December 01, 2011 / Avondale, Murray Hill, Ortega, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
Traditions Realty is trilled that new programs are now in effect to help homeowners current on their mortgage payments. We hope this will be another step toward recovering a healthy economy in the United States. Read more below.
New refinance program targets ‘underwater’ owners current on payments
WASHINGTON – Nov. 30, 2011 – Matt Hamilton has dutifully paid the loan on his Maitland house and a Longwood rental condo, but until now he could not refinance them to obtain more-affordable interest rates because the properties are financially underwater.
Starting Thursday, Hamilton and many of the other quarter-million Orlando-area residents with “underwater” mortgages can apply for a new Fannie Mae and Freddie Mac refinance program geared for pretty much everyone who owes more on a home than it’s worth – including landlords and second-home owners.
“It’s been difficult because I’m so far in the hole that no one wants to refinance me,” said Hamilton, a product developer for Longwood-based Onlinelabels.com. “But if you look at my payment history, I am a safe risk.”
The federal government’s previous foreclosure-prevention efforts, such as the Home Affordable Modification Program (HAMP), lowered the interest rates on mortgages of homeowners at risk of foreclosure because they had lost income. But the new Home Affordable Refinance Program (HARP) is seen as a possible game changer even for homeowners who are underwater but who have stayed employed and continue making their payments.
Homeowners who have missed mortgage payments in the past six months need not apply. And not all the details – such as loan limits – have been disclosed yet. But this is one of the first refinance programs that doesn’t require an appraisal to determine the value of the house.
“It’s a reward for the responsible borrower who swallowed a bitter pill but still kept moving,” said Travis BeMent, mortgage-loan originator for Home Loans Today of Orlando. “There’re a lot of people out there ready to pounce on this.”
The HARP application process begins Thursday, just as new reports show that more than half of the mortgaged homes in Metro Orlando are saturated with more debt than they are worth. In all, 254,146 mortgaged homes in the four-county metro area are in that situation, according to a report released Tuesday by the mortgage-research company Corelogic.
Even though Orlando has a greater share of underwater homes than Florida overall or the nation as a whole, the percentage of “negative-equity” houses in the metro area actually decreased slightly during the third quarter: 51.6 percent of the mortgaged homes in Orange, Seminole, Osceola and Lake counties were worth less than their loans in the July-through-September period, down from 53.1 percent in the second quarter.
About 44 percent of the mortgaged houses in Florida, and 22 percent of those in the nation, were underwater in the third quarter, according to Tuesday’s report.
Many of those mortgages were sold to homeowners who purchased at the peak of the market in 2006-07, when sales prices were double what they are today and when interest rates ranged from 5.7 percent to 6.5 percent, according to the Orlando Regional Realtor Association. Today, interest rates on a 30-year mortgage are less than 4 percent.
One cautionary note about HARP: Interest rates could change by the time a qualified property owner’s refinancing application is processed, BeMent said. Fannie and Freddie are not expected to have the ability to process the new loans until as late as next March.
But HARP, he noted, also offers a break to homeowners who want to refinance for 15 or 20 years instead of 30 years. To qualify, an owner must have a mortgage backed by Fannie Mae or Freddie Mac and will likely need a credit score of at least 620.
Orlando lawyer Jeremy Sloane hasn’t missed any payments on a rental home he owns in east Orange County’s Avalon community, but he still loses money on the property every month because the mortgage he took out in 2006 far exceeds the rent he collects, now that prices have collapsed. He said he has already talked to FBC Mortgage about the new federal refinancing program.
“At the end of the day, I don’t think it’s anyone’s responsibility but myself to make the payments, but the frustrating part was that other people have been able to get out of their situation and not take a loss,” Sloane said. “This program will hopefully make it a lot more palatable renting out that house and not taking a loss.”
Copyright © 2011 The Orlando Sentinel (Orlando, Fla.), Mary Shanklin. Distributed by MCT Information Services
December 01, 2011 / Avondale, Murray Hill, Ortega, Press Releases, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
Florida’s real estate market is showing signs of recovery, and Traditions Realty can help you get in on the action. Sales of existing homes and condominiums have remained on the rise throughout the month of October, showing major gains over the past year. With increasing sales and home prices, the market is currently ideal for those looking to invest in Jacksonville real estate.
