Room to grow old
FORT LAUDERDALE, Fla. – Nov. 14, 2008 – The region’s bad real estate market at least is having one positive side benefit.Businesses that help South Florida homeowners “age in place” – or stay in their homes as long as possible – are gaining popularity with seniors and their adult children as more elders choose not to move into assisted living facilities.Unable to sell their homes, seniors are deciding they can’t afford assisted care, where they’ll pay $2,000 to $5,000 a month, or continuing care communities, where entrance fees range from $75,000 to $200,000.
But for the price of a few months in an assisted living facility, they can hire a contractor to swap out their door knobs for easy-to-push levers, lower their kitchen counters so they don’t have to bend when cooking, or widen their doorways so a wheelchair can pass through.These “universal design” fixes are popular with forward-thinking Baby Boomers as well and are increasingly included in new construction.Contractors now can become certified aging-in-place specialists, or CAPS, through a credentialing process created by the National Association of Home Builders and AARP. The program was started in 2000, and housing industry groups say they’ve had more inquires from remodelers.
The CAPS designation “is popular in our state, as we have a large number of senior citizens,” said Edie Ousley, spokeswoman with the Florida Home Builders Association. “We are getting a lot more requests for information about it.”There are 85 CAPS contractors in Florida, with seven in Broward and Palm Beach counties.Higher-end assisted living facilities and continuing care retirement communities in South Florida and elsewhere have seen their occupancy rates drop over the past year.William Varian, a Naples general contractor, became interested in senior-friendly construction when he built a guesthouse for his 92-year-old grandmother. He got the CAPS certification six years ago.Varian said aging-in-place retrofits are an increasing percentage of his business; he did about seven such jobs in 2003, compared with 16 last year. He’s working on two projects in South Florida: rebuilding one house to accommodate a man with limited mobility and renovating another for an older couple. His average retrofit job runs about $8,000.The biggest problem homeowners usually face? “Things involving the bathroom, like getting in and out of the tub,” Varian said, who often works with a nurse or physical therapist to determine what his clients need. Grab bars are a common fix, “although some people think they look institutional,” he said. “But I found one model that’s extremely decorative, with towel bars and toilet paper holders to match. I used it for younger clients, too.”
AARP housing research shows 83 percent of older Americans want to stay in their homes until the end of their lives, if possible.The sluggish economy has reinforced those desires. A recent AARP survey of 1,002 people age 45 and older showed three in 10 homeowners pinched by tight times were making changes to their homes in order to live there longer.It’s a challenge, however, to manage chronic medical conditions and provide necessities such as transportation and meals when a senior remains at home. Some turn to care-management firms, such as Rona Bartelstone Associates in Fort Lauderdale, to line up specialists and arrange at-home services.Executive Director Susan Fleischer said the company is working with two families who could not sell their homes and whose adult children could not afford their assisted living expenses. “With today’s economic situation, it only will get worse,” Fleischer said.
Others are trying a new concept: creating a community concierge who coordinates services for seniors living in specific neighborhoods.The best-known example is the “village model,” pioneered by Beacon Hill Village in 2002. Residents of the Beacon Hill neighborhood in Boston, who range in age from 52 to 100, pay $100 to $850 annually for a village membership. That hires a village staff, which plans social activities, gets discounted rates from home health companies, and arranges for rides and shopping.There now are 13 villages in seven states, all governed by member boards.© 2008 South Florida Sun-Sentinel. Distributed by Knight Ridder/Tribune Business News.
Friday, November 14, 2008
Government Buyout South Florida
Federal grants to be used to buy up South Florida foreclosures
South Florida governments are gearing up to spend more than $161 million in federal grant money to stimulate the housing market.
BY MONICA HATCHER
mhatcher@MiamiHerald.com
The buyer of that ramshackle foreclosure down the street just might be the government.
In coming months, South Florida cities and counties will be armed with more than $161 million in new federal grant money and a mandate to stabilize falling home values and decay in neighborhoods hardest hit by the real estate downturn.
Their spending plans include buying and rehabbing, reselling or renting out property repossessed by banks through foreclosure, a first for many small municipalities without housing authorities. Cities may also use money to develop new projects and tear down neighborhood eyesores.
Miami Gardens' plans include using homes to help young adults aging out of foster care. Miramar wants to give financial aid to middle-income home buyers.
Hialeah wants to build more $300-a-month rental units. And Miami-Dade plans to use some money on the once fraud-wracked redevelopment of the Scott Carver housing project in Liberty City.
The funds represent South Florida's share of a $3.9 billion pot offered as part of a larger housing stimulus plan passed by Congress this summer.
The stimulus money comes as the state's housing market continues to slog along under historic foreclosure rates, unsold homes and growing economic malaise. In all, Florida will get $541 million, with $91 million going to state government.
