NEW YORK – Dec. 6, 2010 – McMansions are rapidly becoming the housing equivalent of harvest gold appliances as more Americans opt for smaller residential footprints, according to a consumer lifestyle survey. In the Relocation.com lifestyle survey, homeowners and buyers were asked to weigh in on what they considered the ideal home size. Forty-eight percent of the respondents indicated that their ideal home size would range from 1,000 to 1,999 square feet, while 29 percent prefer homes that are 2,000 to 2,999 square feet. By comparison, five years ago, according to NAHB (National Association of Homebuilders) the average home’s square footage was 2,400 square feet, nearly 400 square feet bigger than what many homebuyers desire today.

The survey also found that 54 percent of Americans indicated a preference for living in a suburban neighborhood. Urban and rural neighborhood settings were preferred by 24 percent and 22 percent, respectively, of survey participants. Surprisingly, the survey revealed that cost of a residence is not the main deciding factor when purchasing a home. In fact, only 29 percent of respondents stated living costs as the most important reason when considering a move.

“We’re definitely seeing more Americans downsizing due to the current state of the economy,” said Relocation.com Chairman and Founder Sharon Asher. “But as more homeowners rethink how much space they need, I think we’ll continue to see more innovative approaches to living well and sustainably within a smaller footprint.”

The survey of subscribers to Relocation.com was conducted in mid-October, 2010. The company sent email invitations to 146,000 people who expressed an interest in relocating. For the full survey results, go to: http://www.relocation.com/survey/10201

Source 2010 Florida Realtors®

WASHINGTON – Nov. 23, 2010 – Money saved by eliminating congressional earmarks should be redirected to re-establish the Homebuyers Tax Credit for another boost in home sales, U.S. Sen. Bill Nelson (D-Fla.) said Monday.

The program last spring provided an $8,000 tax credit for qualified first-time homebuyers and a $6,500 credit for repeat homebuyers. A lackluster housing market is generally blamed for much of Florida’s economic malaise, with the critical construction industry hobbled by the downturn in the market.

The tax credit was widely credited with the six percent jump in home sales – and the 42 percent increase in new home sales – that the country saw while it was in effect. The tax credit expired earlier this year, but Republicans in Congress are pushing for a ban on earmarks in the budget, which could free up money to restore it, Nelson said in a speech to the Chamber of Commerce of Southwest Florida in Fort Myers.

Restoring the tax credit would mean jobs selling, financing, and building homes and all the things that go in homes, Nelson said, adding that he’ll file legislation to reinstate the credit for 2011.

“But, it will carry a price tag,” Nelson said. “If the Senate’s going to vote to ban so-called earmarks, which you’ve probably heard much about, then I think we should take the money that would otherwise be spent on lawmakers’ projects and use it to pay for the homebuyer tax credit. …If my colleagues in Washington are serious about banning earmarks, instead let’s put the money into the pockets of homebuyers.”

Source: News Service of Florida

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This 4647 sq ft home has 3 suite areas. The first suite has 2 bedrooms with a full bath and views of the river. The Master suite is on the second floor and boasts a huge bathroom with soaking tub, his and hers vanities, walk-in closet, sitting area, 21 X 10 office and a second story veranda overlooking the river. A front row seat for sunrises and full moons over the intracoastal river.

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 Pending home sales dropped out after two monthly increases, signaling an uneven recovery entering the year 2011 with few near term disruptions from the foreclosure moratoriuom, according to the National Association of Realtors ®. The report was published in 2010 Realtors ® Conference Expo in New Orleans.

Index of pending home sales The (PASS), an indicator of research before, fell 1.8 percent to 80.9 based on contracts signed in September from an upwardly revised 82.4 in August. However, the rate remains 24.9 percent below a rise to 107.8 in September 2009 when the first-time buyers rose in the market to take advantage of the early period of the tax credit last November. The data reflect the contracts, not closings, which typically occur with a lag of a month or two.

"Home sales showed some improvement, but the foreclosure moratorium is likely to cause trouble and contribute to the evolution of sales which in the coming months," says Lawrence Yun, NAR chief economist. But seems to be a pent-up demand that will be released eventually as banks resolve their problems with seizures and improving labor market. However, the credit crisis and future assessments under a negotiated price continue to hinder the market .

The PHSI in the Northeast fell 1.7 percent to 59.6 in September and is 28.3 percent below a year ago. In the Midwest, the index decreased 5.7 percent in September to 64.2 and 33.0 percent below September 2009 remains.

 Pending home sales in the South fell 3.5 percent to a rate of 87.6 and 19.1 percent below it a year ago. In the West, the index increased 3.5 percent to 104.6 but is 24.7 percent below September 2009.

By examining the fundamental principles underlying Yun expects GDP growth of 2.0 to 2.5 per cent over the next two years. With a projected 1.5 million additional jobs over the next two years, unemployment is down 8 percent in 2013 and returned to normal by about 6 percent in 2015.

"Mortgage rates are currently bouncing on the bottom, but is expected to increase gradually and the average 4.9 percent next year, then rise to 5.8 percent in 2012," Yun said.

