ALLSTATE – State attorneys tried Wednesday to reinstate a suspension that would keep Allstate’s 10 insurance companies from writing new policies in Florida. “Florida consumers deserve to know what is in the documents that Allstate is so aggressively guarding and my office is determined to get them,” Insurance Commissioner Kevin McCarty said after the 12-page appeal was filed with the 1st District Court of Appeal.
ECONOMY – The Federal Reserve’s action on Tuesday to sharply cut interest rates may have
injected some confidence into the financial markets. But there’s one problem: The Fed can’t force lenders to open the credit spigot wider, the question remains if the spigot is opened wider, will borrowers with low credit scores return to the real estate market and cause future problems?
HOME EQUITY – Lenders increasingly are writing off delinquent home equity loans instead of foreclosing, as a result of declining home prices in many markets. In such instances, a lien remains on the property so the lender will recoup some money at the time of resale. The question here is – what effect the reduction in the Fed rate have on the interest rates for home equity loans? In all likelihood the interest rates will be reduced, therefore making home equity loans more affordable and hopefully, reduce the delinquencies.
DECEMBER FLORIDA HOME SALES – Sales of existing single-family homes in Florida totaled 8,828 last month while 12,758 homes sold in December 2006 for a decrease of 31 percent in the year-to-year comparison, according to the Florida Association of Realtors. The statewide median sales price was $208,900. Existing home sales nationwide were down in December, according to the National Association of Realtors, though 2007 was fifth highest on record. Florida’s housing market followed the national trend in 2007, as mortgage industry issues and a sluggish economy impacted sales and prices. By year’s end, a total of 130,241 existing single-family homes sold statewide for a 29 percent decrease compared to the 2006 sales figure. The statewide median sales price was $233,600.
Later I will be posting my analysis of the Naples, Bonita Springs and Estero for the month of December, the quarter ending December 31, 2007 and the real estate forecast for 2008.