Home Values Up Again

Single family home values rose again in June for the second month this year according to the Case Shiller Value Analysis.  Values in South Florida increased .62% in June after a 1.18% percent rise in May.  Based on the index, values decreased 2.54% in the first half of the year. 

Our Attorney General is on the Wrong Side of this Matter
http://www.palmbeachpost.com/opinion/editorials/bondi-picks-the-wrong-side-1688749.html

May was a Good Month for Home Value

The Case Shiller Value Analysis released this morning reported that May was a good month for home value.  Twenty of the US metropolitan areas included in the study registered increases with South Florida in the pack at UP 1.18%.

High-Priced Homes Drove Value Increase in May
The Case Shiller Value Analysis presents single family home values in tiers based on a price break calculation they identify as Low, Medium and High.  I've charted the last couple of years on the attached chart for South Florida (Miami & Ft Lauderdale).  This shows that the 1.18% aggregate increase in values was driven by strong value increases in higher priced homes (those over $249,104) while lower priced homes actually declined just a bit.

Pompano Beach Condo Sale Confirms Values are Increasing

I am pleased to announce the sale of our listing, unit 1206 in the Waterbury Condo for $213,000.  This remodeled 2 bedroom/2 bath unit at 1180 square feet ($180.50/square foot) is the highest sale in the building in two years.  The condo was impeccably maintained and the kitchen had been remodeled in the last three years. The limited number of homes available to the buyers drove this sale.

If you’re a seller waiting for a more favorable time to list and sell your property, NOW IS THE TIME.  The buyer pool is still smaller than we would like to see it and it is the limited number of choices that resulted in the sale I’m reporting here.  As the market stabilizes sellers who have been holding off will jump into the market and the inventory will increase.  List now while your property is the only game in town.  Call me today to initiate a plan to get your property sold.

The Bottom of the Real Estate Market

In a great article on the South Florida economy in this morning’s Miami Herald, Octavio Hernandez, President of US Century Bank was quoted: “In the last two months, we have seen a lot of activity” from distressed-asset buyers, “I think people have realized prices have pretty much dropped as far as they’re going to”.   This suggests that ‘vulture investors’ have concluded that now is the time to enter the market before values begin their slow climb.  Obviously this is a great indication for buyers to get serious about investing in real estate but sellers too should take this opportunity to list now to take advantage of the reduced inventory and buyer urgency to make their move.   

South Florida Housing Value History

Each April I capture an annualized value measurement based on the Case Shiller Value Index for Miami/Fort Lauderdale.  As you can see, 2010-2011 is not measuring up as well as the previous year.  The bumpy bottom of the market is taking a bit of a downward turn this year; further evidence to the complete unpredictability of the market.  Another thing this chart presents is the unprecedented nature of the recent market boom/bust (just in case we needed to see it depicted another way).

Home Values Down Again...but just a 'Little'
The Case Shiller value index for April was published today.  National results were a bit less dire than the last month reported with a few cities experiencing an increase in value.  In South Florida the monthly decline was just under one-quarter of one percent; better than the .81% decline in February.

Values are still disappointing in 2011 compared to last year which will be documented in my next post...the one you've been waiting for folks; the annual 'appreciation' measurement I take each April.  How's that for a teaser?

Case Shiller Value Index-Better than Last Month

So here's the rest of the story after you've listened to the news reports on the Case Shiller Home Value Index figures released this morning.  The media are reporting a downward trend in values throughout the country but the results in South Florida are a bit more encouraging.  While we experienced a decline in the month of March (the most recent month reported by the Index) the rate of decline was FAR less alarming than last month (0.84% in March vs. 2.02% in February).  I'm still inclined to view February's drop as an anomaly (let's hope anyway) so based on our first quarter performance values may decline anywhere from 5.5% to 16.5% in 2011.  If we split the difference that's around 11%.  Now statistics NEVER lie somehow it feels like we're not going to have another decline of over 10% this year.  Prices in the more desirable areas (near the ocean & in great school districts) seem to be stabilizing, especially where the inventory of homes for sale is tight.  I'm anxious to see what the next few months' performance is like to turn around the disappointing numbers from the first quarter.

