NEW YORK – Dec. 6, 2010 – McMansions are rapidly becoming the housing equivalent of harvest gold appliances as more Americans opt for smaller residential footprints, according to a consumer lifestyle survey.
In the Relocation.com lifestyle survey, homeowners and buyers were asked to weigh in on what they considered the ideal home size. Forty-eight percent of the respondents indicated that their ideal home size would range from 1,000 to 1,999 square feet, while 29 percent prefer homes that are 2,000 to 2,999 square feet. By comparison, five years ago, according to NAHB (National Association of Homebuilders) the average home’s square footage was 2,400 square feet, nearly 400 square feet bigger than what many homebuyers desire today.
The survey also found that 54 percent of Americans indicated a preference for living in a suburban neighborhood. Urban and rural neighborhood settings were preferred by 24 percent and 22 percent, respectively, of survey participants. Surprisingly, the survey revealed that cost of a residence is not the main deciding factor when purchasing a home. In fact, only 29 percent of respondents stated living costs as the most important reason when considering a move.
“We’re definitely seeing more Americans downsizing due to the current state of the economy,” said Relocation.com Chairman and Founder Sharon Asher. “But as more homeowners rethink how much space they need, I think we’ll continue to see more innovative approaches to living well and sustainably within a smaller footprint.”
The survey of subscribers to Relocation.com was conducted in mid-October, 2010. The company sent email invitations to 146,000 people who expressed an interest in relocating. For the full survey results, go to: http://www.relocation.com/survey/10201
Source 2010 Florida Realtors®
WASHINGTON – Nov. 24, 2010 – The
1.1-million-member National Association of Realtors (NAR) is calling on
Fair Isaac Corp., developer of the FICO score, to take immediate action
to mitigate the negative impact on consumers when banks suddenly cancel
or reduce credit lines to non-delinquent customers.
These borrowers may suddenly find themselves unable to qualify for the
best interest rates and could have difficulty purchasing a home or
selling an existing one. In a bold policy move, NAR is demanding that
Fair Isaac “amend its formulas to avoid harming consumers whose
utilization rates increase because their available lines of credit” are
slashed despite a history of timely payments.
NAR wants FICO to either disregard the utilization rate altogether for
these consumers or tabulate the score as if the credit max had not been
lowered.
Tom Salomone, broker-owner of Coral Springs, Fla.-based Real Estate II
and president of Florida Realtors in 2003, said it’s undisputable that
credit card and home equity line reductions are undermining deals and
arbitrarily raising users’ interest rates. He said in an interview that
he witnessed many scenarios where homebuyers lost as many 30 points on
FICO scores “but had done nothing wrong – the banks just lowered their
lines.”
Salomone says that the inability of FICO’s software to differentiate
between innocent victims and people whose behavior genuinely merits
reductions demonstrates that “FICO’s model is archaic.”
Source: Los Angeles Times (11/21/10) Harney, Kenneth R.
© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
Source http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=250684
The pace of the national recovery is moderating and the lift spurred by
nearly $800 billion in federal stimulus spending is fading, but there
are several promising signs that growth will continue, including in
Florida, a leading national fiscal analyst told reporters Friday
morning.
Moody’s Analytics economist Chris Lafakis said the Federal Reserve will
remain aggressive, with a quantitative easing plan that he equated to
“basically flooding the global monetary system.” Lafakis predicted the
strategy would lift asset prices, reduce corporate borrowing costs, and
increase the willingness of consumers to spend.
Lafakis predicted substantial growth in Florida’s economy, mentioning
that the Miami, Orlando and Tampa areas are expected to recover “quite
significantly” due to a rebound in population growth and an increased
willingness of people to travel to Florida for vacations. “The story of
pent-up demand is true in no place more so than Florida,” he said.
Nationally, corporate balance sheets are strong and business profits
have “fully recovered from the recession,” he said, adding that
businesses are in a position to hire more employees, though their level
of willingness varies.
“It’s truly the case that profit growth leads job growth,” Lafakis told
state government reporters gathered for the annual conference of the
Association of Capitol Reporters and Editors.
