The Lafferty Group's Real Estate Blog

2009-02-06T10:08:00.002-05:00

How Long Befor Banks Use This Market to Enter Real Estate

I'm surprised that with all the foreclosures in the last year and what is coming this year that the Banks haven't said they want to be allowed to sell Real Estate. Banks have been trying for years to get legislation passed that would allow them to sell Real Estate and now they have a slightly opened door. I'm sure they will argue that they would be the best to sell the properties that are past due or in foreclosure. They could make the loans to the new buyers and give discounts on appraisals........ This would then open the door to selling all Real Estate.

I'm also surprised it hasn't been hidden in this stimulus bill. The banks would have to hire Brokers, associates, processors thus creating jobs and getting rid of the bad debt.

Keep your Eyes open.

2008-08-27T12:59:00.002-05:00

Durable Goods Orders Up 1.3% in July

This is a surprise to some and makes sense to me. Foreclosures are at record levels, Home prices our down and July sales of existing homes increased.

What I am seeing is a large number of sales from the large number of foreclosures. All of the foreclosures I have seen need new refrigerators, dishwashers, stoves, washers and dryers.

It's my opinion that the Foreclosures are driving the markets and have increased the sales of durable goods.

2008-07-01T08:43:00.004-05:00

ARM's Set to Adjust Again

On August 1 Millions of ARM's are set to adjust again. This sounds like it could be another prelude to more foreclosures. Not so fast!

I have two mortgages, both ARM's, and I never refinanced to a fixed rate for various reasons. And I'm glad I didn't. I received letters from Wells Fargo and Countrywide telling me my mortgages are set to adjust and to my surprise they are both adjusting down two full % points. This will save me almost $300 a month. The $300 will go right back into the economy. If this is happening to millions of mortgages around the country it could be the economic stimulus we have been looking for.

I'm not hearing this in the financial news.

For more Real Estate go to www.thelaffertygroup.com

2008-06-26T20:30:00.003-05:00

What does a 350+ drop in the Dow mean for Real Estate?

A drop in the market like today will do one thing for sure.

Mortgage rates will fall

This is the best time to buy.

No matter what the rates are people are having a hard time making the decision to buy when the dollar is low and oil is high.

We need to fix the Dollar to get our confidence back.

To see more go to www.thelaffertygroup.com

2008-06-11T11:21:00.003-05:00

I Guess it Wasn't The Day We Have Been Waiting For

Since the last post:

The market is down huge
The Dollar is worse
Oil is Higher
Gas is over $4

The price of houses are very low and it is my opinion that we will see more millionaires made in real estate from this down market than ever before. Foreclosures are everywhere and great deals and that includes commercial real estate.

I think it's time for me to expand into commercial real estate across the state! http://www.thelaffertygroup.com/view/306/22193/Lafferty-Commercial-Real-Estate.html

2008-05-29T19:45:00.002-05:00

Was this the day everyone has been waiting for?

GDP increased more than expected
Oil prices took a steep fall
The US Dollar was stronger
The stock market went up
T-Bills increased
Gold fell

If this holds we will be in good shape.

This is a good time to expand.

2008-05-23T10:17:00.002-05:00

More Bad Housing News

Today more bad news came out for the Nations Housing stats. April sales dropped 1% with the Median sales price dropping 8%.

For Indian River County we saw an increase for April compared to the same period in 2007. We increased 16.5% for single family homes and 61% for Condos. We did see a be drop in median sales price of 16% for residential Single family homes and 20% for condos.

I think we have hit the bottom here and with the action we have seen this month I think the trends should be up.

2008-05-21T15:12:00.003-05:00

$4 Gas and Crazy Stock Market

Interesting article today saying $4+ gas is not a bad thing. I do know that High gas prices are changing how people shop for Real Estate. It's done behind a desk and neither the buyer or Realtor are getting in a car until they narrow down what they are going to see. Click here to read story http://www.foxbusiness.com/story/markets/upside--gallon-gas----really/

The daily fluctuations on the NYSE is keeping the mortgage rates down. With all the great deals out there and good mortgage rates now is the time to buy if you are ready.

2008-02-28T15:30:00.002-05:00

Rates Continue to Hold or Fall

Looks like the Stock market will continue to go up and down over the next few months which will keep mortgage rates low and because of this buyers are starting to get serious about buying. We have seen an increase in the number of showings for our listings and we actually had a buyer get into a bidding war and loose. Not a problem for him. There are plenty to choose from.

Now is the time to buy. Get with lender, get approved and start searching for the right property.

2008-01-25T15:02:00.000-05:00

Has The Housing Market Hit Bottom?

Existing Home Sales in December hit 25 year Low. The Median home price dropped for the entire year, this is the first time this has happed in 40 years. Most people I talk to fall for the doom and gloom that stats like this cause. It's easy to see the bad in all this and I don't blame anyone that does.

I think it's great news. Last year is over and if trends continue down it can't last for long. I think prices are right were they should be and mortgage rates are at a 4 year low. We have to be at or very close to the bottom.

Now is the time to start buying

Read: http://www.foxbusiness.com/markets/industries/real-estate/article/existing-home-sales-plunge-25year-low_449895_17.html

2008-01-18T09:23:00.000-05:00

Recession or Not

Are we in a recession or are we headed to a recession? History continues to repeat it's self. Back in late 1999 and 2000 everybody was talking about how we are headed into a recession. And when I say everybody I mean everybody. All the news agencies, all my co-workers, people on the streets and most have no idea what a recession is or how to tell if we are in one. The same thing is happening today. Everyone is talking about recession. A 1,000 point drop in the Dow in the first 3 weeks of the year, new home construction down record percentages (this is another subject for a later date. Why would we start to build new homes if what's built isn't selling?) oil prices are hitting highs creating over $3 for gas..........

