Case-Shiller Index For SoFLA Better than National Results

So, in real estate these days we find our silver linings wherever they crop up and today's Case-Shiller Index report provides just such treasure only SLIGHTLY tarnished.  Media outlets are reporting a decline in home values of 2% in October 2010 (the most recent period analysed by the Index) but that figure is the average for the nation and as we all know, real estate is a LOCAL marketplace.  Readers of this humble blog will be able to impress their friends at the remaining holiday parties by pointing out that the change in value in South Florida was 'only' -1.1%. 

Short Sales a Bit More Prevalent

An analysis of 'distressed sales' (foreclosures and short sales) reveals that a greater proportion of single family homes in Broward County are being purchased through short sales (just over 20% of all sales).  Anyone who's been involved in a short sale understands the challenges involved and the patience required.  While patience on the part of buyer and seller is still required, this statistic appears to show some hope that a short sale might be a viable option.  It remains a mystery why lenders are so reluctant to pursue short sales since the average single family home in Broward County sells for about 30% more in a short sale than in foreclosure.

Property Tax Exemption Filing Dates Announced For January 2011


Documents required to file a Homestead Exemption include:
• A current Florida driver's license or Florida identification card, and
• A current voter registration card or declaration of domicile
• Non-US citizens must also provide proof of permanent residency.

Qualified residents 65 years of age or older as of January 1, 2011 may also apply for the additional Senior Exemption. Eligible seniors must have a total household adjusted gross income not to exceed $25,780. Documents required for the Senior Exemption include a 2010 income tax return or, if one does not file income taxes, a copy of the 2010 Social Security 1099 Form.

You still have plenty of time to file for a 2011 Homestead Exemption, Widow/Widower Exemption, Disability Exemption, Portability, or other exemption. Simply contact us to complete your application by the September 19, 2011 deadline.

The Broward Property Appraiser's office holds community outreach meetings frequently to answer questions about taxes and exemptions.  Click here for the January calendar.

GOOD NEWS! 20% DROP in Number of FORECLOSURES in 2011-per TransUnion (the credit score people)


WASHINGTON – Dec. 10, 2010 – U.S. credit bureau TransUnion predicted Thursday the number of delinquent mortgage accounts would drop by nearly 20 percent next year.

The number of delinquent accounts – those with payments 60 days past due – is predicted to fall to 4.98 percent by the end of 2011 from 6.89 percent at the end of 2009.

“This is a welcome contrast to the year-over-year increases of 54 percent between 2006 and 2007, 53 percent between 2007 and 2008 and 50 percent between 2008 and 2009,” TransUnion said in a press release.

Steve Chaouki, group vice president in TransUnion’s financial services business unit, said the decrease in delinquencies could be attributed to “a slowly improving unemployment picture and continued stabilization in housing markets.”

“While there is continued price pressure in many markets, we expect a rise in property values along with some stabilization of values in those states and markets hardest hit by the recession,” he said.

TransUnion said Nevada would see a 24.77 percent drop in its delinquency rate next year while Arizona’s rate would drop 24.27 percent. In Florida, the rate would drop 23.9 percent.

“Interestingly, the states projected to experience the greatest decrease in mortgage delinquencies – Nevada, Arizona and Florida – are the same areas expected to have the highest 60-day mortgage delinquency rates at the end of next year,” TransUnion said.

The states most in need of improvement, in other words, are expected to experience the highest rates of improvement.

Copyright © United Press International 2010

Case-Shiller Value Analysis

The value of single family homes in South Florida declined 1.24% in August according to the Case-Shiller Value Analysis released today.  This is the greatest single-month decline since April 2009.  So far, 2010 hasn't performed with the promise I anticipated at the end of last year.  There was a report from Moody's a week or so ago that projected 'pent-up demand' for Florida real estate.  There may be some support for Moody's optimism as I've noted that at least 50% of the showings of our listings in recent weeks have been to buyers from out of the country.  Let's hope for a gangbuster winter season!

National Median Home Prices

Our friends at the National Association of Realtors have put together this fun interactive map so we can compare our housing statistics with other parts of the country.  Enjoy... http://bit.ly/dkyjLk

Distressed Sales Still about 50% of Total

This is an analysis of closed sales representing the proportion of 'distressed' sales (foreclosures & short sales) and 'arms length' to all units sold.  While the proportion of distressed sales remains fairly constant at about 50% of the total, it is remarkable to note that short sales are comprising a larger proportion of the Distressed segment.  In fact, short sales are 26% ahead of last year in proportion of units sold while foreclosure sales have declined by 6.7%.  The increased proportion of short sales could be a factor of more inventory as sellers elect to list their properties as short sales and perhaps a more receptive lender community processing and approving short sales more efficiently.

Single Family Home Values Dip Slightly

Home values declined in August according to the Case Shiller Value Index which I track monthly.  It could be that the three previous months' of gains were attributed to the buying frenzy created by the home-buyer tax credit (remember that?).  Transactions eligible for the credit needed to be closed by the end of July so it might be that August (the most recent month reported by the Index) represents a return to 'normal'.  I'm afraid optimism for a break-even year on value is waining.  

• 

  Should You Move or Remodel?

  When your house no longer suits you, you can move or remodel. Find out which big change is the right investment of your housing dollars. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

Home Values Rise Slightly

The other day someone responded to the "how are you" question with-"any day above ground is a good one".  That response had more impact the first time I heard it but it popped into my mind as I looked at the single family home value index released by Case Shiller today.  Any month we're above the line is a good one.  Perhaps this will be a near flat year in value further substantiating our arrival at the 'bumpy bottom' of the market.

South Florida Values UP in June

Results of the Case-Shiller Value Analysis for South Florida show a slight gain in single family house value; further evidence that we're on the bumpy bottom of this unprecedented real estate cycle.  So far the value analysis shows a decline of just over 1% for the first 6 months of 2010.  Compare this to just over 11% for the same period last year.  Yes Virginia, there IS a recovery!

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.