Existing-home sales are forecast to gradually rise, with some occasional dips along the way. “For 2011 we should see more than 5.1 million existing-home sales, up from about 4.8 million this year,” says Yun. “Housing starts are expected to rise to 716,000 in 2011 from 598,000 this year. We’ve added 30 million people to the U.S. population over the past 10 years, but sales are where they were in 2000, so there appears to be a sizable pent-up demand that could come to the market once the economy gathers momentum.”

With foreclosures a large share of property sales in some areas, appraisers continue to factor in the sale price of foreclosed properties when setting values of regular properties. Appraisers are aware the practice isn’t ideal, but in some markets they’re left with little choice because of the large number of foreclosed properties.

Bill Geiger Jr., an appraiser in Cocoa Beach, Fla., told a local magazine that when he has to use a distressed property while doing an appraisal, he contacts the real estate practitioners involved in the sale and reviews computerized listings for the property to find out as much as he can about the condition of the home when it sold. He adjusts the appraisal value accordingly.

Mortgage rates for 30 years found the lowest in decades, and prices for 15 years, the loans fell to their lowest point in nearly 20 years.

Mortgage buyer Freddie Mac said Thursday the average 30-year fixed loan fell to 4.32 percent, the lowest record for the year 1971. It is up to 4.37 percent the previous week and the same average of four weeks ago.

The average rate for 15-year fixed loans fell to 3.75 percent, the lowest in the fiscal year 1991. Prices are at or near the lowest level in decades, investors poured money into bonds Spring security, lowering yields. Mortgage rates tend to track these outputs.

In recent weeks, Treasury yields have fallen, while bond traders bet the Federal Reserve will soon increase their purchases of Treasury in an attempt to give the economy a lift.

It has lowered rates. However, low levels historically, have done little to boost property market in crisis, which suffered its worst summer in more than a decade. Autumn sales should not be much better.

High unemployment and low employment growth have prevented people from buying homes. And most of the affected markets are preparing for a wave of sales of homes sold in foreclosure or short. A short sale is when a lender allows a homeowner to sell for less than the mortgage is worth.

To calculate the average mortgage, Freddie Mac collects fees from lenders in the country, from Monday to Wednesday each week. Prices often fluctuate significantly, even on a given day.

Offers a five-year adjustable rate mortgage average 3.52 percent, down 3.54 percent a week ago. Rates for one-year adjustable-rate mortgages rose to an average of 3.48 percent to 3.46 percent.

Prices do not include add-on fees known as points. One point equals 1 percent of the loan whole. National payment of loans Freddie Mac study an average of 0.8 points in 30-year mortgages. It was an average of 0.7 points, and for 15 years and 1 year and 0.6 percentage points for loans of five years of loans.

October 1, 2010 - Congress has extended a policy that allows housing market expensive real estate, mortgages backed by the government to guarantee nearly $ 730,000.

The legislators of the Congress voted to maintain the maximum amount of loans guaranteed by Fannie Mae and Freddie Mac and the Federal Housing Administration at its current level until the end of 2011.

These limits apply expensive areas like New York and San Francisco. Absolutely, the limit would be reduced to approximately $ 625,000. The limit was $ 417,000 before 2008 and remains at that level most of the country.

The measure was a temporary spending bill that the legislature has sent to Barack Obama early on Thursday.

Real estate agents, mortgage bankers and builders keep lobbying for the upper limit of the high market price, as the housing market would suffer if the limits are not extended. Critics have argued that the lower limits of the housing market could help wean the state support.

Maintaining the current limit will help about 60,000 borrowers in a year, said Mahesh Swaminathan, a mortgage analyst at Credit Suisse.

Although relatively few borrowers will be assisted by Guy Cecala, publisher of trade publication Inside Mortgage Finance, said lawmakers are focused on maintaining control of the housing sector happy. "Nobody wants to oppose or interfere with realtors and home builders in an election year", he said.

Anything above the limit set by Congress falls into a category known as "Jumbo"  loans. They made a 5 percent market share in mortgages this year, against a normal level of around 18 percent, according to Inside Mortgage Finance, a trade publication.

During the financial crisis, lenders have been much less willing to make these loans. In December 2008, who wanted a jumbo borrowers were paying 1.8 percentage points higher on their mortgage rate conventional loans backed by the government, according to financial publisher HSH Associates.

This gap has narrowed, as the crisis eased. Last week, borrowers who receive loans jumbo pay a premium of 0.8 percentage points, according to SAS. It is still a pre-crisis level of 0.25 percentage points.

A number of factors have contributed to the decline in home sales nationally and in Florida in particular, but the growing importance of foreign buyers has offset some of the damage. About two of three real estate agents of the state had at least one international operation in the last year.

While US buyers continue to struggle, foreign buyers generally consider the US real estate as a desirable investment, cost effective and safe. In addition, the weak dollar has made Florida real estate even more attractive recently.

The National Association of Realtors ® in collaboration with real estate agents in Florida, conducted a survey of members of Florida, asking them about their experience working with international clients. The study was conducted in July-August 2010. A total of 936 responses.

