The Gate Arty Blog - Business Archive
Buffet speaks . . . We listen!
Friday, March 05, 2010 - By Gate Arty
Warren Buffet, widely considered an investment genius, believes that “within a year or so, residential housing problems should be largely behind us. Prices will remain far below ‘bubble’ levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits.” Buffet’s belief is that the supply of homes is still far greater than demand, and that it will take another year before demand catches supply. Let’s hope that the ‘Oracle of Omaha’ has this one right!
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Thursday, February 18, 2010 - By Gate Arty
According to the United States Census Bureau, home ownership has reached it lowest rate since 2000. The current rate of home ownership is 67.2% Regionally, The biggest drop was in the South, where the rate declined to 69.1% from 69.7%. The West declined to 62.3% from 62.7%. Homeownership in the Midwest decreased to 71.3% from 71.6%. In the Northeast, homeownership declined to 63.9% from 64%.
January 2010 Foreclosure Report
Friday, February 12, 2010 - By Gate Arty
RealtyTrac reports that foreclosure rates fell in January compared to December, but remained sharply higher than a year ago. This is thought to be a temporary incident most likely a product of the holiday season & office closings. The number of Americans receiving foreclosure notices was down 9.7 percent in January from December 2009, but 15 percent higher than last January. All told, 315,716 properties generated a foreclosure notice. That means one in every 409 homes in America received a foreclosure notice. The top five states in foreclosures respectively are: Nevada, Arizona, California, Florida, & Utah. Which sate had the least? South Dakota is the winner. Foreclosures don't appaer to be going away anytime soon as a report found one in five US mortgages were “underwater" during the fourth quarter.
Tags: , foreclosure, real estate
90 Day FHA Rule is Waived
Wednesday, January 20, 2010 - By Gate Arty
HUD has taken a major step to stabilize the real estate market by waiving the “90 day flip rule” effective February 1st, 2010. Currently, FHA prohibits insuring a mortgage on a home owned by the seller for less than 90 days. Originally the 90 day rule was put in place to protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at INFLATED prices to unsuspecting borrowers. This act will give FHA borrowers access to a broader array of recently foreclosed properties. The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities. To qualify these conditions must be met:
• All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
• In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
• The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
This waiver will be a major coup for real estate investors because the pool of available buyers is substantially increased. Before, investors had to wait 90 days before listing a property in MLS or hold a property for 90 days before selling to a FHA buyer – something most are unwilling to do because of holding costs & risks associated with delayed closings. This should be a major shot in the arm & should drastically reduce the “days on market” for home inventory.
Tags: buying, fha, home value, HUD, mls, mortgage, real estate. real estate investor, selling
Home Price Reductions
Wednesday, January 13, 2010 - By Gate Arty
Trulia.com has reported that 21% of the existing housing inventory has had a least one price reduction during its time on the market. The good news is that figure has decreased 2 straight months now. The South leads the nation with 20% of homes seeing price reductions. The luxury home market has been affected the most. Luxury homes are defined as homes listed over $2 million (by Trulia). The average price cut on these homes is 15%. In comparison, homes under $2 million, have been reduced an average of 10%. While luxury homes make up just 2% of the total listings currently, they make up 24% of the total dollar value of price reductions.
Growing Number of Foreclosures
Tuesday, January 12, 2010 - By Gate Arty
Statistics from Lender Processing Services indicate that as of November 30th 2009, one in every 7.5 homeowners either fell into delinquency or foreclosure. The total number of delinquencies reached a record high of 9.97%, a 5.46% increase from the previous month and a 21.29% increase from November 2008. Loans falling into more severe delinquent categories reached 5.01% through November, compared to 1.52% of loans improved toward a current status. That's compared to November’s mortgage monitor report, when 4.02% of current mortgages through December 2008 fell into delinquency by October 2009. The states with the most non-current loans were Florida, Nevada and Mississippi. Those with the fewest were North Dakota, South Dakota and Alaska.
Vacancies Increase in 2009
Friday, January 08, 2010 - By Gate Arty
The apartment vacancy rate ended the year at 8%, the highest level since 1980. This according to Reis Inc., a New York research firm that tracks vacancies and rents in the top 79 U.S. markets. Rents fell 3% last year, according to Reis. Led by major metropolitan cities that experienced brisk growth until the recession. Effective rents -- which include concessions such as one month of free rent -- fell 5.6% in New York last year, the worst since Reis began tracking the data in 1990. Very few markets have been spared. During the fourth quarter, vacancies increased in 52 markets, while they improved in 17 and stayed flat in 10.
Apartments have been squeezed because younger workers, who are more likely to rent, have experienced the brunt of job losses during the downturn. Such oversupplied markets as Florida, Phoenix and Las Vegas are hurting, even though housing sales have picked up. Marcus & Millichap is to release a separate report on Friday that forecasts a further 2% to 3% drop in apartment rents over the next year, most of which will be concentrated over the next six months. One potential silver lining for apartment owners is the fact that many of those developments had secured financing before credit markets seized up, and since the credit crunch has frozen most new development, new apartment completions should fall by half in 2011. However, government efforts to prop up the housing market also threaten the apartment sector by making it easier for some renters to buy homes. Some landlords have reported a slight uptick in renters moving out to buy homes. Thanks to falling home prices and record low mortgage rates, it now costs less to own than it has in the past decade on a mortgage-payment-to-rent basis. But falling rents are expected to offset some of the recent improvement in affordability, making renting more attractive than owning in some markets
Tags: buy real state, construction, real estate, rent, sell real estate, vacancy
High-Water Mark for Foreclosures
Friday, October 16, 2009 - By Gate Arty
Foreclosures are at an ALL-TIME HIGH. In the 3rd quarter of this year 937,84 homes received a foreclosure letter. How do you put this in perspective? Well, that means that 1 in every 136 homes were in foreclosure. That’s a 5% increase from the 2nd quarter. It’s also a whopping 24% leap from this point in 2008! These numbers represent the worst 3 month stretch in terms of foreclosures ever. The foreclosure toll this year is reported to be 623,852 & climbing. Perhaps with these numbers on the rise, banks will begin being more cooperative with short-sales? Wouldn't that be rational? Either way, the real estate investors will be back in full-force to pick up REO properties & pre-foreclosures that are indeed priced to sell. Check out investing opportunities at MidFloridaREO.com.
