opportunity of a short sale. The seller's intent was to allow the bank to foreclose with the expectation that she would be finished with it. Unfortunately, she didn't understand that the bank has rights beyond the mortgage. Specifically, that the bank has the right to come after a seller if the property sale does not cover the value of the mortgage.

In the local paper in our area we read about stories of people mailing their keys to the bank or allowing the bank to have the property and walking away. In these cases, I assume that they are referring to a deed in lieu, however, I don't think many owners understand the opportunities available to them. I am further concerned that sellers believe that they can simply stop payment on their investments and the bank will take the proeprty and drop the issue. Is anyone else experiencing these types of problems? How are brokers and agents educating property owners as to their options?

Thanks for you input...

Great news

John Adams (Adams, Cameron & Co. Realtors) — Wed, 06 Feb 2008 10:42:41 -0800

DeLand, FL – February 5, 2008– The largest real estate firm in Volusia/Flagler County, Adams, Cameron & Co., has acquired West Volusia Properties, Inc., in an effort to continue their sustained growth and market dominance.

“I think this will be a time of continued consolidation among brokerages and we are always on the lookout for the right opportunity. We have had the highest opinion of West Volusia Properties ever since our first transaction together when we bought our office in a historic building across the street from their office. In that transaction, Maggi Hall personally represented the seller” stated Robert L. Adams, President and CEO of Adams, Cameron & Co.

Maggi Hall, Broker/Owner of West Volusia Properties added, “We are thrilled to be able to bring these two organizations together. As the real estate market changes it becomes more and more important for sellers and real estate agents to work with a company that can bring the resources of an industry leader such as Adams, Cameron & Co.”

West Volusia Properties was established in 2001 by native Floridian Maggi Hall, Broker/Owner. WVP is located in historic downtown DeLand and initiated a "New Urbanism Movement" adjacent to downtown DeLand between Howry and Euclid Avenues and Woodland Boulevard and Amelia Avenue. Now named the "Garden District," this once neglected 4-square block of over 90 dilapidated buildings sporting drugs, prostitutes, and decay was featured in the April 2004 issue of Southern Living.

Founded in 1963, Adams, Cameron & Co. is the Daytona Beach Area's largest real estate company with 300 agents in twelve offices throughout Volusia and Flagler counties. Adams, Cameron & Co. is pleased to support the area’s residential and commercial real estate needs by bringing the most resources available with a pleasant family run atmosphere.

Open House Extravaganza

John Adams (Adams, Cameron & Co. Realtors) — Tue, 05 Feb 2008 11:53:34 -0800

I wanted to drop everyone a line with regards to some fantastic news we recently heard. Three times each year we hold an event that we call Open House Extravaganza. I know a lot of brokerages do something similar. We like to have over 100 homes whenever we have one and have had over 300 at events in the past. The last few times that we've held the event we've heard very little positive feedback from agents. Unfortunately, many of them were not seeing the buyers come through the open houses.

Last weekend we held our event and the results were overwhelmingly positive. One open house had over 30 people walk through. Several reported more than ten prospects. We had very few of the over one hundred that reported no prospects. I think that is a fantastic result. We always run at least one full color full page ad for the event and the reports were that people carried the advertisement into the open houses. One of our agents commented that he thinks the buyers are starved for open houses as agents have slowed down the number that they are holding. That's great news!

I wanted to post it to give everyone a little bit of the encouragement that I've felt after talking with the agents but also to see if others had heard the same results. Please leave me a comment with good or bad info and let me know where you are!