When it comes to house hunting, governments don't lack for choices. As of Oct. 31, banks owned 10,725 homes in Miami-Dade and 10,234 in Broward, according to RealtyTrac data released Thursday.
And foreclosures keep rising: In October, foreclosures were up 53 percent in Broward and 97 percent in Miami-Dade over a year ago, RealtyTrac reported. The figures mean one of every 114 homes in Broward is either headed into foreclosure or already bank-owned. In Miami-Dade, it's one of every 93 homes.
Lenders have already begun knocking on doors at Miami-Dade agencies, county officials said. The county will get $62.2 million, the largest share of any locality in the country.
''This is not a whole lot of money in reality, but I think there will be a whole broad spectrum of people we can help. The magnitude of the problem is really huge,'' said Robert Cruz, chief economist for Miami-Dade.
NEW UNITS
Housing administrators' tentative plan is to spend almost $37 million buying bank-owned single- and multi-family properties, hoping to add roughly 342 new units to its affordable housing stock. The county now owns 10,000 units. There are 71,000 people on the waiting list for those as well as privately owned units through Section 8.
The rest will be spent demolishing 80 blighted structures as well as on homeownership counseling and mortgage assistance for about 130 families. The county will leverage nearly $9 million for infrastructure needed to complete work on the Scott Carver HOPE VI housing project, which will help bring 236 new units online when finished. In all, they expect to directly aid 1,500 families.
The County Commission will vote on the plan next Thursday. Broward approved its plan Thursday.
Comment on this article to:
John Holbrook
Prudential Chaplin Williams Realty
www.nassaumls.net
South Florida governments are gearing up to spend more than $161 million in federal grant money to stimulate the housing market.
BY MONICA HATCHER
mhatcher@MiamiHerald.com
The buyer of that ramshackle foreclosure down the street just might be the government.
In coming months, South Florida cities and counties will be armed with more than $161 million in new federal grant money and a mandate to stabilize falling home values and decay in neighborhoods hardest hit by the real estate downturn.
Their spending plans include buying and rehabbing, reselling or renting out property repossessed by banks through foreclosure, a first for many small municipalities without housing authorities. Cities may also use money to develop new projects and tear down neighborhood eyesores.
Miami Gardens' plans include using homes to help young adults aging out of foster care. Miramar wants to give financial aid to middle-income home buyers.
Hialeah wants to build more $300-a-month rental units. And Miami-Dade plans to use some money on the once fraud-wracked redevelopment of the Scott Carver housing project in Liberty City.
The funds represent South Florida's share of a $3.9 billion pot offered as part of a larger housing stimulus plan passed by Congress this summer.
The stimulus money comes as the state's housing market continues to slog along under historic foreclosure rates, unsold homes and growing economic malaise. In all, Florida will get $541 million, with $91 million going to state government.
When it comes to house hunting, governments don't lack for choices. As of Oct. 31, banks owned 10,725 homes in Miami-Dade and 10,234 in Broward, according to RealtyTrac data released Thursday.
And foreclosures keep rising: In October, foreclosures were up 53 percent in Broward and 97 percent in Miami-Dade over a year ago, RealtyTrac reported. The figures mean one of every 114 homes in Broward is either headed into foreclosure or already bank-owned. In Miami-Dade, it's one of every 93 homes.
Lenders have already begun knocking on doors at Miami-Dade agencies, county officials said. The county will get $62.2 million, the largest share of any locality in the country.
''This is not a whole lot of money in reality, but I think there will be a whole broad spectrum of people we can help. The magnitude of the problem is really huge,'' said Robert Cruz, chief economist for Miami-Dade.
NEW UNITS
Housing administrators' tentative plan is to spend almost $37 million buying bank-owned single- and multi-family properties, hoping to add roughly 342 new units to its affordable housing stock. The county now owns 10,000 units. There are 71,000 people on the waiting list for those as well as privately owned units through Section 8.
The rest will be spent demolishing 80 blighted structures as well as on homeownership counseling and mortgage assistance for about 130 families. The county will leverage nearly $9 million for infrastructure needed to complete work on the Scott Carver HOPE VI housing project, which will help bring 236 new units online when finished. In all, they expect to directly aid 1,500 families.
The County Commission will vote on the plan next Thursday. Broward approved its plan Thursday.
Comment on this article to:
John Holbrook
Prudential Chaplin Williams Realty
www.nassaumls.net
Monday, November 10, 2008
Northeast Florida and Nassau County Stats
Compiled from the Credit Suisse Housing Survey and Nassau County MLS information.