High-End Mortgage Foreclosures
Tuesday, October 13, 2009 - By Gate Arty
Recent statistics have shown that the trend of foreclosures is now hitting the top-tier of mortgages. In June 30% of foreclosures involved homes that were in the top 1/3 of local residential values. When the foreclosure crisis began 3 years ago, this figure was around 16%. On the opposite end of the spectrum, the bottom 1/3 of the residential market only accounts for 35% of foreclosures now. This figure is way down from 55% in 2006.
Tags: finance, foreclosures, home values, mortgage, statistics
The Effect of the $8000 Tax Credit
Friday, September 18, 2009 - By Gate Arty
Has the $8000 home-buyer tax credit increased real estate activity? Well, based on a report from the Internal Revenue Service, over 1.4 million buyers have already claimed the new tax credit. The $8000 tax credit is available to home buyers that purchase a home between January thru December 1st, 2009 and you could not have owned a home for the three consecutive years prior to the purchase. . Unlike the $7,500 first-time homebuyer tax credit that could be applied to sales made between April 2008 and July 1 2009, this refund actually puts money DIRECTLY into consumers' pockets. 1.8 million people are expected to participate in the program by the time it lapses on 11/30/09.
New Homes Sales in July 2009
Monday, August 31, 2009 - By Gate Arty
The United States Commerce Department announced that sales of new construction homes rose 9.6% in July. This is the highest increase in 4 years. The housing sector appears to be showing some signs of stabilization. Regionally, the Northeast saw a 32% rise in sales, while the South saw a 16% rise, and the West saw a 1% rise. Sales did drop 7.6% in the Midwest. With inventory finally beginning to decrease, demand appears to be gaining some momentum. There were 271,000 houses on the market last month, down 35% from July 2008 and the fewest since March 1993. At the current sales pace, it would take 7.5 months to sell all homes.
Sale Increase 4 Straight Months!
Monday, August 24, 2009 - By Gate Arty
Existing home sales rose a whopping 7.2% in July to 5.24 million units. In June, there were 4.89 million units sold. This increase was the largest month-to-month gain in over 2 years! The percentage increase was the largest since 1999. This also marks 4 straight months that we have seen sales increases. Lawrence Yun, NAR chief economist, said, “The housing market has decisively turned for the better. A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales.” Remember that the $8000 stimulus tax credit runs through November so act NOW!
Mortgage Deliquency Rises
Thursday, August 20, 2009 - By Gate Arty
The mortgage delinquency rate, which is defined as the percentage of mortgage holders who are over 60 days or more late on their payments, rose for the tenth consecutive quarter (thru 2nd QTR, 2009). It is now at an all-time high of 5.81%. How should we put this figure in perspective? Well, that is an increase of 65% from the same time period last year. Nevada, Florida, California, & Arizona led the way with the highest foreclosure rates. North & South Dakota and Alaska had the lowest rates.
Don't forget to visit Central Florida's premier real estate website for all your Lakeland Real Estate needs including Lakeland Foreclosures
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Foreclosure News - 2nd Quarter 2009
Thursday, August 13, 2009 - By Gate Arty
Foreclosures continue to be the driving force in today’s real estate market. In the 2nd quarter, foreclosures & distressed sales accounted for over a third of all sales! According to recent statistics, the rate of foreclosures jumped another 7% in July from June. This also represents a 32% increase from the same time period last year. More than 360,000 homes with mortgages received foreclosure filings in July. This was the highest point since January 2005. California, Florida, Arizona, & Nevada accounted for an astounding 57% of July foreclosures nationwide! Many factors contribute to the tidal wave of foreclosures like: tighter lending guidelines & unemployment, but chiefly responsible is the negative home equity that many homeowners now have. Many homeowners are finding it “easier” to go into foreclosure than ride out the market waiting for values to rebound or restructure the loan.
Homes Sales Increase Again
Thursday, August 13, 2009 - By Gate Arty
Homes sales increased 3.8% in the 2nd quarter of 2009 from the 1st quarter. The annual adjusted rate was 4.76 million in the 2nd quarter & 4.58 million in the first quarter. What is accounting for this rise in activity? No doubt, the great values in the housing market are beginning to capture the attention of prospective home buyers. The $8000 tax credit that will expire on November 30th is also a major motivation. The median sales price in the first quarter was $174,100, which represents a decrease of 16% below this time one year ago. “With low interest rates, lower home prices and a first-time buyer tax credit, we’ve been seeing healthy increases in home sales, which are a hopeful sign for the economy,” said Lawrence Yun, NAR’s chief economist.
Momentum for Home Sales
Tuesday, August 04, 2009 - By Gate Arty
The Natiional Association of Realtors has reported that the pending home sales index rose again for the fifth consecutive month. It rose 3.6% (94.6 from 91.3) in June from May. The pending home sales index tracks signed home purchase contracts and is considered a leading indicator of activity. What is driving this upward momentum? Simply put, distress sales (like short-sales) & foreclosures continue to drive real estate prices downward to levels where buyers can no longer ignore the values. Most people consider this a "once in a lifetime" buyer's market. Let's look at some of the positives: record low interest rates, $8000 tax government credit, large selection of properties available for sale, & discounted property values. The time to buy is NOW!