Best to everyone,

John Adams

Great Oceanfront Home for Sale

John Adams (Adams, Cameron & Co. Realtors) — Thu, 15 Nov 2007 13:11:14 -0800

WOW Newly Remodeled
717 Ocean Shore Blvd, Ormond Beach, FL 32176 Click to View Show WOW NEWLY REMODELED- the ocean views are spectacular here! Direct oceanfront in Ormond with a seawall in placethere are so many possibilities that exist for the new owner of this lovely homethe curb appeal is tremendous with the circular drive and lush tropical landscapingin addition to the oversized 2 car garage there is a 32x27 workshop that will accomodate a 3rd car or possibly 4enter the iron gates to an inviting bricked courtyard with decorative tiles -- a perfect spot for morning coffeethe unique design of this home offers an entrance glass-domed 37x38 atrium filled with plants leading to a tiled family room and a living room with beamed ceiling and fireplacethe kitchen has new tile and a bright breakfast room overlooking the oceanthe atrium can be enjoyed from the formal dining roomalso downstairs are 2 bedrooms, one with sitting room facing the ocean and both have solid wood pocket doorsone would make an excellent in-law suiteupstairs you will discover a huge master suite with a marble tub/shower and sliders leading to a tiled balconyleaded glass windows, decorative columns & bacchi ball courtstorage is abundant in this homesunrises and sunsets are gloriousbeing sold as is with inspections welcomethis home is located in one of the most desirable sections of oceanfront homes in Central Florida on a traffic-free beachclose to great restaurants, shopping and houses of worship*tax roll infomeas approx

Details Asking Price: $2,495,000 MLS: 463942 Sq. Feet: 5000 Lot Size: 88x243 Bedrooms: 3 Bathrooms: 2.1 # of Floors: 2 Garage Size: 3 Year Built: 1966 Property Amenities - Range/Oven - Sink Disposal - Fireplace - Balcony - Patio - Deck - Grass Lawn - Central A/C - Central Heat - Walk-in closet - Tile floor - Family room - Living room - Bonus/rec room - Dining Room - Breakfast nook - Laundry area - inside - Oceanfront		Contact Info ADAMS CAMERON & COMPANY REALTORS Call Clarence Cloak 386-212-7227 Other Shows

E-mail from Sen. Evelyn Lynn

John Adams (Adams, Cameron & Co. Realtors) — Fri, 02 Nov 2007 12:24:21 -0700

I appreciate you taking the time to contact me regarding the rising cost of property taxes in our state. The legislature has just completed the final version of legislation that, if the courts approve, will be a Constitutional Amendment on the January 29^th ballot. There are five parts to this legislation which are as follows:

Portability - when a homeowner moves into a more valuable home, the entire savings they receive under Save Our Homes is transferred to their new home. If the new home is less valuable, the transferred savings will be proportional to the value of the new home.

2. Double Homestead Exemption - an additional $25,000 homestead exemption is provided for the value of homestead property above $50,000. This exemption does not apply to school taxes

3. Tangible Personal Property Tax Exemption - business owners and mobile home owners may claim a $25,000 exemption from ad valorem taxes on tangible personal property taxes.

4. Fiscally Constrained Counties - the state will provide funding to offset the reduction in revenues from property taxes for those counties which have proven to be fiscally constrained. Counties will be required to submit documentation to support their requests for additional funds.

5. Assessment Cap for Non-Homestead Property - does not take affect until the 2009 tax roll if passed January 29, 2008. Does not apply to school taxes. Remains with the property for business properties and housing with ten units or more until the sale of the property.

Although I am pleased that portability has been included in this legislation, I believe it will be necessary to do much more to address the increasing property tax problem in our state.

Senator Evelyn Lynn
District 7

Interesting letter from Rep. Domino

John Adams (Adams, Cameron & Co. Realtors) — Fri, 02 Nov 2007 10:15:24 -0700

Save Our Homes (SOH) Portability Update!

I would like to thank each and everyone of you for your support. We have come a long way, since four years ago, when I first filed the portability legislation. Last Monday all of our hard work paid off and both the House and Senate overwhelmingly supported and voted for portability. Even some legislators who voted against the overall tax package were quoted as saying that they did so because it did not provide enough relief.

Locally, Senator Jeff Atwater and Senator Ken Pruitt as well as Democrat Senators Bullard, Deutch and Aronberg supported portability. In the House, Democrat Representatives Brandenburg, Vana, Sachs, Skidmore and Machek joined with Republicans Reps. Domino, Snyder, Hasner and Bogdanoff in voting for portability.