I have a theory. I said it in 2000 and I will say it again. If people other than economists and financial analysts are saying we are headed for a recession we are already in one. When the person in line at the supermarket is talking about recession while reading the tabloids we're in one. Perception is reality. When everyone thinks recession they think before they spend and when spending stops everything stops. The key is how long have we been in one. 6 months maybe a year

We have seen this before. Just like the early 2000's the Fed will drop rates and when the rates get to the right spot the cycle will start again. Money becomes cheaper and the banks start lending again. I bet the banks will make much better lending decisions as well.

Again, this is just a theory. The indicators are mixed. Some say a recession is coming and some say things aren't that bad.

All I know is that it sure feels like it did 8 years ago.

2007-12-06T13:37:00.000-05:00

Mortgage Rates at Two Year Low

I said it in the last post. When the Stock Market falls Morgate rats follow and that's what happened. We were at a 1 year low two weeks ago and now we are at a 2 year low. Now is the time. The market is going back up and so will the rates. Now is the time to buy if you need to get a mortgage.

To read the whole story go to: http://www.foxbusiness.com/markets/economy/article/30year-mortgage-rates-fall-2year-low_396219_3.html

2007-11-21T11:08:00.000-05:00

The Sky is Falling?

Developers are filing for bankruptcy
Prices are falling
If you bought your house two years ago you see your value falling
The Stock Market fell big last week, Monday, and as of 10:30 today it's down more than 150 points
Fannie Mae braces for billions in loan losses
Price of Oil is $100 and gas is over $3
The Cridit industry is changing daily

The Sky must be falling right? Nope

Developers are filing for bankruptcy - so many got wrapped up in the crazy housing market two years ago and bought land at it's highest prices ever. You can make all kinds of deals with developers and get some great places at very low prices.
Prices are falling - buyers have so much to choose from and the prices are great.
Values Falling if you bought two years ago - If you plan on living in the house you will get it all back in a few years.
The Stock Market is falling - When people sell off they put their money in bonds and that lowers mortgage rates. Rates are at a year low and will stay level. Now is the time to get a mortgage.
Fannie Mae braces for Billions in losses - It was just to easy to get money and this will all wash out and make for better lending practices over all.
Oil and gas hit highs - I can't see anything good about that. Sorry
The Credit Industry is changing daily - We will just have to go back to the days when you had to save for a down payment and had good credit. Nothing wrong with that.

Over the next year or two everything will get better and the values of our homes will climb.

Now is the time to buy

2007-11-14T09:43:00.000-05:00

Housing Bubble Mirrors 1990's Tech Bubble

This is great article by Dustan Prial, FoxBusiness

It's amazing how close the two mirror each other. The one thing to remember is that we all survived the Tech Bubble. The Housing industry will be be just fine.

http://www.foxbusiness.com/article/housing-bubble-mirrors-1990s-tech-bubble_365255_55.html

2007-10-23T13:51:00.000-05:00

14,900 visitors to our website in the 3rd quarter 2007

For the 3rd quarter 2007 we had 14,900 visitors to our website and they viewed 106,644 pages. Year to date we have had 45,496 visitors viewing an amazing 496,829 pages.

Stats show that buyers and sellers are searching the Internet a year or more before they make their move and I would have to agree. We get 40+ leads a month looking for listings in our area or values on their property. We currently have over 1,000 that we are keeping in touch with by an in-depth email and phone campaign. We hope to convert 20% of our leads in a year.

2007-09-26T09:45:00.000-05:00

Indian River County Home Sales Increase 17%

August is always one of our slowest months and we increased single family home sales by 17% from this time last year. All summer we have seen an increase in activity from buyers and they are seeing the prices coming down and interest rates ticking up. Everything is pointing to 2008 being the recovery year and if you are thinking of selling your house next year you need to get it on the market in the next month.

Pricing continues to be the key to getting buyers to look at your property. I have to agree with William Pittenger of Sea Coast. Pricing needs to get to the 2003 and 2004 levels to get real sales activity. Now this is bad news for those that bought in 2005 and 2006 and want to sell. We are slowing seeing these listings sell and the sellers are taking a beating. For the rest of the sellers 2004 prices aren't that bad.

For the full article go to: www.thelaffertygroup.com and click the Real Estate News button

2007-09-12T14:39:00.000-05:00

Coastal Escrow Closes Doors and Takes over $3 Million in Escrow Deposits With them.

When Ira Hatch closed his doors last week he shook the world around him. Realtors learned a very valuable lesson and one that may not have been able to be avoided. As Realtors we give advice and instruct individuals and families on what needs to be done when buying and selling homes. They trust us with the biggest transaction 99% of them will ever have and give thousands of dollar to us to hold in Escrow for what could be months. And what do so many Realtors do? Give these deposits to a third party. This way they don't have to worry, or so they thought, they don't have to reconcile the escrow account and they don't have to worry about an audit. At this point all that seems to be a small price to pay.

One problem still exists. Even if your Real Estate company has its own escrow account, one to two days prior to closing they still have to write a check to the closing agent. What does that closing agent do? Deposits it in another escrow account and from what we have seen it can all be gone the next day.

How can this be avoided? Escrow deposits need to be held with a company that is regulated and one that has to account for funds. Title companies, Law firms and Real Estate Agencies. This doesn't mean a these funds can't be stolen, but the chances are smaller.

As the Broker and Owner I prefer to have my own escrow account. It's a pain to reconcile every month, but I know where the money is.

For the most upto date info go to: http://www.tcpalm.com/news/2007/sep/10/florida-bar-hatch-voluntarily-disbarred/

2007-08-29T15:41:00.000-05:00

The Rental Market should be making a big come back

With mortgage industry having troubles and lenders starting to go back to making loans based on good credit and money down we will see many more people rent for longer periods allowing themselves to save money for a down payment and fix any credit problems.

What does this mean for the Real Estate market?

All those flippers that got stuck may be able to finely get their properties rented if they can hold on long enough.
The real investors will start to see an increase in what they can charge for rent.
We will see more qualified buyers which makes a Real Estate transaction much smoother.

