REAL ESTATE TAX PORTABILITY

State and local government lawyers stood before a federal judge yesterday and argued in favor of January’s Amendment 1 that created Save Our Homes portability, among other things. Recent homebuyers from three Florida cities are challenging the Florida amendment, saying it is unconstitutional under U.S. laws.

ENVIRONMENT

Federal, state and local governments are boosting spending on open space and parks while other programs are getting trimmed in response to sluggish tax revenue in a weak economy. In Florida, for example, the Legislature recently extended Florida Forever, the biggest state open-space program in the nation, for 10 years at $300 million annually.

MORTGAGES

Why do some buyers pay closing costs that are thousands of dollars higher than other buyers? A just-released study finds that some discrepancies can be traced to education level, geography, race and ethnicity; but big discrepancies even exist between consumers with almost identical traits and credit histories.

MORTGAGE RATES

Rates on 30-year mortgages jumped this week to an average of 6.08 percent – the highest level since mid-March, according to Freddie Mac’s weekly nationwide survey, as investors began to worry about Federal Reserve actions to combat growing inflation pressures.

HURRICANE SEASON

As several states recover from the destruction and loss of life caused by recent tornadoes, floods and wildfires, Floridians prepare for the 2008 hurricane season, which begins Sunday and runs through November. You should prepare your home or condo in Naples, Bonita Springs or Estero now.

HOMEOWNERS INSURANCE

Governor Charlie Crist yesterday signed property insurance reform into law. The final version of the bill included other bills that were added as amendments, and it’s the biggest insurance change to come out of the 2008 legislative session. It offers a number of protections and upgrades for Florida homeowners.

Hurricane season begins June 1, and it’s important for homeowners to shop around to find the best insurance, understand what is covered and what isn’t, and consider purchasing federal flood insurance. Be sure your Naples, Bonita Springs or Estero home has flood insurance, we are in a sub-tropical environment where heavy rains in short periods of time are possible, creating local flooding.

ISSUE FOR CONDO AND HOA FEES

Delinquent fees at condo and homeowner associations are an outgrowth of the mortgage crisis, leaving associations scraping to pay for landscaping, maintenance, pools, recreation centers and other amenities. In Florida, homeowner groups surveyed by the Community Association Leadership Lobby complained that even some banks fail to pay association fees after foreclosing on homes.

ECONOMY

The U.S. economy grew at a slightly better pace in the first quarter, clocking in at a 0.9 percent growth rate instead of the estimated 0.6 percent. However, it was still a weak showing that underscored caution on the part of consumers and businesses struggling with housing, credit and financial problems.

REAL ESTATE SCAMS

An old scam is back, but upgraded using today’s technology: An anonymous buyer in Pasco County is buying undesirable slivers of land at a tax sale, marking up the price, and then advertising it on Craigslist as a way to coerce nearby homeowners to buy it.

NEW LAW

Governor Crist yesterday signed SB 464 into law, which prohibits private transfer fees on real estate sales – a costly problem for future homebuyers. Here’s how the scheme works: In a property’s covenants, codes and restrictions, a property owner reserves the right to receive a percentage of all future sales – usually 1-2 percent. But buyers and sellers are often unaware of this fee until they’ve entered into a purchase contract. The practice artificially devalues property and impedes the sales process.

RECENT FORECLOSURE AND CREDIT SCORES

Potential buyers with a recent foreclosure may want to make sure they can get a mortgage before jumping back into the market. New federal guidelines generally call for a five-year wait, a 680 FICO score minimum, and the ability to make at least a 10 percent deposit.

FED INTEREST RATES

Federal Reserve officials are putting out the word that further interest rate cuts are unlikely. Policymakers hope that the previous cuts, along with the government’s relief plan of tax rebates and breaks, will help lift the economy in the second half of this year.

