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
The Fair Housing Act, passed into law in 1968, is celebrating it’s birthday this month. Realtors often need to explain this ruling to customers- buyers and sellers alike. The law “prohibits discrimination based on race, color, national origin, religion, sex, familial status or disability.” The National Association of Realtors also supports equal opportunity on the basis of sexual orientation. These rulings apply to homes for sale and rent in Jacksonville FL as well as the rest of the nation. This diversity increases our empathy for everyone in our city and can lead to a richer understanding of the entire world.
Meet with a Realtor today and explore the possibility of achieving the American Dream of owning a home. The timing has never been better. Read more below.
April is Fair Housing Month
WASHINGTON – April 4, 2011 – The National Association of Realtors® (NAR) announced that it will join Americans across the country to honor April as Fair Housing Month, saying the association strongly supports the Fair Housing Act and believes that anyone able and willing to assume the responsibilities of homeownership should have the opportunity to pursue that dream.
April marks the 43rd anniversary of the 1968 Fair Housing Act, which prohibits discrimination based on race, color, national origin, religion, sex, familial status or disability. NAR also supports equal opportunity on the basis of sexual orientation, incorporating that support into the Realtor Code of Ethics.
“Realtors work tirelessly to build communities and believe people have a right to live wherever they can afford to live,” says NAR President Ron Phipps. “In this vein, Realtors believe it’s imperative to recognize Fair Housing Month and reconfirm our commitment to upholding fair housing laws and our commitment to offer equal professional service to everyone.”
NAR’s Equal Opportunity and Cultural Diversity program offers education, grants, programs and events related to fair housing and diversity, helping Realtors learn how to best work with and serve diverse consumers. Since its inception in 1998, At Home with Diversity has addressed the topics through a full-day certification course.
Extensive training, grants and resources are also available to help Realtor associations and members better serve today’s diverse clientele. One workshop, “Leading with diversity: A business imperative in a change world,” helps Realtor associations incorporate diversity initiatives into their business models.
In addition, NAR awards Diversity Initiative Grants to local and state associations twice a year, and Housing Opportunity Program Grants help associations support activities that create and expand affordable housing opportunities
“For Realtors, every month is fair housing month,” says Phipps. “With every transaction Realtors strive to promote inclusion, diversity and fairness in the housing industry.”
For both January and February of 2011, Jacksonville real estate buyers and sellers have shown greater confidence in Florida’s economy. Floridians have seen an increase in wages and a strong stock market and have demonstrated optimism in almost all aspects of the economy. A survey conducted by the University of Florida shows that the purchase of large items is the area Floridians are most optimistic about. This is great news for real estate in Jacksonville.
Traditions Realty can help you take advantage of this situation. While personal finances are improving for area residents, prices on homes are still low. Let us be your partner in your search for Jacksonville real estate. Whether you are looking for homes to rent or buy, Traditions Realty will provide you with the tools, support, and information you need. Read more below.
With the high number of condos for sale in Jacksonville FL and the surrounding state, the prices have been falling to record lows. We are now starting to see a reduction of the inventory of existing units. Sales rose 6% in the fourth quarter 2010 compared to the same period a year earlier with a total of 17,731 sold statewide. Experts feel as unemployment decreases it will help to put a floor on price declines and provide a basis for recovery. Read more below.
ORLANDO, Fla. – Feb. 10, 2011 – Sales of existing condominiums in Florida rose 6 percent in fourth quarter 2010 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 17,231 existing condos sold statewide in 4Q 2010; during the same period the year before, a total of 16,229 units changed hands.
Thirteen of Florida’s metropolitan statistical areas (MSAs) reported higher existing condo sales in the fourth quarter, according to Florida Realtors. The statewide existing-condo median sales price was $86,400 for the three-month period; in 4Q 2009, it was $105,600 for a decrease of 18 percent. The statewide existing-condo median price in the fourth quarter was nearly 2.9 percent higher than it was in 3Q 2010.
Looking at Florida’s housing sector in the fourth quarter, Dr. Sean Snaith, director of the University of Central Florida’s Institute for Economic Competitiveness, pointed out that the jobs outlook has a major impact. “Persistently high unemployment constrains demand and feeds into the ongoing foreclosure problem,” Snaith said. “Given the state of the labor market, a continuing decline of home and condo prices in the fourth quarter is not surprising or unexpected. However, it’s important to note the rate of price decline is decelerating.
“As the labor market recovery takes hold in 2011, it will help put a floor beneath price declines and ultimately will provide the basis of housing’s recovery.”