This is a good time to buy. Rates on loans will continue to creep up, asking prices are coming down, Values continue to increase, and it looks like the rental market should get strong.

Remember Real Estate is local no matter what you hear in the national media. Know your area and you will be fine.

2007-04-25T07:59:00.000-05:00

They Listed at $600,000 and Sold for $400,000 -- What Happened?

This is a great article by Kate Morgenstern, AOL Real Estate. I have been watching this happen over and over. The buyers are out there so pricing needs to be right.

Click below to read the article.

http://realestate.aol.com/article/investing/_a/they-listed-at-600000-and-sold-for/20070412110809990001

2007-04-04T15:03:00.000-05:00

Barrier Island Condo sales and Median price increase in 1st Qtr 2007 over 2006 1st Qtr. The Mainland, however, showed a decrease in sales and medan price for 1st Qtr 2007.

For more Stats on Indian River County go to http://thelaffertygroup.com/index.php?action=website-view&WebPageID=14993&WebSiteID=306

2007-02-27T09:19:00.000-05:00

Realtors cautiously backing property tax plan

Real estate agents statewide are cautiously embracing a Florida House plan that would eliminate property taxes on primary residences and limit the amount of tax local governments could collect.

"For Realtors, and people who market the state, the lack of a state income tax is a marketing tool, no question," said Trey Price, a public policy representative with the Florida Association of Realtors, an Orlando-based group with 165,000 members that represents real estate agents.

"If the House proposal were passed, and there were no property tax, that would be a very strong marketing tool, as well.

"House leaders on Wednesday unveiled a sweeping plan that would hike the state's sales tax to the highest in the nation, in exchange for reduced property taxes.

In most areas of the state, sales tax would be pushed to 8.5 percent. By comparison, California's tax on consumer purchases, now the highest in the U.S., is 7.25 percent.

House lawmakers estimate the change would generate nearly $8 billion in new Florida sales tax in the first year the measure was in effect. At the same time, residents and taxpayers would save almost $6 billion.

The average homeowner whose property is protected by Save Our Home legislation would save nearly $2,300 annually.

Though the idea of halting the escalations in property taxes that have clipped homeowners since 2002 isn't new -- Gov. Charlie Crist revealed his own plan a few weeks ago -- the House plan was both surprising and dramatic.

But not to Realtors. House leaders approached the Florida Association of Realtors a few weeks ago about the concept. Price said the group is "very intrigued."

Other prominent Realtors, however, said they aren't ready to endorse the House concept.

"It's short-term thinking vs. long-term," said Budge Huskey, president and chief operating officer of Coldwell Banker Residential Real Estate Inc., among the largest home brokerage firms in Southwest Florida.

"There's no question that if you announce a rollback in taxes, it will spark additional investment and purchases," Huskey said. "On the other side of the table, sometimes when projections are made on how much money could be raised, you can't always rely on their accuracy. Eventually, it becomes a quality of life issue."

Local Realtors agreed that property taxes are among several factors having the most severe impact on home sales throughout the region.

"We recognize that something needs to be done about both taxes and insurance, because they are dramatically affecting how people look at home ownership," said Joe Hembree, president of the Sarasota Association of Realtors."

That said, sometimes things that look good on the surface often have unforeseen complications," said Hembree, president of Hembree & Associates Inc., a Sarasota real estate firm."

The fact that the Legislature is looking to do something is a great thing," said May Aston, president of the Manatee Association of Realtors. "We all want something to happen with runaway taxes, but it has to be the right thing."

Like its Sarasota and statewide counterparts, Aston said the Manatee association intends to study the issue further before deciding whether to back the House proposal.

By KEVIN MCQUAID
Source: Heroldtribune.com

2007-02-08T15:08:00.000-05:00

Record Number of Visits to Website in January

Reports have showed that 75% or more of the people looking to sell or buy Real Estate start the process by searching the internet 1 year in advance and what we see confirms this. In January we saw a record 4,439 visitors from 62 different countries to our site viewing 79,638 pages. Since March of last year we have had 26,720 visitors to our site looking at 464,537 pages. I don't think we could have reached that many individuals by traditional advertising and I'm sure we couldn't afford to direct mail 26,720 people for the cost of the internet.

Thanks to everyone that have been to www.thelaffertygroup.com

2006-12-19T09:48:00.000-05:00

Florida real estate a silver lining from overseas property buyers

The talk of London Town is the Christmas bargains on offer in stores across the shops in New York and in other cities across the USA. Surely this must mean a real estate bonanza for overseas property buyers looking for investment property overseas. The UK housing market has a shortage of homes for sale leading to constantly increasing property prices. Investors are not getting value for money in the British competitive market. Seasoned property investors know that profits are made on the purchase price and this is now become increasingly difficult. So is the US housing market going to be rescued by overseas property buyers in 2007? On the face of it looks like a certain bet, overseas buyers could potentially benefit twice with a weak dollar and lower property prices in the USA. The U.S. dollar has plunged to a 14-year low against the British pound, and the widely predicted point at which a pound is worth $2 will is very likely to arrive before the ticker tape falls in London’s Trafalgar Square on New Years eve. With the stampede of British bargain hunters hitting New York you would think that real estate must be next. Commenting about thegreat British bargain hunter Virgin Atlantic spokesman Paul Charles “Brits will always look for a bargain,and if the bargain is in New York on the back of better exchange rates, then they will take it.”.

US Housing market

It is true that today’s US housing market is a buyers market with lots of homes for sale and a lack of buyers willing to take that final step to purchase. Those who are selling property are taking chunks from their asking prices in order to clinch that seemingly rare real estate sale.

Will overseas buyers rush to the USA?

