It's a quiet Sunday afternoon in West Kendall, the third quiet Sunday afternoon in a row that Olga Alvarez has opened her house to buyers.
The carpets are vacuumed, the kitchen scoured, the orange balloons and open-house signs placed on street corners. Three groups came through last week, two the week before. This time, Alvarez is hoping for The One.
At 1 p.m. sharp, she unlocks the door and settles in to wait.
• • •
The story of housing in South Florida in 2006 was one of waiting -- buyers waiting for the right price, sellers waiting for the right buyer, everyone waiting to see where an uncertain market would go. Now the question is: Will 2007 be the year the market turns around?
Sunday, February 18, 2007
Saturday, February 17, 2007
Dwindling number of students in Florida blamed on costly housing
Tallahassee · Soaring home prices are being blamed for a sudden and surprising decline in the number of students entering Florida public schools, a survey of county school superintendents revealed Thursday.
Half of the 62 school chiefs polled cited the cost of housing as a major reason why students and their families either left their counties or chose not to move there. The findings underscore the emerging view that housing costs are putting the brakes on fast-growing Florida.
For schools, the first signs of the trend surfaced when state analysts wrongly predicted that 48,376 more students would crowd classrooms statewide when doors opened in the fall. Instead, only an extra 477 children showed up.
"We missed it big time," said Wayne Blanton, executive director of the Florida School Boards Association. "Through 2005, we had 10 years in a row of more than 50,000 new students a year. Suddenly, it's stopped." It's the slowest growth rate in students that Florida has seen since the 1982-83 school year.
Half of the 62 school chiefs polled cited the cost of housing as a major reason why students and their families either left their counties or chose not to move there. The findings underscore the emerging view that housing costs are putting the brakes on fast-growing Florida.
For schools, the first signs of the trend surfaced when state analysts wrongly predicted that 48,376 more students would crowd classrooms statewide when doors opened in the fall. Instead, only an extra 477 children showed up.
"We missed it big time," said Wayne Blanton, executive director of the Florida School Boards Association. "Through 2005, we had 10 years in a row of more than 50,000 new students a year. Suddenly, it's stopped." It's the slowest growth rate in students that Florida has seen since the 1982-83 school year.
Need help buying your first home? Here's where to look
Wondering if now is the time to buy your first house or condo?
With a deluge of properties for sale throughout South Florida, prices are flexible, interest rates reasonable, and sellers are offering incentives to seal a deal.
But a home's price is just the beginning. Taxes and insurance can add as much as 50 percent to your monthly payment, real estate experts warn.
"It seems to me there are a lot of options out there, but you've got insurance and taxes and those are a real killer," said Bob Stroh, director of the University of Florida's Shimberg Center for Affordable Housing. "We're seeing young people staying at home until they are 25 or 30 because they can't afford to buy anything."
To help bridge the affordability gap, programs for first-time buyers are available from the U.S. Department of Housing and Urban Development, the Florida Housing Finance Corp., Broward and Palm Beach counties, and many of their cities.
With a deluge of properties for sale throughout South Florida, prices are flexible, interest rates reasonable, and sellers are offering incentives to seal a deal.
But a home's price is just the beginning. Taxes and insurance can add as much as 50 percent to your monthly payment, real estate experts warn.
"It seems to me there are a lot of options out there, but you've got insurance and taxes and those are a real killer," said Bob Stroh, director of the University of Florida's Shimberg Center for Affordable Housing. "We're seeing young people staying at home until they are 25 or 30 because they can't afford to buy anything."
To help bridge the affordability gap, programs for first-time buyers are available from the U.S. Department of Housing and Urban Development, the Florida Housing Finance Corp., Broward and Palm Beach counties, and many of their cities.
Sunday, February 04, 2007
Cost of renting commercial space in S. Florida creeps up toward New York rates
When Jim Cahlin looks at commercial real estate in South Florida, he's starting to see New York.