Traffic increases, but mostly lookers and few transactions. Buyer traffic improved
slightly in October, as our traffic index increased to 18 from 8 in September (readings
below 50 suggest traffic below agents’ expectations). One agent characterized the change
as “a slight increase in buyer interest, but still just heavy shopping.” Other agents
commented that the tight credit environment and economic worries are preventing many
potential buyers from looking, although several agents did note buyers are willing to look
at sharply discounted listings. We think most buyers remain on the sidelines for signs of
price stabilization or an easing of credit
Fear Grips Buyers in October
■
Buyers scared by economy and equity market, low prices
(foreclosures) driving sales. Our Monthly Survey of Real Estate Agents
indicated a sharp drop in October. Trends deteriorated somewhat during the
month, but the majority of the drop in traffic was seen at the end of
September. Real estate agents stressed that buyers remain handcuffed by
concerns about the economy and the equity market, along with continuing
fears of buying before prices have bottomed.
■
Nearly all markets impacted by buyer worries. Overall, our traffic index
fell to 19.6 in October from 24.0 in September (readings below 50 point to
traffic below expectations). 31 of the 40 markets we survey with seven
markets showing improvement in traffic (but from extremely low levels) and
two markets showing stable traffic.
■
Foreclosure-heavy markets still getting traffic, but economy takes toll
on buyer psychology. Of the hard-hit markets where we had generally
seen solid traffic through ’08 (Ft Myers, Las Vegas, the Inland Empire (CA),
and Sacramento), only Ft Myers showed improvement in October, with the
others showing declines, but still having more traffic than most other markets.
John Holbrook
Prudential Chaplin Williams Realty
904-415-0171
Search the MLS at www.nassaumls.net
- August 2008 closed MLS stats for Nassau County
Residential units (36) sales ($11,454,680)
Condos units (5) sales ($1,847,000)
Lots and Acreage units (5) sales ($604,900)
- September 2008 closed MLS stats for Nassau County
Residential units (39) sales ($13,077,263)
Condos units (8) sales ($4,277,000)
Lots and acreage (3) sales ($632,000)
- October 2008 closed MLS stats for Nassau County
Residential units (31) sales ($8,265,019)
Condos units (4) sales ($1,761,900)
Lots and acreage (6) sales($788,000)
Jacksonville, FL – Buyers Continue to Wait for Prices to Stabilize
Traffic increases, but mostly lookers and few transactions. Buyer traffic improved
slightly in October, as our traffic index increased to 18 from 8 in September (readings
below 50 suggest traffic below agents’ expectations). One agent characterized the change
as “a slight increase in buyer interest, but still just heavy shopping.” Other agents
commented that the tight credit environment and economic worries are preventing many
potential buyers from looking, although several agents did note buyers are willing to look
at sharply discounted listings. We think most buyers remain on the sidelines for signs of
price stabilization or an easing of credit
Fear Grips Buyers in October
■
Buyers scared by economy and equity market, low prices
(foreclosures) driving sales. Our Monthly Survey of Real Estate Agents
indicated a sharp drop in October. Trends deteriorated somewhat during the
month, but the majority of the drop in traffic was seen at the end of
September. Real estate agents stressed that buyers remain handcuffed by
concerns about the economy and the equity market, along with continuing
fears of buying before prices have bottomed.
■
Nearly all markets impacted by buyer worries. Overall, our traffic index
fell to 19.6 in October from 24.0 in September (readings below 50 point to
traffic below expectations). 31 of the 40 markets we survey with seven
markets showing improvement in traffic (but from extremely low levels) and
two markets showing stable traffic.
■
Foreclosure-heavy markets still getting traffic, but economy takes toll
on buyer psychology. Of the hard-hit markets where we had generally
seen solid traffic through ’08 (Ft Myers, Las Vegas, the Inland Empire (CA),
and Sacramento), only Ft Myers showed improvement in October, with the
others showing declines, but still having more traffic than most other markets.
John Holbrook
Prudential Chaplin Williams Realty
904-415-0171
Search the MLS at www.nassaumls.net
Monday, November 3, 2008
Friday, October 24, 2008
Inheritance and deeds
Q: I have a situation that seems to be complicated, especially as I try to explain it to my tax and financial advisers. I can't believe I'm the first one in a situation like this.
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My grandfather (my mother's father), upon being admitted to a convalescent home, put my mother (his daughter) on the deed in joint tenancy with him. He owned the home free and clear at the time. His original purchase price on the home was a mere $15,000.
He has since passed away, leaving my mother as owner of the entire property. A year and a half later after his passing, my mother quitclaimed the property to me. I have recently sold the property for $225,000.
I need to know what my cash basis of the house is so that I can determine if I'm selling at a gain or loss. When my mom transferred the home to me a year and a half ago, the fair market value was about $385,000.
I am not sure if I should use the fair market value of the property at the time of my grandfather's death, or the date the property transferred to me in calculating the cost basis.