Highlights of the report

65 percent of respondents - members of the Florida Realtors - worked with an international client in the last 12 months. Five worked with two international customers and 18 percent work with three or more.

• Half of respondents said that international customers accounted for 25 percent or less of their company, 15 percent said international buyers accounted for more than half of its business.

• One in three said that international customers have been an increasing proportion of their clients over the past two years, while nearly half (48 percent) stated that its share of international clients remained more or less the same.

• Canada was the largest buyers accounted for 36 percent of sales. Purchasers of the United Kingdom accounted for 15 percent, and the rest of Western Europe accounted for 14 per cent increase. Latin America is defined for the report includes Mexico, the Caribbean, Central and South America accounted for 16 per cent. Other countries, a small but significant share of sales in Germany (5 percent), Venezuela (3 percent), Brazil (3 percent) and France (3 percent).

• 11 percent of foreign buyers bought a new house, and the remaining 89 percent purchased a home previously owned.

• 51 percent bought a single family detached, 37 percent bought a condo, 11 percent bought a townhouse, and 1 percent have bought a second type of home.

• 38 percent are bought in a suburban area 30 per cent have bought property in a resort area, 25 percent is purchased in a city center, 7 percent were bought in a small town or rural area.

• 15 percent of buyers will use their property less than one month per year, 21 percent expect to use 1-2 months, and 34 three to six months. Percent

• 19 percent bought a house in the Orlando area, Kissimmee, 17 percent chose Miami-Ft. Lauderdale, 13 percent chose Sarasota-Bradenton and Tampa, Cape Coral-Fort Myers and Naples have completed the first six by at least 5 percent of purchases.

TALLAHASSEE, Fla. – Sept. 8, 2010 – Citizens Property Insurance Corp. asked state regulators Tuesday for a premium increase, in part because sinkhole costs are swallowing up more and more of the company’s money.

The company is asking for premium increases averaging 10.9 percent in 2011 for its riskiest homeowner policies. While much of the attention around property insurance involves hurricane risk, Citizens officials say that the state-run company took in $19 million in premiums for sinkhole coverage last year, while paying out $97 million in sinkhole-related claims.

The Office of Insurance Regulation panel did not take a vote on the rate request, which would begin to take effect Jan. 1. While the average rate increase requested would be just under 11 percent, homeowners in low-risk areas would see their rates rise an average of 9.8 percent.

Even the state’s consumer advocate’s office acknowledges higher rates may be needed because of sinkhole risk. Either a 10 percent cap on rate increases needs to be reconsidered, or sinkhole premiums should be considered separately, said Steve Alexander, an actuary in the Office of Insurance Consumer Advocate.

Citizens is now taking over the vast majority of sinkhole policies as private insurers try to reduce their risk.

“The rates are insufficient for what is an increasingly larger portion of claims,” Alexander told a panel of regulators led by Belinda Miller, Office of Insurance Regulation deputy commissioner for property and casualty insurance.

“We need to think of a lot more comprehensive approach to sinkhole insurance as a state,” said Paul Polumbo, senior vice president of underwriting for Citizens, which now handles 1.2 million residential and commercial policies in the state’s most hurricane prone regions.

By law, Citizens cannot increase premiums more than 10 percent in a single year, but the state-run insurance company can ask for additional money to help rebuild the state’s hurricane catastrophe fund, which is why the proposed rates are slightly in excess of the 10 percent cap.

Critics say the 10 percent limit hinders Citizens’ ability to raise rates sufficiently to become actuarially sound. But political considerations are playing a big role in recent legislative actions to cushion the blow of premium increases on coastal residents who find Citizens the only practical choice.

The same dynamic holds true for sinkhole coverage, as the state-run pool is increasingly becoming the state’s sinkhole insurance provider – an additional book of business that creates more pressure to raise rates in excess of 10 percent.

Source: News Service of Florida, Michael Peltier

WASHINGTON – Sept. 8, 2010 – In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development (HUD) now provides a new refinancing option for underwater borrowers. Originally announced in March, the enhancement of a Federal Housing Administration (FHA) refinance program offers non-FHA borrowers the opportunity to qualify for a new FHA-insured mortgage. To qualify, the homeowner must be current on his existing mortgage and lien holders must agree to write off at least 10 percent of the unpaid principal balance.

The FHA Short Refinance option is targeted to people who owe more on their mortgage than their home is worth because the local market saw large declines in home values. The Obama Administration hopes the change, as well as other programs that have been put in place, will help up to 4 million struggling homeowners through the end of 2012.

Participation in FHA’s short refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must also qualify under standard FHA underwriting requirements. The property must be the homeowner’s primary residence and the borrower’s existing first lien holder must agree to write off at least 10 percent of their unpaid principal balance. In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent, and a combined loan-to-value ratio no greater than 115 percent.

To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.

For more information on FHA Short Refinance option, read FHA’s mortgagee letter:

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-23ml.pdf

© 2010 Florida Realtors®