Single Family Home Values UP

After several months of small declines, the Case-Shiller Value Index for South Florida reported a monthly increase for May (the most recent month reported).  This is encouraging news since the trend that was developing projected a drop in value of around 10% for 2010.  Let's hope this bit of bright news will keep us bumping on the bottom and give us some hope of a break-even or possibly slight increase in value for the year.

South Florida Real Estate Value

The Case-Shiller single family housing value analysis for South Florida (and the nation) was updated today.  The decline in value continued in April (the most recent month reported by the analysis) which, if simply extrapolated for the year, would result in a values falling another 7.32% in 2010. 

As you can see in the chart, we had a few months with value increases last year.  Let's hope that's repeated to turn this around.

First Quarter Housing Value Results
The Case-Shiller Value Analysis results for March 2010 were released today. The value of single family homes South Florida declined just under 1% in that month. The decline in values for the first quarter of the year was 1.69%. All things being equal, the quarterly result would produce another 6 and three quarters percent drop in value for the year. But don’t lose heart, gentle readers; home value futures (yes, there’s a futures market for home value just like pork bellies) still predict a flat 2010 so stay tuned!

Case Shiller Index
News junkies have already heard that the Case Shiller housing value index figures have been released.  The national news is that values have increased (as of February 2010, the most recent month measured by the index) but, as we know, all real estate is local.
Values in South Florida turned the corner last June when we had the first monthly value increase since 2007.  There were four months of increases through September 2009.  We've been in the doldrums to slightly taking on water in the months since.  For some perspective however:

Cumulative value increase June-September 2009: 3.48%
Cumulative value decline October '09-February '10: -1.46% ...but don't despair...we're much better off than:
Cumulative value decline October '08-February '09: -14.49%

Tax Credit Expiration Looms

There is still time to qualify for a tax credit for the purchase of a home but the expiration date is coming soon.  Buyers have until April 30 to sign a contract and until June 30 to close on their purchase.

Though the tax credit was set to expire Nov. 30, Congress expanded and extended it last fall to stimulate a beleaguered real estate market. Lawmakers increased the tax credit's amount, tossed repeat buyers into the mix, upped the income limits to encompass more people and tightened document requirements.

The National Association of Realtors expects 4.4 million households to claim the tax credit.

Buyers qualify for up to $8,000 if they have not owned another principal home in the last three years. The new plan also tries to nudge existing homeowners into the move-up market by offering repeat buyers up to $6,500 if they purchased a new home after Nov. 6 and before the deadline. They must have lived in their last home for at least five consecutive years out of the past eight.

Be on the Lookout for Termites

TALLAHASSEE, Fla. – March 3, 2010 – Termite swarming season gets under way in late February and early March as temperatures begin to warm. Swarming means the termites are leaving their colonies to search for new nesting sites. Florida Agriculture and Consumer Services Commissioner Charles H. Bronson is again warning Floridians to take steps to protect their home. Termites cause about $750 million in property damage in the United States annually.

Since termites try to avoid light and open air spaces, the insects do their damage behind walls. Many homeowners don’t realize they have a termite problem until swarming season when they see them flying around their homes.

The swarmers are winged, black insects about one-quarter-inch long and look a lot like flying ants. Termites can be categorized into two groups by their nesting sites. The earth-dwelling termites that make tunnels in the ground or build tubes above the earth are called subterranean termites. The second group, the wood-dwelling termites that have no contact with the earth, are called drywood termites.

“Prevention is critical in avoiding termite destruction,” Bronson says. “The insects can go undetected for long periods of time while they feed on the wood in a home.” The Florida Department of Agriculture and Consumer Services regulates and licenses pest control companies and conducts regular inspections to ensure the businesses are adhering to the rules and regulations governing pesticides and pest control. Consumers can contact the department to find out whether a pest control company is properly licensed, to find out how many consumer complaints have been filed against a particular business and to learn about the various types of termite control contracts.

Steps that consumers can take to protect their homes from termites include:

• Remove wood piles and other cellulose sources from under and next to homes.

• Have an annual inspection by a licensed professional pest control company.

• Direct water sources, such as air conditioner drip lines and roof downspouts, away from the structure foundation.

• When purchasing a home, carefully check its termite protection history.

• Obtain a termite protection contract and renew it annually.

Bronson said consumers should read a termite protection contract before signing it. Some contracts only require that the company re-treat a home if termites are found. Bronson says it is better to have a re-treat and repair contract that requires the pest control business to repair any damage caused by termites after a home has been inspected and treated.

For information, visit the department’s web site at http://www.floridatermitehelp.org/ or call (800) 435-7352.