Immediately after the vote, Gov. Crist held a press conference during which he pointed out the importance of portability and generously mentioned my name as the "Father of Portability."

However, our job is not yet complete. Already some opponents are complaining that it will take away revenues and devastate local government. But they fail to acknowledge that without portability potential real estate transfers fail to occur because the high tax burdon will produce only imaginary revenues .

Moreover, by bolstering real estate sales, additional Doc Stamps and Sales Tax revenues will be realized. Also opponents claim that portability is unconstitutional. However, even though I am not an attorney, I find that often when a measure cannot be defeated on it's merits then they use the "unconstitutional" claim.

I would like to remind everyone that when we first embraced portability Gov. Crist was our Attorney General. FSU law professor Nat Stern concluded that portability was constitutional.

On January 29th, we will need to get 60% of the voters to agree that portability should be in the Constitution. Gov. Crist will lead the charge and most legislators will join in. Personally, I feel confident that we have a strong case and the voters will support this Constitutional Amendment. Let those who object to tax relief continue to make their case that government is too small. .

Once again, I would like to congratulate all of the supporters for making this happen. But the job is
not yet complete and we cannot relax until we win approval on January 29th.

Carl J. Domino

District 83

Fed likely to cut rates

John Adams (Adams, Cameron & Co. Realtors) — Wed, 31 Oct 2007 07:59:30 -0700

This is a great article by Bloomberg on the likely upcoming cut to the overnight rate by the Fed. While not a shining bullet it wuld certainly help with the difficulty many are having obtaining financing give the market change.

However, this article shows that almost two thirds of people expect a recesion. It also says that more than half of the respondants think that the economy is already doing poorly.

With the Fed telling us that they want to be "nimble," likely meaning that they may have to make frequent small adjustments in both directions, and with the economy showing divergant signs between the housing market and the rest of the economy, the outstanding question is where do we go from here?

Latest Tax Solution

John Adams (Adams, Cameron & Co. Realtors) — Wed, 31 Oct 2007 07:41:58 -0700

http://www.orlandosentinel.com/news/local/state/orl-taxes3107oct31,0,1197036.story

The newest solution will finally head out to voters in January. The good news i that there is some protection for non-homesteaded proeprties. The bad news is that it is very, very little. While the 10% cap on job providers and renters sounds good, it is really a measure that will rarely come into play. Without another hyper-growth period like we had in 2004-2005 it may never have any meaningful effect. Further, the portability and increased homestead exemption will increase the effect of the discounts to homesteaded properties and further tax the non-homesteaded.

That's the bad news. The other side of this is that portability may be able to have apositive effect on te housing market. The housing market in Florida has suffered dramatically and a part of that decline is related to taxes and the fact that it is cost prohibitive to move. Housing in Florida is a huge industry and is bringing down a large sector of businesses including appraisers, inspectors, mortgage brokers, real estate brokerages, builders, contractors, furniture sales, and much, much more. If we can, in fact, spur some growth in that segment we may be able to turn around our economy.

I'm really torn on this latest proposal. I think it harms businesses and provides further disincentive for people to relocate to our State. At the same time, something must be done and I'm really not sure we will get anything better out of the current Governor and Legislature.

What are your thoughts?

Another new Tax Solution

John Adams (Adams, Cameron & Co. Realtors) — Sun, 21 Oct 2007 08:33:22 -0700

I just got this message from FAR. This seems like a more comprehensive solution that originally put forward. I think it's a good idea to limit commercial property. The difference between the 3% cap and the 5% cap still leads to an exponential function which will increase prices for non-homesteaded property but at a much slower pace.

Dear Florida Realtors:

For over a year now you have been advocating for property tax reform that is comprehensive and not just a simple tax cut. Your message has been clearly delivered to the legislature that reform needs to address all property types - not just Homestead property owners.