UK Overseas property buyers have been heading to Eastern Europe rushing towards cheap property in countries such as Bulgaria, Romania, Croatia and Montenegro. These new markets offer low capital expenditure and potentially high short term gains. Long Haul destinations such as Cape Verde, Brazil and South Africa have also emerged in 2006 as good places to buy property abroad offering great value for money and good potential for short term gains. Overseas property investors look at the complete economic picture before changing their investment strategy. Richard Iley senior economists at BNP Paribas in New York feels that economic outlook for the US is a little gloomy with the countries growth slowing rapidly as the housing market loses pace. The big retailers in the US have been hit; Wal-Mart and Gap have both reported lower takings and some economists have even uttered the word 'recession'.

Florida will always be attractive place to buy property.

One region that appears to be protected against the economic gloom is one that attracts a huge amount of inward investment and foreign cash . The region attracted 84 million tourists last year according to the states tourists’ board. The American society of Travel Agents reports that the number one visited tourist area in the US was Orlando. Overseas real estate buyers are mainly made up of the British and Canadians. The Brits love to buy property in Florida and have always appreciated the value for money aspect of buying a home in Florida. CEO of Homesgofast.com the overseas property web site ‘ There are bargains to be had in the sunshine state, Florida’s strong tourist industry means that in the long term Florida is a great place to buy property overseas. The highly regulated real estate industry in Florida also serves to provide overseas property buyers confidence in buying property abroad. Financing your Florida property purchase is also easier than many emerging markets that sometimes put the buyer through several hoops before making a purchase. The added attraction of the weak dollar could mean that in 2007 real estate developers and agents may need to aim their marketing towards overseas property buyers.

Taking full advantage of currency exchange rates

If you have you eye on a condo hotel in Florida or an off-plan investment property near Disney you can use the ‘forward buying’ principle to guarantee a great exchange rate into the future. Simply put down a deposit of Sterling currency and your rate will be fixed for up to 12 months. Nick Bull of Moneycorp says “If you have decided to take the plunge and move to the States you should also have begun the arrangements for transferring your money over there. With Sterling close to its highest level for well over a decade it would be a shame to miss the chance” It is also important to understand where this position comes from. “This is a weak Dollar we are talking about, not a particularly strong pound. Its performance against the Euro, for example, has not been particularly stellar.” added Nick. Fixing your foreign exchange rate now does not mean that it is impossible for the rate to rise still further, but it does protect you from the possible strengthening of the Dollar in the coming months.

source: homesgofast.com

2006-12-07T14:39:00.000-05:00

Expert thinks housing market has completed its down cycle

By NADIA GERGIS nadia.gergis@scripps.com

December 7, 2006VERO BEACH — The housing market has hit bottom and that's good news, a prominent Orlando economist told real estate leaders Wednesday.

Hank Fishkind, president of Fishkind & Associates, Inc. an economic and financial consulting firm, said the Treasure Coast is completing the down cycle with a "soft landing." He predicted a rebound for the market in 2008 through 2009.

"The good news is, it's not going to get any worse," Fishkind said. "We're at the bottom of the cycle right now."

Fishkind spoke at a Wednesday luncheon sponsored by the Real Property Council of Indian River County, a real estate attorney association — and the Treasure Coast Real Estate Council, which collects data on local real estate transactions.

However, he warned that because of the current housing slump — land prices would continue to suffer because prices had reached unsupported values and buyers are not absorbing the influx of new and existing single-family homes coming on the market.

Additionally, he warned that the area would not experience any significant price appreciation until the market rebounds again.

"Prices in Florida shoot up like rockets and then falls like a feather, so there will be no price appreciation for a long time," Fishkind said. "I've seen this two or three times before and it will take awhile for the market to absorb all these housing starts."

Fishkinds remarks are inline with what other local economist are predicting for the housing market.

Speaking at an Urban Land Institute conference last month, Brad Hunter, Metrostudy director for South Florida, said the market turnaround could take 18 to 24 months. Don Santos, past president of the Treasure Coast Builders Association and president of Santos Construction, has also predicted the market would recover during the 2008 timeframe.

Fishkind said the housing boom could not be sustained in the area because Indian River County did not have a large job base to support population growth.

"The employment and economic base is narrow here and cannot support growth for a lengthy period of time," Fishkind said.

Other factors having a negative effect on local real estate: property taxes and skyrocketing insurance rates.

He also explained that the portability of Save Our Homes the ability to carry your tax savings to a new property proposed by Governor-elect Charlie Crist may seem like a positive alternative on the surface. But, local governments and their budgets may suffer if it's passed as a constitutional amendment in Florida.

"I am concerned about the impact of the portability issue on local government because it creates a distorted impact," Fishkind said. "It would reduce the growth of the ad valorem tax."

Ad valorem tax is a major source of revenues for state and municipal governments.

source: TCpalm

2006-11-30T11:17:00.000-05:00

In Florida, an upswing in consumer confidence

GAINESVILLE, Fla. – Nov. 29, 2006 – Lower gas prices, high employment levels and possibly the mid-term election results boosted consumer confidence in Florida by three points in November to 93, University of Florida economists report.

“Consumers in Florida are optimistic going into the holiday season,” said Chris McCarty, director of the survey research center at UF’s Bureau of Economic and Business Research. “This should be good news for retailers. Our expectations had been that high levels of consumer debt coupled with the downturn in the housing market would be a burden on consumers, who would in turn curtail their spending. Based on these results, this does not appear to be the case just yet.”

The rise in confidence was broad-based, with increases in four of the five components. Perceptions of U.S. economic conditions over the next five years registered the biggest gain, jumping eight points to 93. Expectations about U.S. economic conditions over the next year rose four points to 87. Perceptions of personal finances a year from now rose three points to 100, while perceptions of personal finances now compared to a year ago rose two points to 84. The only component to decline was the perception of whether it is a good time to buy big-ticket items, which fell by one point to 100.

