11% of Florida homes in some state of foreclosure

11% of Florida homes in some state of foreclosureORLANDO, Fla. – May 29, 2009 – The faltering economy and falling home prices plunged an additional 99,000 Florida borrowers into foreclosure in the first three months of the year, bringing the total number of home loans in some stage of the foreclosure process to 374,134.With 11 percent of its home loans in foreclosure, Florida ranked first in the country for defaults and was the only state in double digits. The rate was up roughly 2 percent from the previous quarter, according to figures released Thursday by the Mortgage Bankers Association.As job losses mounted and incomes dwindled, more and more homeowners fell behind on their loans, with payment problems socking greater numbers of previously credit-worthy borrowers who have traditional mortgages.The delinquency rates for loans 30 days or more past due stood at 10.67 percent in Florida, or about 378,000 of some 3.54 million loans.The rate dipped slightly from the previous quarter, but that is always the case at the start of the year, said Jay Brinkmann, chief economist for the MBA. The rate nationally was 9.12 percent. Florida’s crisis is particularly acute because of the staggering run-up in real estate values during the housing boom. People rushed to get loans to buy property that, in many cases, they could not afford. When prices collapsed, homeowners were stuck, unable to sell or refinance. Others were caught in adjustable-rate mortgages with payments that soared.With Florida home values continuing to fall, Brinkmann predicted foreclosures would continue to rise through the rest of the year. A large oversupply of new property makes stabilizing home prices in the state likely a distant prospect.“It’s going to take getting demand even with supply just to put a floor under prices. Even then, it may not get it up to a point where it gets buyers back above water,” Brinkmann said.At the end of March, roughly 71 percent of owners who bought in Miami-Dade and Broward counties in the past five years were underwater, or owed more than their homes were worth, according to Web-based real estate services firm Zillow.com.Analysts have said so-called negative equity is one of the biggest reasons why borrowers fall into foreclosure – if they need to sell, they can’t, at least not for enough to cover the debt, or they choose to throw in the towel, thinking it’s better to take their losses and rent.While most lenders have established loan modification programs and are helping borrowers reduce their monthly payments through things like interest rate reductions and extended terms, many homeowners are falling back into default. A recent study by Fitch Ratings projected that as many as 75 percent of subprime loan modifications would fall behind by 60 days or more within a year. Brinkmann said that so-called redefaults could show up in the new foreclosure statistics: “There may be repeat visitors coming back into the numbers.”Copyright © 2009 The Miami Herald, Monica Hatcher. Distributed by McClatchy-Tribune Information Services.

Florida’s consumer confidence down one point

Florida’s consumer confidence down one pointGAINESVILLE, Fla. – May 27, 2009 – Florida’s consumer confidence dropped one point in May to 71, reflecting pessimism about personal finances despite an improved national economic outlook, the latest University of Florida (UF) survey finds.The index component measuring perceptions of personal finances now compared with a year ago fell four points to 40, one point above its all-time low record of 39 in December. In contrast, expectations of personal finances a year from now rose five points to 90, the highest level since October 2007.“The makeup of the consumer confidence index in May reflects optimism … but the decline in perceptions of current personal finances … is noteworthy,” says Chris McCarty, director of UF’s Survey Research Center at the Bureau of Economic and Business Research. “Floridians are saying they don’t have the money now to buy, but they expect to within a year.”Of the remaining index components, perceptions of the U.S. economy over the next year rose four points to 73, while perceptions of U.S. economic conditions over the next five years fell four points to 78. Perceptions of whether it is a good time to buy big-ticket consumer items fell six points to 72.The economic environment for consumers is mixed. On the plus side, housing prices in Florida appear to be stabilizing in some markets, although foreclosures are still high, McCarty says. In many areas, housing prices have fallen to a level that could not sustain a much larger drop.In other positive news, the unemployment rate fell two-tenths of a percent in April to 9.6 percent, McCarty says. Rising unemployment has been a big concern for policymakers in anticipating a recovery. However, the stock market continues to show volatility, although it appears to have a sustained rally.Also of concern is that retail sales have been down for the past two months, reflecting pessimism about the economy, even though April’s decline was small, McCarty said. Also, gasoline prices have risen 25 cents in the past two weeks, as is typically the case when summer travel approaches, he said.“Moving forward, we still anticipate at least a short-term decline in confidence over the next couple of months as the impact of the state budget is felt and the effects of a GM (General Motors) bankruptcy move through the system,” McCarty says.However, on balance, the economic news, while not necessarily good, is not shockingly bad, either, he adds. “Like the end of hurricane season, Floridians are grateful for a day, week or month without facing economic destruction. At this point, they just want to get about the business of cleaning up the mess.”The overall index for April was revised from a preliminary figure of 71, which was reported earlier, to 72 after all the survey data had been collected at the end of the month.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 May was conducted from 408 responses. The index is benchmarked to 1966, so a value of 100 represents the same level of confidence for that year.© 2009 FLORIDA ASSOCIATION OF REALTORS®

Governor signs $8K homebuyer credit into law

Governor signs $8K homebuyer credit into lawTALLAHASSEE, Fla. – May 27, 2009 – Gov. Charlie Crist signed the budget bill (SB 2600) today that lays out how the state will spend its $65.6 billion in the fiscal year that starts July 1. Included is $30.1 million for the Florida Homebuyer Opportunity Program, which will help with downpayment assistance.Beginning July 1, those who quality for the federal $8,000 first-time homebuyers tax credit will be able to apply for downpayment assistance before they close on the purchase of their home, and then repay the amount borrowed when they get their tax refund. The program will operate through local county housing administrators, though details are still being worked out.The state spending plan passed today also includes the following for real estate-related programs:• Up to $400,000 to prevent, combat and publicize the dangers of unlicensed real estate activity in Florida.• $540,000 to continue and complete a study to make recommendations on passive strategies on nitrogen reduction that complement the use of onsite wastewater treatment systems.• $3 million in the Real Estate Trust Fund for the Education and Research Foundation.• A reduction in the eviction filing fees from $265 to $180 – the only fee reduction in the 2009-10 budget, and one with a negative fiscal impact of up to $36 million.© FLORIDA ASSOCIATION OF REALTORS