Please help, as I am holding up the closing trying to figure out what tax documents to fill out. I appreciate any information you can provide on this situation.
A: Your situation is a bit complicated, but it's not unfathomable.
When your grandfather added your mother to the deed, he gave her half the house. Her cost basis was whatever he paid for the property (in this case $15,000) plus any structural or capital improvements made. Let's assume he added another $5,000 to the property while he lived there. The cost basis for her share became $10,000, or half of $20,000.
When he died, the fair market value of the property was $385,000. She inherited his half at $192,500. Remember, she got her half at $10,000.
When she quitclaimed the property to you, you received her half at $10,000 basis, and the inherited half at $192,500. (The total value of her gift to you is $202,500, but we'll come back to that number in a moment.)
You have now sold the property for $225,000. The profit on the share of the house your mother was given is $102,500 ($112,500 minus $10,000 equals $102,500). The loss on the inherited half is about $80,000 ($192,500 minus 112,500 equals $80,000). You would subtract half of any costs of sale or cost of improvements that you've made to the property from whatever profit you have from your mother's half.
Unless you lived there for two out of the last five years as your primary residence (as the owner of the property), you would owe long-term federal capital gains tax on the $102,500 plus applicable state tax. At 15 percent, you'd pay $15,375 plus any applicable state tax. Unfortunately, you would not be able to deduct the loss on the inherited half of the home.
But there are also gift tax considerations. Anyone can give away to individuals up to $1 million in a lifetime. You can give away $12,000 in 2008 (rising to $13,000 per person in 2009) to any number of people without deducting from your lifetime gift exemption. But your mother gave you a house, which was roughly valued at $202,500 (her cost basis of $10,000 plus the inherited half's cost basis at $192,000). She should find out what, if any, forms she needs to file with the IRS.
This is a great example of why someone should leave real estate in their estate to their heirs instead of putting them on the deed. If your mother had inherited the property from her dad, she would have received it at the fair market value the day he died, which you've said was $385,000. If your mother had sold the property that same day, she would owe no taxes on it.
Just to be sure I had the details right, I ran your question by two tax professionals, Chet Burgess, an enrolled agent who owns Brookwood Tax Service in Atlanta, and Julianna Clementi-Ryan, a vice president with Nationwide 1031 Exchange, a 1031 exchange company. They concurred with my answer to you, but you should consult with your own knowledgeable tax professional, because there may be extenuating circumstances or other facts you might have failed to include in your e-mail.
For more information on this topic (and I've written about it frequently online), and other similar questions I've answered, please visit my Web site, www.ThinkGlink.com.
Reposted from a news article
John Holbrook
Prudential Chaplin Williams Realty
904-415-0171
holbrook66@msn.com
Search the local MLS www.nassaumls.net
OAS_AD('ArticleFlex_1');
My grandfather (my mother's father), upon being admitted to a convalescent home, put my mother (his daughter) on the deed in joint tenancy with him. He owned the home free and clear at the time. His original purchase price on the home was a mere $15,000.
He has since passed away, leaving my mother as owner of the entire property. A year and a half later after his passing, my mother quitclaimed the property to me. I have recently sold the property for $225,000.
I need to know what my cash basis of the house is so that I can determine if I'm selling at a gain or loss. When my mom transferred the home to me a year and a half ago, the fair market value was about $385,000.
I am not sure if I should use the fair market value of the property at the time of my grandfather's death, or the date the property transferred to me in calculating the cost basis.
Please help, as I am holding up the closing trying to figure out what tax documents to fill out. I appreciate any information you can provide on this situation.
A: Your situation is a bit complicated, but it's not unfathomable.
When your grandfather added your mother to the deed, he gave her half the house. Her cost basis was whatever he paid for the property (in this case $15,000) plus any structural or capital improvements made. Let's assume he added another $5,000 to the property while he lived there. The cost basis for her share became $10,000, or half of $20,000.
When he died, the fair market value of the property was $385,000. She inherited his half at $192,500. Remember, she got her half at $10,000.
When she quitclaimed the property to you, you received her half at $10,000 basis, and the inherited half at $192,500. (The total value of her gift to you is $202,500, but we'll come back to that number in a moment.)
You have now sold the property for $225,000. The profit on the share of the house your mother was given is $102,500 ($112,500 minus $10,000 equals $102,500). The loss on the inherited half is about $80,000 ($192,500 minus 112,500 equals $80,000). You would subtract half of any costs of sale or cost of improvements that you've made to the property from whatever profit you have from your mother's half.
Unless you lived there for two out of the last five years as your primary residence (as the owner of the property), you would owe long-term federal capital gains tax on the $102,500 plus applicable state tax. At 15 percent, you'd pay $15,375 plus any applicable state tax. Unfortunately, you would not be able to deduct the loss on the inherited half of the home.