“Interestingly, one of the largest gains was in the component measuring long-term economic conditions,” McCarty said. “Given the lack of any major economic events in November, one has to wonder whether the election results in Florida, nationally, or both, had an effect.”

High employment levels and lower gasoline prices likely had a positive influence on consumers, McCarty said. But on the negative side were record debt levels and the housing downturn, he said.

“The buildup of inventory has led to sharp declines in housing sales statewide, as well as declines in prices in selected markets,” he said. “The collateral damage from this is potentially severe in Florida, particularly among those who depend on housing as a substantial source of wealth.”

But so far these fears, as measured by consumer confidence, have not been realized, he said.

“At this point, I would have to forecast at least a moderate holiday season based on these results,” McCarty said. “Any severe downturn in the economy due to housing is not likely until 2007. Although it might still happen, it is not likely this close to the holidays.”

The research center conducts the Florida Consumer Attitude survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for November was conducted from 426 responses. The error rate is plus or minus 5 percent.

Consumer confidence is designed to help predict buying patterns by measuring the mood of consumers toward purchasing. Although other economic indicators also predict buying patterns, consumer confidence tends to be available sooner. The index is benchmarked to 1966, so a value of 100 represents the same level of confidence for the year. The value of the index is in comparing changes over time rather than looking at an isolated month.

Source: PlanetRealtor.com

2006-11-28T11:01:00.000-05:00

Indian River County battles over who should pay for S.R. 60

By HENRY A. STEPHENS henry.stephens@scripps.com

November 24, 2006

INDIAN RIVER COUNTY — Local real estate agents broke ranks this week with developers as county officials wrestled with a way to loan the state $67 million to widen State Road 60 — without losing $12 million in interest the state won't reimburse.

Karen Hall, president of the county Association of Realtors, opposed County Administrator Joe Baird's proposal for developers who depend on the widening project to pay a fee covering the interest.

"One thing we're concerned about is affordable homes," Hall said Wednesday. "We're concerned this (fee) would make homes so much more expensive."

But Pointe West developer Chuck Mechling supported paying shares of the county's interest to get the road widened.

"There's a fairness factor here," he said Wednesday. "Those who would impact S.R. 60 there would pay for this situation."

County officials have sought to widen S.R. 60 from four to six lanes for years, especially since Hurricane Floyd evacuees packed the road on the way to Interstate 95 in 1999.

The state Department of Transportation had planned for construction on the first phase, between 66th and 82nd avenues, to start in late 2009 or 2010. But the DOT hadn't planned on construction of the second phase, between 82nd Avenue and Interstate 95, to start until 2016 or later.

County officials say they want the road widened in one project, instead of two phases, and started by 2008. Commissioners are considering loaning the $67 million to the DOT to move the project ahead of the state schedule.

But that will require the county taking out a loan first, and the state wouldn't be reimbursing the county's interest, County Administrator Joe Baird says.

The issue now is whether the county can get the interest paid so it can afford to advance the project ahead of the state schedule — or whether developers can afford to wait for the state.
In a 5-0 vote Tuesday, the County Commission agreed to pay Tallahassee attorney Bob Nabors up to $10,000 to develop a way to recover the interest from developers whose projects depend on S.R. 60 being widened.

"We're calling this an 'interest-reimbursement fee,'" Baird said.

Baird said he expects to return in January with Nabors' recommendation.
In a prepared statement Tuesday, Hall told the commission the fees would force builders to "either pass them along to make up the difference in profits or reduce the quality and/or quantity of the new units because their not gong to make a living building the homes."
Hall urged commissioners to find a "viable solution" that didn't require having the development community pay the county's interest.

Mechling said he doesn't relish paying an extra fee, but said people need to "step up to the plate" to work on a solution. Hall didn't have an alternate proposal, he noted.

"If the Association of Realtors had a better solution in mind, I would have been interested to hear it," he said.

For Vero Beach resident Renee Renzi, meanwhile, the solution is not to widen S.R. 60 to appease developers.

"It seems to me you have a perfect opportunity to say, 'Sorry developers, that section (of S.R. 60) is closed down because we can't meet (required road capacity),'" she told commissioners.

"We've all wanted you to say 'no' before I ever started coming to these meetings."

ROAD WOES

State Road 60 segment from 66th Avenue west to 82nd Avenue:

• County takes out loan to advance $37 million to state in October 2007.
• State starts the project by 2008 and reimburses county $37 million in October 2009.
• State doesn't reimburse county's estimated $3.8 million in interest.
• County takes out loan to advance $30 million to state in 2008.
• State continues job started in 2008 and reimburses county $5 million a year from 2012 to 2017.
• State doesn't reimburse county's estimated $7.5 million in interest.

County Office of Management and Budget

Source: TCPalm

2006-11-16T12:42:00.000-05:00

Rising property values to fund roads and services

ORLANDO, Fla. – Nov. 15, 2006 – New roads, new buildings, acres of environmentally sensitive land and a fresh group of deputies.

Counties across Central Florida are cashing in on what might turn out to be record growth in property tax revenue to help buy things they have long wanted but couldn’t afford.

The extra $270 million rolling in this year because of soaring property values on homes, businesses and vacant land is enough to run a small country. And that amount doesn’t include tens of millions of dollars the region will bring in through taxes on new buildings.

The extra cash is allowing county leaders across the region to pay for overdue renovations at the Seminole County Jail and a contribution of up to $46 million toward an incentive package to lure the Burnham Institute for Medical Research to Orlando.

County leaders argue they need to take advantage of a chance to bring in the kind of money they might not see again next year, when property values might not grow as much. Also, government leaders statewide are looking at ways to reform Florida’s tax system, which could lead to less revenue, too.

Critics complain the new money comes on the backs of business owners, investors and people who just moved.

Florida TaxWatch – a nonpartisan, business-backed oversight group – is frustrated to see county governments boast they have gotten the money while maintaining tax rates or dropping them slightly. By state law, a county is raising taxes if it brings in more money than in the previous year.