Foreclosure Report - June 2009
Friday, July 17, 2009 - By Gate Arty
It appears that the wave of foreclosures is still building. Nationwide, there were 1.5 million foreclosures in the first half of 2009 alone. This represents an increase of 15% from last year. Foreclosure filings increased an astounding 33% in June from the year prior. Nevada is still the clear leader in foreclosures. Their foreclosure rate for the first half of 2009 was well over 6%. Rounding out the top 5 were Arizona, Florida, California, and finally Utah.
Tags: business, florida real estate, foreclosure
Neighborhood Stabilization Program
Wednesday, June 24, 2009 - By Gate Arty
The Obama administration has made up to $6 billion available for redevelopment of foreclosed homes & distressed properties. The Neighborhood Stabilization Program is intended to help communities that have suffered from foreclosures & abandonment, & the hope is that it will facilitate purchases & neighborhood revitalization. Nearly $4 billion of the proposed NSP funding will come from the Economic Recovery Act of 2008. Funds will be used for activities including: redevelopment of foreclosed residential properties, purchase of abandoned properties, demolition of properties, & financing programs. Current guidelines state that funds will go to households earning less than 120% of the median income of the area, with 25% of the funds going towards households earning less than half the median.
Home Sales Rise in May 2009
Tuesday, June 23, 2009 - By Gate Arty
The National Association of Realtors announced that existing home sales rose to 4.77 million units in May 2009. This represents a rise of 2.4% over from April. This is promising because it’s the second straight month that sales have risen, undoubtedly spurred by attractive mortgage interest rates. The NAR announced that this is the first month-on-month increase since August/September 2005. The total hosing inventory stood at 3.80 million units, which represents nearly a 9.6 month supply, down from 10.1 in April.
Foreclosures in May 2009
Friday, June 12, 2009 - By Gate Arty
Foreclosure filings dip for the month of May. RealtyTrac, a national leader of foreclosure data, announced that filings fell over 6% from April to May. Although a total of 321,480 properties received default notifications, which represents am 18% increase from a year ago, it is the smallest annual gain since mid-2006. There is a silver lining! Florida is still in the Top 3 nationally in foreclosures. Nevada has the most, followed by California. To put it in perspective, on average there is 1 foreclosure per 398 households nationally. In Nevada, that number is 1 in 64. That is 6 times the national average! California has 1 in 144 & Florida has one in 148.
Tags: business, florida real estate, foreclosure
Foreclosure Property Search Made Easy
Friday, June 12, 2009 - By Gate Arty
When real estate is discussed nowadays, it seems as if the topics foreclosures & short sales are never far behind. Government and Bank-owned foreclosures offer tremendous home-buying opportunities for investors of all types. These foreclosures are called REO (Real Estate Owned) properties. These distress sales have the savvy investors licking their chops as property values are once again affordable, & instant equity is attainable on a large scale. Now the only challenge investors have is actually finding & identifying great values underneath the mountains of available homes for sale. Well, if you are searching for homes in Central Florida, a new website, midfloridareo.com, has made it easy. If you are considering buying an investment property, or simply looking for a good bargain, I suggest checking out this site.
National Real Estate Sales Increase Overall
Thursday, May 28, 2009 - By Gate Arty
The National Association of Realtors just announced that home sales rose a respectable 2.9% in the month of April from March. The increase can be attributed to the increased volume of sales in the “lower-end” market. I touched upon this in my last BLOG posting. The market for the “high-end” properties has been particularly slow. With the continued tightening of mortgage qualification standards, it is getting difficult to obtain “jumbo loans.” Jumbo loans are defined as those mortgages above $730,000. These loans accounted for over 17% of the mortgage market in 2007. Now they account for only 5%. Another contributing factor is that Fannie Mae & Freddie Mac cannot purchase jumbo loans. The chief economist at NAR, Lawrence Yun, has lobbied for the Federal Reserve to buy jumbo loans to restore liquidity in this segment of the market as well.
Market Activity Affected by Economy
Wednesday, May 27, 2009 - By Gate Arty
As the unemployment rate hovers around 9%, most economists expect that the rate of foreclosures will account for approximately 60% of mortgage defaults this year alone. The next wave of foreclosures is expected to include not only the “sub-prime” mortgages, but also those who have been traditionally financially healthy, but have been affected by job-loss. As a result of these foreclosures, housing prices are expected to decline overall. Do not expect to see price declines at ALL price points however. Many realtors have expressed that in some of the moderate price ranges, prices have become so attractive that buyers are jumping back into the fray in waves. In many instances buyers & sellers are once again involved in “multiple offer negotiations.” This has been scarce since the real estate boom of 2006. The home price decline that has resulted from the increasing number of foreclosures, tighter lending standards, & large supply of unsold inventory will eventually spur activity. With mortgage interest rates still at all-time lows, many buyers are viewing NOW as the time to act upon golden buying opportunities. According to Standard & Poor's/Case-Shiller Home Price Indices, home prices in the U.S. fell by 18.7% in March from a year earlier.