"We're getting closer and closer to rental rates in major metropolitan markets," said Cahlin, a broker for Cushman & Wakefield.
At year-end 2006, the average rental rate for luxury downtown office space in Palm Beach County was $40.69 a square foot, up from $36.42 at year-end 2005, according to a Cushman report. Broward's rental rate for comparable digs was $31.08 a square foot, up from $29.29.
Rents in the Big Apple and other large cities are north of $50, Cahlin said.
Why are South Florida landlords charging so much? Because they can.
"We're getting closer and closer to rental rates in major metropolitan markets," said Cahlin, a broker for Cushman & Wakefield.
At year-end 2006, the average rental rate for luxury downtown office space in Palm Beach County was $40.69 a square foot, up from $36.42 at year-end 2005, according to a Cushman report. Broward's rental rate for comparable digs was $31.08 a square foot, up from $29.29.
Rents in the Big Apple and other large cities are north of $50, Cahlin said.
Why are South Florida landlords charging so much? Because they can.
Saturday, February 03, 2007
Not-so-easy money?
This refund should be simple, but one-third so far aren't claiming it
SAN FRANCISCO (MarketWatch) -- It's perhaps the easiest $30 to $60 you'll ever collect from the IRS, but more than one-third of early-bird tax filers failed to claim the telephone excise tax refund, available this year to just about any taxpayer who paid for long-distance telephone service in recent years, the IRS said Wednesday.
"A little more than one-in-three returns are omitting the telephone tax refund," said Eric Smith, an IRS spokesman.
Some of those taxpayers are correct in not claiming the refund if they didn't pay for long-distance telephone service. But plenty of taxpayers who aren't claiming the refund are "omitting it in error," Smith said.
The refund is available this year only, and came about after court decisions found the excise tax, first levied in 1898 to fund the Spanish-American War, should no longer apply to telephone service as it's billed today. Taxpayers can claim a refund based on the 3% excise tax they paid on long-distance calls from March 2003 through July 2006
SAN FRANCISCO (MarketWatch) -- It's perhaps the easiest $30 to $60 you'll ever collect from the IRS, but more than one-third of early-bird tax filers failed to claim the telephone excise tax refund, available this year to just about any taxpayer who paid for long-distance telephone service in recent years, the IRS said Wednesday.
"A little more than one-in-three returns are omitting the telephone tax refund," said Eric Smith, an IRS spokesman.
Some of those taxpayers are correct in not claiming the refund if they didn't pay for long-distance telephone service. But plenty of taxpayers who aren't claiming the refund are "omitting it in error," Smith said.
The refund is available this year only, and came about after court decisions found the excise tax, first levied in 1898 to fund the Spanish-American War, should no longer apply to telephone service as it's billed today. Taxpayers can claim a refund based on the 3% excise tax they paid on long-distance calls from March 2003 through July 2006
Monday, January 29, 2007
Support squeeze
Tips for coping when care for parents, children means delaying retirement
SAN FRANCISCO (MarketWatch) -- The good news is baby boomers aren't as selfish as the "Me Generation" label attributed to them might suggest. The bad news is their generosity might force them to work well into their retirement years, according to a new survey of working Americans.
About one in five workers 45 and older provide financial support to a parent, according to the survey of about 5,400 adults conducted by Brightwork Partners for Putnam Investments.
And a fair portion of boomers are supporting their adult children: Almost one-third of working Americans 45 and older with a grown child over age 25 pay rent or provide housing for that child, the survey found. Meanwhile, 45% of middle-age workers with grown children provide financial support of about $2,500 a year on average.
SAN FRANCISCO (MarketWatch) -- The good news is baby boomers aren't as selfish as the "Me Generation" label attributed to them might suggest. The bad news is their generosity might force them to work well into their retirement years, according to a new survey of working Americans.
About one in five workers 45 and older provide financial support to a parent, according to the survey of about 5,400 adults conducted by Brightwork Partners for Putnam Investments.