Whether you are entering the world of real estate for the first time or looking to invest in more Florida real estate, now is a great time to pursue your dream. Traditions offers a full line of real estate services, and our realtors are experienced and knowledgeable about properties in the area as well as Jacksonville homes for rent. Take advantage of our expertise to turn your Jacksonville real estate fantasy into a reality. Fla.’s home, condo sales higher in Oct. Read more below.
ORLANDO, Fla. – Nov. 21, 2011 – Florida’s existing home and existing condo sales continued to show gains in October, according to the latest housing data released by Florida Realtors®. Existing home sales increased 13 percent last month with a total of 13,755 homes sold statewide compared to 12,145 homes sold in October 2010, according to Florida Realtors.
“Statewide, both sales and prices are above where they were this time last year,” noted Florida Realtors Chief Economist Dr. John Tuccillo. “The monthly median prices have ticked down slightly for the past few months, but the overall trend continues to show gains year-over-year.
“These numbers, combined with reports from Realtors throughout the state, indicate that we’re seeing strong interest in purchasing Florida real estate from smart investors who are taking advantage of the current favorable market conditions,” Tuccillo said. “These folks tend to have a long-term outlook and plan to hold onto their property purchases for a while.”
Seventeen of Florida’s metropolitan statistical areas (MSAs) reported higher existing home sales in October; 12 MSAs had higher existing condo sales.
The statewide median sales price for existing homes last month was $131,200; a year ago, it was $136,600 for a decrease of 4 percent. According to analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in September 2011 was $165,600, down 3.9 percent from a year ago, according to NAR. In Massachusetts, the September statewide median resales price was $294,950; in California, it was $287,440; in Maryland, it was $228,879; and in New York, it was $217,600.
In Florida’s year-to-year comparison for condos, 6,132 units sold statewide in October, a 12 percent increase over the 5,473 units sold in October 2010. The statewide existing condo median sales price last month was $87,800; a year earlier, it was $80,500 for a 9 percent gain. The national median existing condo sales price in September was $163,800, according to NAR.
“The latest unemployment figures indicate that Florida’s jobs outlook is improving, mortgage rates remain at historical lows and buyers are able to consider a variety of housing options at affordable prices in communities across the state,” said 2011 Florida Realtors President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart. “This is a great time to consult a local Realtor® about homeownership opportunities in your local housing market.”
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.07 percent in October, down from the 4.23 percent average during the same month a year earlier. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Related: NAR: Oct. existing home sales rise, unsold inventory declines
© 2011 Florida Realtors®
November 28, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
Life doesn’t stop because the economy is in the dumps. Your life changes with job promotions, job re-locations, death, divorce, and family growth. What can you do when that new job lands you in another state far from home or when the house you bought for the two of you needs to include the two new members of the family? For many homeowners, selling is not an option at this time. Declines in market value could mean that the good deal you got on a property in 2006 can not be sold for the mortgage value. Short sales are not an option for everyone.
Many homeowners have become reluctant landlords. Renting the property they left behind to cover the mortgage and expenses. The problem lies in filling the vacancy and maintaining the home from miles away.
Could we help you? TraditionsRealty is a full service agency offering tenant placement and property management services. Many of our customers are located throughout the country and throughout the world. We offer on line property management support to view your invoices and payments in your time zone. Our professional staff works with you to chose the best tenant and maintain the property in your absence. Give us a call today to discuss the services we offer. Read more below.
More homeowners try ‘reluctant landlord’ role
WASHINGTON – Nov. 23, 2011 – More sellers who are tired of their home lingering on the market – or who don’t want to take a loss on their home sale – opt to become landlords instead.
For example, one couple told NPR that they owned a two-bedroom bungalow in Oakland, Calif. They purchased it for $500,000, but it was recently appraised at $260,000. When a job relocation sent them across the country, they decided to rent instead of sell.