Volusia is thought to be one of, at most, a few Florida counties that adopted a tax rate expected to generate the same amount of money as last year, referred to as the roll-back rate. It did so after hundreds of residents protested at budget hearings.

As a result, Volusia will forgo about $49 million in property taxes that it initially had hoped to help cover the rising costs of such things as employee health insurance and utilities. Not all of the property taxes levied by the county went to rollback, so Volusia will still see a small increase in revenue from rising property values.

Other counties will get tens of millions of bonus bucks. Officials mostly held off on cutting tax rates – or cutting much – because they say the money is needed to keep up with rising costs, and they fear the revenue boom might not last. Home sales could slump, and the state’s property tax system might change as leaders across Florida bounce around ideas for reform.

In Orange County, authorities had predicted property-tax proceeds would increase about 5 percent. They were thrilled to learn the taxes will actually bring in several times as much.

“We’re talking about the largest percentage increase in tax revenue for as far back as we’ve been tracking it,” said Randy Singh, manager of Orange County’s Office of Management and Budget. “We’ve never seen this type of increase before, ever.”

In nearby Seminole, county commissioners decided to wait to drop their tax rate. Seminole could lose more than $12.5 million if the homestead exemption is doubled, one of the ideas being batted around in Tallahassee.

Across Florida, property values are projected to rise an average of 25 percent this year, according to the Legislature’s Office of Economic & Demographic Research. It’s hard to say how high revenues will climb, though, officials said. But TaxWatch senior analyst Kurt Wenner said it looks to be a record year.

Wenner called the additional income “excessive.”

“The thing we find most troubling about this is the attitude about it,” he said. “Most governments are viewing it as a windfall, or money they are entitled to.”

Tom Long, president of the Osceola County Landlords Association, said he’s losing money because he won’t pass along his tax-bill increases to the families who rent from him.

Bob McKee, fiscal policy director for the Florida Association of Counties, argued the extra revenue is sorely needed because counties need to replenish reserves depleted by recent hurricanes. Building costs, particularly for roads, have risen, too.

“You have to look at both sides of the ledger to see what has happened – on the cost side as well as what has happened at the revenue side,” McKee said.

Source: The Orlando Sentinel

2006-10-25T13:38:00.000-05:00

Vero Beach is the #2 place to buy now according to CNNmoney.com

2. Vero Beach, Fl

64% Projected gain in home prices (5-year)

Median home price2006: $235,0002011: $386,000

Population2006: 131,000 2011: 147,000

Per capita income2006: $44,400 2011: $51,200

Balmy weather, low property taxes, and a cost of living 3% lower than that of nearby West Palm Beach make this coastal town an affordable alternative, with sandy shores and the best surfing on the East Coast."Vero Beach is at high risk in the short term but will move up in the long term," Cochrane says.Here's why: A Florida Atlantic University study says Indian River County and its two closest neighbors will need a projected 154,000 new homes during the next 25 years to house the growing population and replace old structures. A Manpower Employment Outlook Survey predicts growth in construction, manufacturing, and retail jobs too. Per capita income growth closely shadowed that of Martin County, Florida's second-wealthiest, and is gaining on that of Palm Beach County, the state's richest.

2006-10-13T15:58:00.000-05:00

Planet Realtor > Florida > News > Daily

Sales could make comeback in six months, analyst says

Home prices correcting, buyers returning, says NARPALM BEACH COUNTY, Fla. -- Oct. 12, 2006 -- Existing home sales across South Florida could rebound in the next three to six months, but demand for new homes probably won't pick up until 2008, a real estate analyst said Wednesday.

"The Realtors will get happy before the builders," Brad Hunter told more than 400 people attending an Urban Land Institute conference at the Palm Beach County Convention Center in West Palm Beach.

If hurricane season ends Nov. 30 without another storm hitting the region, hesitant buyers will start making offers on the glut of unsold homes, said Hunter, who runs the South Florida division of MetroStudy, a West Palm Beach consulting firm. It will take about 18 months after that for new home sales to increase, he said.

Other real estate observers are more skeptical of short-term improvement in a local housing market that slowed dramatically in 2006 after the five-year boom when the price of a typical home more than doubled to well above $300,000.

Aside from the threat of hurricanes, buyers are afraid to commit for fear that falling prices will tumble more, Hunter said. But Moody's Economy.com issued a report last week that suggested the worst of the housing squeeze has occurred in South Florida.

The West Chester, Pa., research firm said Palm Beach County's median price for existing homes fell from late 2005 through the third quarter of 2006 but won't go any lower. Broward County's median will continue to decline through the third quarter of 2007, according to the report.

Palm Beach County's median price declined $25,400 to $386,000 in August, marking the first year-over-year drop in seven years, according to the Florida Association of Realtors. The August median for Broward County fell $24,200 to $362,800. It was the second month in a row that Broward's median declined on an annual basis.

Mortgage rates are holding steady, and former Federal Reserve Chairman Alan Greenspan said this week that he expects the slumping market to stabilize.

"The key thing that has to happen," Hunter said, "is that the (buyers') psychology has to change, and it's going to."

Still, rising insurance premiums and property-tax bills are major deterrents to buying homes. Consumers are looking to lawmakers to offer relief on those fronts.

"A lot of people are sitting and waiting," said Debbie Anderson, an agent for Prudential Florida WCI Realty in northwest Broward County. "I don't blame them."

Ashley Ostroff is asking $498,900 for her three-bedroom Palm Beach Gardens home even though her agent said she could get more. Ostroff, a marketing director, has yet to field an offer.

"Even people who are ready to buy now are waiting because of what they're hearing in the media," she said. "It doesn't matter what the market is doing. Buy at the price that's right for you."

Minto Communities, a Coconut Creek-based home builder, said it's starting to find more interest in new homes.

About 3,000 people turned out last weekend for a townhouse and condominium development in Sunrise, while 1,500 showed up in August for a single-family home project in St. Lucie County, Minto President Harry Posin said.