And a fair portion of boomers are supporting their adult children: Almost one-third of working Americans 45 and older with a grown child over age 25 pay rent or provide housing for that child, the survey found. Meanwhile, 45% of middle-age workers with grown children provide financial support of about $2,500 a year on average.
Tougher loan guidelines wise for borrowers
Perspective: Better underwriting offers benefits to consumers
The federal government has stepped into a battle between banks and borrowers and for once, the government is on the right track: New stricter loan guidelines should be applied not just to interest-only and payment-option adjustable-rate mortgages, but also to an entire category of esoteric and extremely complicated loan products.
read more: http://www.inman.com/hstory.aspx?ID=61762
The federal government has stepped into a battle between banks and borrowers and for once, the government is on the right track: New stricter loan guidelines should be applied not just to interest-only and payment-option adjustable-rate mortgages, but also to an entire category of esoteric and extremely complicated loan products.
read more: http://www.inman.com/hstory.aspx?ID=61762
Friday, January 26, 2007
New Boca development may open doors to affordable housing
A new development of homes on Broken Sound Boulevard in Boca Raton will offer the city something no other plat has done before.
The developer of the 172-unit residential complex, Stiles Development Corp. of Fort Lauderdale, will be the first to put some cash – specifically, $3 million -- into the city’s Affordable Housing Land Trust fund.City officials have been working long and hard for at least three years to come up with a method of providing affordable housing to middle income residents. To date, an ordinance is in the works, but it has never seen the light of a public hearing.Since 2004, the Greater Boca Raton Chamber of Commerce has been pushing for an affordable housing ordinance – and has even drafted a model for the city to adopt. The planning staff is currently reviewing it.A land trust, combined with an ordinance explaining how it can be used, could solve Boca’s problem of finding an equitable solution to the affordable housing issue
The developer of the 172-unit residential complex, Stiles Development Corp. of Fort Lauderdale, will be the first to put some cash – specifically, $3 million -- into the city’s Affordable Housing Land Trust fund.City officials have been working long and hard for at least three years to come up with a method of providing affordable housing to middle income residents. To date, an ordinance is in the works, but it has never seen the light of a public hearing.Since 2004, the Greater Boca Raton Chamber of Commerce has been pushing for an affordable housing ordinance – and has even drafted a model for the city to adopt. The planning staff is currently reviewing it.A land trust, combined with an ordinance explaining how it can be used, could solve Boca’s problem of finding an equitable solution to the affordable housing issue
Twelve Tempting Locations For Vacation-Home Buys
The recent softening in the U.S. real-estate market after years of double-digit percentage growth in home prices may make it scarier than ever to buy a vacation home.
Some regions are scary because, even with the recent dip, they seem prohibitively expensive. Elsewhere, buyers may have understandable fears that places that seem affordable will only become more so as prices continue to fall.
The editors at RealEstateJournal.com set out to identify potential vacation-home deals that would assuage the most nervous Nellies. We looked for appealing locales across the U.S. where prices rose at a rate well below the national average of 84.3% between the second quarter of 1996 and the second quarter of 2006, and have above-average employment outlooks according to data from Economy.com.
read more: http://www.realestatejournal.com/buysell/regionalnews/20061109-kim.html
Some regions are scary because, even with the recent dip, they seem prohibitively expensive. Elsewhere, buyers may have understandable fears that places that seem affordable will only become more so as prices continue to fall.
The editors at RealEstateJournal.com set out to identify potential vacation-home deals that would assuage the most nervous Nellies. We looked for appealing locales across the U.S. where prices rose at a rate well below the national average of 84.3% between the second quarter of 1996 and the second quarter of 2006, and have above-average employment outlooks according to data from Economy.com.
read more: http://www.realestatejournal.com/buysell/regionalnews/20061109-kim.html
Facing foreclosure? Beware of 'rescue firms' offering to help you
To a financially strapped homeowner terrified by the prospect of foreclosure, it sounds like an escape plan:
Temporarily transfer title of the property to a foreclosure rescue firm, which pays the mortgage and allows you to rent the house. The company promises that after six months or a year you can regain ownership.