But becoming a landlord isn’t an easy role to step into, as some “accidental landlords” describe difficult tenants and constant problems or maintenance issues that require fixing.
The number of unintentional landlords is growing. About 2.3 million single-family homes became rentals during 2005 to 2009 – a significant increase compared to about 700,000 single-family homes that became rentals during 2001 to 2005, according to Eric Balky with Harvard’s Center for Housing Studies.
“The good news for the owners or the reluctant landlords has been that the rental market has been so good, they’ve been able to cover pretty much all their expenses and just been able to basically go on with their lives,” Ron Abrams with the Chicago Association of Realtors® says.
Source: “Would-be Sellers Become Reluctant Landlords,” NPR (Nov. 13, 2011)
November 01, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
With the price of real estate falling 31% and interest rates at 4% or better, waiting to buy real estate is a “no brainer”. Although prices may fall still, it is predicted to be a insignificant drop and may be off set by a rise in interest rates. So, why are buyers waiting?
If you are interested in investing in Jacksonville real estate, Traiditons Realty can help. We have quailified sales people with real world knowledge of Jacksonville’s neighborhoods. If you are looking to gain more profit through investing in real estate or ready to buy your own happy home, we offer valuable experience to help in the quickly changing markets of today’s economy. Read more below.
Bargains abound: What are buyers waiting for?
NEW YORK – Oct. 28, 2011 – With low home prices and ultra-low interest rates, the housing market now offers “perhaps the best deals of a generation,” notes a recent article by Bloomberg Businessweek.
Since the housing boom of 2006, home prices have fallen about 31 percent. Also, mortgage rates have been hovering at record lows for the past few weeks – in the 4 percent range or even lower on 30-year fixed-rate mortgages, according to Freddie Mac’s mortgage market survey.
“It’s hard to see the possibility of losing on a home purchase right now, with these mortgage rates,” says economist Dean Baker. “Prices may go lower, but not by much.”
The article notes the following scenario: Buying a $300,000 home with a 4 percent mortgage rate and a 20 percent down payment would mean a $1,145 monthly payment. The Mortgage Bankers Association recently predicted that home prices may fall another 3.5 percent by mid-2012, but mortgage rates will increase by a half-point. Under that same loan scenario, a home would sell for $289,000 while the monthly mortgage bill would be $1,171 – only a $26 difference.
For those who can qualify for a mortgage, “playing the waiting game” won’t result in much gain, Nariman Behravesh, chief economist at IHS in Englewood, Colo., told Bloomberg Businessweek.
Source: “Crazy Home Deals Await the Creditworthy,” Bloomberg Businessweek (Oct. 24, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
November 01, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
The high rate of homes going into foreclosure has been in the news for years, but now mortgage lenders are taking action. They are making short sales of homes easier to complete, because short sales may be more financially advantageous than foreclosures for all involved . Homeowners looking to sell and those in the market for Jacksonville real estate should be aware of the implications of this development. Short sales in Jacksonville are now easier to come by and can benefit buyers and sellers. A short sale happens when a lender allows a homeowner to sell a house for less than what the homeowner still owes on it. A seller who opts for a short sale over foreclosure may have to wait less time before buying another house and may avoid legal consequences or complications as well as further credit damage arising from foreclosure. For buyers, a short sale means a better chance of buying a desired house that may not have been an option otherwise. It also may mean buying the house at below market value.
If you are looking to buy or sell Jacksonville real estate, Traditions Realty has the capabilities and knowledge to manage all of your needs. We have realtors that are certified short sales specialists and can help you to avoid foreclosure. Traditions also handles all aspects of homes for rent in Jacksonville. If your involvement as a buyer or seller in a short sale leaves you scrambling for a temporary home or tenant, our agents are here to help. Read more below.
CHICAGO – Oct. 21, 2011 – Are short sales getting easier? Some homeowners are reporting that banks are now not only more willing to consider a short sale, but are even offering incentives to complete a short sale. For example, a homeowner in Chicago says his lender approved his short sale and then gave him a $20,000 check after the deal was finalized for selling the home as a short sale instead of letting it sink into foreclosure.