This afternoon The Florida House of Representatives released a revised property tax relief proposal that will be considered on Monday. This plan includes provisions advocated by both Republicans and Democrats in the House.

In addition to Portability which is being embraced by the Governor, Senate and House, this new House proposal includes a five percent assessment cap on Commercial and non-homestead property. This is intended to provide the predictability and stability that non-homestead property owners have been advocating for.

The House is also advocating a new homestead exemption that, instead of doubling the current $25,000 exemption, would guarantee a minimum Save Our Homes exemption of 40% of the county median home value. House leaders believe this will provide relief to not only new buyers but those who have purchased in recent years.

Again, we expect the House to begin consideration of this proposal on Monday. Both the House and Senate plans that are being considered maintain the current Save Our Homes structure and provide for portability of Save Our Homes.

Attached is a side-by-side that gives more detail on the current Senate and House proposals.

Here is a complete list of the issues being proposed in the House plan today:

Instead of doubling the homestead exemption, this exemption is tied to the county's median home value and will target relief to all homestead property owners (not just first time buyers). Again, the exemption would be 40% of area median.
Save Our Homes-like cap on non-homestead and commercial property to help restore fairness, equity and predictability to our property tax system by capping any increase at 5%. This will help businesses who have faced outrageous tax increases and owners of second homes (Snowbirds).
Portability - homeowners may transfer their Save Our Homes benefits to a new homestead anywhere in Florida within 2 years of leaving their former homestead.
Creates a new Tangible Personal Property Exemption of $25,000
Limits the authority of local governments to increase property taxes
Provides for limitations on assessed values of properties used for affordable housing
Provides an assessment growth limitation for all non-homestead properties in Florida by 5%
Creates more flexibility for the Legislature to limit assessments for working waterfront properties
Election of all county property appraisers

We will continue to update you on negotiations.

Nancy Riley

2007 FAR President

PROPERTY TAX RELIEF PROPOSALS-SPECIAL SESSION D

Issue

Senate Proposal

House Proposal

Comments

Portability

Provides for statewide portability of Save Our Homes differential. Can "port" full amount if "upsizing" but pro-rata share if "downsizing". $1 million cap on amount to be ported. Not applicable to school taxes.

Same.

Federal constitutional right to travel issues still of concern, although ameliorated by Senate's new first-time homebuyer exemption and House's 40% of median home price exemption.

Retroactive to provide relief to those moving in 2007.

Homestead Exemption

Double the exemption from $25,000 to $50,000. Apply to third $25,000 (i.e., exempt $1-25,000; tax $25,000 to $50,000; exempt $50,000 to $75,000). Not applicable to school taxes.

Provide new homestead exemption equal to 40% of median just value of homestead property in county. Exemption applies after first $50,000 of just value of homestead. Homeowner gets only larger benefit of new 40% exemption or SOH differential. Not applicable to school taxes.

Most costly component of Senate package ($3.5 billion over 5 years) that provides relief to many high-end homeowners who already enjoy significant SOH savings. Applying to third $25,000 will provide some relief for poorer, rural counties. No indexing.

House proposal would better target tax relief to homeowners in need and either have less fiscal impact on government or result in less redistribution of tax burden onto non-homestead properties.

First-Time Homebuyer

Additional homestead exemption for persons buying first home in state. Amount is 25% of median value of home in the county. Not applicable to school taxes.

New homestead of 40% of median homestead just value in county applies instead.

Both Senate and House proposals apply to first-time homesteaders in Florida, regardless of whether owned home elsewhere.

Homestead

Assessment Limit

Save Our Homes cap of lesser or 3% or CPI maintained for homestead property.

Same.

Non-Homestead
Assessment Limit

None.

Limits annual increase in assessments on non-homestead real property at 5%. Non-homestead residential properties of 9 units or less reset upon sale; assessment cap remains with property for all other non-homestead real property.

Additions to property assessed as provided by general law.

Will limit increases in assessments in single year to rate more in line with long-term historical growth rates, and increase predictability of taxes. Will help limit redistribution of tax burden onto non-homestead property.