Tags: buying a home, economy, finance, home prices, mortgage, real estate, realtors, selling a home
Commercial Mortgages Down
Thursday, May 14, 2009 - By Gate Arty
The Mortgage Bankers Association’s (MBA) Quarterly Survey reports that commercial mortgage loan originations continued to drop in the first quarter of 2009. At this point, they are an astounding 70% lower than during the same period in 2008, and down 26% from the fourth quarter of 2008. The 70% overall decrease in commercial lending activity during the first quarter was driven by decreases in originations for all property types. When compared to the first quarter of 2008, the decrease included:
• 88% decrease in loans for hotel properties
• 80% decrease in loans for health care properties
• 76% decrease in loans for retail properties
• 66% decrease in loans for office properties
• 61% decrease in multifamily property loans
• 50% decrease in industrial property loans
Tags: commercial real estate, finance, mortgage
Foreclosures Jump in April
Wednesday, May 13, 2009 - By Gate Arty
April was a huge month for foreclosures. RealtyTrac, an internet foreclosure marketing website, reported that 1 in every 374 homes in the United States received foreclosure filings in April. Foreclosures spiked an overwhelming 32% in April. An astounding 10 states accounted for 75% of all the foreclosure activity. What is your foreclosure top 10?
1. California with nearly 100,000 filings.
2. Florida
3. Nevada
4. Arizona
5. Illinois
6. Ohio
7. Michigan
8. Georgia
9. Texas
10. Virginia
Tags: business, florida real estate, foreclosure
Building Permits Down Locally & Nationally
Thursday, April 30, 2009 - By Gate Arty
It was a case of good news . . . bad news for local builders in Polk County when we review their March 2009 numbers. The good news? Well, the month of March marked their peak for the entire year. The total permits were 102 which was up from 89 in February and 80 in January. The 102 permits represent a 35% decrease from the previous year and marked the lowest March total since 1995. When you compare these numbers on a nationwide scale, they look quite healthy, though. Nationally, housing starts fell almost 50% in March year-on-year. They slid approximately 11% from February 2009. Builders across the nation are fighting to compete with the falling prices of distressed properties & foreclosures & tightening of available credit from the banking industry.
March 2009 Sales Figures are Mixed
Thursday, April 23, 2009 - By Gate Arty
The sales reports for March offered up a mixed bag . . . . some negative & a little positive.The National Association of Realtors announced that real estate sales fell 3 percent in March, to 4.57 million from 4.71 million in February. In an extraordinary turn of events that contradict the other numbers, the median sales price experienced a nice positive bump, increasing to $175,200 from $168,200 in February. Although this is an increase of 4%, it’s still down over 12% from this time last year. Rather unusual that prices would rise at a time when the demand drops, huh? These are unusual time, however.
March 2009 Real Estate Sales Statistics
Thursday, April 16, 2009 - By Gate Arty
Well not all real estate news has to be bad. The good thing about hitting bottom is there is only one way to go . . . & that is UP! And for Polk County at east, things are beginning to trend positive. Robust recovery anyone?
In Lakeland for the month of March 2009, there were 188 homes that sold. Compare this to the 146 units that sold in February 2009, & the paltry 126 that sold the month prior. Folks, those figures represent a whopping 22% spike in month over month sales! Looking into the numbers even further, Keller Williams Realty - Lakeland office, accounted for nearly half of those sales by leading the way with 97 sales units. Keller Williams Realty continued its market share dominance with a 44% jump in sales month over month. Not only is activity picking up, but values were also promising. The average sales price was $130,059 which was up from $124,550 the previous month. The current months inventory is now at 13.89, & we have not been that low since May 2007. The most active price range is still the lower price points. The $120,000 - $139,999 accounted for nearly 13% of the sales activity. Take this into consideration, only 2 homes sold for more than $300,000. Ouch! The average days on the market was 122 days.
In East Polk County, March 2009 was the best month since December 2006 with 149 homes sold. Compare that to 114 in February & 104 in January. Average sales price was slightly up to $102,886. Current months of inventory are now at 12.79 . . . again this figure has not been this positive since 2006! The average days on the market is 120 days. The most active price range was also the $120,000 - $139,999 representing 9.4% of the market. Only one home sold for over $300,000 in all of East Polk.
Housing Vacancy
Monday, April 13, 2009 - By Gate Arty
The United States Cencus Bureau has reported that one in every 9 homes in the nation is sitting vacant . Leading economists are predicting that this won't change for at least several more years. Take this math into consideration . . . . between the years 2002 until 2007, the number of housing units increased by a whopping 8.65 million. By comparison, the number of households only increased by 6.7 million. Even if you factor in an estimate of 500,000 homes being torn down or lost, that still leaves over 1.3 million homes! Now those are scary numbers.
Tags: , cencus, homes, housing, us economy
New Construction Homes Sales Increase
Friday, March 27, 2009 - By Gate Arty
In February, new construction home sales increased to 337,000 units from 322,000 in January. This represents an increase of 4.7%. This was the first increase in new construction sales since July, 2008. Affordability undoubtedly played a pivotal role in the increase. The median sales price in February 2008 was $245,000 compared to a modest $200,900 this February. We must be near the trough of this economic landslide by now.
Mortgage Activity Strengthens
Friday, March 27, 2009 - By Gate Arty
Mortgage applications spiked last week as a result of the record low interest rates. This fueled demand for home refinance loans. Mortgage applications increased a whopping 32.2% for the week ending March 20th. Refinancing accounted for nearly 80% of all of these applications. Despite stricter lending guidelines, the majority of those that apply for a loan, still get approved. The Mortgage Bankers Association reported an approximate 60% approval rate. As a point of reference, in 2003 nearly 80% of applicants got their loans approved. OOPS!
At least activity is finally picking up . . .