But there are also gift tax considerations. Anyone can give away to individuals up to $1 million in a lifetime. You can give away $12,000 in 2008 (rising to $13,000 per person in 2009) to any number of people without deducting from your lifetime gift exemption. But your mother gave you a house, which was roughly valued at $202,500 (her cost basis of $10,000 plus the inherited half's cost basis at $192,000). She should find out what, if any, forms she needs to file with the IRS.
This is a great example of why someone should leave real estate in their estate to their heirs instead of putting them on the deed. If your mother had inherited the property from her dad, she would have received it at the fair market value the day he died, which you've said was $385,000. If your mother had sold the property that same day, she would owe no taxes on it.
Just to be sure I had the details right, I ran your question by two tax professionals, Chet Burgess, an enrolled agent who owns Brookwood Tax Service in Atlanta, and Julianna Clementi-Ryan, a vice president with Nationwide 1031 Exchange, a 1031 exchange company. They concurred with my answer to you, but you should consult with your own knowledgeable tax professional, because there may be extenuating circumstances or other facts you might have failed to include in your e-mail.
For more information on this topic (and I've written about it frequently online), and other similar questions I've answered, please visit my Web site, www.ThinkGlink.com.
Reposted from a news article
John Holbrook
Prudential Chaplin Williams Realty
904-415-0171
holbrook66@msn.com
Search the local MLS www.nassaumls.net
Tuesday, October 21, 2008
Cartesian Pointe Home
View from the rear patio
$184,500 Cartesian Pointe Home in Yulee. Upgrades include: Premium homesite, bay window in bedroom, volumne ceiling, coffered ceiling in master
Amelia Island Plantation
Amelia Island Plantation Announces Letter of Intentwith Redquartz Developments Atlanta
In order to further its long term strategic plans for growth of Amelia Island Plantation, the Amelia Island Company has been pursuing prospective investors, partners and lenders over the past two years for capital improvements to our hospitality resort business model. These efforts have progressed to the point where the Company has signed a letter of intent with a prospective partner to help with the planned expansion of the resort’s facilities. While there are many more details to be worked out, the Company is pleased to announce signing a Letter of Intent with Redquartz Development. Redquartz Development was attracted to this partnership opportunity based largely on the strength of Amelia Island Plantation’s management team, strategic plan and long range goals.
Redquartz Developments Atlanta (RQD) is a real estate investment company, who is partnered with Redquartz Developments, Ltd. (“Redquartz”), a Dublin based Property and Investment Company with investments in projects with more than $3 billion of value. Redquartz specializes in mixed-use developments to include commercial, residential, retail, hotel & leisure facilities. Their group philosophy is about partnerships that offer access to expertise and resources in addition to reducing the risk profile of individual projects. Redquartz Developments, Ltd. is located in Dublin, Ireland. Headed by Patrick (Paddy) Kelly, Redquartz has over 40 years experience in property development in Ireland, Europe and the USA.
Redquartz Developments Atlanta spearheads development activities in the United States from it offices in Atlanta, Georgia.
Interested in Property on the Amelia island Plantation - Search www.nassaumls.net
John Holbrook - Realtor
Prudential Chaplin Williams Realty
904-415-0171
In order to further its long term strategic plans for growth of Amelia Island Plantation, the Amelia Island Company has been pursuing prospective investors, partners and lenders over the past two years for capital improvements to our hospitality resort business model. These efforts have progressed to the point where the Company has signed a letter of intent with a prospective partner to help with the planned expansion of the resort’s facilities. While there are many more details to be worked out, the Company is pleased to announce signing a Letter of Intent with Redquartz Development. Redquartz Development was attracted to this partnership opportunity based largely on the strength of Amelia Island Plantation’s management team, strategic plan and long range goals.
Redquartz Developments Atlanta (RQD) is a real estate investment company, who is partnered with Redquartz Developments, Ltd. (“Redquartz”), a Dublin based Property and Investment Company with investments in projects with more than $3 billion of value. Redquartz specializes in mixed-use developments to include commercial, residential, retail, hotel & leisure facilities. Their group philosophy is about partnerships that offer access to expertise and resources in addition to reducing the risk profile of individual projects. Redquartz Developments, Ltd. is located in Dublin, Ireland. Headed by Patrick (Paddy) Kelly, Redquartz has over 40 years experience in property development in Ireland, Europe and the USA.
Redquartz Developments Atlanta spearheads development activities in the United States from it offices in Atlanta, Georgia.