Household liabilities in the United States have fallen by $900 billion
since peaking two years ago and a shift to spending and addressing
pent-up demand for purchasing “creates a lot of economic juice,” Lafakis
said.
Arturo Perez, a fiscal affairs expert with the National Conference of
State Legislatures, said states are collectively facing budget gaps that
total half a trillion dollars in the coming years. He said state tax
revenues bottomed out in fiscal 2010 and that tax collections were
growing in 42 states in fiscal 2011, which began July 1. Perez described
the prevailing sentiment across the states as “cautiou-mistic” with
revenues rebounding from a depressed base.
The national economy, which had shed 700,000 to 800,000 jobs per month
during the recession, has been adding jobs in recent months but not at
the 150,000 per month rate that Lafakis said is needed to keep up with
growth in the labor force and make a dent in the unemployment rate.
Over the past three months, he said, the national recovery has “downshifted to a more moderate pace.”
In the conference’s opening session Thursday, Lori Grange, deputy
director of the Pew Center on the States, described research showing
elected officials face a “huge deficit” in public trust in state
government.
Grange said taxpayers favor reduced government spending over new taxes
as a budget-balancing strategy and are breaking strongly against new
state government debt and borrowing. The center plans to release a
report on state debt trends in February, she said.
Grange said Illinois had gone on a “borrowing binge” that had led to the
lowering of its bond rating and noted that voters in Washington
rejected a $500 million request for capital spending to improve public
schools.
The economic crisis is forcing state government officials to
fundamentally rethink their operations, Grange said. She said high
unemployment, expiring federal stimulus funds and increased demand for
social programs had created “the perfect storm of lousy conditions and
all of it’s in the face of significant budget gaps.”
Source: News Service of Florida, Michael Norton
Pending home sales slip - modest recovery in 2011 NEW ORLEANS - November 5, 2010 -
Pending home sales dropped out after two monthly increases, signaling an uneven recovery entering the year 2011 with few near term disruptions from the foreclosure moratorium, according to the National Association of Realtors ®. The report was published in 2010 Realtors ® Conference Expo in New Orleans.
Index of pending home sales The (PASS), an indicator of research before, fell 1.8 percent to 80.9 based on contracts signed in September from an upwardly revised 82.4 in August. However, the rate remains 24.9 percent below a rise to 107.8 in September 2009 when the first-time buyers rose in the market to take advantage of the early period of the tax credit last November. The data reflect the contracts, not closings, which typically occur with a lag of a month or two.
"Home sales showed some improvement, but the foreclosure moratorium is likely to cause trouble and contribute to the evolution of sales which in the coming months," says Lawrence Yun, NAR chief economist. But seems to be a pent-up demand that will be released eventually as banks resolve their problems with seizures and improving labor market. However, the credit crisis and future assessments under a negotiated price continue to hinder the market .
The PHSI in the Northeast fell 1.7 percent to 59.6 in September and is 28.3 percent below a year ago. In the Midwest, the index decreased 5.7 percent in September to 64.2 and 33.0 percent below September 2009 remains.
Pending home sales in the South fell 3.5 percent to a rate of 87.6 and 19.1 percent below it a year ago. In the West, the index increased 3.5 percent to 104.6 but is 24.7 percent below September 2009.
By examining the fundamental principles underlying Yun expects GDP growth of 2.0 to 2.5 per cent over the next two years. With a projected 1.5 million additional jobs over the next two years, unemployment is down 8 percent in 2013 and returned to normal by about 6 percent in 2015.
"Mortgage rates are currently bouncing on the bottom, but is expected to increase gradually and the average 4.9 percent next year, then rise to 5.8 percent in 2012," Yun said.
Existing-home sales are forecast to gradually rise, with some occasional dips along the way. “For 2011 we should see more than 5.1 million existing-home sales, up from about 4.8 million this year,” says Yun. “Housing starts are expected to rise to 716,000 in 2011 from 598,000 this year. We’ve added 30 million people to the U.S. population over the past 10 years, but sales are where they were in 2000, so there appears to be a sizable pent-up demand that could come to the market once the economy gathers momentum.”
Sales of existing condominiums in Florida rose 10 percent in September,
with a total of 5,675 condos sold statewide compared to 5,140 units sold
in September 2009, according to the latest housing data released by
Florida Realtors®.