Tags: finance, loan, mortgage application, refinance
Homes Sales on the Uptick
Monday, March 23, 2009 - By Gate Arty
For the month of February, the National Association of Realtors said that existing home sales rose to 4.72 million units, up 5.1% from a rate of 4.49 million in January. Economists had expected existing home sales to decline to 4.45 million, so this is seen as great news indeed. The national median existing-home price is down 15.5% from last year, from $195,800 to $165,400. What a great time to BUY!
Fannie Mae Loosens Up
Tuesday, March 10, 2009 - By Gate Arty
Effective March 1st, Fannie Mae (which guarantees approximately half of the $12 TRILLION of the United State’s mortgage market) loosened loan restrictions on real estate investors & secondary home buyers. This move is seen as a major coup for real estate investors that wanted back IN the real estate market, but were essentially locked out. The new guidelines allow these borrowers to obtain Fannie Mae-secured financing for up to 10 properties. Most recently the amended limit was only 4 properties. Meaning, if you had already four mortgages, you could not buy another property with Fannie-backed financing. In essence, making it nearly impossible to buy & borrow. There are, of course, stricter financial underwriting guidelines. Some things to expect are:
• No foreclosures or bankruptcies in the last 7 years.
• A minimum credit score of 720 when the four property threshold is exceeded.
• Heightened reserve requirements that are tied to the type of property being purchased. For example, a multi-family dwelling (duplex, triplex, etc.) would have stricter reserve requirements than a single-family home.
• A borrower MUST have at least 25% down on a second home & at least 30% down on an investment property.
In spite of these stricter guidelines, this is great news for professional real estate investors, and is a major step toward loosening the credit flow stranglehold on the housing market. Now Freddie Mac, the other major player & insurer of mortgages, needs to follow suit.
Houses More Affordable Than Ever
Wednesday, March 04, 2009 - By Gate Arty
The National Association of Realtors has reported that the Housing Affordability Index jumped 13.6% in January to a record high of 166.8. Another sign that buyers bold enough to jump into the market will be rewarded. Not to mention the tax benefit they will receive for doing so prior to the end of the year! The aforementioned index measures the relationship between home prices, income, & mortgage interest rates. The index is the best it has ever been since monitoring of this relationship began back in 1970.
More Foreclosures
Wednesday, March 04, 2009 - By Gate Arty
National filings of foreclosure exceeded 3 million in the 2008. Sound like a lot? Let's put this into some context. That figure represents a staggering 81% increase from the already trying year in 2007. What's even worse that that is it's an astonishing 225% increase over 2006. If you are an investor looking for the "PERFECT" time to jump into the market, that time is NOW! With mortgage rates as low as they are, it is the perfect storm for the savvy investor or entrepreneur. The bold buyers must seize the opportunity because markets like this only come around once in a great while.
National Sales Fall in January
Tuesday, March 03, 2009 - By Gate Arty
According to statistics released by the National Association of Realtors, The PENDING HOME SALES INDEX dropped to 80.4 in January from 87.1 in December. This represents a dip of nearly 8%. This is the lowest it has been since 2001. Although on a national level sales are still soft, as buyers are seemingly lurking on the "sidelines" waiting for the final results of the government stimulus package, it is expected that the new $8,000 tax credit is going to have a very positive effect on market conditions.
Real Estate mogul gets Trumped
Tuesday, February 17, 2009 - By Gate Arty
Well he didn't get fired, but mega-renowned real estate mogul Donald Trump is no longer a part of Trump Entertainment Resorts, Inc. On Tuesday after "the Donald" resigned as chairman, the company filed for Chapter 11 bankruptcy. Trump has long been distancing himself from the troubled yet highly visible segment of his business, noting that the casino accounted for a mere 1% of his extensive empire & went on to say, "my investment in it is worthless to me now." Last December, the casino missed its $53.1 million bond payment. It has assets listed at 2.1 billion & a total debt of $1.74 billion.
By the way, the new season of Celebrity Apprentice premieres soon. That Trump will go to any means to make news, huh?
The "NEW" housing tax CREDIT
Tuesday, February 17, 2009 - By Gate Arty
The American Recovery and Reinvestment Act of 2009 is now in effect. A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, that offered a $7500 deduction that had to be repaid, the new $8000 figure credit does NOT have to be repaid. The high points of the tax credit are as follows:
- It is for first-time home buyers only. A first-time home buyer is defined as as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
- This is a tax credit & does not have to be repaid. For example, If you owe $5,000 in taxes & qualify for the $8,000 credit, then you would get a REFUND of $3,000! A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. Windfall!
- The duration of this program is only for homes purchased between January 1st, 2009 to December 1st, 2009. Act NOW!
- There is an income imit. It is $75,000 for singles & $150,000 for married couple's combined incomes.
Homes Are Now Affordable
Tuesday, February 03, 2009 - By Gate Arty
I get asked all of the time . . . "have we hit the bottom of the real estate market yet?" In truth, I just don't know, but it seems that some buyers might think so. The National Association of Realtors reported today that the Pending Home Sales Index rose 6.3% to 87.7 in December from a revised reading of 82.5 in November. What do these numbers signify? Quite simply, homes are becoming more affordable to the home-buying public. NAR's House Affordability index rose 10.9% in December to 158.8, the highest since NAR began tracking affordability in 1970.
Keller WIlliams Realty Continues to Grow
Monday, February 02, 2009 - By Gate Arty
In an economic climate frought with foreclosures, credit crunch, bail-outs, & other negative news, it is nice to see that a company is outpacing its competitors & doing well. Keller Williams Realty, continues to outperform the market, remains debt-free, & profit-sharing more than $30 million to it's agents.
For the first 11 months of 2008, existing home sales for the United States fell 17% when compared to the same period the year before. Keller Williams Realty, however, is poised to outdo those numbers by 10 percentage points, and in addition, the company experienced a much smaller contraction in its agent base compared to the National Association of REALTORS®, who saw a 10% decline in membership.