Interested in Property on the Amelia island Plantation - Search www.nassaumls.net
John Holbrook - Realtor
Prudential Chaplin Williams Realty
904-415-0171
Friday, October 3, 2008
Jacksonville Market update
Monthly Survey of Real Estate Agents
Foreclosure Pricing Needed to Attract Buyers
■ Start of the fall season, but few buyers are found, aside from foreclosure-rich markets. Our Monthly Survey of Real Estate Agents showed another slight decline in September, with traffic worsening over the course of the month. Agents generally noted fear among buyers about buying before prices reach their low, difficulty getting a mortgage, and the elimination of down-payment assistance on Federal Housing Administration (FHA) loans as the main issues.
■ But there are signs of better traffic again in the hardest hit markets. Overall, our traffic index fell to 24.0 in September from 25.9 in August (readings below 50 point to traffic below expectations). However, we saw improvement in traffic in September in hard-hit markets such as Ft Myers, Las Vegas, the Inland Empire (CA), and Sacramento. The key driver of the better traffic is the improved affordability as the lower home prices on the many foreclosure sales (foreclosure sales have represented as much as 40-50% of sales in these markets) have restored affordability back to attractive levels (p. 5). We are encouraged that there seems to be a clearing price in many markets, but foreclosures are typically sold at least 20% below current market pricing so there will likely be a painful further adjustment for traditional sellers.
■ Texas markets (Austin, Dallas, Houston, and San Antonio) show further weakness along with a couple Florida markets (Jacksonville and Miami). We expect those builders with significant concentrations in Texas (MTH, DHI, LEN and RYL) to see worsening order trends based on the declining traffic. Unlike the other markets with significant foreclosures, we have not seen similar improvement in traffic in Phoenix. The Washington, D.C. area (p. 27), in which we had seen better traffic from April-July slipped back to a lower level of traffic in both August and September.
■ Pricing drops further, consistent with high inventory levels and weak traffic. Our price index fell to 17.5 in September, down from 20.1 in August (readings below 50 point to sequentially lower prices).
■ Inventory levels near stabilization. Our home listings index increased to 39.5 in September, up from 37.5 in August (with a level of 50 indicating flat inventories sequentially with levels above 50 pointing to falling inventory levels). Denver, Las Vegas, Minneapolis, Sacramento, Sarasota, Tucson, and Washington, D.C. were among the markets showing flat or falling inventory levels in September. We continue to believe that declining inventory levels are necessary for home price stabilization.
John Holbrook-Realtor
Prudential Chaplin Williams Realty
904-415-0171
www.nassaumls.net
Foreclosure Pricing Needed to Attract Buyers
■ Start of the fall season, but few buyers are found, aside from foreclosure-rich markets. Our Monthly Survey of Real Estate Agents showed another slight decline in September, with traffic worsening over the course of the month. Agents generally noted fear among buyers about buying before prices reach their low, difficulty getting a mortgage, and the elimination of down-payment assistance on Federal Housing Administration (FHA) loans as the main issues.
■ But there are signs of better traffic again in the hardest hit markets. Overall, our traffic index fell to 24.0 in September from 25.9 in August (readings below 50 point to traffic below expectations). However, we saw improvement in traffic in September in hard-hit markets such as Ft Myers, Las Vegas, the Inland Empire (CA), and Sacramento. The key driver of the better traffic is the improved affordability as the lower home prices on the many foreclosure sales (foreclosure sales have represented as much as 40-50% of sales in these markets) have restored affordability back to attractive levels (p. 5). We are encouraged that there seems to be a clearing price in many markets, but foreclosures are typically sold at least 20% below current market pricing so there will likely be a painful further adjustment for traditional sellers.
■ Texas markets (Austin, Dallas, Houston, and San Antonio) show further weakness along with a couple Florida markets (Jacksonville and Miami). We expect those builders with significant concentrations in Texas (MTH, DHI, LEN and RYL) to see worsening order trends based on the declining traffic. Unlike the other markets with significant foreclosures, we have not seen similar improvement in traffic in Phoenix. The Washington, D.C. area (p. 27), in which we had seen better traffic from April-July slipped back to a lower level of traffic in both August and September.
■ Pricing drops further, consistent with high inventory levels and weak traffic. Our price index fell to 17.5 in September, down from 20.1 in August (readings below 50 point to sequentially lower prices).
■ Inventory levels near stabilization. Our home listings index increased to 39.5 in September, up from 37.5 in August (with a level of 50 indicating flat inventories sequentially with levels above 50 pointing to falling inventory levels). Denver, Las Vegas, Minneapolis, Sacramento, Sarasota, Tucson, and Washington, D.C. were among the markets showing flat or falling inventory levels in September. We continue to believe that declining inventory levels are necessary for home price stabilization.
John Holbrook-Realtor
Prudential Chaplin Williams Realty
904-415-0171
www.nassaumls.net
Thursday, October 2, 2008
Amelia Island Wine Shop
One of the great things about Amelia Island is the great shops and restaurants. Here is a posting with activities at the local wine shop this month.
