Market Shift - Boca Raton Luxury Homes – More Houses Get Multiple Offers
Experts say markets hit hard by foreclosure are seeing more multiple offers, as residential price declines make homes more affordable and banks low-ball asking prices on distressed properties.
“If a house is in a good neighborhood, is maintained and is a good value, it’ll get multiple offers,” says Holt.
Although many markets are far from fully shaking off the downturn, the pick-up in multiple offers is a reason for optimism.
“When you begin to see people willing to fight for a property, that’s a good sign,” says Beth Peerce, “We are beginning to see the beginning of the end of a disaster time.”*
*Source: USA Today, Julie Schmit
Shant R. Epremian, MBA, CDPE (Certified Distressed Property Expert)
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Hybrids are “a great product at a great rate,” says Christopher Cruise, a mortgage broker in Silver Spring, Md.
Currently, starting rates are under 4 percent, generally a full percentage point lower than traditional, 30-year, fixed-rate mortgages. Hybrids are locked in at that starting rate for five, seven, or sometimes even 10 years, then they adjust—usually a maximum of 2 points a year with an overall cap of 6 or 8 points.
In the meantime, the savings on a hybrid ARM can be thousands of dollars and make sense for a buyer who doesn’t expect to be in a home for more than five or six years.
Even if they stay in the same house, it’s likely they’ll have an opportunity to refinance. “Seven years for a mortgage is an eternity these days,” Cruise says.
He recommends that buyers do the math, considering the worst-case scenario. In many cases, particularly with jumbo loans, the savings will still be substantial even if the loan adjusts to the maximum for a couple of years.*
*Source: United Features Syndicate, Lew Sichelman
Shant R. Epremian,
MBA, CDPE (Certified Distressed Property Expert)
The Epremian Team | Your Florida Real Estate Consultants for life!
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Boca Raton Homes For Sale News: Lenders Chase Short Sale Sellers
An increasing number of lenders are going after borrowers who sell their homes for less than they owe – known as a short sale – in order to recover more of the difference between the amount owed and the sale price.
Lenders say the factors that they consider when they decide to seek more money are:
A PMI Group Inc. spokesman says the mortgage insurer “primarily target[s] borrowers who are not experiencing hardship – but those who simply elected to walk away from the property due to its decline in value.”*
*Source: The Wall Street Journal, Ruth Simon
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Boca Raton Homes For Sale are sometimes short sales but anybody who has dealt with one knows, short sales should be renamed “long sales.” But that could be changing & that is great news for Boca Raton Home Buyers
One of the real estate professionals leading the charge to revamp the short-sale process is George K. Wonica, owner of Wonica Real Estate & Appraisals on Long Island, N.Y., and chair of the National Association of Realtors® Conventional Finance and Lending Committee.
Wonica already has met with 10 mortgage bankers and servicers in Florida to address the problem, and plans a similar meeting this summer in Las Vegas. He points to the uniform short-sale form developed by the California Association of Realtors as an example of what the industry needs.
Short sales appear to be good for both banks and buyers. A study by Connecticut-based Clayton Holdings Inc. showed lenders from May to October 2008 lost an average 37 percent through short sales versus 56 percent on homes sold after foreclosure.
Lenders recognize this and are trying to speed up the process. David Knight, a senior vice president at Wells Fargo Home Mortgage, says, “We think (a) short sale is superior to foreclosure … A short sale is not a bad deal all around.”
Additional liens are often the big holdup, but there could be progress on that front. In April, Bank of America, a major holder of second liens, announced that it would accept 5 percent of sale proceeds after real estate commissions and other costs on short sales. Previously, it had sought 10 percent.*
*Source: Inman News, Gilbert Mohtes-Chan
Shant R. Epremian, MBA, CDPE (Certified Distressed Property Expert)
The Epremian Team | Your Florida Real Estate Consultants for life!
Direct: 561-306-1372 | Office: 561-245-4819 |Toll Free: 888-435-2669 |Fax: 561-988-1400
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More Potitive News For Boca Raton Homes For Sale & Boca Raton Home Buyers
WASHINGTON – Citizens of other countries represent an important segment of the U.S. home buying market, and now new special visa categories that allow foreign nationals to gain U.S. residency can help facilitate that process. By using these visa categories correctly, Realtors® will be able to help many more buyers from overseas purchase property in the U.S.
Toward this end, Realtors from across the country met Thursday with experts in immigration issues and international economics during the joint International and Resort and Second Home Real Estate Forums at NAR’s Realtors Midyear Legislative Meetings & Trade Expo.
“We know that business of real estate today is truly borderless, and the National Association of Realtors has recommended steps toward facilitating and streamlining international real estate transactions for some time,” says NAR President Charles McMillan. “Knowing how to properly apply immigration rules can help Realtors add value to international property transactions, benefiting both domestic sellers and international buyers.”
International real estate purchases in the U.S. continue to be a significant share of business for many Realtors, according to the 2008 NAR Profile of International Home Buying Activity. Of the Realtors surveyed for the profile, 26 percent served international clients in the past year and about half of those clients purchased a home.