Florida’s existing home, condo sales rise in April 2009

Florida’s existing home, condo sales rise in April 2009ORLANDO, Fla. – May 27, 2009 – Florida’s existing home sales rose in April – the eighth consecutive month that sales activity increased in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). April’s statewide sales showed gains over the previous month’s sales level in both the existing home and existing condominium markets.Existing home sales rose 18 percent last month with a total of 13,111 homes sold statewide compared to 11,133 homes sold in April 2008, according to FAR. April’s statewide existing home sales were slightly higher than statewide activity in March.Florida Realtors also reported a 21 percent rise in statewide sales of existing condos in April; existing condo sales last month increased 6.2 percent over the total units sold in March.Fourteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in April and 11 MSAs also showed gains in condo sales. A majority of the state’s MSAs have reported increased sales for 10 consecutive months.Florida’s median sales price for existing homes last month was $138,500; a year ago, it was $199,500 for a 31 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note, however, a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. 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 March 2009 was $174,900, down 11.5 percent from a year earlier, according to NAR. In California, the statewide median resales price was $253,040 in March; in Massachusetts, it was $255,000; in Maryland, it was $264,302; and in New York, it was $222,500.According to NAR’s latest housing industry outlook, it could take a few months for the housing market to gain momentum, though there are signs of stabilization. “The share of lower priced home sales has trended up, indicating a return of many first-time buyers,” says NAR Chief Economist Lawrence Yun. “Buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit. By early summer we should be seeing a positive impact on home sales from record-low mortgage interest rates in addition to the stimulus provisions.”In Florida’s year-to-year comparison for condos, 4,660 units sold statewide compared to 3,862 units in April 2008 for a 21 percent increase. The statewide existing condo median sales price last month was $106,600; in April 2008 it was $178,900 for a 40 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $177,600 in March 2009.Interest rates for a 30-year fixed-rate mortgage averaged 4.81 percent last month, down significantly from the average rate of 5.92 percent in April 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written. Among the state’s smaller markets, the Pensacola MSA reported a total of 316 homes sold in April compared to 272 homes a year ago for a 16 percent increase. The existing home median sales price was $143,300; a year ago, it was $157,400 for a 9 percent decrease. In the year-to-year comparison for the existing condo market, 48 units sold in the MSA last month, up 9 percent compared to 44 condos sold the previous April. The market’s existing condo median price remained level at $250,000.© 2009 FLORIDA ASSOCIATION OF REALTORS

Save our homes?

Save Our Homes

Being a realtor here in the Tampa area for the past 5 years I have seen and heard a lot. What I am sad to report seeing a lot lately has been the increase of everyday families losing their homes.

These people aren't Wall St wanna be's. They aren't so called savvy investors who tried to wheel and deal their way to the top of the real estate ladder. They are wonderful everyday people with regular jobs with regular families trying to muddle through their everyday world which is turning upside down.

On any one average day, I must receive 2 or 3 people stopping by our home to see if we could need any work done. Perhaps getting carpets cleaned or mowing our lawn, anything to try to make a few dollars in order to perhaps prolong the inevitable. I see them outside our window, walking the hot pavement, going door to door in our quite community with the hope that perhaps just ONE somebody could use their services.

I can say that a lot of us are close to the same fate although no one will admit it. It has been troubling times for many and like many have been holding on by the skin of our teeth. We all paint smiles on our faces when we come in contact with the outside world never letting on that things too for them might not be so rosy. Who are we trying to fool?

Many calls we receive from these everyday folks with the hope that perhaps we can relieve their pain. Perhaps there is some magic, some hope, some something that we can offer, say or do that would help lift the weight from their shoulder?

For the most part, these stories We hear are hard to listen to. They are everyday folks that lived paycheck to paycheck like many of us do and no longer have that paycheck to keep them afloat. Wonderful children who live in a world without reason, “Just Because”. The innocence of youth apparent as they play in the car as mom or dad approach each door in the hope for work.

I hear stories that they tried the governmental programs only to be told that either they make too much money for some and not enough for others. They called mortgage companies to inform them of their need for assistance only to be treated like 3 class citizens…that after being transferred around the world 4 or 5 times, explaining their heart felt situations to anyone that will listen, each time opening their wounds more and more only to be told that yet another department needs to handle them. The rep on the other line is cold and distant after hearing many like such calls asking them payment, period.

We’ve been able to help many people with these hardships I am happy to say. Sometimes it feels as though we are going through it with them. Perhaps that is what has separated us from the rest? Who knows?

We are indeed in troubling times. I have found new faith in that people it appears have been returning to the basics. “Do you really need that 70” plasma TV?” I ask myself only to quickly reply, “Nope”. I have a renewed trust in the people I care for and my faith in God to lead my family through these turbulent waters. I ask him for the strength, patience and compassion so that I may assist others in any way we can. We don’t have much in comparison to some and yet have the world in comparison to others.

I was just wondering how others have been doing? Perhaps some stories you’d like to share?

Best wishes and God Bless