Lenders accepting a lower mortgage payoff from an underwater seller traditionally isn’t thought of an easy transaction to complete. Lenders weren’t so willing a few years ago. But as the number of Americans underwater on their mortgages grow, more lenders are reconsidering as they try to avoid the extra costs incurred to their bottom-lines that a foreclosure can cause.
For 2011, short sales accounted for about 8 percent of total home sales, and rose 7 percent over 2010 totals, according to CoreLogic data. Short sales are up by 59 percent year-over-year in Illinois, 32 percent in Michigan, and 19 percent in Arizona alone, according to CoreLogic.
“We’re starting to see that servicers and lenders are viewing short sales as a better alternative than they had in the past,” says Daren Blomquist, spokesman for RealtyTrac. “Some of that relates to the fact that it’s getting harder to foreclose. There are additional requirements in terms of paperwork and requirements that states and judges are imposing.”
Short sales can still be complex and lengthy – they can take up to nine months to close and even after that, there’s no guarantee it’ll end successfully. “In general, it is a totally different type of transaction,” says Mike Cuevas, a real estate professional at Exit Realty in Chicago. “You’re not only selling a house, you’re negotiating debt.”
Source: “Why it can Pay to try a Short Sale; Lenders may be Viewing Short Sales as a Better Alternative,” MarketWatch (Oct. 20, 2011)
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October 07, 2011 / Avondale, Featured Properties, Ortega, Riverside, San Marco / Author: beth / Comments: (0)
Buyers seeking luxury homes and higher-end Jacksonville real estate will soon have a distinct advantage in the market. On October 1st, mortgage loan sizes are set to be cut. Fannie Mae and Freddie Mac will lower limits on mortgage loans they will buy from lenders. Some buyers who may have qualified for mortgage loans would now be forced into jumbo loans, which would be more difficult for them to get. Thus, many buyers will be forced out of the market. Buyers who remain in the market for high-end Jacksonville real estate will have less competition and be able to make the most of their purchases.
While it will be a great time to buy luxury real estate in Jacksonville, home owners may want to hold off on selling homes – especially more expensive ones. Whether you are looking to buy Jacksonville real estate or to rent out your old home, let Traditions Realty handle all your needs. Traditions is experienced and knowledgeable about Jacksonville homes for rent. We understand that luxury home owners require a highly selective tenant-screening and placement process, and we can handle all aspects of property management. Let us help you navigate the current market and make the most of Jacksonville real estate. Read more below.
Mortgage loan limits decline Oct. 1
NAR Call for Action
FHA plans to lower maximum loan limits on Oct. 1, but lawmakers could still change that. NAR’s Call for Action asks all Realtors to write to their personal representatives to explain what this change would mean in their housing market. For more information, visit NAR’s Call for Action website.
WASHINGTON – Sept. 14, 2011 – Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) loan limits shrink a bit starting on Oct. 1, though the Florida impact will be felt mainly in high-cost home areas.
The National Association of Realtors® has protested the increase, saying it will further limit the ability of Americans to purchase a home.
has a searchable database for loan limits, both FHA and Fannie Mae/Freddie Mac, on its website. To see statewide numbers, select only “Florida” and “county” for a search. Change the dates under “Limit Year” to see either the current rates or the rates effective after Oct. 1.
Fannie Mae and Freddie Mac
The two government-sponsored enterprises run by the federal government drop the maximum home mortgage they’re willing to purchase – to $417,000 – effective Oct. 1.
However, the current higher rates never applied nationwide and only worked in select higher-home-price areas. According to HUD’s website, Florida currently has six city areas with a maximum loan limit higher than $417,000 for a one-family home: Fort Lauderdale-Pompano Beach-Deerfield Beach (current maximum loan is $423,750), Naples-Marco Island ($531,250), Bradenton-Sarasota-Venice ($442,500), Miami-Miami Beach ($423,750), Key West ($729,750) and West Palm Beach-Boca Raton-Boynton Beach ($423,750).
Of the six, four will drop to the new maximum of $417,000; however, two will not. Effective Oct. 1, the Fannie Mae and Freddie Mac loan maximum for Naples-Marco Island will be $448,500, while Key West-Marathon will be $529,000.