Subject: October Events @ the Intercoastal Wine Company - c
Dear friends,
It's hard to believe that it is Fall already, the days are feeling a little cooler and the festivals are coming out in full force!
October 3-4- The Amelia Island Book Festival. Stop in for a bottle of wine to sip while you're reading your new book.
October 5-12- The Les DeMerle Amelia Island Jazz festival. Great music, great venues, a great time. Tickets available at Intercoastal Wine for all events. Present your jazz festival ticket stub and get 5% off a purchase of a bottle of wine (one bottle of wine per ticket stub).
October 16 (Thursday)- Lloyd Gross from Transatlantic Wines will be here from 5:30-7 to taste and talk about Spanish wines from his portfolio.
October 18- Cruizers Car Show- historic downtown Fernandina, come in and relax with a glass of wine after looking at all the great classic cars.
October 23 (Thursday)- Marlene Strobach art reception- the talented "artist in residence" will be here to meet the public and talk about her beautiful watercolor paintings. Free wine tasting with this event- 5:30 -7pm.
October 30 (Thursday)- Girl's Night out is back with a "Southern Living at Home Show". Julie Brown, independent Southern Living at Home consultant will be here to display some of the fine items from this catalog. It's not too early to Christmas shop! Free wine tasting at this event. 5:30 -7pm
Hope you enjoy the information
John Holbrook - Realtor
Amelia Island, Florida 904-415-0171
Subject: October Events @ the Intercoastal Wine Company - c
Dear friends,
It's hard to believe that it is Fall already, the days are feeling a little cooler and the festivals are coming out in full force!
October 3-4- The Amelia Island Book Festival. Stop in for a bottle of wine to sip while you're reading your new book.
October 5-12- The Les DeMerle Amelia Island Jazz festival. Great music, great venues, a great time. Tickets available at Intercoastal Wine for all events. Present your jazz festival ticket stub and get 5% off a purchase of a bottle of wine (one bottle of wine per ticket stub).
October 16 (Thursday)- Lloyd Gross from Transatlantic Wines will be here from 5:30-7 to taste and talk about Spanish wines from his portfolio.
October 18- Cruizers Car Show- historic downtown Fernandina, come in and relax with a glass of wine after looking at all the great classic cars.
October 23 (Thursday)- Marlene Strobach art reception- the talented "artist in residence" will be here to meet the public and talk about her beautiful watercolor paintings. Free wine tasting with this event- 5:30 -7pm.
October 30 (Thursday)- Girl's Night out is back with a "Southern Living at Home Show". Julie Brown, independent Southern Living at Home consultant will be here to display some of the fine items from this catalog. It's not too early to Christmas shop! Free wine tasting at this event. 5:30 -7pm
Hope you enjoy the information
John Holbrook - Realtor
Amelia Island, Florida 904-415-0171
Amelia Island Jazz Festival
The Amelia Island Jazz Festival kicks off Sunday with a free concert at the Amelia Park Bandstand featuring the North Florida Jazz Ensemble directed by Dr. Marc Dickson. Bring your own lawn chairs and blankets.The festival continues Monday with a Jazz Festival Sponsors Party from 7-10 p.m. at the Hampton Inn and Suites in downtown Fernandina Beach. This event, for Gold Saxophone Festival Sponsors and above, features entertainment by the Les DeMerle Jazz All-Stars featuring Bonnie Eisele and special guest Sam Kouvaris, WJXT-TV sports director, trumpet and vocals.On Thursday from 7-10 p.m. is a Latin Jazz Concert and Dance at the Palace Saloon, 117 Centre St., with Impacto Latino, a 10-piece salsa band in the style of "El Rey," Tito Puente. Tickets are $20, with a cash bar.Friday, Oct. 10, enjoy a jazz concert from 7-10 p.m. at St. Peter's Episcopal Church courtyard. The food court will be open from 5:30 p.m. featuring cuisine from area restaurants. Performing will be the Dynamic Les DeMerle 8-Piece Band, featuring vocalist Eisele and special guests Dough Matthews, piano, and Al Waters, tenor sax, in a tribute to Ray Charles; Dirty Martini featuring Jeff Rupert, tenor sax, and vocalist Michelle Amato; the Bill Allred Classic Jazz Band; and a Big Band Grand Jam with Allred's and DeMerle's eight-piece bands. Tickets are $30.Following the concert, enjoy a late night jam session starting at 10:30 p.m. at Jack & Diane's, 708 Centre St. Cost is $10, students with ID $5 and free with any festival ticket.Saturday, Oct. 11 brings another evening at St. Peter's courtyard, with the food court opening at 5:30 p.m. and music starting at 7 p.m. The lineup includes swing music with the Amelia Island Jazz Festival All-Stars featuring Dr. Bill Prince, multi-instrumentalist, Jamie Ousley, bass, Michael Levine, piano, DeMerle, drums, and Eisele, vocals; the Harry Allen Quintet with special guest Jeff Rupert, sax; the 19-piece U.S. Navy Big Band Southeast; and a Big Band Super Jam Grand Finale. Tickets are $30.Following the concert, enjoy a late night jam session starting at 10:30 p.m. at Jack & Diane's, 708 Centre St. Cost is $10, students with ID $5 and free with any festival ticket.The festival wraps up on Sunday, Oct. 12, with a Dixieland Jazz Brunch, with seatings at noon and at 2 p.m. at the Beech Street Grill, 801 Beech St. The concert will feature the Spare Rib Six with vocals by Eisele and includes a special jazz festival menu and cash bar. Tickets are $45 and include a complimentary glass of champagne.
