FLORIDA PROPERTY TAXES
An alternative House Republican plan to swap property taxes for sales taxes began to gather steam Friday. The idea is to eliminate the portion of property tax bills that go to school districts and pay for education through a higher sales tax.

When the lottery was introduced into Florida, the legislature proposed that the monies would go towards the public education for both school districts and the state’s higher education institutions.  Well….after some time, funds slated for education were diverted to the general fund, because the lottery profits were going to education.

This is beginning to sound familiar – maybe the same outcome?

A group of out of country part-time residents are banning together to call for property tax reform in Florida. Part-time resident Phyllis Turek says she doesn’t expect the same concessions as full-time residents, but believes part-time residents should get some credit for paying taxes year-round and using services for only a few months.

Sounds fair, but does Ms. Turek realize services are not strictly volume related, but there are fixed costs along with the variable costs associated with the part-time residents?

It’s not just Florida: At least a dozen states have legislation in the hopper this year to provide property tax relief, on top of at least eight that acted last year, according to the online news service Stateline.org.

HOUSING OUTLOOK
Many forecasters now predict that the worst may be over when it comes to the housing market, pointing to sales data that shows the national existing home sales market is on the verge of regaining ground.

Hope you read my posts about what the University of Florida survey on Emerging Real Estate Market Conditions had to say as well as what is happening in the greater Naples real estate market.

MORTGAGES
Federal Reserve Chairman Ben Bernanke and many other economists do not expect troubles in the subprime mortgage niche to impact the overall national economy, thanks to a low unemployment rate and income gains. Still, rising subprime foreclosures could affect the housing sector, particularly in Florida and California.

The University of Florida Bergstro Center for Real Estate Studies, quarterly surveys leading experts in real estate investment and development to determine current trends in Florida real estate. The survey covers residential development, apartments, industrial, office and retail.

"If you’re thinking of buying a house, there’s probably not much to be gained by holding out at this point," said Dr. Wayne Archer, Director of UF’s Bergstrom Center for Real Estate Studies. "It doesn’t look like prices are going to fall anymore."

Dr. Archer’s statement addresses only the single family home market. However, the survey does suggest that the condominium segment is still lagging behind. As well as land for residential development.

Dr. Archer continues by saying "When prices maintain the same level as inflation, then we’re probably in some kind of equilibrium. It indicates the market is stabilizing."

One possible explanation for the housing market turning the corner is a restricted supply of land for residential development, Archer said. The shortage meant there was less overbuilding than there might otherwise have been, he said. Condos did not have this land restraint, which is one reason they are overbuilt, Archer said. At the same time, condos are prone to strong speculative swings because they are considered a relatively easy commodity to exchange; it’s not difficult to acquire them in multiple units or to buy contracts on them, he said. The stabilization of the single-family housing market came earlier than anticipated and is not expected to affect all parts of the state equally, Archer said. The quieter markets likely will take longer to rebound than those in Central and South Florida, where growth has been explosive.

Here are some key points from the survey:
– The rate of residential sales should stabilize for both single family and condominiums.
– Prices for residential properties are expected to lag behind inflation, with less price declines than previously anticipated.
- Weakest areas of residential real estate are in condominiums, condo conversions, and individual residential land lots.

Key issues that bear watching are:
Insurance
Lending
Sources of capital
Growth management
Land for development
Property taxes
Increased use of mixed developments
Oversupply of condominiums
Green Development (or Green Building)
Increases in foreclosures
Unavailability of affordable housing
Increased increase in some northern areas (Carolinas) due the uncertainties in Florida.

As a potential buyer or seller of real estate it is very important to look at results over time to better comprehend market trends and shifts. This is the exact reason why information in graphical format can assist you in determining when to make your purchase or sale.

I read yesterday on Diane Cipa’s Radical Title Talk blog her alert regarding some of the sub-prime lenders and advising people to call their title underwriters.

The sub-prime lenders that bear watching are New Century Financial, Fremont General, and HSBC for future events.

CNNMoney.com today, has announced that on Monday, Countrywide Home Loans will stop offering no money down loans.  No money down loans are secured by the value of the property.  This type of loan is where the lenders are finding the highest delinquency rates.

In reading the article there appears to about 24 companies are being affected by the delinquencies and may be expected to take "hits" to their bottom lines.