Tangible Personal Property Exemption

Exempts tangible personal property at $25,000 per person per county.

Same.

No indexing. Maximum exemption set in constitution is $25,000.

Property Tax Cap

Statutory caps adopted in prior special session remain in place. Additionally, new cap prevents property tax rates in 2008-09 from automatically increasing to offset tax base reductions.

Same.

Local governments cannot increase rates to offset base reductions without an extraordinary voter: 2/3 vote to restore 2/3 of taxes lost to base reductions; unanimous vote to restore more than 2/3.

Affordable Housing

Authorizes assessment of government rent-restricted affordable housing based upon actual rents rather than highest and best use of property. Not applicable to school taxes.

Same.

Detailed implementing legislation proposed.

Working Waterfront

Authorizes application of special assessment rules to property used exclusively for commercial fishing or property open to the public and used predominantly for water-dependent purposes or public access to the water. Not applicable to school taxes.

Same.

Implementing legislation would await regular session.

Low Income

Seniors

$100,000 property tax exemption for low income seniors. Applies to those 65 or older with household income of $23,604 or less. Indexed for inflation. Applies to school taxes.

Additional homestead exemption equal to 100% of the median just value of homestead property in the county. Indexed to inflation.

Concerns have been expressed by Senators regarding the value of $100,000 exemption in South Florida versus rest of state.

Local Revenue Cap

None.

Same.

Included in Governor's proposal, but not in legislative proposals.

Replacement of Property Taxes

None.

Buy-down language doesn't guarantee that sales tax dollars will not just become cumulative. There is no mechanism in legislation to benchmark school millage and adjust it according to sales tax revenues. Start date and existing contract issues would need to be addressed.

Special Districts

Tax base reductions apply. Tax caps apply.

Same.

Amendments to protect special districts providing fire, ems, and hospital services were either withdrawn or failed. Amendment to cap special assessments at 5% was withdrawn in Senate.

Presumption of Correctness/Burden of Proof

Property appraiser would lose the presumption of correctness for those non-homestead parcels where the increase in value exceeds the average increase for other properties within the county in the same category of property.

None.

Version in Senate bill is not ideal. Categories are defined by law and manufacturing, electric, telecom, cable, and other tangible personal property would be excluded from benefits of level playing field. This is a statutory provision. Atwater floor amendment (#831234--withdrawn) contained preferred language.

Elected Property Appraiser

Requires all property appraisers be popularly-elected.

Miami-Dade County is only one county with appointed property appraiser.

Compiled: October 19, 2007, by Vicki Weber, Hopping Green & Sams, P.A.

New tax plan is a band-aide

John Adams (Adams, Cameron & Co. Realtors) — Wed, 10 Oct 2007 06:35:13 -0700

A Leon County judge decided that the wording in the summary of the newly proposed tax plan was insufficient because it did not clearly state that the Save Our Homes amendment (amendment 10 to Florida's Constitution) would be phased out over time. Rather than correcting the summary language in the ballot, the legislature has decided to go back to the drawing board. According to today's news the results could be catastrophic for job providers, workforce housing, and investors. The new solution is likely to exacerbate the problem that is already in place.

Currently, the entire tax burden is shifted from the homesteaded property owners to the non-homesteaded property owners under amendment 10. The owners of homesteaded property are "capped" so that their values can't increase by more than the lessor of the consumer price index or 3%. As property values rose over the past few years by double digit percentages, the tax burden which could not be met by the homesteaded properties was shifted to non-homesteaded.

The result has been a dramatic rise in taxes for businesses (our job providers), rental properties (our workforce housing and housing for those most in need), and for investors and second home owners (our largest industry). The result is a cannibalization of our economy and a devastating impact on economic development.

Under the existing system, the only time that a property is returned to full value on the tax roles is when the property sells. Under the newly proposed system, an owner would be able to move and keep their existing tax savings when they go to another property. Further, the proposal include increases in the homestead exemption, and a automatic reduction in taxes for new home buyers of 25%. The proposed solution further shifts our tax burden to non-homesteaded property owners and is an absolute band-aide to the problem. The political machine is copping out.