Meanwhile, in the year-to-year quarterly comparison for existing single-family home sales, 39,338 homes sold statewide for the quarter compared to 43,494 homes in 4Q 2009 for a 10 percent decrease. The statewide existing-home median sales price was $134,100 in 4Q 2010; a year earlier, it was $140,500 for a decrease of 5 percent. 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, according to the National Association of Realtors® (NAR). The median is a typical market price where half the homes sold for more, half for less.
Optimism has increased slowly but steadily in Florida real estate markets through the fourth quarter of 2010, according to the University of Florida’s Bergstrom Center for Real Estate Studies’ latest quarterly survey of real estate trends. The report surveys economists, industry executives, real estate scholars, researchers and other experts.
Center Director Timothy Becker noted improvement in several key categories, including the outlook for sales in new single-family homes and condominiums, office occupancy, retail occupancy, land investment and capital availability. Respondents’ expectations for occupancy and rent increased across every property type, while the investment outlook rose in a majority of the property types. The statewide outlook was the highest since the survey’s inception in 2006, he said.
“Overall, the market appears to be improving and will continue to improve at a slow pace over the next year,” Becker said.
Low mortgage rates continued to be available during the fourth quarter of the year. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 4.41 percent in 4Q 2010; one year earlier, it averaged 4.92 percent.
Word from the Federal Reserve this month is the ecomony still needs help from it’s $600 billion Treasury bond-purchase program in order to help lower unemployment-the decision was unanimous. Intended to lower rates on loans and lift stock prices, the bond-buying program is encouranging more spending and pumping some life into the economy. Some Rederal Reservist fear it could increase inflation or speculative buying in assets like stocks. Others hope it will encourage buyers to clear some of the condos and homes for sale in challenged markets like Florida. Read more below.
Fed says economy needs $600B bond-purchase program
WASHINGTON (AP) – Jan. 27, 2011 – The economy isn’t growing fast enough to lower unemployment and still needs help from the Federal Reserve’s $600 billion Treasury bond-purchase program.
That was the assessment Wednesday of Fed policymakers as they ended their first meeting of the year. The Fed made no changes to the program, and the decision was unanimous.
The conclusion came from a new lineup of voting members that includes two officials who have raised questions about the bond program. They worry that the purchases could eventually ignite inflation or speculative buying in assets like stocks.
The bond-buying program is intended to lower rates on loans and lift stock prices, spurring more spending and invigorating the economy. Chairman Ben Bernanke faces the challenge of trying to increase hiring and growth without creating new economic threats.
The tax-cut package that took effect this month is easing pressure on the Fed to stimulate growth through the bond purchases. The measure renewed income-tax cuts and cut workers’ Social Security taxes, boosting their take-home pay.
The Fed’s assessment of the economy was nearly identical to its statement at its last meeting in December. The policymakers seemed to downplay recent improvements in the economy, including stronger spending by consumers and more production at factories.
Instead, the Fed noted that the economy still faces risks. The biggest: that high unemployment will damp consumer spending, which accounts for 70 percent of national economic activity.
Fed policymakers observed that the “economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions.”
One of the Fed’s main reasons for launching the bond-buying program was to lower high unemployment, now at 9.4 percent.
The Fed noted a recent increase in the prices of commodities, such as oil and gasoline, but said it isn’t likely to spark high inflation. The prospect that inflation will remain tame gives the Fed leeway to stick with its program, announced Nov. 3, to buy $600 billion worth of Treasury debt by the end of June.
On Wall Street, stocks were little changed after the Fed statement.
The Fed kept its pledge to hold a key interest rate at a record low near zero for an “extended period.” The Fed has kept rates at ultra-low levels since December 2008 to try to encourage people and businesses to spend more.
In crafting its message on the economy, the Fed avoided sounding too optimistic, which might have led investors to think it would cut short its bond-buying program. But it didn’t send a downbeat message, either.
“The Fed can’t take anything for granted at this point,” said economist Brian Bethune at IHS Global Insight. “The economy has shown signs of strength before and then it fizzled.”
The Fed’s show of unity Wednesday could erode by spring. At its next meeting March 15 or the following one on April 26-27, the Fed will probably want to signal whether it will end the bond-purchase program on schedule or extend it. Any push to renew the program would likely face stiffer resistance.
Charles Plosser, president of the Federal Reserve Bank of Philadelphia, and Richard Fisher, president of the Federal Reserve Bank of Dallas, have spoken out against the program as a threat to trigger high inflation. Plosser and Fisher might even pressure Bernanke to scale back the program before June.
