REAL ESTATE NEWS, COMMENTARY, & OPINION
SIGNS OF BETTER TIMES FOR REAL ESTATE?
We've heard plenty of gloom the past couple of years about housing. Want to try to take a look on the positive side for a change, perhaps the glass half full rather than half empty?
FLORIDA REAL ESTATE MARKET SHOWING POSSIBLE SIGNS OF STABALIZATION
POSITIVE NEWS: More single-family homes sold in Florida in July 2008 (the most recent complete data from the Florida Association of Realtors®) than the same month a year ago.
The Florida president-elect (the new Florida Association of Realtor's® President), Cynthia Shelton, recently spoke to the Amelia Island-Nassau County Association of Realtors and reportedly feels “the market is turning around.”
“Month over month since January 2008, things have gotten better…I think the [Florida] market is pretty stable state wide right now,” Ms. Shelton reportedly stated, according to Realty/Builder Connection's September 2008 issue.
An August 25, 2008 news release from the Florida Association of Realtors states:
“Single-family existing home sales rose in Florida for the first time in more than two years. While only six more homes sold in July 2008 than in July 2007, it could indicate stabilization in Florida's housing sector."
More than half of Florida's metropolitan statistical areas (MSAs) reported increased sales of existing homes in July; seven MSAs also showed gains in condo sales. Realtors® around the state reported increased business activity, including more telephone calls, more home showings and a rise in pending sales.”
QUARTERLY HOUSING SALES IN FLORIDA
During the second quarter of 2008, Florida Realtors(R) reported positive signs for the state's housing market, including an increase in pending home sales (contracts signed but not closed) and a slower growth rate of inventory levels in some areas. Sales of both existing single-family homes and existing condominiums improved in second quarter 2008 from the first quarter of the year, according to the latest quarterly housing statistics from the Florida Association of Realtors(R).
HOUSING MORE AFFORDABLE NOW
With money cheaper (mortgage rates coming down, with average 30-year fixed rate mortgage at 5.79% the past week), and housing prices down, housing is more affordable. It's a good time to be a buyer (but to make a purchase with financing, very good credit a down payment is required).
MORTGAGE APPLICATIONS SOARED LAST WEEK
According to the Mortgage Bankers Association weekly survey of mortgage activity, mortgage applications rose 33.4 percent last week on a seasonally adjusted basis --applications reached their highest level since early May.
HOMES ARE SELLING ON AMELIA ISLAND
During the recent four month period (May 1, 2008 through August 31, 2008), on Amelia Island, 80 properties in the “residential” category SOLD on the island itself, according to data recorded in the Amelia Island/Nassau County MLS. Properties in the “residential” category in the MLS are mostly single-family homes, with some townhomes in the data (but not condos).
Of the 80 residential properties sold, 29 or about 36% were located in the island's zone “5” in the local MLS . This was the most active area of sales activity on this barrier island in recent months. The island is divided into six zones in the MLS.(Zone 5, geographically, is the largest "zone" in the MLS and encompasses Summer Beach Resort communities and other neighborhoods). Zone 5 sales activity during this 4-month period was more than double any other of the remaining five island zones. Note that Amelia Island/Nassau County, Florida MLS data may contain errors and is not guaranteed.
MORE PEOPLE SEARCHING REAL ESTATE LISTINGS ON REALTOR.COM
A sign that interest in residential real estate has been increasing in general, is the reported growing traffic on the top real estate internet web site, Realtor.com. Reportedly, both web site visitors (traffic) and time spent on the Realtor.com web site surged this summer. Shopping real estate online (doing preliminary “homework” on homes for sale and narrowing choices on what you want to actually preview in person with a Realtor), has become mainstream and essential to the majority of prospective home buyers. Reportedly, statistics show that around 85% of buyers do research online in these days of the electronic age.
"THE DONALD” SAYS “IT'S A WONDERFUL TIME TO MAKE A REAL ESTATE DEAL”
An interview this week featuring Donald Trump on CNN's “Situation Room” aired Trump's current thoughts on real estate. According to Trump, “it's an amazing time to buy real estate right now.” While he noted that he felt prices were “inflated” a few years ago, he told Wolf Blitzer that “great deals can be made right now in real estate.”
“THE TIME TO BUY IS WHEN THERE'S BLOOD IN THE STREETS”
If you are a contrarian thinker, you may feel the time is ripe to buy. Contrarians, for those not familiar with the term, are those who don't follow the crowd -- they do the opposite of the consensus. A saying that is tossed around in times of fear relating to both stocks and real estate, (attributed to Nathan Rothschild) is that "the best time to invest is when blood is running in the streets.”
There is more fear now -- Americans are worried about the economy and housing prices possibly slipping further. Market psychology has been a key player in driving markets up and down throughout history (both the stock and real estate markets).
All investments have a level of risk. Many feel it's better to err on the side of caution (especially if you cannot afford to lose).
Of course, no one knows what the outcome will be of the federal government's efforts this week to attempt to “fix” (or at least lessen the impact) of the lending industry's financial crisis. The country awaits the details of the plan by the federal government for the US Treasury to buy up bad mortgage debt in the marketplace (to the tune of $700 billion). Let's hope help is on the way, and the future will be brighter for the housing and lending markets.
POTENTIAL BUYERS OF FLORIDA REAL ESTATE
A REMINDER FOR THOSE CONSIDERING FLORIDA REAL ESTATE – HOMESTEAD EXEMPTION
For those currently thinking of buying a primary residence in Florida, remember that in order to get the Florida Homestead Exemption (a tax break for primary residents only), for the property tax year 2009 (now $50,000 off the taxable assessed value of the home), you have until Dec. 31, 2008 to be able to purchase a homestead property and then qualify for the homestead exemption toward a 2009 property tax bill.
So to benefit for calendar year 2009, make your home purchase by the end of December. You must reside at the Florida property prior to January 1, 2009. This is not an exemption you automatically receive in Florida -- you must apply for this special tax break. You have from January 1, 2009 until March 1, 2009 to actually visit the property appraiser's office in person for a new homestead exemption application, provide proof of ownership and residency, and file for the exemption.
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THE AMELIA ISLAND COASTAL LIFESTYLE
Amelia offers small-town coastal living with 13 miles of beaches, the charming historic district of Fernandina Beach, world-class golf, and luxury resorts -- the Ritz-Carlton and Amelia Island Plantation. Yet Amelia Island is located close to the big-city amenities of Jacksonville, Florida with the convenience of the Jacksonville International Airport only a 30-minute drive away. _________ About the author -- W. B. Lawson has lived on Amelia Island fourteen years and writes tourism, lifestyle, and real estate articles.