But it's not always that simple. Terms of these deals are difficult for struggling homeowners to meet. And real estate experts say savvy firms often prey on elderly or low-income owners who are not sophisticated in financial matters.
read more: http://www.sun-sentinel.com/business/realestate/sfl-sbforeclose25jan25,0,7678449.story?coll=sfla-busrealestate-headlines
Temporarily transfer title of the property to a foreclosure rescue firm, which pays the mortgage and allows you to rent the house. The company promises that after six months or a year you can regain ownership.
But it's not always that simple. Terms of these deals are difficult for struggling homeowners to meet. And real estate experts say savvy firms often prey on elderly or low-income owners who are not sophisticated in financial matters.
read more: http://www.sun-sentinel.com/business/realestate/sfl-sbforeclose25jan25,0,7678449.story?coll=sfla-busrealestate-headlines
If you moved in 2006, you might get tax savings
NEW YORK (MarketWatch) -- Were you one of the 25 million tax-paying Americans who changed homes in 2006? If so, you might be due big tax savings. According to real estate attorney and columnist Bob Bruss, your household moving expenses can be deducted as an adjustment to gross income.
Deductible expenses include any direct household moving costs, such as hiring a moving van, shipping expenses, moving insurance, and airline, train or bus fare to your new city. If you drive yourself, you can deduct gasoline and oil bills. The cost of lodging en route (but not meals) is also deductible.
read more: http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BFBA6FCE9%2D71D8%2D455F%2DB45B%2D5B9B496B9A79%7D&siteid=mktw&dist=nwhreal
Deductible expenses include any direct household moving costs, such as hiring a moving van, shipping expenses, moving insurance, and airline, train or bus fare to your new city. If you drive yourself, you can deduct gasoline and oil bills. The cost of lodging en route (but not meals) is also deductible.
read more: http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BFBA6FCE9%2D71D8%2D455F%2DB45B%2D5B9B496B9A79%7D&siteid=mktw&dist=nwhreal
Officials Seek to Rein In Insurers As Home-Insurance Premiums Rise
A backlash against insurers is building in several coastal states where homeowner premiums have increased sharply despite several years of rising industry profits and an uneventful hurricane season in the East.
In Florida, where back-to-back hurricanes have helped some rates more than double since 2004, the state legislature yesterday approved a measure aimed at reducing homeowner premiums offered by private insurance companies by 5% to 25% or more. The legislature has been meeting since last week in a special session specifically aimed at addressing the state's insurance crisis. The measure now goes to Republican Gov. Charlie Crist, who has made insurance-rate cuts a top priority since taking office this month.
read more:http://www.realestatejournal.com/buysell/taxesandinsurance/20070124-mcqueen.html?rejpartner=mktw
In Florida, where back-to-back hurricanes have helped some rates more than double since 2004, the state legislature yesterday approved a measure aimed at reducing homeowner premiums offered by private insurance companies by 5% to 25% or more. The legislature has been meeting since last week in a special session specifically aimed at addressing the state's insurance crisis. The measure now goes to Republican Gov. Charlie Crist, who has made insurance-rate cuts a top priority since taking office this month.
read more:http://www.realestatejournal.com/buysell/taxesandinsurance/20070124-mcqueen.html?rejpartner=mktw
Monday, January 15, 2007
Blueprint for home sale: Price it right
(My broker has been saying this for the last quater of 2006.)
The current market value of your home may be more than, less than or the same as it was last year depending on where you live and what you have to sell. Nationally, the median sale price of homes sold in October 2006 dipped 3.5 percent from October 2005, which was an exceptionally strong month. But there are still pockets of the market, such as Portland, Ore., where prices are still going up.