© 2010 Florida Realtors®

When Bad News is Good News
Up until three or so years ago, a statistic of just under 10% decline in single family home value would've caused pandemonium and panic. Today's year-end number from the Case Shiller Value Index of 9.91% decline for 2009 has only to be compared to 2008's 28.79% drop to find the silver lining. December's monthly depreciation was just a bit less than three-tenths of one percent, again a far cry from monthly depreciation of as much as 4.5% in 2008.


So another year, one of RECOVERY this time, is behind us. It's going to be a bumpy ride in 2010 but sales volume remains high, the inventory of unsold homes has gone way down and if we start to see some recovery in the economy; we'll be on our way again.

At Risk of Foreclosure?-Take ACTION!


If the financial burden of owing your home is becoming overwhelming, the WORST thing to do is nothing.  The US Department of Housing and Urban Development suggests these steps to avoid foreclosure:
Whether you're in foreclosure now or worried about it in the future, the Department has information that can help. Click here for the list (with links to contact information).

Get Help Now!

Talk to a foreclosure avoidance counselor
Contact the Talk to your lender
Contact the Find state and local foreclosure resources
Contact the Contact HOPE NOW

Keep Your Home
Are you at risk of foreclosure?
Contact the Tips for avoiding foreclosure
Contact the Foreclosure scams

Refinance Options

Making Home Affordable Program
Contact the Learn about HOPE for Homeowners
Contact the Who to call when a lender won't work with you

If You Can't Keep Your Home

Redemption period - your last chance to save your home
Local renting resources
Contact the Rental assistance
Contact the Relocation resources
Contact the U.S. Postal Service Movers Guide

Foreclosure Surge?

I've been tracking 'distressed' single family home sales verses arms-length (normal??) for about a year now. As you can see in this chart, REO (foreclosures) dominated sales in Broward County in percentage of units sold early last year (the blue line is above the green line). The trend changed in April '09 as arms-length sales represented the majority compared to foreclosures and short sales. January provided an interesting turn with foreclosures again edging above. One month doesn't tell the complete story but this is a statistic to keep an eye on.

This FREE audit can save you money and help the environment.


The American Homeowners Foundation (AHF) has developed a free Home Energy Audit to help homeowners reduce energy consumption and costs. The audit takes about ten minutes and identifies opportunities for homeowners to improve the energy efficiency of their home in the most cost effective manner.

It is easy to perform the self-directed audit, requiring only a flashlight, a ruler, screwdrivers, and a printed copy of the three page audit questionnaire to keep track of your score. “It takes about ten minutes to walk through a typical home and fill out the questionnaire,” according AHF President Bruce Hahn. “It will help you identify many inexpensive do-it-yourself opportunities like caulking, where a few dollars in materials can save hundreds of dollars this year and into the foreseeable future,” he added.

A typical U.S. home has over 1/2 mile of gaps and cracks. Through those cracks around windows, doors, and electrical outlets flow your hard-earned dollars. More energy is wasted in many other areas of the home as well. The resulting costs will continue to mount as energy prices increase. Energy waste in American homes is also a significant contributor to global warming.

The federal government, and many states, offer incentives to encourage homeowners to make their homes more efficient. On December 8, 2009, President Obama proposed a new “Cash for Caulkers” program that would reimburse homeowners for up to $12,000 in spending on home energy efficiency improvements. The President’s proposal is in addition to the 2009 American Recovery and Reinvestment Act, which provides more than $25 billion for energy efficiency, as well as the Emergency Economic Stabilization Act of 2008 and the Energy Independence and Security Act of 2007. The 2007 and 2008 laws provide incentives for highly efficient new homes, home improvements, heating and cooling equipment, and appliances. In 2010, you can get a 30% income tax credit, capped at $1,500, for expenses on installing energy efficient windows, doors, roofs, and heating and cooling equipment in your home, or adding to your current insulation. More details on incentives are available on both the Internal Revenue Service and Department of Energy websites.

There are many other things homeowners can do to reduce home energy costs. Many of them are lifestyle related. While inside your home wear warmer layered clothing in the winter, and light and loose fitting garments in the summer. You'll use less energy for heating and cooling. Try to spend more of your time in warmer parts of your home in the winter, and in the coolest part of your home in the summer and you’ll also use less energy for heating and cooling. The top floor of the south side of a home is usually the warmest and the lowest level of the north side is usually coolest.

There are other ways for homeowners to save energy as well. Today you can buy most products on the Internet for less than their price at a mall. You’ll also save time, money spent on gasoline, and wear and tear on your vehicle.

In addition, the postal carrier, UPS and FedEx trucks are coming down your street anyway, so there’s no added environmental impact in getting the product to your home. The gas you’re not using will help to reduce global warming (and the reduction in gasoline consumption will help keep gas prices lower).