By attempting to appease the homesteaded property owners the believe they will least offend the voters. They surely recognize that by offering more to the middle class and pulling revenue from the poor and from businesses, they will defer the problems for at least a few more years.

Great news in Ormond Beach

John Adams (Adams, Cameron & Co. Realtors) — Wed, 10 Oct 2007 06:21:03 -0700

Last night's announcement that the current City Commission retained ALL of their seats is a very positive step for the City of Ormond Beach. Earlier in the year, after a very confusing height limit restriction referendum, it appeared that the public had lost faith in the City Commission. The leaders of the no growth, restrictive, City Charter ammendment had nominated a candidate for each seat in which a commissioner had voted against them (four out of five).

After a long battle the votes came in yesterday for all of the incumbents. The results are a very positive step in the right direction for the City and for progress. None of the candidates that were elected are the type to allow development simply for development's sake but they are also not those who would opposed it simply to oppose it. We are fortunate to have a group of intelligent and open-minded elected officials coming back next year.

Congratulations to:

Fred Costello - Mayor
Lori Gillooly - Zone 1
Ed Kelley - Zone 3
Bill Partington - Zone 4

How are things going in your areas?

Florida's Property Tax Cut may be off ballot

John Adams (Adams, Cameron & Co. Realtors) — Tue, 25 Sep 2007 14:29:34 -0700

Today's news that the new property tax reduction may be off the ballot is unfortunate for those in the real estate industry and for those who are trying to sell property in the State. This adjustment is disapointing as it leave the so called Save Our Homes Ammendment (FL Ammendment 10) in full force. That will, of course, cause continued inequities for residential homeowners while disproporionately effecting businesses, second home owners, and renters. While this portion of the legislation would not have fixed the problem in the first few years, it would have helped over the long haul by very slowly elimintaing the inequities created by our current system.

The other interesting news is that the legislation that requires municipalities to offer tax cuts doesn't seem to be effected. We should continue to see overall tax reductions unless local government over rides those tax laws by a super majority.

http://video.nbc6.net/player/?id=160159

Existing Home Sales Slide Further!

John Adams (Adams, Cameron & Co. Realtors) — Tue, 25 Sep 2007 13:54:09 -0700

This slide was in the Wall Street Journal today and comes from the National Association of Realtors. While we are all hopeful that the Fed's reduction of the Fed Fund Rate by a half point will help with the mortgage crisis, I think this slide can graphically illustrate how important it is for more to be done to help this market recover. It is crucial to consider the impact that this shift is having not only on Real Estate Professionals, but also on everyone involved in the industry. Mortgage Brokers, builders, plumbers, roofers, painters, furniture companies, movers, and others are being severely effected.

Further, sellers must consider this situation and take it to heart. We have so many sellers who are still asking 2005 prices for properties. This slide should encourage them to review thier pricing strategy. If they don't step up and take notice of what is happening in the market, they will miss the boat. If you would refer to my earlier article entitled "Pricing in an Adjusting Market," I explore common strategies and mistakes. If you didn't believe the market was in a strong correction before, this graph should help you step up and take notice.

To the folks who are trying to sell right now: "Price ahead of the market! Do not wait for the person to come along and offer you what the house was worth in 2005. Get what you can now so that you won't be thinking about what you could get today when 2008 rolls around..."

Realtors, please let me know what you think. In particular, what strategies are you using to work with sellers?

Front page NY Times article prices are dropping. Is that good or bad?

John Adams (Adams, Cameron & Co. Realtors) — Mon, 27 Aug 2007 10:30:39 -0700

The front page of the New York Times on Sunday featured an article title "Drop Foreseen in Median Price of Homes in U.S." the sub title is "Dip Would Be A First". Interestingly, the government records of housing prices have been kept since 1950 and have never showed an annual decline. There have been quarter over quarter declines until now but never on an annual basis. This year they are expecting it.