Fed policymakers said Wednesday they’ll continue to monitor the bond-buying program. They have left open the option of buying more bonds if the economy weakens, or less if it strengthens.
Plosser and Fisher have reputations as inflation “hawks” – more concerned about the threat of high prices than about the need to stimulate the economy. They are among four regional Fed presidents who are voting members this year on the Fed’s main policymaking group, the Federal Open Market Committee.
The two other new voting members – Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, and Charles Evans, president of the Federal Reserve Bank of Chicago – have backed the Fed’s bond-buying program.
Fed watchers think Kocherlakota, a first-time voting member, will lean toward hawkishness on inflation. Evans’ reputation puts him among the “doves” – those concerned more about strengthening the economy than about warding off inflation.
Rarely in our nation has there been a more overhelming percantage of places that it is better to buy than rent. But, this year in 72% of the 50 largest cities it is better to buy than to rent. Supply and demand has turned the tides and in most cities renting is more expensive than buying. How does this effect homes for sale in Jacksonville FL? Read more below.
Cities where it’s cheaper to buy than rent
MIAMI – Jan. 25, 2011 – It’s cheaper to buy a home rather than rent one in 72 percent of the 50 largest U.S. cities, according to Trulia’s rent vs. buy index, which compares the total cost of homeownership to the cost of renting.
“Since the start of the ‘Great Recession,’ many former homeowners have flooded the rental market,” Pete Flint, CEO of Trulia, said in a news release about the index. “Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets.”
The index compares the median sales price of homes with the median rent on two bedroom apartments, condos, and townhomes that were listed on Trulia as of Jan. 10, 2011.
Here are the top 10 cities where it’s best to buy than rent, according to the index:
Condos for rent in Jacksonville Fl. Two and three bedroom new condos in Argyle Forest, Orange Park, FL 32073. Great schools, close to shopping, and great pricing- $850-$895.
Although Florida has missed hurricanes for the last 5 years, insurance rates are on the rise with the state run insurer, Citizens Property Insurance. When asked what would make the company sound, Financial Officer, Sharon Binnun, responded a rate increase of approximately 55%. With about 18% of the total residents in the state covered by the company, it now risk not having enough money to pay the claims should we be hit by a major storm . What effect will this have on Jacksonville Real Estate? Read more below.
Officials: Citizens would need 55 percent rate hike to be fully sound
TALLAHASSEE, Fla. – Jan. 13, 2011 – Newly elected Gov. Rick Scott wants to raise rates at Citizens Property Insurance Corp. to make them “actuarially sound,” but doing so would require homeowners covered by the state-run insurer of last resort to absorb a whopping 55 percent rate increase, officials said Wednesday.
That was the estimate given by Citizens Chief Financial Officer Sharon Binnun in response to questioning from members of the Florida House of Representatives’ Banking & Insurance Subcommittee on Wednesday.
Citizens is currently prohibited from raising rates by more than 10 percent a year, under restrictions lawmakers imposed in the aftermath of the 2004 and 2005 hurricane seasons, when eight storms hit the state in two years.
Citizens has ballooned into the largest insurance company in Florida since those storms, as private insurers have dropped policies and fled the state. Citizens has nearly 1.3 million policyholders, about 18 percent of the total residential exposure in the state.
The vast majority of its customers are in coastal areas; 42 percent are in Miami-Dade, Broward and Palm Beach counties.
If Citizens isn’t permitted to charge actuarially sound rates, it risks not having enough money to pay claims following a major storm or storms. And Citizens would have to make up that shortfall by taxing all of the state’s insurance policyholders – even those covered by private companies.
Binnun told lawmakers that Citizens currently has enough cash on hand and so-called “reinsurance” coverage to absorb a 1-in-10-year-sized storm (think Hurricane Wilma of 2005) or a 1-in-25-year storm without charging non-Citizens policyholders.
But if the state were to be hit by a 1-in-50-year storm (Hurricane Andrew size), Binnun estimated that private-insurance customers would be hit with assessments equal to about 10 percent of their premiums to bail out Citizens.
The year’s end brings hope for a better real estate market from the construction industry. With the two worst years on record dating back to 1959 behind us, the industry hopes for a bounce back to the 1 million homes they typically build. The number of new homes for sale is predicted by the number of new building permits. That number was up almost 17% in December. Taking into account the code changes in 2011, some builders may have been trying to avoid the additional cost of complying with the new codes by filing early. Read more below.