Freddie Mac . . . your landlord?
Friday, January 30, 2009 - By Gate Arty
Freddie Mac announced today that it would permit homeowners who have lost their home to foreclosure to actually turn around and rent them back from Freddie Mac. "Keeping foreclosed properties occupied and in better repair will support local property values and promote a faster recovery in the housing market," said Freddie Mac CEO David Moffett.
Tags: foreclosure, freddie mac, real estate
Housing Statistics
Tuesday, January 27, 2009 - By Gate Arty
The National Association of Realtors reported that existing home sales jumped 6.5% to 4.74 million units in December versus November's 4.45 million units. These numbers are still 3.5% below the 4.91 million units in December 2007. For all of 2008 there were 4,912,000 million existing home sales compared to 5,652,000 sales in 2007. This represents a decline of 13.1%.
Housing inventory dropped 11.7 percent to 3.68 million existing homes, representing a 9.3 month supply, which is down from an 11.2 month supply in November. The national median home price in December was 175,400, which is 15.3% lower than December 2007's $207,000.
Lawrence Yun, NAR chief economist, said home prices continue to drop. "It appears some buyers are taking advantage of much lower home prices," he said. "The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future."
State Farm to Leave Sunshine State
Tuesday, January 27, 2009 - By Gate Arty
State Farm, the largest private property insurer operating in Florida, filed plans to stop selling property insurance in Florida.
The company's departure includes coverage for home owners, renters, personal liability, boats, and business. The company does plan on continuing to write auto policies, where it is the market leader.
Governor Charlie Crist was hardly affected by the announcement of the Insurance giant. "They probably charge the highest rates in the state, anyway. Floridians will be much better off without them," he said. When asked if State Farm was "posturing," Crist said, "I don't really know, and I don't really care."
State Farm recently lost a legal to increase property insurance rates aa astounding 47 percent.
State Farm claims they have been crippled by the state-imposed policy to give hefty discounts to customers who strengthen their homes against hurricanes. It has been losing up to $25 million a month in Florida. This in spite of the fact that there have been no recent hurricanes.
To allow policy holders to find alternative coverage, State Farm plans on phaseing in the cuts over two years.
Before State Farm can proceed, the Florida Office of Insurance Regulation must approve its plan within 90 days. Then, State Farm has to provide 180 days notice to customers before it lets any policies nonrenew.
December Real Estate Sales
Wednesday, January 14, 2009 - By Gate Arty
The month of December proved to be a nice rebound month in terms of sales in Polk County. In Lakeland, 140 properties sold compared to 114 in November. The Average list price was $149,748 down from $161,976. The average sales price was $140,039, down from $149,269 last month. The average days on market fell from 114 days to 106. The months of inventory dropped to 19 from 26 the previous month. The two price ranges that saw the most activity were $140,000 - $159,999 (which accounted for nearly 19%) and $120,000 - 139,999 (14%).
In East Polk there were 130 homes closing versus the 99 closings in the prior year period as well as 103 in November 2008. The average list price dropped to $128,428 from $136,676 last month while the average sale priced dropped to $119,620 from $125,163 last month. Days on the market increased to 119 from 112 last month and the months of inventory decreased to 15.44 from 20.24 in November. For East Polk, the $120,000 to $139,999 price range represented 13.85% of sales while the price range of $140,000 - $159,999 was in second place with 11.54% of sales.
November Real Estate Sales
Thursday, December 11, 2008 - By Gate Arty
Lakeland real estate sales took a dip for the month of November. In :Lakeland, 116 properties sold, which was down from 151 in Coctober. The average list price was 161,976, up a little from October, while the average sale price was $149,269 which is down from 151,946 last month and well below the prior year’s average of $180,973. Average days on market improved to 106 from 133 in October, but the months of inventory shot up to 25.97 versus 19.89 in October.
For Lakeland, the two price range that dominated most sales was the $200,000 - $249,999 where 13.79% of homes sold and $120,000-$139,999 (13.79%).
In East Polk there were 103 homes closing versus the prior years’ 95 closing and October’s 128 closings. The average list price was essentially unchanged at $136,676 while the average sale price was also nearly unchanged at $125,163. Days on the market improved to 112 versus 118 in October, but the months of inventory increased to 20.24 from 16.43 in October.
For East Polk, the $120,000 to $139,999 price range represented 14.56% of sales while the $100,000-$119,999 price range was in second place with $11.65% of sales.
October Real Estate Sales
Monday, November 24, 2008 - By Gate Arty
The National Association of Realtors announced that real estate sales for the month of October dropped 3.1% to 4.98 million. This was down form 5.14 million in September. The median sales price dipped to $183,000. This was a decrease of 11.3% and the median figure has not been that low since March of 2004.
Business After Hours - November 2008
Thursday, November 20, 2008 - By Gate Arty
The Lakeland Area Chamber of Commerce presents its November Business After Hours event Thursday November 20th. The festivities begin at 5:30 pm ~ 7:30 pm. Commercial Design Services will be hosting the event at 4343 Frontage Road North. This event is a great opportunity to network with other professionals in the community. You can R.S.V.P online or call 863 688 8551 extension 301.
See you there!
Keller Williams Realty merger with Coldwell Banker
Tuesday, November 11, 2008 - By Gate Arty
Keller Williams Realty has acquired Coldwell Banker - Plantation Realty. The Plantation office in North Lakeland adds 15 agents to the Lakeland-based Keller Williams roster. There are already well over 245 Keller Williams agents in Lakeland & Winter Haven. The Plantation office will continue to stay open giving Keller Williams Realty a long-awaited presence in North Lakeland. The purchase of Plantation marks the fifth such deal this year. Other partnerships include: First Heritage Realty, Garden Grove Realty, Imperial Lakes Realty, & NAI Realvest.
