The real estate news today is more from national perspective than from the Naples, Bonita Springs and Estero focus, but still has an impact on the local real estate markets.

MORTGAGES – The federal regulator for Fannie Mae and Freddie Mac said yesterday that it would lift restrictions on the amount of mortgages the Government Sponsored Enterprises can hold on their books, effective Saturday. The move should ease turmoil in the mortgage market. Per Wikipedia -

"The government sponsored enterprises (GSEs) are a group of financial services corporations created by the United States Congress. Their function is to enhance the flow of credit to targeted sectors of the economy and to make those segments of the capital market more efficient and transparent. The desired effect of the GSEs is to enhance the availability and reduce the cost of credit to the targeted borrowing sectors: agriculture; home finance; and education. Congress created the first GSE in 1916 with the creation of the Farm Credit System; it initiated GSEs in the home finance segment of the economy with the creation of the Federal Home Loan Banks in 1932; and it targeted education when it chartered Sallie Mae in 1972 (although Congress allowed Sallie Mae to relinquish its government sponsorship and become a fully private institution via legislation in 1995). The residential mortgage borrowing segment is by far the largest of the borrowing segments in which the GSEs operate. Together, the three mortgage finance GSEs (Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks) have several trillion dollars of on-balance sheet assets."

COUNTRYWIDE – A federal lawsuit initiated by a Boynton Beach homeowner seeks class action status against Countrywide, accusing the company of overcharging homeowners facing foreclosure through “inflated, unverifiable or false” charges. The mortgage note says Countrywide should be “paid back” for costs, but litigants say that isn’t the same as “make a profit.”

ECONOMY – The U.S. economy skidded to a near halt in the final quarter of last year, with the nation’s gross domestic product increasing at a scant 0.6 percent pace, according to the Commerce Department. For all of 2007, the economy grew by 2.2 percent, the weakest showing in five years.

FORECLOSURES – The White House has pledged to veto a bill that it claims would slow a housing recovery. Among other proposals, the bill would change bankruptcy laws and empower judges to change borrowers’ mortgage terms; and it would provide $4 billion to buy and rehabilitate foreclosed homes.

HOME PRICES – The bad news: Home prices fell in fourth quarter 2007, according to Office of Federal Housing Enterprise Oversight (OFHEO), the government arm that tracks real estate prices.

The good news: Prices declined by only 0.3 percent compared to fourth quarter 2006, and 1.3 percent compared to third quarter 2007.

Looking at the local real estate market:
Naples prices decreased 1 percent compared to the fourth quarter 2006. Compared to the third quarter of 2007 the decrease was 0.6 percent.
Bonita Springs home prices rose 22.4 percent over the fourth quarter of 2006. The comparison between the third and fourth quarters of 2007 is an increase of 0.2 percent.
In Estero the median price paid in the fourth quarter of 2007 increased 2 percent over the same quarter in 2006. The median price increased 17 percent over the third quarter of 2007.

GLIMMER OF HOPE – Toll Brothers announced their financial results for the quarter end today.  In statements by Robert Toll, company founder and CEO – said he did see “a few glimmers of hope” in the Naples, Florida area and the suburban Washington DC markets."

"Fears of recession were helping to keeping buyers out of the market," Mr Toll added.

“We believe this drumbeat, coupled with concerns over mortgages, the direction of home prices, and foreclosures, has kept pent-up demand on the sidelines,” he said.

COMMERCIAL – While some Wall Street analysts predict that commercial real estate will follow in the footsteps of the subprime mortgage crisis, the outlook isn’t that bleak. Delinquency rates on commercial mortgages remain very low and the risks simply aren’t the same as with residential loans.

NEW HOME SALES – Sales of new homes fell in January for a third straight month, pushing activity down to the slowest pace in nearly 13 years. The median price dropped to $216,000, the lowest level in more than three years.

HOUSING MARKET – The National Association of REALTOR’s housing report yesterday had some good news. While the sales numbers were down, they weren’t as dismal as many economists expected. Some investors saw that as positive news, and a sign that the housing downturn is on the verge of bottoming out.

Looking at the local statistics for Naples, Bonita Springs, and Estero – there really is reason for believing the downturn is bottoming out.

REAL ESTATE TAX PORTABILITY – Only 3 days remain: Friday is the deadline for homeowners to apply for a homestead exemption, and, for 2007 homebuyers, the last day to apply for real estate tax portability – the right to take tax savings from a home protected by Florida’s Save Our Homes Amendment and transfer it to a home purchased last year.

Speaking of real estate taxes the Taxation and Budget Reform Commission will now consider two possible amendments that offer all property owners about a 25 percent tax savings, and possibly a 1 percent sales tax increase to make up for local governments’ shortfall.

CONSUMER CONFIDENCE – Passage of the national economic stimulus package and state property tax amendment helped boost Florida’s consumer confidence by four points to 74 in February after last month’s decline to its lowest level in 16 years, according to the latest University of Florida study.

FORECLOSURES – The number of U.S. homes facing foreclosure jumped 57 percent in January compared to a year ago, according to RealtyTrac Inc. Florida had 30,178 homes on the foreclosure track, up about 158 percent from a year earlier but down 3 percent from December’s figure. According to the report, the Cape Coral-Fort Myers metro area had the highest foreclosure rate of any metro area, with one of every 86 homes in some stage of foreclosure.

MORTGAGE RATES – Buyers waiting for lower property prices could lose out even if prices do drop a bit more. Rates on 30-year mortgages rose to the highest level in seven weeks, breaking above the 6 percent level, and heightened worries about inflation could cause further increases. To put this into perspective for those looking to purchase in Naples, Bonita Springs or Estero, for every $10,000 drop in the purchase price you will save about $60.00 per month or less than $15.00 per week at an interest rate of 6.0% for a 30 year fixed rate mortgage. Another way to look at is for every 0.125% increase in the mortgage interest rates you pay an about additional $2.83 per month in interest over the life of a 30 year fixed rate mortgage this amounts to approximately $1,020.

HOMEOWNERS INSURANCE – As the big insurance companies continue to pull up stakes in Florida, smaller unheard-of companies have filled some of the void, lowering rates and giving homeowners an alternative to state-run Citizens Property Insurance Corp., which has about 9 percent fewer policies than it did in November 2007.

FORECLOSURES – The Senate could vote on a proposal as early as next week that would empower bankruptcy judges to change the terms of a homeowners’ mortgage, a move opposed by financial groups. Meanwhile, a bankruptcy judge is considering a ban on unexpected and somewhat questionable fees lenders sometimes levy against homeowners emerging from bankruptcy, a move also opposed by lenders.

LUXURY HOMES – Is now the time to buy a $1 million home? A BusinessWeek.com survey of million-dollar homes in 20 markets across the country shows that buyers have plenty to choose from, and that their money will get them a lot of space and high-end amenities.

PROPERTY RIGHTS – In a victory for private property rights, a circuit judge yesterday ruled that the destruction of about 130,000 residential citrus trees constituted a “taking” under the state constitution and homeowners must be compensated for their loss of property.