More good news! Three Florida cities (including Jacksonville) made in onto the American Improving Markets Index (IMI). The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau.

If not for overly restrictive lending policies and the inventory of distressed properties conditions would most likely have improved even more.  As market conditions improve so will home prices. I'll say it again. If you are waiting for the bottom, it has arrived.   With record low interest rates and an abundance (for the moment) of homes to choose from conditions have never been better for investing in Jacksonville Florida Real Estate.  Now is the time to make your move.  To search all available Jacksonville Homes For Sale visit http://www.nativesunrealty.com .

On 1 January 2012 the federal government extended a waiver of the “Anti Flipping Regulation” which prohibits FHA insured mortgages for a single family property if the contract of sale is executed within 90 days of the acquisition of the property by the seller.  The extension will be in effect until 31 Dec 2012. This regulation was originally implemented in an effort to protect homebuyers from investors reselling properties with an “artificially” inflated value.  The regulation had the effect of increasing carrying costs to the investor which of course would eventually be passed on to the buyer which further contributed to the escalation of home prices. The rule also prevented FHA borrowers from taking advantage of recently renovated homes that could be sold within the 90 day period to buyers using non FHA insured loans. 

In early 2010 HUD determined that a temporary waiver of this regulation on a nationwide basis may contribute to stabilizing real estate prices and neighborhoods.  Since the original waiver went into effect on February 1, 2010, FHA has insured nearly 42,000 mortgages worth more than $7 billion on properties resold within 90 days of acquisition. With the extension of the FHA “Anti Flipping Regulation” waiver the federal government has admitted three things: 

1. That implementing the waiver increased the availability of affordable homes for first time buyers      and other purchasers and has helped stabilize real estate prices. 
2. That other government measures such as the Home Affordable Modification Program (HAMP) have failed to keep families in their homes and reduce the foreclosure rate.
3. That private enterprise is the solution to improving the housing market and national economy.

The drop in foreclosures now being seen across the country can be directly attributed to the stabilization of home prices which is good for home owners and the entire economy.  If recognizing that removing a regulation benefits the housing market is that not also an admission that reimplementation of that regulation is detremental and would hurt the economy?  Is this yet another example of how over reaching government meddling in a free market economy serves to stifle growth and prosperity?  One thing is certain.  Now is the time to invest in real estate.  With record low interest rates, drastically reduced prices, and rising rental rates investors are buying up the forclosure inventory and bringing new life into the real estate market.

Once again Jacksonville has shown that the Christmas spirit is alive and well.  Every year on Black Friday the Jacksonville Landing puts on a great Tree Lighting event that includes live performances by local artists and a fantastic fireworks display. 

A beautifully lighted fountain across the river in Friendship Park also contributes to the spirit of the season with Christmas songs playing over speakers for all to enjoy.

While there may not be snow on the ground it still looks a lot like Christmas in Jacksonville.         

Merry Christmas!

The FICO (Fair Isaac Corp) score.   That all important number lenders use to assess a borrower’s creditworthiness may soon involve information other than your credit history when calculating your credit score.  Lenders, in an attempt to develop a more “well rounded” picture of a person’s finances, now want to include payday loans, evictions, child support payments, utility and even cell phone payments to the information considered when determining whether or not to loan you money.   Whether you pay off a payday loan on time is not the issue.  The belief is that if you use a payday loan service you represent a greater risk of default.  Commissioned sales people like REALTOR’s may at times use a commission advance service when they have a pending transaction.  Should this be used against them when applying for credit?

Last month the big three credit reporting agencies (Experian, Trans Union, and Equifax) began providing estimates of consumer income as a credit report option.   Estimates of income??  Will these “estimates” be as accurate as the Zillow “Zestimates” of home values which are notoriously inaccurate? Will the estimated income be used to prepare debt to income ratios?   Since a lender will require income verification during loan processing why is an estimated income being factored into the credit score? 