New Home Sales INCREASE!
Tuesday, October 28, 2008 - By Gate Arty
The U.S. Commerce Department reported today that month over month sales of new homes rose 2.7% to 464,000 units in September. This was a huge development, considering most analysts had expected a drop from August. The decline on a year over year basis, however, was more significant as home sales were 33.1% below year ago levels. Perhaps bargain hunters are responsible for the monthly increase.The median home price dropped by 9.1% to $218,400, a level not seen since September 2004. There are BUYING opportunities out there folks! Contact you loocal REALTOR now!
Foreclosures up Again
Thursday, October 23, 2008 - By Gate Arty
RealtyTrac announced today that foreclosure filings were up 71% nationwide, in the third quarter over the same period last year. Astoundingly, approximately 766,000 homeowners had a sheriff show up at the door and with a foreclosure complaint in hand! Six states made up for nearly 60% of the list: Arizona, California, Florida, Michigan, Ohio, and Nevada. Most respected experts believe that this trend will continue well into 2010 as the market absorbs the inventory that is just now coming online.
Tags: foreclosure, homeowner, homes, real estate florida
Chase acquires Washington Mutual
Friday, September 26, 2008 - By Gate Arty
After months of speculation, Washington Mutual became the largest U.S. bank to collapse to date. Although WaMu shareholders have no reason to celebrate, those at JP Morgan Chase seized an opportunity. Chase bought WaMu’s $307 billion in assets and $188 billion in deposits for a mere $1.9 billion, which actually goes to the FDIC. The bank will also re-capitalize by selling some of its stock to raise $8 billion. JP Morgan Chase will now have 5,400 branches in 23 states. Wall Street’s reaction was positive on news of the acquisition, while shares advanced 10%. Investors believe the company continues to scoop up assets cheaply that will eventually provide substantial shareholder return. Once again, proving that those properly positioned in this market will succeed & seize investment opportunities. Top-to-bottom, investors large & small will buy assets that will eventually increase in value.
Market Turmoil
Wednesday, September 17, 2008 - By Gate Arty
The recent turmoil in the financial markets has been nothing but staggering. Storied institutions such as Bear Stearns and Lehman Brothers are essentially gone. Merrill Lynch was scooped up by Bank of America for a song. The US government has come into rescue Fannie Mae and Freddie Mac, but it figured at some point there is a risk of doing too much bailout.
What does all this mean for the real estate industry?
Get ready for more wild rides. Now that equity markets have proven an unsafe and risky investment, more and more real estate investors will be coming out to play. And now that financial institutions are filing for bankruptcy, this will setup even greater liquidation among those real estate assets.
Which means that more wealth will be created for some individuals now than ever before, and frankly this type of wealth creating wasn't even possible when things were considered "good." Sure things are plain awful out there for some investors, but for others this is the opportunity that comes around only once a decade, or perhaps a century. The only thing that resembles this is the S&L crisis in the 1980s, where 747 savings and loan associations failed.
Will there be more government subsidized bailouts? Many are asking why Lehman Brothers was not rescued. Well, enter the economic concept of moral hazard.
Let me ask you a question. Have you ever bought rental car insurance? You know, after you pay for it you feel a little free when your driving someone else's car, right? I know with rental cars I love to take the corners sharper, gun the engine, and basically get “my monies worth,” knowing full well that if I bang up the car, I've got nothing to lose (other than my health if I bang it up too much!). Now please don't forward this e-mail to Avis and get me on their blacklist!
Same concept for the government. They bailed out Bear Stearns. They bailed out Fannie Mae and Freddie Mac. But if they were to bail out yet another financial institution, particularly one that we can all live without, there would be a sense of carelessness that would encourage future speculators.
So what's the story here? In this case, the government wants them not to intentionally cut off their toes, but rather if they see gangrene they go to the hospital rather than awaiting their financial windfall. Lehman Brothers financial woes, due in large part to bad bets on real estate and its related securities, means that the economy is frankly in worse shape than many think. There will be more collateral damage. Lehman's unwinding will cause damage to other financial institutions as inevitably the interest rate swaps (which the Wall Street Journal reported may run into the millions) and other financial instruments affect other institutions, too.
Asset Protection & the FDIC
Wednesday, September 10, 2008 - By Gate Arty
After the failure of IndyMac Bank, many people have wondered how safe their accounts really are. While the Federal Deposit Insurance Corporation (FDIC) guarantees most bank deposits, here are some important details to remember.
What types of accounts are covered?
The FDIC protects checking and savings accounts, certificates of deposits (CDs), Christmas club accounts, and money-market savings accounts. However, Stocks, Bonds, and mutual fund shares...even those purchased through an FDIC bank...are not protected.
What are the limits of FDIC insurance?
Bank accounts that have less than $100,000 in them and certain retirement accounts (IRAs held in CDs and money market accounts) that have less than $250,000 are fully protected by the FDIC even if the bank fails. If you want to exceed these account limits, you can keep your deposits fully protected by:
Dividing your money among several different bank companies. Note that dividing your money among several different branches of the same bank does not guarantee full protection. If you prefer to keep your money in the same bank company, you can still be fully protected if you divide your money among various "ownership categories". Ownership categories include a personal account in your name, a personal account in your spouse's name, a joint account co-owned by you and someone else, and a trust account that names someone other than you as a beneficiary.
What are some common ways customers end up with uncovered deposits?