Recent research conducted by the Harris Research Group for NAR reveals that 7.1 percent of potential overseas buyers surveyed would definitely or possibly consider a retirement location in the U.S. This equates to a market in excess of one million potential buyers, according to real estate economist and author John Tuccillo, who spoke to the forum.
Stephen H. Davis, a leading immigration attorney, explained how various U.S. visa programs, including the E-2, EB-5 and L-1 visas, help foreigners purchase homes in the U.S.
“These different visa programs will help attract individual investors from other countries,” Davis says. “One long-term visa program helps investors attain a conditional lawful permanent residence status by investing $500,000 in a limited partnership at various government-maintained regional centers. Another program involves an investment of $l million to create 10 new full-time positions for U.S. workers.”
There are also visas for people who manage various types of enterprises and businesses in the U.S., including rental properties, condominiums and franchises; people in the export and import business; and foreign executives who manage U.S. subsidiaries of foreign companies. All can facilitate international investment in U.S. real estate. Realtors can help their international clients buy second homes, vacation or future retirement homes by knowing how to use the appropriate special visa categories.
“NAR research shows the increasingly international nature of real estate markets and how foreign buyers are responding to opportunities to acquire homes in this country,” says Davis. “After all, a piece of America is worth its weight in gold, and buyers from overseas recognize this. Understanding how the visa categories work can be a useful tool for Realtors in unlocking this important new market segment.”*
*Source: 2009 FLORIDA ASSOCIATION OF REALTORS
Shant R. Epremian, MBA, CDPE (Certified Distressed Property Expert)
The Epremian Team | Your Florida Real Estate Consultants for life!
Direct: 561-306-1372 | Office: 561-245-4819 |Toll Free: 888-435-2669 |Fax: 561-988-1400
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Mortgage Rates Continue to Fall & That’s Great News For Boca Raton Homes For Sale
Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week. Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent.
The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries. Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed.
*Source: Investor’s Business Daily (05/22/09)
Shant R. Epremian, MBA, CDPE (Certified Distressed Property Expert)
The Epremian Team | Your Florida Real Estate Consultants for life!
Direct: 561-306-1372 | Office: 561-245-4819 |Toll Free: 888-435-2669 |Fax: 561-988-1400
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Governor signs $8K homebuyer credit into law – Good News For Boca Raton Homes For Sale
TALLAHASSEE, Fla. – May 27, 2009 – Gov. Charlie Crist signed the budget bill (SB 2600) today that lays out how the state will spend its $65.6 billion in the fiscal year that starts July 1. Included is $30.1 million for the Florida Homebuyer Opportunity Program, which will help with downpayment assistance.
Beginning July 1, those who quality for the federal $8,000 first-time homebuyers tax credit will be able to apply for downpayment assistance before they close on the purchase of their home, and then repay the amount borrowed when they get their tax refund. The program will operate through local county housing administrators, though details are still being worked out.
The state spending plan passed today also includes the following for real estate-related programs:
• Up to $400,000 to prevent, combat and publicize the dangers of unlicensed real estate activity in Florida.
• $540,000 to continue and complete a study to make recommendations on passive strategies on nitrogen reduction that complement the use of onsite wastewater treatment systems.
• $3 million in the Real Estate Trust Fund for the Education and Research Foundation.
• A reduction in the eviction filing fees from $265 to $180 – the only fee reduction in the 2009-10 budget, and one with a negative fiscal impact of up to $36 million.*
*Source: FLORIDA ASSOCIATION OF REALTORS
Shant R. Epremian, MBA, CDPE (Certified Distressed Property Expert)
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Attention Boca Raton Home Buyers! HUD: Tax Credit Can Be Used on Closing Costs
FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.
Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.
The loans can’t be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.
Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.
There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.
In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.
The first-time homebuyer tax credit was enacted last year–and improved upon earlier this year–to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.
Learn more about the credit, including how to apply for it this year even if you’ve already filed your taxes, at our website Boca Raton Homes
*Source: Robert Freedman, REALTOR® Magazine Online
Shant R. Epremian, MBA, CDPE (Certified Distressed Property Expert)
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Attention all Boca Raton Home & Boca Raton Luxury Home homeowners: 5 Maintenance Issues Owners Shouldn’t Ignore
Consumer Reports magazine advises home owners not to put off important maintenance projects, noting that waiting until the economy rebounds could end up making the repairs more costly while putting a family’s health at risk.
The magazine identifies five crucial maintenance issues:
*Source: Consumer Reports
Shant R. Epremian, MBA, CDPE (Certified Distressed Property Expert)
The Epremian Team | Your Florida Real Estate Consultants for life!
Direct: 561-306-1372 | Office: 561-245-4819 |Toll Free: 888-435-2669 |Fax: 561-988-1400
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Boca Raton Luxury Home sales are up ad prospects for Florida’s recovery heat up, economists say
After two long years of recession, economists are beginning to see signs that the economy’s recovery is finally in sight. South Florida home sales are picking up, Wall Street has staged some solid rallies and even consumer confidence is rising.