"The consumer is responding," he said. "We just have to work through this."

Copyright © 2006, South Florida Sun-Sentinel, Paul Owers.

2006-09-27T09:43:00.000-05:00

Indian River County Real Estate Statistics as of 9/27/06

As of today the number of active residential single family homes on the market is 2,496 representing a total listing price of $1,479,858,047. The number of active Condo's on the market is 988 representing a total listing price of $367,492,990.

The number of properties sold was 1,538 down from 2,266 for the same time period last year.

The Median price for Residential single family homes with 2 bedrooms or less is $167,500 up slightly from $165,000. Homes with 3 Bedrooms had median price of $240,000 down slightly from $245,000 and homes with 4 or more bedrooms had a median price of $359,950 down from $420,000 for the same time period last year.

The Median price for condo's was $179,000 down from $190,000 for the same period last year.

What does all this mean? It's a buyers market. With so many listings sellers are lowering prices to get properties sold and and after many years of the sellers setting the market conditions the buyers now have control.

2006-09-27T08:57:00.000-05:00

It's a Buyer's Market

It's official. According to major news outlets and economist's it's a buyer's Market. What does that mean to you? If you have been looking purchase now is the time to get serious. First, if you need to get a loan, go to a local lender and get a commitment letter for the amount you can borrow. This shouldn't be confused with a pre-approval. Second, get a Realtor to start sending you properties over the internet and set up showing appointments. Sellers are waiting for reasonable offers and are willing to fix just about anything to get the deal done.

If you are Selling your property or thinking of selling you need to make sure you price it at a level that gets the buyers in your front door. Get a Realtor to do a Comparative Market Analysis (CMA) so you know what price you should be at. As everyone knows the first impression is the only impression. When they pull up to your house what they see will carrie over to the inside. If your yard doesn't have a nice curb appeal that critical first impression is gone. Once that buyer is in your house it better sparkle. Paint and fix all marks on walls, clean the carpet, wash the windows, get rid of clutter and by all means make sure it doesn't smell like the pets or last nights meal. Remember, buyers have many choices and time to look for several weeks if not longer to make a decision.

To read the latest go to: http://www.realestatejournal.com/buysell/markettrends/20060925-walsh.html?refresh=on

2006-09-12T10:10:00.000-05:00

The Telegraph.co.uk

This is an article about Brits that buy in Vero Beach.

http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2006/09/09/opflorida09.xml

2006-09-08T14:49:00.000-05:00

Tax rate cut in store for Vero property owners

By KEONA GARDNER keona.gardner@scripps.com

September 8, 2006VERO BEACH — A lower property tax rate is on the way for city taxpayers.
In a unanimous vote Thursday, City Council gave first approval of new rate of $2.14 per $1,000 of assessed property value, which is down from the 2006 rate of $2.29.
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The new rate would mean a property owner with a home assessed at $200,000 minus the $25,000 homestead exemption would pay about $374 in taxes, compared to about $400 at the current rate.

Last year, the council raised the property rate to $2.29 from $2.14 to help pay for expenses incurred after the 2004 hurricanes.

After approving a lower rate, the council, in a 3-2 vote, approved reimbursing former Mayor Mary Beth McDonald 60 percent of the money she spent defending herself against two complaints filed with the state Ethics Commission.

Vice Mayor Sabin Abell and Council members Ken Daige dissented, saying McDonald failed to submit an itemized bill, which the council had requested at its Aug. 15 meeting. Members said they couldn't approve paying the bill without knowing exactly on what they were spending taxpayers' money.

The council also made the payment conditional if McDonald would not file any more claims against the city and the City Attorney's office would create a criteria for future reimbursement claims.

McDonald originally asked for $10,000 but during the meeting, her Chicago-based attorney, Leo Athas, said about 60 percent of the $10,000 bill was for the ethics cases filed by former City Manager David Mekarski and former Vice Mayor Lynne Larkin. About 40 percent of the bill was for unspecified other work, Athas said.

City Attorney Charles Vitunac said he would have like an itemized bill but the work was done on a flat-fee basis and a detailed bill wouldn't be coming. Also, he said, if the council didn't pay the bill, McDonald could sue the city for reimbursement.

Council member Bob Solari, who along with Mayor Tom White and council member Debra Fromang agreed to pay the $6,000 bill, said the issue wasn't with the itemized bill but with following legal precedent the council started when it agreed to pay White's bill earlier this year.

Last year, the state Ethics Commission dismissed the complaints, saying McDonald's actions violated no law. The state Attorney General's Office has said elected officials can recoup expenses spent to defend themselves against complaints and lawsuits while they are in office — if they are cleared and the issue relates to their job duties.

source: TCPalm.com

2006-08-28T16:31:00.000-05:00

State denies rate hike from First Floridian

TALLAHASSEE, Fla. -- Aug. 28, 2006 -- State regulators on Thursday denied First Floridian Auto and Home Insurance Co.'s 63.2 percent statewide average homeowners insurance rate hike.

Tampa-based First Floridian has more than 86,000 policies in Florida, including more than 11,300 in the First Coast, according to Florida's Office of Insurance Regulation. Duval County, with 7,315 homeowners policies, is among the carrier's top five markets, the OIR said.

Company officials could not be reached for comment Thursday evening.

First Floridian initially requested a rate hike of 24.4 percent in May, primarily citing higher reinsurance costs. The company amended the rate request to 70.4 percent in July and changed it again to 63.2 percent this month, OIR spokesman Bob Lotane said.

Insurers buy reinsurance, or insurance for insurers, to help offset the cost of paying claims after a major storm or other catastrophe. Higher reinsurance costs have driven many carriers to raise their premiums. In July state regulators OK'd State Farm's 52.7 percent statewide average rate hike, after the insurer amended an initial request that called for a 71.5 percent hike. Also that month, Nationwide Insurance Co. of Florida said it planned to jack up its homeowners insurance premiums by a statewide average of 71.4 percent. Both said the rate hikes were needed to help offset higher reinsurance costs.