If you purchase a CD through an investment broker, this CD will often be placed with a bank at which you already have an account. If the CD and your other accounts exceed the $100,000 limit, you may not be full protected. Before purchasing CD's through a broker, ask where they will be placed.
In addition, keep track of the interest your accounts earn so you don't exceed the limits this way.
What will happen if your bank fails?
In most cases, depositors can fully access their funds by the next business day. Typically, failed banks are closed on Fridays, and funds are available by the following Monday. People can also usually use their ATM cards and write checks over that weekend as well. And for customers whose accounts exceeded the FDIC limit, all hope is not lost. Though this amount has varied, they can generally expect to recover 70 cents on the dollar of their uncovered funds after the bank's assets are sold.
The good news is that the vast majority of US banks are secure, but the above information will help you stay fully protected. For more information, visit www.fdic.gov.
Disaster Preparation for Business Owners
Tuesday, September 02, 2008 - By Gate Arty
The Central Florida Development Council has created the Disaster Preparation & Business Continuity Planning Guide. The guide contains information relating to business preparation before a disaster and the CFDC’s recovery plan, after the disaster has struck.
The Guide offers:
- Checklist – Before, During, & After a disaster
- Hotlines & Websites for Business Emergencies
- Business Disaster Recovery forms
- Flood Zone Information
- CFDC’s Post Disaster Business Recover Plan
In order to access the Disaster Preparation & Business Continuity Planning Guide, click HERE.
Tags: public safety
Council approves CSX project
Thursday, August 14, 2008 - By Gate Arty
The Central Florida Regional Planning Council voted 10-1 to approve the controversial development of a proposed 318-acre rail terminal site in southern Winter Haven. The terminal will be built on a 1,248-acre site. After the terminal is built, the plan is to build a major distribution center and office park Lakeland City Commissioner, Howard Wiggs, who serves on the planning council board, cast the lone dissenting vote. This approval has been forwarded to the City of Winter Haven. The project will be spearheaded by CSX subsidiary, Evansville Western Railway.
Minutes before the vote, Commissioner Wiggs made a motion that the vote be delayed for at least six months. At that point, the Florida Department of Transportation would have completed a study on rail routes. The hope would be that alternatives to routing trains through downtown Lakeland could be identified. The motion for delay failed.
The Winter Haven Planning Commission will hear the development proposal on Sept. 24 and the City Commission is scheduled to take action Oct. 29.
Lakeland's USA International Speedway SOLD!
Monday, August 11, 2008 - By Gate Arty
Polk County's many avid NASCAR fans are mourning the loss of an important institution.The USA International Speedway, located at 3401 Old Polk City Road, has closed its doors after its final race On August 2nd and is now under new ownership. The site was previously owned by Bob Brooks, the founder of Hooters restaurants who died in July of 2006. The facility first opened in 1971 with a quarter-mile track under the name Lakeland Interstate Speedway. It was sold in 1995, and has operated as USA International Speedway since. The paved oval stock-car track is nationally renowned as a popular testing spot for NASCAR teams.
Higgenbotham Auctioneers held an Absolute Auction on August 9th where everything was up for sale. All things automotive were sold including equipment, cars, grandstands, pictures, compressors, transmissions, etc. . . . .everything!
The 47-acre tract fronts on Interstate 4, and studies have shown that the North Lakeland site is said to have access to more than 8.5 million people within a 100-mile radius. The new owners are Rockefeller Group Development Corporation and they have acquired approximately113 acres (thus far) of the land off Interstate 4’s exit 38 in Lakeland. The Manhattan-based company hopes to attract a commercial tenant. Rockefeller has plans to build an industrial park on the site with more than 1 million square feet in distribution space. The park would be targeted at large-scale tenants. Construction is scheduled to begin in the first quarter of 2009.
The sale does not include Lakeland Motorsports Park located adjacent to USA International Speedway. That facility, which includes a drag strip and mudbogging pit, is owned by Roy Spiker of Lakeland. Business will continue as usual at that location.
Midnight train to . . . . Downtown Lakeland??
Tuesday, April 22, 2008 - By Gate Arty
Today, about a stone's throw away from my office window, an anti-CSX demostration was held in Downtown Lakeland at Munn Park. The hotly-contested topic of increased rail traffic through downtown Lakeland is finally gaining increased momentum. The proposed 61-mile CSX commuter rail service east of Polk County will result in more and longer freight trains creeping through downtown - potentially bringing South Florida Avenue to periodic standstills. Although it would appear that local legislators have been out-manuvered at all levels of the legislative process, city officials believe that their fight is not yet over. Many civic leaders are optimistic that an amendment filed to the commuter rail funding bill in the state House by Rep. Seth McKeel. This amendment, an attempt to end piecemeal creation of commuter rail services, would require a statewide study that would include examining the effects of shifted or increased rail traffic, and would require the Orlando commuter rail system to be continued another 80 miles west, to Tampa.
More on this issue to come!
Polk County Growth Trend
Monday, March 24, 2008 - By Gate Arty
Polk County is in the top 20 of the fastest growing counties in Florida, according to county population figures released by the U.S. Census Bureau. The annual estimates indicate that on July 1, Polk County had 574,746 residents, an increase of 90,822 residents since 2000. Based on its population increase since the 2000 census, Polk was the 19th-fastest-growing county among Florida's 67 counties. From 2006 to 2007, the Census Bureau estimated that the population of Polk County grew by 16,723, a modest increase of 3 percent. Our neighbor, Osceola County, is the second-fastest-growing county in Florida and the 16th fastest growing county in the nation. Twelve Florida counties are in the top 100 fastest-growing counties in the nation.
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