The current market value of your home may be more than, less than or the same as it was last year depending on where you live and what you have to sell. Nationally, the median sale price of homes sold in October 2006 dipped 3.5 percent from October 2005, which was an exceptionally strong month. But there are still pockets of the market, such as Portland, Ore., where prices are still going up.
Saturday, January 13, 2007
Consumers see their insurance rates, risks rising
Insurers post record profits as companies hike rates and shift more risk to customers, a consumer group says.
Although the insurance industry has posted record profits in the past three years, home insurers have been overpricing policies and shifting risks to consumers, a new study released Monday by the Consumer Federation of America found.
Insurers have been systematically overcharging for insurance and shifting costs to consumers, the report found. Profits in the past three years have risen to record levels despite the increased hurricane activity of 2004 and 2005.
Although the insurance industry has posted record profits in the past three years, home insurers have been overpricing policies and shifting risks to consumers, a new study released Monday by the Consumer Federation of America found.
Insurers have been systematically overcharging for insurance and shifting costs to consumers, the report found. Profits in the past three years have risen to record levels despite the increased hurricane activity of 2004 and 2005.
Florida exodus? Statistics show residents starting to leave for less costly locales
For the first time in 30 years, United Van Lines Inc. says it moved more people out of Florida than in, and analysts see that as a sign that consumers are looking elsewhere for a cheaper slice of life.
Wednesday, January 10, 2007
Upscale garages 'in,' buyer incentives 'out' for '07
When home sales softened late in 2005, many sellers decided to take their homes off the market and wait until the spring flowers surfaced -- along with the traditional housing season -- to lure potential home buyers. While sellers enjoyed modest appreciation in many areas of the country early in 2006, the second half was a totally different matter.
Wednesday, December 20, 2006
NAR worried about rising foreclosure rate
Group urges caution about 'exotic' mortgages
Wednesday, December 20, 2006Inman News
Pat Vredevoogd Combs, NAR
The National Association of Realtors has issued a statement to express concern "over the rising rate of defaults and foreclosures occurring in many areas around the country, and many Realtors believe that some families don't understand the risks of taking out 'exotic' mortgages."
Pat Vredevoogd Combs, NAR president, participated in a call this week with representatives for the Center for Responsible Lending and the Leadership Conference on Civil Rights and "urged consumers to make sure they understand the risks and rewards of all types of mortgages before they make a decision on a loan," according to the announcement.
The Mortgage Bankers Association reported this month that overall delinquencies on mortgage loans rose 28 basis points in the third quarter, to 4.67 percent, and the third-quarter delinquency rate for subprime adjustable-rate mortgages increased by 98 basis points compared to the second quarter and 267 basis points compared to third-quarter 2005.
The Realtor group has partnered with the Center for Responsible Lending to prepare a series of brochures for consumers to educate them about nontraditional and traditional mortgage products.
The latest brochure, released last month, offers tips to consumers on how to avoid predatory lending practices. That five-page brochure is titled "Shopping for a Mortgage? Do Your Homework First."
Combs said in a statement, "Foreclosures can lead to high vacancy rates, which in turn, can cause all homes in the neighborhood to lose value."
The Realtor group said in the announcement that foreclosures "are not only a disaster for families but also for communities. Problematic loans are often made in concentrated areas, and high foreclosure rates of single-family homes can seriously threaten a neighborhood's stability and a community's well-being."
Wednesday, December 20, 2006Inman News
Pat Vredevoogd Combs, NAR
The National Association of Realtors has issued a statement to express concern "over the rising rate of defaults and foreclosures occurring in many areas around the country, and many Realtors believe that some families don't understand the risks of taking out 'exotic' mortgages."
Pat Vredevoogd Combs, NAR president, participated in a call this week with representatives for the Center for Responsible Lending and the Leadership Conference on Civil Rights and "urged consumers to make sure they understand the risks and rewards of all types of mortgages before they make a decision on a loan," according to the announcement.