Loan maximums are higher for two-, three- and four-family homes.
Since Fannie and Freddie do not buy loans until the sale has closed, many lenders have already started enforcing the new limits.
FHA
FHA limits vary by city in Florida. In no area does it go lower than $271,050, however, which is 65 percent of the Fannie Mae/Freddie Mac loan limit. Since many areas already have a $271,050 FHA loan limit – mainly smaller urban areas – a lot of buyers won’t notice a difference.
The FHA national loan limit “ceiling” is 150 percent of the national conforming loan limit. In higher-cost areas, the FHA loan limit lowers after Oct. 1, though not necessarily to the floor amount. In Jacksonville, for example, the current FHA maximum one-family loan limit of $387,500 drops to $304,750; in Miami-Miami Beach-Kendall it drops from the current $423,750 to $345,000; in Key West it goes from today’s $729,750 to $529,000.
For information on other FHA loan limits, check .
September 21, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Real Estate News, Riverside, San Marco, Uncategorized / Author: beth / Comments: (0)
VA loans, always a god deal for veterans, got another boost due to the Restoring GI Bill Fairness Act of 2011 with the lowering of funding fees. Although Reservist/National guard members are not receiving as much of a decease, they will seeing a downward change in the fees for their VA loans also. With NAS Jax, Mayport, Kingsbay and all the other military facilities around town, Jacksonville houses a large number of VA qualified home buyers. Traditions Realty LLC can help military personnel find the home of their dreams. Let us help you find a home with a good location and all the amenities you desire. With a VA loan and a buyer’s market, you may find affording the home of your dreams is not as difficult as you think. Read more below.
The Department of Veterans Affairs has announced lower VA loan funding fees for active duty, Guard and Reserve veterans effective October 1, 2011.
According to a VA circular posted at VA.gov, “For loans closed on or after October 1, 2011, the fee for subsequent use loans with less than 5 percent downpayment and subsequent use regular refinance loans will be 2.8 percent for both active duty Servicemembers, Veterans, and persons qualifying based solely on service in the Reserves or National Guard.”
The changes in the VA loan funding fee are prompted by legislation. According to the VA, “This change is due to passage of Public Law 112-26, Restoring GI Bill Fairness Act of 2011.” Additionally, “Funding fees for loans other than subsequent use will also change for loans closed on or after October 1, 2011. These fee changes were already set to change based on previous legislation.”
Here is a list of the changes to the VA loan funding fees. In some cases the active duty, Guard and Reserve fees are the same, and in other cases active duty members pay a lower VA loan funding fee than their Guard/Reserve counterparts. Some changes go into effect on October 1, 2011 and are not scheduled (at the time of this writing) to change again, while others will be lowered even more in coming years as described here.
VA Loan Funding Fees:
Down payment less than 5 percent:
October 1, 2004 until October 1, 2011
Active Duty – 2.15%
Guard/Reserve – 2.40%
On or after October 1, 2011 changed to:
Active Duty – 1.40%
Guard/Reserve – 1.65%
At least 5 percent but less than 10 percent down payment:
- Before October 1, 2011
Active Duty – 1.50%
Guard/Reserve – 1.75%
On or after October 1, 2011 changed to:
Active Duty – 0.75%
Guard/Reserve – 1.00%
10 percent or more down payment:
Before October 1, 2011
Active Duty – 1.25%
Guard/Reserve 1.50%
On or after October 1, 2011 changed to:
Active Duty – .50%
Guard.Reserve .75%
Second or subsequent use VA loan funding fees are the same for both active, Guard and Reserve as follows:
Less than 5 percent down payment:
- October 1, 2007 until October 1, 2011
3.30%
- October 1, 2011 until October 1, 2012
2.80%
- October 1, 2012 until October 1, 2013
2.15%
- On or after October 1, 2013 changed to:
1.25%
At least 5 percent but less than 10 percent down payment
- Before October 1, 2011
Active Duty – 1.50%
Guard/Reserve – 1.75%
On or after October 1, 2011 changed to:
Active Duty – 0.75%
Guard/Reserve – 1.00%
10 percent or more down payment
- Before October 1, 2011
Active Duty – 1.25%
Guard/Reserve – 1.50%
– On or after October 1, 2011 changed to:
Active Duty – 0.50%
Guard/Reserve – 0.75%
September 15,2011 Joe Wallace
September 01, 2011 / Avondale, Featured Properties, Murray Hill, Open Houses, Ortega, Press Releases, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
Despite signs of a national economy that is not quite in the clear, Jacksonville’s rental housing market is going strong. Nationally, the rental vacancy rate has declined in the second half of this year. A lack of confidence in the housing market is causing those looking for homes to consider rental housing instead of buying homes. Whether you are currently a Jacksonville real estate owner or are looking to buy real estate in Jacksonville, Traditions Realty can help you to take advantage of this situation.