What has yet to be explained is how these factors will be scored.  If you do not have derogatory entries in these areas will it improve your score or will the information only be used to reduce your score if you do?  This is an important question since one of the reasons touted by lenders for gathering this information is to be able to increase loan volume by offering credit to borrowers with thin files.   If this is true then why should this information be used for borrowers with ample credit histories?  Since the average FICO scores of homebuyers who qualify for loans continues to rise could it be that lenders are looking for other reasons to tack on extra fees or charge higher rates?

The FICO score is a tool used by all businesses who base their rates, fees, deposit requirements and even hiring decisions on the perceived risk of the customer or applicant.  This includes insurance companies, public utilities, cell phones, cable TV, etc. 

Will this added information accurately reflect the rate of default? Should there be limits on what information is used or even when, where and how the FICO score can be used?   Since the FICO score can affect almost every aspect of our lives I think we need to be careful about what factors are used in calculating it.  The last thing a struggling real estate market and economy need are more obstacles to obtaining financing and credit.

Recent events in the technology industry such as the resignation of Steve Jobs, HP’s decision todistance itself from the PC business, and Google’s $12.5 billion dollar purchase of Motorola Mobility have many claiming that the PC era is coming to an end.  As smart phones get smarter people who need to remain connected to their business or network are free to travel away from their desk and still have the ability to respond quickly to digital inquiries and communications.  Tablets with larger screens and can be used for mobile HD presentations eliminating the need to carry more bulky laptops.  Some tablets now have the ability to record 3D video and many support mobile versions of popular programs traditionally used on a PC.  These features have no doubt contributed to the huge spike in sales of mobile devices while traditional desktop PC sales have been flat for years.

But hold on a minute.  Before you break out the shovel and start digging the grave for your PC let’s look a little closer.  Kids, in particular, are avoiding desktop PCs and laptops and opting for smart phones and iPads to play games, use e-mail and do other tasks that do not require large screens.  Mobile devices are also being used for watching movies, reading books, playing games, and looking at photos.  So it looks like mobile devices are not really being used for traditional computing tasks and that, at least for the time being, the PC will continue to rule workplaces and have a place in the home.

It appears that instead of witnessing the end of the PC era we are simply entering a “PC-plus era” where mobile devices will be used to extend the power of the PC and make it available almost anywhere. 

Hurricane Irene gave the media a big story to cover for about a week.  Soon the coverage of the devastation will give way to the next “Breaking News” alert and those people not directly affected by the storm will forget it. 

Not so for those that suffered damage to their homes.  Irene came ashore as a category 1 storm packing winds of 100 MPH or less so wind related damage could have been much worse.  In fact, the real damage delivered by Irene came from the storm surge and flooded areas located outside of designated FEMA hazard flood zones.  Homes in these areas are not required to have flood insurance so most property owners did not have coverage believing that their hurricane policy would protect them.  Not true.  The only insurance that provides coverage for flood damage is flood insurance.

Most communities prone to hurricanes will have maps showing Storm Surge Zones and Evacuation Routes for each storm category.  Even though FEMA flood maps may not require you to carry flood insurance it may still be wise to get it if you live in a storm surge zone.

Here is a link to the Storm Surge Zones and Evacuation Routes for Jacksonville Florida.  As shown on the map the storm surge can impact properties far from the coast where residents may feel safe from the coastal effects of hurricanes.

I am frequently asked by home buyers if a home needs flood insurance.  I make a clear distinction between what is required and what is needed.  If your home is located in an area where storm surge flooding can be expected when hurricanes strike I say it’s best to be protected.  Considering that the average flood insurance policy in 2010 cost about $600 a year and the average claim over the last five years wasabout $34,000.  Maybe you do need flood insurance.

According to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI),  housing affordability is near it’s highest level in 20 years.  This is great news for people in the market for their first home or someone looking to own a vacation home or investment property. 

The Housing Affordability Index has a value of 100 when the median-income family has sufficient income to purchase a median-priced existing home.  A higher index number indicates that more households can afford to purchase a home.  The HAI is calculated using the following formula:

HAI = ( Median Family Income / Qualifying Income ) * 100

Applying this formula to July statistics In Jacksonville:

145.45 = ($44,173 / $30,368) * 100

We see that the typical Jacksonville household had 145.45 percent of the income necessary to purchase the typical home.   Homebuyers are regaining confidence in the market and finally making the decision to purchase homes.  This may be why some housing markets across the country, including Jacksonville, have stabilized and are beginning to show signs of a budding recovery. 