MORTGAGES

John Dugan, the United States comptroller of the currency, opposes an agreement for Fannie Mae and Freddie Mac to stop buying mortgages involving lenders’ in-house appraisers, a deal intended to protect buyers from fraudulently inflated home prices. Dugan says the deal violates federal law and could have an unintended negative impact on the mortgage industry.

FLORIDA CONSUMER CONFIDENCE

Florida’s consumer confidence in May fell one point to 65, according to the latest statistics from the University of Florida. All components of the index fell except for a marginal increase in consumers’ expectations about economic conditions over the next year, and overall confidence rose for lower-income households and the elderly. The survey director also predicts that Florida housing markets will bottom out by July.
 

NEW HOME SALES RISE

Sales of new homes in the U.S. rose in April for the first time in six months, moving up by 3.3 percent, according to a Department of Commerce report. The median price of a new home dropped to $246,100 in April, down 4.2 percent from April 2007.

MORTGAGES MORE AVAILABLE

The availability of credit has improved "modestly," according to a United States Treasury official, who says the global credit crunch is gradually calming following efforts by the Federal Reserve and other central banks.

HOPEFUL SIGNS FOR REAL ESTATE MARKET

Analysts see hopeful signs for the housing market. For example, some areas, such as Fort Myers, now report sales increases from bargain-hunting buyers who have been lured back into the market. "I think we are at the beginning of the end of the housing downturn, but it is going to be a long and painful end," says Mark Zandi, chief economist at Moody’s Economy.com.

CONSUMER CONFIDENCE DIPS

Soaring gas prices and weakening job prospects made shoppers gloomier about the U.S. economy. The national Consumer Confidence Index’s May reading marks the fifth straight month of decline and is the lowest since October 1992.

HOME SALES

Florida Realtors reported an upswing in existing home and condo sales from March to April 2008, according to the Florida Association of REALTORS’ latest housing statistics. A total of 11,200 existing single family homes sold statewide in April, a 20 percent increase over March sales activity, while statewide existing condo sales rose 21.6 percent over the same time period.

In Naples during April 214 single family homes were sold or an increase of 26.6 percent over March sales. The number of condos sold in Naples during April was 235 – an increase over March of 13.5 percent.

The single family home market in Bonita Springs saw 48 homes sold an increase of 9.1 percent, while there were 71 condominiums sold or an increase of 29.1 percent over March.

Estero single family homes sold in April were 32 or increase of 39.1 percent over March. The condo market saw 24 units closed about 9.1 percent increase over March.

HOME PRICES

The United States Office of Federal Housing Enterprise Oversight said Thursday that home prices fell 3.1 percent in the first quarter of 2008 compared with the first three months of 2007. The study tracks mortgage loans of $417,000 or less bought or backed by Fannie Mae and Freddie Mac.

MORTGAGE RATES DIP

Rates on 30-year mortgages dipped below 6 percent this week to average 5.98 percent, the lowest level in five weeks, according to Freddie Mac’s weekly nationwide survey.

MORTGAGE FRAUD

According to an Federal Bureau of Investigation’s report released yesterday, the 1,204 mortgage fraud cases pursued in fiscal year 2007 resulted in 321 indictments and court orders for $595.9 million in restitution. Fiscal 2006 saw only 818 cases of mortgage fraud with 263 indictments and court orders for $388.9 million in restitution.

HURRICANE SEASON

Government forecasters officially predict six to nine hurricanes in 2008, with up to five becoming major storms. However, forecasters say the chances for an above-average season are about 65 percent; the chances for a normal season about 25 percent; and the chances for a slow season about 10 percent, making the outlook sound almost like a guess. Coupled with two recent years of above-average forecasts and below-average storms, Floridians may be getting confused. Two major points must be made, however: One, it doesn’t matter if there is only one major storm in 2008 should that one major storm hit your home. Two, less-than-accurate forecasts could make Floridians apathetic about hurricane preparations and forget that they live on a peninsula that sticks out into the ocean like a giant hurricane "Kick Me" sign. Every state homeowner should prepare for the worst even as they hope for the best.