The Mortgage Bankers Association reported this month that overall delinquencies on mortgage loans rose 28 basis points in the third quarter, to 4.67 percent, and the third-quarter delinquency rate for subprime adjustable-rate mortgages increased by 98 basis points compared to the second quarter and 267 basis points compared to third-quarter 2005.
The Realtor group has partnered with the Center for Responsible Lending to prepare a series of brochures for consumers to educate them about nontraditional and traditional mortgage products.
The latest brochure, released last month, offers tips to consumers on how to avoid predatory lending practices. That five-page brochure is titled "Shopping for a Mortgage? Do Your Homework First."
Combs said in a statement, "Foreclosures can lead to high vacancy rates, which in turn, can cause all homes in the neighborhood to lose value."
The Realtor group said in the announcement that foreclosures "are not only a disaster for families but also for communities. Problematic loans are often made in concentrated areas, and high foreclosure rates of single-family homes can seriously threaten a neighborhood's stability and a community's well-being."
Wednesday, December 13, 2006
MORTGAGE = HAPPINESS
Seeking happiness? An Australian researcher finds that making payments on a mortgage is a good way to feel better. Professor Bob Cummins of Deakin University told the Sydney Morning Herald that his studies of well-being have found that homeowners are more content than renters at all levels of income. Renters tend to be more footloose, Cummins said. Couples also find that holding a mortgage together increases their feeling of commitment. Oddly, events like the Sept. 11, 2001, terrorist attacks in the United States or the Bali nightclub bombing that killed scores of Australian tourists can also increase a feeling of well-being. "All of this created an amazing sense of external threat that Australia had not really had since World War II," Cummins said. "This kind of threat caused people to bond much better." But there's nothing like a mortgage, especially for couples. "They have a clear investment in their combined future. People who rent have not made that kind of mutual commitment," Cummins said.
Copyright © 2006 by United Press International
Copyright © 2006 by United Press International
First-Timers Begin Looking At Houses Again
High home prices have helped drive many first-time buyers out of the housing market. Now, with prices falling in many areas, there are some signs that buyers are beginning to drift back.
The share of first-time home buyers dropped earlier this year to its lowest level since 1987, according to the National Association of Realtors. First-time home buyers now account for 36% of home purchases, according to a study released last month by the Realtors group, down from 40% in the three previous years.
http://online.wsj.com/public/article/SB116597804852548551-SsiEDRDB_1HXjkPe7uI6peCvHe4_20061219.html?mod=mktw
The share of first-time home buyers dropped earlier this year to its lowest level since 1987, according to the National Association of Realtors. First-time home buyers now account for 36% of home purchases, according to a study released last month by the Realtors group, down from 40% in the three previous years.
http://online.wsj.com/public/article/SB116597804852548551-SsiEDRDB_1HXjkPe7uI6peCvHe4_20061219.html?mod=mktw
Monday, December 11, 2006
Thursday was a big day for online listings
As the market slows, numerous Web sites are offering Realtors new places to market their listings to prospective buyers. But Zillow isn't the only one who stepped up with an offering of this kind this week. HomeGain, which operates an online service to match consumers with real estate agents, on Thursday announced it would allow agents to post listings at its Web site, which gets millions of visitors each month. And HouseValues, an online lead generation source for real estate agents, also on Thursday announced it would enable its agent clients to push their listings out to the Google and Oodle search engines.Not long ago, these offerings were unheard of -- a lot of time and energy went toward keeping listings info in the hands of industry professionals only. There was Realtor.com and IDX for broker Web sites, and not much else.But times are changing, along with broker attitudes toward marketing listings to the world. The slow market could be the best thing that ever happened to consumer access to for-sale data. 2007 will be the year that listings make primetime: Google Base, Zillow, Oodle, Trulia, HomeGain, edgeio … lots of free marketing avenues for agents to woo in buyer clients.
--Jessica Swesey, Inman News
--Jessica Swesey, Inman News
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