When most people think of Florida I would say that Jacksonville is not the first city that comes to mind.  After all, Mickey does not live here and the Gator's only come once a year.  This does not mean that Jacksonville has nothing to offer.  In fact, nothing could be further from the truth.  Jacksonville has many business and recreational opportunities not found in other parts of Florida.  The Jacksonville Port Authority (AKA JAXPORT) is the Florida port of choice for global trade and intermodal transportation.  CSX coporation, and international shipping company, with over 30,000 employees has its headquarters in Jacksonville.   Hanjin Shipping has also recognized the strategic position of Jacksonville and has a $300 million cargo terminal scheduled to open by 2016.  Tourism is on the rise in Jacksonville with Carnival Cruise Lines embarking from Jacksonville to the Bahamas, Key West and other exotic ports of call.  In addition to the shipping industry Jacksonville is one of the insurance and banking capitals of the south with the 617 ft tall Bank Of America tower, the tallest building in Jacksonville, and and Blue Cross & Blue Shield with 6,000 employees. 

The are also several highly rated colleges and universities that have turned out notable alumni like Todd Haley, UNF grad 1991, head coach of the Kansas City Chiefs and David M. Walker, JU grad 1973, who served as United States Comptroller General from 1998 to 2008. 

Jacksonville, also known as The River City, is a boaters heaven with hundreds of miles of inland waterways and easy access to the Atlantic Ocean. 

This ia also a great time to be a home buyer in Jacksonville.  Interest rates are at record lows, prices are way down form their highs in 2006, and there are lots of great homes to choose from.  If you are looking for a home feel free to use my MLS search feature where you will have access to all available homes for sale in Jacksonville and North East Florida.

If you have not been to Jacksonville you may enjoy this video tour that covers some of the highlights and attractions Jacksonville has to offer it's residents and vistors alike.  You may decide that Jacksonville is your place in the sun. 

According to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI),  housing affordability is near it’s highest level in 20 years.  This is great news for people in the market for their first home or someone looking to own a vacation home or investment property. 

The Housing Affordability Index has a value of 100 when the median-income family has sufficient income to purchase a median-priced existing home.  A higher index number indicates that more households can afford to purchase a home.  The HAI is calculated using the following formula:

HAI = ( Median Family Income / Qualifying Income ) * 100  

Applying this formula to July statistics In Jacksonville:

145.45 = ($44,173 / $30,368) * 100

We see that the typical Jacksonville household had 145.45 percent of the income necessary to purchase the typical home.   Homebuyers are regaining confidence in the market and finally making the decision to purchase homes.  This may be why some housing markets across the country, including Jacksonville, have stabilized and are beginning to show signs of a budding recovery.  

With all the negative publicity that’s been heaped upon the Real Estate Market locally and nationally I am happy to report that there are signs of improvement.   Home prices, just like any other product or commodity, are impacted by supply and demand.   When supply is low and demand is high home prices will increase as they did between 2002 to 2006.  Conversely when supply is high and demand is low prices fall as they did from 2006 to present.  In July of 2007 Jacksonville had nearly 13 months of inventory available for sale.  This year the available inventory in July was just over 9 months.

Comparing home sales data from July 2010 to July 2011 shows that the supply of available homes has decreased 22 percent and the number of homes under contract has increased 13 percent.   These figures show a sharp decrease in supply and a clear increase in demand.   While 2 percent fewer homes were sold this year the sold volume or total cost of homes sold increased by 2 percent and the average sale price has increased 4 percent. 

Another factor influencing home sales is the record low interest rates which has a huge impact on home affordability.   Consumers are discovering that they can own a home for less than it costs to rent and are taking advantage of the current low prices while they last.

I would recommend anyone considering a home purchase to make their move now before prices go back up.