Today many jobs can be performed effectively in a home office. More employers are supporting telecommuting now that technology is friendlier to working at home. Think about asking your employer if you can telecommute. A car parked in the driveway is even more energy efficient than a hybrid vehicle, and you’ll be helping to reduce rush hour traffic jams and pressure on your state’s transportation infrastructure.

For a free copy of AHF’s ten minute energy audit, simply send an email to AHF@AmericanHomeowners.org with the words “Free Ten Minute Home Energy Audit” in the subject line. The Foundation will email it back to you in Microsoft word format.

Home Values Flat In November

The Case Shiller Value Index figures for November 2009 were released today.  Values in the South Florida market for single family homes remained flat resulting in an annualized change of -9.65% for 2009.  While this may not sound like great news; it represents a pretty dramatic turn-around from 2008 when values declined 29.44%.  The correction continues but the days of free-fall are (hopefully) over.

Values Dip Slightly

Case-Shiller Value Index number released today show a return to value decline of just under 1-half of 1-percent in October; the first month of decline since June. Don't dispair gentle readers; this is going to happen and is necessary since, if the rate of appreciation experienced in June through September was maintined, we'd be in a boom cycle similar to the middle of the decade. 

Making Home Affordable
On December 1st the Obama Administration announced efforts to revive efforts for loan modification and other options for homeowners caught in true financial hardship. 

Price Correctly and You'll SELL

Forbes Magazine has identitified the 10 most over-priced real estate markets in the country.  The comparison was the median initial list price to the median price when the property actually sold.  The smart seller, who prices correctly, will be able to take advantage of this condition and sell far more quickly than neighbors that tenatiously hold to prices that aren't market-based.

1. Orlando

2. Miami-Fort Lauderdale-Pompano Beach

3. Jacksonville, Fla.

4. Baltimore-Towson

5. Chicago-Naperville-Joliet

6. San Antonio, Texas

7. Denver-Aurora

8. Tampa-St. Petersburg-Clearwater

9. Indianapolis-Carmel

10. Austin-Round Rock

Tax Credit Extended!

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.

Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Who Qualifies for the Extended Credit?

First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.

Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer’s tax credit is determined by tow additional factors:

The price of the home.

The buyer's income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

Source: National Association of Realtors

Value Stabilization Continues

The Monthly Case Shiller Value Analysis data were released today. One of the sets provided by this analysis measures values in terms of tiered pricing; lower-priced homes, mid-priced and high-priced. I've been plotting the numbers for South Florida from the peak of the market to the present. It appears that values are leveling off as follows:

Low-Priced Tier (up to $267,899 at peak) reduced just over 60% today

Mid-Priced Tier (between $267,899 and $393,966 at peak) reduced around 50% today

High-Priced Tier (over $393,966 at peak) reduced by roughly 42% today.

While this stabilization seems logical against historical trends, the big spectre right now is a looming surge in foreclosures yet to hit the market. Some prognosticators predict a significant increase in the inventory of un-sold homes in coming months...so stay tuned.

More (less-guarded-than-ever) Good News

The Case Shiller Index findings for July were released today. You'll hear about this index in the news but it's important to remember that all real estate is LOCAL so I've been tracking the index for the Miami/Fort Lauderdale market. Last month's findings were exciting when the monthly decline reversed for the first time since early 2007. The numbers released today indicate further evidence that the market bottom or NEW NORMAL for single family homes is being determined now. Call me if you'd like an estimate of the value of your home in the NEW NORMAL.

Condo Getaway

...or if you're want to try out your French accent...pied-à-terre.

On the bright side of the recent market change; small condos-in-the-sun are once again attainable for a reasonable price. If you'd like to get started looking for a place of your own, click the link below and browse the selection of units I've identified as "Best Buys". If you see something of interest, click on the "Request More Info" button and I'll respond with more information.

Condo Getaway

'Distressed' Sales Diminishing

At the beginning of this year, single family home sales were dominated by foreclosures (REO) and short sales. As can be seen in this chart, the tide has turned and Arms-Length sales again represent the majority of units sold on a monthly basis. Perhaps another sign of an improving situation for the real estate market.

ZERO Never Looked So Good

June was the first month single family home values didn't decline since February 2007 according to Case-Shiller Index results published yesterday. In fact, the exact change in single family home value in South Florida was an increase of .54%

Of course, one month does not a market-change make but the numbers have been pointing toward this eventuality for a few months now. This should give buyers a green light to move forward and homeowners/sellers some solace that the worst of the decline is over.

There are lots of comparable sales now to help buyers and sellers determine what the 'new normal' is. Feel free to give me a call to find out what values are in your area of interest.