There are also great quotes in the article from noted economists who had proclaimed just a few years ago that the housing market could never be prone to a national setback because it is too localized and there is not national market for housing.

On the whole, do you think this is a good thing or a bad thing for us? The bad, obviously, is that it is an indicator that the housing slump is more measurable than ever. The good could be that with prices actually coming down we may get some buyers ready to step in the buy up the value priced homes.

http://www.nytimes.com/2007/08/26/business/26housing.html?_r=1&oref=slogin

New Housing Starts down in Volusia County

John Adams (Adams, Cameron & Co. Realtors) — Tue, 21 Aug 2007 13:22:05 -0700

An article appeared in the paper this morning regarding the decline in new housing starts and the effect on the contractors and subcontractors in Volusia County. Ultimately, I think that this step needed to be taken in order to begin to reduce the inventory on the market. The current glut could not be overcome if we continued to build at past levels.

Excerpt----

According to the latest Flash Report of U.S. Housing Markets, which tracks housing activity in metro areas across the United States, the Deltona-Daytona Beach-Ormond Beach metropolitan statistical area had 520 single-family home permits issued in the second quarter. That's 49 percent below the 1,026 issued in the second quarter last year.

Volusia County also had a 79 percent drop in multi-family permits, falling from 381 units in the second quarter last year to just 79 this year.

http://www.news-journalonline.com/NewsJournalOnline/News/Headlines/frtHEAD02082107.htm

Letter from Rep. Domino

John Adams (Adams, Cameron & Co. Realtors) — Mon, 13 Aug 2007 15:18:39 -0700

This letter was sent to me from Carl Domino. It includes his comments in the e-mail followed by the body of the letter he sent to Rep. Rubio. I post for your information only. Any thoughts are appreciated.

SOH PORTABILITY UPDATE! Current events in the financial markets, particularly the freezing of the sub-prime lending market, make SOH portability more imperative. Attached is a letter which was sent to House leadership requesting that they take up the issue in September's Special Session. Meanwhile, the Special Tax Commission, which is empowered to suggest changes to the constitution, is also considering portability. A statewide group of appraisers are circulating a citizens' petition in an attempt to put portability on the ballot. I am once again filing portability legislation for our next regular session in 2008. Also, I am working with Donna Adams, a prominent Real Estate Attorney, to form a citizens committee to pursue a petition drive. Once we are up and running we will solicit your assistance in gathering signatures. Rep. Carl J. Domino

Dear Speaker Rubio:

I am writing to request that the Special Session call be extended to include Save Our Homes Portability. Since our May Special Session, the housing market has deteriorated further and the melt down in the sub-prime market threatens to postpone any recovery in the low-end housing market. Portability, however, will materially bolster sales at the $500,000 and above level. This will reverse the disastrous decline in doc stamp revenues and would dramatically increase housing sales with a corresponding pick-up in related activity.

For several years we have forecasted that higher mortgage rates will depress housing activity, but the sub-prime debacle has made matters even worse. Banks are tightening their lending requirements and mortgage lenders shares have plummeted, in some instances, over 90%, with rumors of bankruptcy abounding.

Florida's economy is in recession, which has been caused primarily by a decline in the residential real estate market. The shares of W.C.I Communities and Toll Brothers (two of our larger builders) have been cut in half. The re-pricing of low rate ARM's in the next 12 months will make affordability a problem for more Floridians.

Many condominium units in South Florida, now nearing completion, will remain empty and buyers, seeing declines in house prices, will walk away from their deposits.

Rarely do policy makers have at hand solutions which will address so many issues. We can watch events unfold and hope things will improve, or we can take action which will reverse the decline in the housing market and spearhead recovery. Politics and policy favor portability.

