FLORIDA HOME SALES – In third quarter 2007, Florida’s housing sector in many markets continued to report high inventory levels of homes for sale, median prices edging down and sales activity levels reflecting the impact of mortgage disruptions. Statewide sales of single-family existing homes totaled 31,910 for the quarter, a decrease of 29 percent compared to the same period a year earlier, according to Florida Assocation of REALTORS. The statewide existing-home median price was $232,100. National Association of REALTORS reports that a majority of U.S. metro areas showed rising or stable home prices in the third quarter despite a broad decline in existing-home sales.

Refer to Naples Market Update for detail information about the Naples market or Bonita Springs Market Update for the Bonita Springs area.

ECONOMY – Troubles in the mortgage industry are impacting charities that serve those in need. Food banks and homeless shelters are already grappling with reduced federal aid as fears grow that more people will need help just as charity giving starts to decline. “There is some growing concern” about the effect of the housing slowdown on charitable donations, according to Michael Nilsen, a spokesman for the Association of Fundraising Professionals.

COMMERCIAL REAL ESTATE – Commercial real estate market activity is expected to level out, suggesting stable business opportunities for commercial practitioners in the months ahead, according to the latest forward-looking Commercial Leading Indicator for Brokerage Activity from NAR. The index now stands 120.6 in the third quarter, 0.7 percent higher than third quarter 2006.

AUCTIONS – Real estate auctions are making a big comeback in South Florida (Miami area) and throughout the country. After all, what better way to gauge fair-market value than selling through a public forum to whoever’s willing to pay the highest price on a given day?

Sellers could be in for surprise however, the bid price might not be what they felt their property was worth, as well as, laying out in some cases $5,000, without anyone showing up for the auction!  In these cases, where a seller is thinking about an auction for their property should do considerable research prior to undertaking this method of selling their property.

FORECLOSURES – Created to combat a rising flood of mortgage foreclosures, the Hope Now alliance began a nationwide mail campaign Monday to 300,000 homeowners, offering help to those who may be having trouble meeting their mortgage payments.  Hope Now alliance, is backed by the Bush, is a partnership of mortgage companies and nonprofit housing counselors.  It is the hope that consumers will be less reluctant to contact their lenders when they start to realize or think they will have problems with making their monthly payments.

It is interesting to note, that some lenders tell people, there is nothing that they can do for them until they are behind in their payments.

“It is in no one’s interest to see a home go into foreclosure,” says Robert Steel, Treasury Undersecretary.  This is a very true statement, but in conversations with homeowners behind in their monthly payments, the lender verbally agreed to accept a check to make up the payments on two different occassions. Both times the check was returned to the homeowner.  The lender foreclosed on the home and it was auctioned off at the Collier County Courthouse.  Lender purchased the home for $100!  Could this be another misleading statement by the Bush Administration?

FREDDIE MAC – Freddie Mac set aside $1.2 billion in the third quarter to account for bad home loans but posted a $2 billion loss Tuesday amid a worsening mortgage crisis. The results heighten investor anxiety over Freddie Mac and Fannie Mae, which had been considered less vulnerable with less exposure to high-risk, subprime mortgages.

HOMEOWNERS INSURANCE – Allstate Insurance customers are safe from rate increases – at least for now. State officials say proposed increases by four Allstate insurance companies, ranging from just under 30 percent to more than 43 percent, don’t comply with a new state law.

Since at least 2003, the company had formed limited partnerships that acted as sham title companies, according to allegations in the settlement document. The businesses provided kickbacks to real estate agents, mortgage brokers, banks and homebuilders in exchange for title business referrals.

“Federal and state laws prohibit companies from taking unfair advantage of the market by providing payments to real estate agents and mortgage brokers for their referral of business,” said Florida Insurance Commissioner Kevin McCarty. “Such payments adversely impact the home-buying public by increasing the cost of buying a home . . .” he said.

The settlement document included a list of 87 limited partnership title insurance agencies in Florida with which First American had agreed to end relationships.

TITLE INSURANCE – The First American Title Insurance Co. has agreed to pay investigation costs of $5 million and submit to a year’s monitoring of its business practices as part of a settlement agreement with state and federal agencies.

BUILDERS - Even the Trump name isn’t bigger than the calamitous condo market. Donald Trump’s reputation as a real-estate developer could take a hit as some condominium projects in Tampa, Fort Lauderdale, West Palm Beach and elsewhere run into trouble.

ECONOMY – The latest forecast from the National Association for Business Economics says the housing market, along with the credit crunch, will weigh down economic growth in the final three months of this year and cause economic activity to lag in 2008.

ANOTHER HOME BUILDER IN TROUBLE - Homebuilder TOUSA Inc. of Hollywood, Florida says it may not survive the housing slump. The company’s announcement comes less than a week after Fort Lauderdale-based Levitt and Sons filed for Chapter 11 bankruptcy protection from its creditors. (see Florida Real Estate News – 11/12/07.)

MORTGAGE RATES – Rates on 30-year mortgages were unchanged this week at 6.24 percent after posting three consecutive declines, according to Freddie Mac’s weekly nationwide survey.

Speaking of mortgages, approved by a 291-127 vote last night, a House bill aimed at protecting borrowers from abusive home loans faces a tougher future in the Senate amid opposition by the mortgage industry and criticism from the White House.

FORECLOSURES – Mortgage securities may complicate the foreclosure process. A United States district judge in Ohio recently ruled against 14 foreclosure cases brought on behalf of mortgage investors, because those trying to foreclose failed to prove they owned the property due to the complex structure and disparate ownership of mortgage securities.  Can this spread to Florida?

HOMEOWNERSHIP – Americans remain convinced that buying a home is a good long-term investment – just one of the findings from the 2007 National Housing Pulse Survey, released during the National Association of Realtor’s annual conference and exposition this week.