Foreclosure News
The news reports today tout significantly lower foreclosures in April than the same period a year ago.  It's difficult to determine if this suggests improvement in the market or other factors.  The following tidbit from the Miami Herald might provide some insight:
   In Florida, it now takes an average of 619 days—about 20 months—for the foreclosure process to run its course. That’s up from 470 days last year, and 169 days in 2007.

In case you ever wondered if anyone responsible for the lending debacle of last decade would be called to account.....

http://www.washingtonpost.com/business/economy/us-sues-deutsche-bank-alleging-mortgage-fraud/2011/05/03/AFfym4iF_print.html

Pretty Steep Drop in Single Family Home Values

The Case-Shiller Value Analysis for February was published today (remember that this analysis "seasons" its data to give ample time for county records to be updated).  The month-over-month decline in value (at -2.02%) is the sharpest since April of 2009.  This could very well be explained by an increase in foreclosure sales backlogged by the 'robo-signing' revelation made late last year.  Foreclosure and short sale transactions in the Multiple Listing Service were about 6% higher than normal in January and February.  I'll be waiting with bated breath (as I'm sure the readers of this humble blog will be) to see if values stabilize next month.

Condos
Interesting article in today's Miami Herald about the condo market in the area and the strategy a major developer is following:
 Miami’s top condominium developer is planning to emerge from the region’s worst housing bust by picking up where it left off before the economy tanked, and building a shiny new condo tower.   The Related Group, which built more than 15,000 South Florida condos during the housing boom, then found itself fighting off insolvency when the recession hit, is seeking city approval for a new 35-story condo building in Brickell.   Related is set to go before Miami’s Planning, Zoning and Appeals Board on Wednesday to pitch its new project, to be built at 30 SE Sixth St.   Related’s subsidiary, TRG Brickell Station, originally received approval to use that site for a project called “Brickell Station,” in 2006. That condo tower, stalled because of the downturn, was planned to be nearly 600 feet tall, with 232 residences stacked on top of a parking garage.   The new plan scraps the 10-level parking garage, dropping the building’s height to 350 feet, and offers a new name: “My Brickell.” The expected dates for groundbreaking and completion are not listed in the application, and Related executives did not respond to requests for comment.   “To see Related and others move forward to build towers doesn’t surprise me, because it’s an arduous process,” said Peter Zalewski, a principal at CondoVultures, a Bal Harbour-based consultancy. “If you assume that construction takes 18 to 24 months, you start to look at roughly a 2014 delivery. I don’t know that that’s going to make sense two years from now, but if Related were able to build a tower without parking, they’d be able to reduce their costs tremendously.”   Zalewski added that of 22,000 new condos built in downtown Miami since 2003, about 3,200, or 14 percent, remain unsold.

 Lauderdale firm buys troubled mortgages: 


More insight into how this mortgage-mess will be resolved.  In the Sun-Sentinel this morning:


Fort Lauderdale-based private equity firm US Debt Ventures has purchased a pool of troubled mortgages with a face value of $500 million from an unidentified major bank, the firm announced Monday.   The firm bought a pool of about 7,000 first, second and third liens on mortgages across the nation. US Debt Ventures did not disclose how much it paid for the pool of loans, or which bank it purchased from. The seller was described in a release as “one of the five largest financial institutions.”   The company has plans for more bulk deals in 2011 and 2012, said Jamie Zambrana, director of acquisitions and analytics.

Florida Supreme Court May Reshape Foreclosure Proceses (watch this one!)




GREENACRES, Fla. – April 18, 2011 – A South Florida homeowner who alleges the mortgage foreclosure action against him was tainted by fraudulent paperwork will have his case reviewed by the Florida Supreme Court, in a closely watched action that could reshape state law.

The 4th District Court of Appeal had asked the state’s high court to decide the case as matter of “great public importance.” The Supreme Court agreed to hear the case in an order issued Friday.

Legal experts say the case, Roman Pino vs. The Bank of New York Mellon, could result in changes in foreclosure cases where there is evidence of fraud in the way documents were handled by lenders, mortgage servicers and law firms.