But the road to recovery will be uneven. Economists say that an uptick in business spending will lead the way, followed by federal government stimulus projects that will create some jobs. Consumers, unfortunately, are likely to be the last to see good times return, because widespread unemployment – which is now just a notch below 10 percent – won’t start to go down until after the recovery is well under way.
It has been rough, but economists say it’s always that way for Florida.
“It performs better in good times, but during bad times, in recessions, it is one of the worst performing states in the nation,” said Moody’s Economy.com economist Chris Lafakis. “And during times of expansion it is one of the best.”
Some experts say they already see the early signs of such progress.
“The negative numbers just start getting smaller or they stop falling or they fall at a slower rate,” said SunTrust Chief Economist Gregory Miller. It’s like you tumbled out of a boat a while ago and “now we’re at the stage of swimming back to the surface.”
Other economists agree that the worst may be over as soon as this summer. Consumers surely have had enough, judging by the strong jump in Floridians’ consumer confidence this month.
Here’s how economists say the state will find its way out of the slump:
Business-led recovery
Economists say the recovery will begin with an increase in business capital spending, as companies rebuild inventories or upgrade technology or send business travelers back out on the road.
At some South Florida companies, capital spending already has increased and begun to pay off. Last year, Stress Free Corporate Housing, which provides temporary living arrangements for executives, says the audio-visual equipment it installed in its new Weston office is helping to bring in new business.
The firm wanted to hold employee conferences and save on travel expenses. But it also began using the equipment for Webinars – seminars via the Internet – for its clients.
President and Chief Executive Officer Darin Karp said his firm is about to sign a deal with a Fortune 500 company to provide temporary housing for executives from Asia and the Middle East who need to come to Florida for training.
“We’re definitely seeing glimmers of hope off the first quarter and the beginning of this quarter,” Karp said. “We have some big stuff on our plate, and it’s attributed to doing the Webinars.”
Stimulus spending
An increase in government spending is expected in the fourth quarter, as states and cities pump out the $787 billion in federal stimulus money to build roads and other projects. That influx of cash will lead to more jobs, at least in construction.
Even though the stimulus law was enacted in February, government is still crafting detailed plans and regulations for the federal package, so it’s unclear precisely how many millions will be earmarked for Florida.
“We will begin to see some impact of the stimulus legislation in the last quarter of this year,” said economist Antonio Villamil, dean of the School of Business at St. Thomas University.
Confidence rises
Consumer confidence – a measure of how willing people are to spend on big-ticket items – is already rising. The University of Florida consumer confidence survey issued earlier this week showed the index jumped to 71 in April, up from 65 in March, which is close to the low reached during the last recession in 1991.
The importance of the jump is that consumer confidence is a forward-looking economic indicator, one that is often a sign that consumer spending will rise, too.
Employment to lag
Employment rates aren’t expected to rise until recovery of other sectors is under way. Only after growth returns in the overall economy will businesses be comfortable enough to begin to create jobs again. Employment is key to consumers’ recovery. Don’t look for consumer spending to increase until after employment stabilizes, economists say.
“Every business cycle is unique, but they get going in fits and starts,” said economist Manuel Lasaga, president of Strategic Information Analysis in Miami. “This [recovery] will be weaker than normal.” Strong growth, he said, won’t appear until 2010.
And some sectors seem to be hurt so badly, their recovery is not at hand. Surely, housing remains deeply troubled. Manufacturing, too, is waiting for signs of recovery.
“We’re not seeing that [any increase in demand] yet frankly,” said Tom Kennedy, a CPA who is chairman of the South Florida Manufacturers Association. Kennedy is controller of R.L. Schreiber in Pompano Beach, which produces food products for the food service industry. The credit crunch, he said, is making the business environment even more difficult.
When will it end? The economy should begin to pull out of recession around the end of summer, according to several economists. At the latest, look for it early next year, others say.
“We are in the fourth phase of the recession,” said SunTrust’s Miller. That’s the pre-recovery phase, he said. Next is the turnaround.
It’s a little early yet, and the signs are still faint.
“You really have to look long and hard to find any signs of strength in the economy,” said Mark Vitner, Wachovia’s senior economist. “But it’s not so hard to find areas where the economy had been in a free fall and now is just merely declining.”
For those businesses looking forward to the turnaround, they’ve set their sights on year’s end.
“People are getting new budgets for purchasing at the end of the third quarter, the fourth quarter. A lot of lights are coming on,” said Joel Ledlow, chief executive officer of ScheduAll, a Hollywood firm that produces management software systems for broadcasters and media. “People are saying they have cut about as much as they can cut. Now they’re ready for some very strategic investments.”*
*Copyright © 2009 Sun Sentinel, Fort Lauderdale, Harriet Johnson Brackey.
Shant R. Epremian, MBA, CDPE (Certified Distressed Property Expert)
The Epremian Team | Your Florida Real Estate Consultants for life!
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