Best regards

CJD:ies Carl J. Domino

Save our homes article

John Adams (Adams, Cameron & Co. Realtors) — Wed, 25 Jul 2007 14:10:55 -0700

The link below goes to a fantastic article about the Save Our Homes ammendment. They include links to all of the Central Florida property appraiser's websites, an analysis of the median savings by zip code, and a review of how it effects different people. Have a look below at Ron Rice's information. I thought that was a great graphic.

http://www.orlandosentinel.com/business/orl-special-saveourhomes-sg,0,6529915.storygallery?coll=orl_tab01_layout

Trouble at Ginn Company?

John Adams (Adams, Cameron & Co. Realtors) — Wed, 25 Jul 2007 13:58:46 -0700

Rumors seem to be flying with regards to Ginn Development. To my knowledge they are currently developing in a number of locations. They have been progressing in the Bahamas, in Boone (NC), and in Florida in two locations in Flagler County. I've also heard that they are looking for more property in Hawaii.

Bobby Ginn has hired a new president and today we heard that his race team is being absorbed. Does anyone know what' going on?

http://www.gotoby.com/news/New_President_at_Ginn.htm

http://sportsillustrated.cnn.com/2007/racing/07/24/dei.ginn.ap/

The Vacation Rental Market could really be changing

John Adams (Adams, Cameron & Co. Realtors) — Wed, 11 Jul 2007 11:06:36 -0700

After a number of complaints originating in Wilbur-by-the-Sea about single family residences being used for short term vacation rental, Volusia County has decided to take action. There had previously been discussion of a new law to limit the use of short term rentals. However, the County Attorney pointed out that short term rentals are not a permitted use today anyway and, as such, could be addressed by code enforcement. Interestingly, I believe this will impact all of Volusia County's unincorporated areas. The areas most likely to be truly effected would be Wilbur-by-the-Sea, Ormond-by-the-Sea, and areas further south around New Smyrna Beach.

This solution does leave a few interesting questions for the real estate community:

1. What is a short term rental? I'm not aware of it being defined in code so is it a week? a month? three months? six? Without a definition it is likely to be challenged by someone.

2. What are the property management companies who handle such properties going to do next? I think most have enough business on the longer term rentals to be okay but this niche market will likely be challenged.

3. What will the effect be on property values? That will be the real test of what people want to do with the property. If they wanted them for short term rentals, we'll see a decline. If they wanted them for other purposes, the values should theoretically rise.

Let me know what you think...

Portofino Grande in Palm Coast's new Town Center

John Adams (Adams, Cameron & Co. Realtors) — Wed, 11 Jul 2007 09:52:19 -0700

The Town Center development is going to change the face of Palm Coast. Imagine a new development with multiple shopping centers, an outdoor theatre and more amenities than you can imagine. All of this will be a short walk from your front door at The Portofino Grande. This very prestigious is at the heart of Town Center and boasts very luxurious living. Each unit will be three to four stories tall and include its own elevator, top of the line Italian cabinetry, and more.

The first group of units are being offered at only $250/square foot making them the best priced luxury living in the area. While organized through the state of Florida as a condominium, the design is more similar to a luxury townhome with each unit having its own garage and balconies all the way up. With 132 units in total, and ranging from 2700 to 3000 square feet each, the development is quite spectacular.

Amazingly, the monthly maintenance fee not only includes the standard amenities but also provides each owner with access to the Grand Club and its collection of golf courses, pools, and club houses.

300,000 square feet of centrally located office space

John Adams (Adams, Cameron & Co. Realtors) — Tue, 10 Jul 2007 19:38:15 -0700

Property Description:
300,000 square feet of office space in the heart of Ormond Beach being offered at $54/square foot, a fraction of the property appraiser's just value. Situated on 28+ acres, this property provides everything you would need for a wide range of applications. Currently being used as a hospital, this property can be converted to office space, or other uses. It is also available for lease at only $11 per square foot. Based on your needs, adjoining property may also be available.

Location Description:
In the heart of downtown Ormond Beach, Florida near the intersections of Nova (SR5A) and Granada (SR40) near premium shopping and many restaurants. The location provides quick access to I-95 and I-4. Ormond Beach is north of Daytona Beach and south of Palm Coast with easy access to both Jacksonville and Orlando.