For tickets and information, visit www.ameliaislandjazzfestival.com or call (904) 504-4772.
John Holbrook - Realtor
Amelia Island, FL
Prudential Chaplin Williams Realty
holbrook66@msn.com
For tickets and information, visit www.ameliaislandjazzfestival.com or call (904) 504-4772.
John Holbrook - Realtor
Amelia Island, FL
Prudential Chaplin Williams Realty
holbrook66@msn.com
New Home Loan Program
New program allows subprime mortgages to become a fixed-rate FHAWASHINGTON – Oct. 2, 2008 – A new program rolled out by HUD yesterday could help more homeowners avoid foreclosure. Under the program, the lender of an existing subprime mortgage forgives part of the debt as if it’s a short sale, and the balance of the mortgage is rolled into a fixed-rate FHA mortgage. Unlike earlier programs, however, the HOPE for Homeowners program is aimed more at lenders than homeowners.“For families struggling to keep up with their mortgage payments, this program will be another resource to refinance into a loan they can afford,” says HUD Secretary Steve Preston. “FHA remains a safe and affordable alternative to the high-priced mortgage loans that threaten homeowners’ ability to retain their homes. We strongly encourage borrowers to work with their lenders to determine if HOPE for Homeowners is the right program for them.”The Economic and Housing Recovery Act of 2008 authorized the HOPE for Homeowners program. The HOPE for Homeowners Board of Directors was charged with establishing underwriting standards to ensure borrowers, after any write-down in principal, have a reasonable ability to repay their new FHA-insured mortgage.The program began yesterday and ends Sept. 30, 2011. It’s available only to owner- occupants. In many cases, banks will have to write down the existing mortgage to 90 percent of the new appraised value of the home.Borrower eligibilityBorrowers should contact their lender to determine eligibility. General requirements include:• The home is their primary residence, and they have no ownership interest in any other residential property, such as second homes.• Their existing mortgage was originated on or before Jan. 1, 2008, and they have made at least six payments.• They are not able to pay their existing mortgage without help.• As of March 2008, their total monthly mortgage payments due were more than 31 percent of their gross monthly income.• They certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide material false information to obtain their existing mortgage(s).How the program worksThe Board expects homeowners will participate in the program primarily through their current lender. HOPE for Homeowners includes the following provisions:• The loan amount may not exceed a maximum of $550,440.• The new mortgage will be no more than 90 percent of the new appraised value including any financed upfront mortgage insurance premium.• The upfront mortgage insurance premium is 3 percent and the annual mortgage insurance premium is 1.5 percent.• The holders of existing mortgage liens must waive all prepayment penalties and late payment fees.• The existing first mortgage must accept the proceeds of the HOPE for Homeowners loan as full settlement of all outstanding indebtedness.• Existing subordinate lenders must release their outstanding mortgage liens.• Standard FHA policy regarding closing costs applies.• The borrower must agree to share with FHA both the equity created at the beginning of this new mortgage and any future appreciation in the value of the home.• The borrower cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.The costs to the homeowner include the upfront and annual insurance premiums, as well as a share of the equity created by the write-down associated with the HOPE for Homeowners mortgage and any future appreciation in the value of the home. If the home is sold or refinanced, the homeowner will share the equity with FHA on a sliding scale ranging from a 100 percent FHA share after the first year to a minimum of 50 percent after five years.The lien holder that previously held the highest priority will receive payment up to a proportion of its original interest, not to exceed the amount of available appreciation. This type of delayed payoff will take place until all prior lien holders are satisfied or the amount of available appreciation is exhausted. All remaining appreciation is remitted to FHA.Read more about HOPE for Homeowners at www.hud.gov/hopeforhomeowners.© 2008 FLORIDA ASSOCIATION OF REALTORS®
John Holbrook - Realtor
Amelia Island, Florida 32034
Search the local MLS www.nassaumls.net
John Holbrook - Realtor
Amelia Island, Florida 32034
Search the local MLS www.nassaumls.net
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