“Many, many mortgage foreclosures appear tainted with suspect documents,” the appeals court in West Palm Beach wrote.

If the case is decided in favor of Pino, a resident of Greenacres in Palm Beach County, the ruling could affect thousands of foreclosures across Florida where there are allegations of document fraud.


Copyright © 2011 Sun Sentinel, Fort Lauderdale, Fla., Peter Franceschina. Distributed by McClatchy-Tribune Information Services

Florida is Best-Positioned State for Growth
Some great economic news was released today based on a study performed by Wells Fargo.  According to the study, Florida is the best-positioned state in the nation for business growth and new jobs.

In raking states by regional competitiveness — intrinsic factors that lead employers to create jobs in that state versus others nearby — Florida scored first in the Wells Fargo study released Wednesday morning.

Florida gets a boost in the rankings by tourism and hospitality industries, a natural for a state that attracts more than any other on the East Coast.

But Wells Fargo also gives Florida credit for a growing “life-sciences” industry, citing both a hefty retired population needing medical care and the research dollars that come with facilities like the planned Scripps Research facility in Palm Beach County. “The influx of new medical research facilities will help reinvigorate [research and development] growth in Florida, helping further diversify the state’s economy,’’ the report said.

Read more: http://www.miamiherald.com/2011/04/13/2165173/despite-battered-economy-florida.html#ixzz1JWfRrRqt

Monthly Change in Home Value

The Case Shiller home value index for January was published this morning revealing a 1.26% decline in South Florida, the steepest one-month decline since April 2009.  Stay tuned, it's been a busy 'season' and hopefully the numbers for the next few months will be more encouraging.

Older Homes More Attractive in Current Market

WASHINGTON – March 23, 2011 – A new home, the dream of many would-be buyers, makes less and less financial sense in many places.

A wave of foreclosures has driven down the cost of previously occupied homes and made them even more of a comparative bargain. By contrast, new homes have become more expensive.



The median price of a new home in the United States is now 48 percent higher than that of a home being resold, more than three times the gap in a healthy housing market.

 A lot of people are saying, ‘If I can get a great deal on a home already on the market, why go through the headaches of getting a new home?’” says Mark Vitner, a senior economist with Wells Fargo. 


The gap is widening because prices of previously occupied homes are falling fast, pulled down by waves of foreclosures and short sales. Cities with more foreclosures tend to have more resale homes that have languished on the market and are priced at a bargain. That makes new homes in those areas comparatively expensive.

 Contributing to higher new-home prices is the rising cost of building materials.



 Copyright © 2011 The Associated Press, Derek Kravitz, AP business writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. AP business writers Christopher S. Rugaber in Washington and Alex Veiga in Los Angeles contributed to this report.

Monthly Value Change

If you're anything like me, you're always anxious for the monthly value analysis to come out....here ya go...

(SOFla Single Family declined .49% in December)

Single Family Home Values Decline 3.73% in 2010 
The Case Shiller Value Index results for December were just released and, according to the Index, values in South Florida declined just under 4% in 2010.  For some perspective, compare last year's results with 2009 (-9.91%) and 2008 (-28.79%) .... there don't you feel better?

It's not clear if we'll see the same kind of improvement in 2011 (I'm thinking we'll be about the same) as lenders seem to be sorting out their foreclosure procedures and even seem a bit more inclined to agree to reasonable short sale settlements.  All those sales will tend to keep prices low.  I think buyers should be prepared to make their moves in the next year or so if buying at the bottom of the market is important.

Monthly Home Value Report

The Case-Shiller value data were released today.  Once again values dropped slightly in South Florida but there's a lot more misery in other parts of the country (if that makes us feel any better).  There are 20 metropolitan areas measured in the report and only San Diego, CA had a month-over-month increase and (HERE'S the good news) of those that lost value, South Florida had the smallest decrease of the remaining 19 cities.  There are some new places cropping up with significant value decreases year-over-year (6.5% or more); Atlanta, Chicago and Portland, Oregon.  South Florida's annual change as of November 2010 was 3.5%.  There, doesn't that feel better?

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.

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.