Traditions is your source for both homes for sale and homes for rent in Jacksonville. Interest rates are currently low, and it is a great time to buy a home.
If you are in the market, we will work with you to find your dream home. We can also help list your home for rent or find the rental housing property that is just right for you. Read more below.
Fannie: Dark clouds loom but no recession
WASHINGTON – Aug. 23, 2011 – The economy was hit by a barrage of disappointing news during the last month, which led to a downgrade in the overall macro economic forecast released today by Fannie Mae’s Economics & Mortgage Market Analysis Group.
While the August 2011 Economic Outlook does not forecast a double dip recession, it finds that the chance of a double-dip recession is roughly equivalent to a coin toss. For all of 2011, economic growth is expected to downshift to 1.4 percent from 3.1 percent in 2010. Growth is expected to pick up in 2012, but only to about 2.0 percent, compared to the 3.1 percent projected in the July forecast.
“Key factors … have revealed that we have a bigger hole to dig out of, which explains the consumer angst over the lack of employment growth,” says Fannie Mae Chief Economist Doug Duncan. “Moreover, European financial market and fiscal policy turmoil, coupled with the U.S. debt ceiling debate, have hit on consumer confidence, which is at recessionary levels.”
Duncan says Americans are clearly worried about global, big-picture concerns.
“Housing has moved into second position behind general economic concerns among consumers, which is demonstrated in our National Housing Survey results,” Duncan says. “Our July data shows that 70 percent of Americans think the economy is on the wrong track, up from 60 percent a year ago. In turn, despite historically low interest rates, consumers are still saying they don’t see this as a good time to go out and borrow money to buy a house.”
Housing activity is expected to weaken along with the overall economy due to a renewed decline in business and consumer confidence, and a weaker jobs forecast.
One exception is the rental housing market. The rental vacancy rate (the share of rental housing that is vacant and for rent) plunged from 9.7 percent to 9.2 percent in the second quarter of 2011, and is now at its lowest rate in nine years. A lower rate of homeownership suggests that a rising share of households have gone from owning to renting.
© 2011 Florida Realtors®
August 11, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
The Jacksonville real estate market is gearing up for some major changes, and smart real estate buyers are taking advantage of the situation. Much of the rest of the country is already experiencing a rising House Price Index, which is showing a month-to-month increase for the first time in more than a year. You can get in on lower property prices right now. Traditions Realty will help you to buy Jacksonville real estate before the Florida House Price Index follows the current trend.
A rise in the Florida House Price Index will be opportune for those who already own Jacksonville real estate and plan to sell. In the meantime, Traditions handles homes for rent in Jacksonville and can help you to get the most out of your investment. Whatever your current situation, it does not pay to sit around and wait – act now! Read more below
FHFA House Price Index rises 0.8% in April
WASHINGTON – June 22, 2011 – House prices rose 0.8 percent on a seasonally adjusted basis from March to April, according to the Federal Housing Finance Agency’s (FHFA) monthly House Price Index. It was the first month-to-month price increase since May 2010.
The previously reported 0.3 percent decrease in March was revised to a 0.4 percent decrease. For the 12 months ending in April, U.S. prices fell 5.7 percent, and the U.S. index is 19.3 percent below its April 2007 peak and roughly the same as the January 2004 index level.