2010 ends as 2nd worst year for home construction
WASHINGTON (AP) – Jan. 19, 2011 – Builders began work last year on the second-fewest number of homes in more than half a century, as the weak economy kept Americans from buying houses.
Builders broke ground on a total of 587,600 homes in 2010, just barely better than the 554,000 started in 2009. Those are the two worst years on records dating back to 1959.
And the pace is getting worse. The Commerce Department reported Wednesday that builders started work at a seasonally adjusted annual rate of 529,000 new homes and apartments last month. That’s a drop of 4.3 percent from November and the slowest pace since October 2009.
In a healthy economy, builders start about one million units a year. They built twice as many in 2005, at the height of the housing boom. Since then the market has been in decline.
One positive sign is that builders appear to be planning more projects in 2011. Building permits, considered a good barometer for future activity, rose 16.7 percent in December to a seasonally adjusted annual rate of 635,000, the best pace since March.
But builders likely pulled more permits in California, New York and Pennsylvania ahead of code changes in 2011 — a factor that likely influenced the spike.
“Some builders went ahead in December with projects to beat the change,” said Jennifer Lee, an analyst at BMO Capital Markets. Lee points out that the biggest gains were in the Northeast, which was up 80.6 percent, and the West, up 43.9 percent.
People are buying fewer single-family homes, which represent nearly 80 percent of the market. Demand fell 9 percent to an annual rate of 417,000 units. Apartment building increased 17.9 percent to an annual rate of 112,000 units.
Housing construction fell in all parts of the U.S. in December except the West where activity surged 45.8 percent. Construction dropped 38.4 percent in the Midwest and was down 24.7 percent in the Northeast and 2.2 percent in the South. Severe winter weather likely affected activity in the Northeast and Midwest.
The collapse of the housing market helped push the country into a deep recession and more than a year after the recession, housing is still struggling.
Real estate mutual funds rang out the year with a 2l.6 percent gain disproving the fear of many for another real estate nightmare. Hotels and apartment showed the largest gain but even the runners up, office and industrial, showed significant gains of 21% to 19% . This year’s gain are not expected to be as high as those seen this year.
Real estate funds defy forecasts
NEW YORK – Jan. 6, 2011 – Despite rumors of an upcoming collapse in commercial real estate, real estate mutual funds continue to bring home solid returns.
Investors bracing for part two of the financial crisis, this time in commercial real estate, missed out on a 27.6 percent gain, according to Lipper, by real estate mutual funds in 2010. These funds capitalized on discounted prices for commercial property and real estate investment trusts as well as lucrative dividend yields.
“There was less of a distressed environment (for commercial real estate) than many perceived,” says David Lee, portfolio manger of the T. Rowe Price Real Estate fund, one of the top-performing real estate funds last year, returning 29.9 percent.
Using 2010 as a guide, investors are closely watching trends going into 2011 that might influence real estate mutual funds, including:
• Changing dividend yields.The fact commercial real estate investments tend to pay market-beating dividends is one of its big attractions. But thanks in part to the jump in REIT stock prices, the group is currently yielding 3.5 percent, which is low relative to historical averages and current long-term Treasury rates, says Keven Lindemann of SNL Financial.
The big wild card, though, is that many REITs are boosting their dividend payouts. During 2010, 52 REITs of the 125 that SNL tracks increased their dividends, a trend that bodes well for future yields, Lindemann says.
• Shifting real estate demand amid economic recovery.While investors tend to look at REITs as a group, mutual fund managers know to slice the market into areas that behave differently during economic cycles, Lee says. Hotel and apartment REITs, for instance, were standouts in 2010. Hotels have enjoyed higher room rates and occupancy. Hotel REITs returned 41 percent in 2010, Lindemann says. Even the laggards, office and industrial REITS, returned 21 percent and 19 percent, respectively, despite concerns of slow job growth, he says.
• Improving health of real estate companies. Real estate companies, relatively high borrowers, were mostly able to refinance their debt during 2009 and are in much better health now, says Ron Florance, managing director of investment strategy for Wells Fargo Private Bank.
Apartment REITs have also benefited, as people didn’t rush to buy homes or were unable to get mortgages, he says. Apartment REITs returned 48 percent in 2010, making them the top performers, SNL says.
But commercial real estate funds face dangers. REITs’ dividend yields are less attractive as Treasury yields rise, Florance says. Many commercial real estate companies, meanwhile, face debt payments the next four years that could become onerous if the economy isn’t healthy, Lindemann says. “It would be very surprising … if we saw another year of such significant outperformance.”
Copyright © 2011 The Associated Press, Jeannine Aversa, AP economics writer.