Information in First Floridian's filing did not justify the rate hike request, regulators said. The carrier can appeal OIR's ruling, or file another rate request, Lotane said.

"Floridians have had a very difficult time dealing with higher insurance costs," Insurance Commissioner Kevin McCarty said in a statement. The OIR "will continue to vigorously monitor these requests to make sure that the past two hurricane seasons are not used to unjustly hike rates."

Copyright © 2006 The Florida Times-Union, Jacksonville,Urvaksh Karkaria. Distributed by McClatchy-Tribune Business News

2006-08-17T15:05:00.000-05:00

Fewer existing homes sold compared to same quarter last year

By NADIA GERGIS nadia.gergis@scripps.com

VERO BEACH — Sales of existing Treasure Coast homes leveled off in the second quarter of the year while the median sale price stayed relatively unchanged.

A report released Tuesday by the Florida Association of Realtors showed 1,523 existing single-family homes sold during the second quarter of 2006, down 28 percent from the 2,110 sold during the same period last year.

In the Fort Pierce-Port St. Lucie Metropolitan Statistical Area, which includes Stuart, the median price was $254,500 during the second quarter, compared with $252,400 during the same period last year.

The downward trend is also evident in the local condominium market. The association said sales of Treasure Coast condos decreased 41 percent in the quarter, however the median price was $203,600, up 7 percent from the $190,300 during the same period last year.

Statewide, the median price of an existing home increased by 9 percent to $254,800, while sales were down 27 percent.

In the West Palm Beach-Boca Raton area, sales were down 36 percent and the median price rose 1 percent to $394,100. Home sales in the Melbourne-Palm Bay area decreased 28 percent, while the median price remained relatively unchanged at $229,000.

source: TCPalm.com

2006-08-10T15:57:00.000-05:00

Third Starbucks may be on its way to Indian River County

By ED BIERSCHENK ed.bierschenk@scripps.com August 10, 2006INDIAN RIVER COUNTY —

Another Starbucks is on the drawing board as part of a proposed development along Oslo Road — raising the possibility there could be as many as three of the popular coffee shops in the Vero Beach area in the near future. Developer Jerry Swanson said there have been talks with Seattle- based Starbucks Corp. about locating a shop at the retail, office, restaurant complex he wants to build at the southwest corner of 27th Avenue and Oslo Road.

Late last year, Starbucks submitted plans to build a store on the northwest corner of 12th Street and U.S. 1 and there has been speculation a Starbucks might be the coffee vendor planned at an expanded Target store on 20th Street. Plans for that expansion don't name Starbucks, but the two companies have a 6-year-old agreement to put a Starbucks in some renovated Targets and every new SuperTarget.

Swanson's site plan for his P&S Office development initially showed a Starbucks in a separate building at the site. The plan was reviewed at the Indian River County Technical Review Committee meeting Wednesday.

Swanson, however, decided to scuttle the idea of constructing a separate building for Starbucks when traffic concerns were raised at the meeting about having a drive-through there.

Instead, Swanson said he will see if Starbucks might be interested in moving into part of the main two-story, 44,000- square-foot building planned for the location.

Swanson said prior to the meeting he wants construction to begin by December and be completed by December 2007. That may not be possible, however, because the county is requiring 27th Avenue to be widened before any new development goes into that area.

Developer Mark Brackett already has agreed to pay for widening of a part of 27th Avenue between Fifth Street Southwest and 13th Street Southwest to handle extra traffic generated by his proposed Turtle Creek Preserve development.

According to Indian River County Assistant Public Works Director Chris Mora, another half-mile section between southwest 13th and 17th streets would have to be widened to four lanes to allow for Swanson's development. He estimated it could cost about $3 million to $4 million.

Swanson initially was under the impression this area was slated for widening under the county's five-year capital works program, but that is not the case.

He indicated it would be too expensive for him to widen the road on his own given the size and type of development he is building.

Mora and Indian River County Community Development Director Bob Keating said Swanson could wait another year, at which time the county could add the widening of the road, south to the county line, to its five-year plan.

They said another option would be for Swanson to pay for the widening along with other developers seeking to build in that area.

source: TCPalm.com

2006-08-07T09:40:00.000-05:00

Residential Sales Statistics for Indian River County 1/1/06 - 7/31/06

190 Single family homes and 42 Condominiums were sold for the period for a total of 232 units. Total median price for single family and condo's was $240,000 for a total volume of $91,007,483.

53 units were on the market for 30 days or less

39 units were on the market for 31-60 days

37 units were on the market for 61-90 days

37 units were on the market for 91-120 days

66 units were on the market for 121+ days

Source: Indian River County Realtor Assocition

2006-08-04T12:00:00.000-05:00

Thursday, August 03, 2006

Real Estate Action is Picking Up
Over the past few weeks we have seen buyers starting to creep back into the market. They are looking and expecting to buy within a few months. The one thing they know is that they have time on their side and plenty to choose from. Buyers may look at 5-10 properties, take a few days to decide and then look at more. They will buy, it just may take awhile.

2006-08-04T11:57:00.000-05:00

"The worst real estate market in 20 years"This was what a local Realtor told me last week and it couldn't be more wrong. The Real Estate market in Vero Beach, FL has changed in the past year, but we are only down 30%. That may seem high to some, but we are coming off of the two best years in history and values of homes continue to increase even after 3 hurricanes in two years. With no uncertain terms we are seeing a shake up in the market. Asking prices not values are coming down and the buyers have several homes to choose from so they are not looking at every house on the market. Once this hurricane season is over and the buyers see that the values are continuing to increase and interest rates are going to continue to increase we will see record numbers again. With 75 million baby boomers retiring over the next 10 years we can't help setting records.