The FHFA monthly index is calculated by using the purchase price of houses sold to or guaranteed by Fannie Mae or Freddie Mac.
For the nine Census Divisions tracked during the March-April period, seasonally adjusted monthly price changes ranged from -1.3 percent in the Mountain Division to +2.2 percent in the New England Division.
Florida, which is in the South Atlantic division, was one of only three to show a price drop with -0.2 percent.
© 2011 Florida Realtors®
August 11, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
Are we too close to the issues of today’s economy? Are local investors missing the big picture? While the news at home is focused on the debt ceiling and the economy, international investors are pouring money into Florida real estate. The goal -acquiring prime properties at discount prices. The payoff-if you’re buying at half the price of the bubble, you have the potential to go up 60 to 70 percent in the next five years. While those of us living through it are fondly reminiscing on “the good ole days”, others still view the United States as the safest country to invest.
If you are looking to invest in Jacksonville Florida’s real estate market, we here at Traditions Realty can help. Traditions Realty is a full service company offering sales and property management. We can help you find investment properties, give you a true market value for the rental, obtain a tenant, and manage the property during the holding period. Choose an experienced agent with real world knowledge of Jacksonville’s most popular areas and lowest vacany rates. Read more below.
Offshore investors snapping up Fla. real estate
MIAMI (AP) – Aug. 8, 2011 – Offshore investors are flocking to Florida’s distressed real estate prices as major companies with ties to Hong Kong, Spain, Argentina and Malaysia are snapping up properties sensing the local market has bottomed.
International companies can park their investment and position themselves for the next development cycle, said Tere Blanca, president and chief executive officer of Miami-based Blanca Commercial Real Estate.
“Acquiring prime properties at discount prices in the height of the market was not achievable. Whomever has deep liquidity and can be nimble and act when opportunities arise can acquire properties at what we consider to be solid pricing,” he said, according to the Daily Business Review.
Stephan Gietl of Austria and his partner Fernando Levy-Hara, of Argentina, have purchased 307 South Florida condo units for $40 million since 2009. The duo has sold most of the units, mainly to international investors. Levy-Hara says the units yield between 5 and 6 percent profit per year after maintenance fees and property taxes.
“With the potential appreciation, if you’re buying at half the price of the bubble, you have the potential to go up 60 to 70 percent in the next five years,” he said.
As Americans worry about the economy and debt ceiling, international investors still perceive the U.S. as “the most reliable country in the world,” said Andrew Hellinger, chief executive of Coral Gables-based Hellinger & Penabad.
“We are a country where you can place your money for investment and know it’s safe.”
South Florida’s most notable recent deals have ties to investors with connections to major international companies.
Swire Properties, part of Hong Kong-based real estate and airline owner Swire Pacific, bought 2.15 acres in Miami at $14 million, along with the $13.1 million acquisition of Eastern Bank’s headquarters.
In May, Malaysia-based Genting Group paid $236 million for the Miami Herald’s headquarters. Genting, which also owns 50 percent of Norwegian Cruise Lines, plans to build nearly 7 million square feet of hotel, convention and restaurant space. Genting executives cited Florida’s growing population, budding Miami tourism and a likely nonstop flight from Asia to Miami International Airport as motivating the deal.
Agave Holdings, with ties to the owner of Jose Cuervo tequila, paid First Bank Puerto Rico $30.55 million for a project in Coral Gables.
Espacio USA, the American arm of Spanish real estate company Inmobiliaria Espacio, is about to close on its second office building. The company paid $31.52 million for another office building last year, with renovations running more than $1 million.
Brazilians have led the Miami condo market resurgence, accounting for 9 percent of unit purchases among international buyers of Miami single-family homes and condos, according to the Miami Association of Realtors.
“The feeling in Brazil is certain aspects of their real estate and economy make U.S. real property a relative bargain,” said Richard Goldstein, of Bilzin Sumberg. “In other countries like Venezuela, the currency is not as much of a factor. Political instability is a factor; they want a safe haven for their money.”
Copyright © 2011 The Associated Press. Information from: Daily Business Review, http://www.dailybusinessreview.com