Ten of Florida’s metropolitan statistical areas (MSAs) reported higher
existing condo sales in September. The statewide existing condo median
sales price last month was $83,400; in September 2009 it was $102,300
for an 18 percent decrease. However, September’s statewide existing
condo median price was 2.2 percent higher than the statewide existing
condo median of $81,600 in August. The national median existing condo
price was $174,000 in August, according to the National Association of
Realtors® (NAR).
Meanwhile, in the year-to-year comparison for existing home sales, a
total of 13,536 single-family existing homes sold statewide last month
compared to 14,781 homes sold in September 2009 for a decrease of 8
percent. Florida’s median existing-home sales price in September was
$133,400; a year earlier, it was $141,700 for a decrease of 6 percent.
The median is the midpoint; half the homes sold for more, half for less.
“Like the rest of the nation, Florida’s housing market is feeling
pressure from an uncertain economy,” said 2010 Florida Realtors
President Wendell Davis, a broker with Watson Realty Corp. in
Jacksonville. “Easing foreclosures and increasing job growth would go a
long way in stabilizing the market and strengthening the economic
recovery. However, current record low mortgage rates along with
available and affordable inventory continue to offer a rare opportunity
for consumers who are ready to buy a home.”
The national median sales price for existing single-family homes in
August was $179,300, up 1.2 percent from a year earlier, according to
the National Association of Realtors® (NAR). In Massachusetts, the
statewide median resales price was $330,000 in August; in California, it
was $318,660; in Maryland, it was $262,339; and in New York, it was
$240,000.
NAR’s latest industry outlook calls for a gradual improvement in home
sales in upcoming months. “Attractive affordability conditions from very
low mortgage interest rates appear to be bringing buyers back to the
market,” said NAR Chief Economist Lawrence Yun. “However, the pace of a
home sales recovery still depends more on job creation and an
accompanying rise in consumer confidence. The housing market is trying
to recover on its own power without the homebuyer tax credit.”
In September, the interest rate for a 30-year fixed-rate mortgage
averaged 4.35 percent, significantly lower than the 5.06 percent average
during the same month a year earlier, according to Freddie Mac. Florida
Realtors’ sales figures reflect closings, which typically occur 30 to
90 days after sales contracts are written.
© 2010 Florida Realtors®
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=249317
With foreclosures a large share of property sales in some areas, appraisers continue to factor in the sale price of foreclosed properties when setting values of regular properties. Appraisers are aware the practice isn’t ideal, but in some markets they’re left with little choice because of the large number of foreclosed properties.
Bill Geiger Jr., an appraiser in Cocoa Beach, Fla., told a local magazine that when he has to use a distressed property while doing an appraisal, he contacts the real estate practitioners involved in the sale and reviews computerized listings for the property to find out as much as he can about the condition of the home when it sold. He adjusts the appraisal value accordingly.
There are other factors at work down assessments. Rob Johnson, vice president of lending for San Diego Financial, says the lenders asked for more control of the property if the buyer has a credit score as low or high debt relative to income. That additional inspections may be affected if the lender decides to make the loan was originally estimated.
The third factor is the volatility in the markets in which some vendors do not want to let go of previous expectations.
Experts had hoped that the repeal of unpopular evaluation standards would help the concerns of low valuations, but the repeal does not in itself change the terms of the face of the evaluator. Repeal of rules Home Valuation Code of Conduct was enacted into law as part of an important bill to reform Wall Street a few months ago.
Mortgage rates for 30 years found the lowest in decades, and prices for 15 years, the loans fell to their lowest point in nearly 20 years.
Mortgage buyer Freddie Mac said Thursday the average 30-year fixed loan fell to 4.32 percent, the lowest record for the year 1971. It is up to 4.37 percent the previous week and the same average of four weeks ago.
The average rate for 15-year fixed loans fell to 3.75 percent, the lowest in the fiscal year 1991. Prices are at or near the lowest level in decades, investors poured money into bonds Spring security, lowering yields. Mortgage rates tend to track these outputs.
In recent weeks, Treasury yields have fallen, while bond traders bet the Federal Reserve will soon increase their purchases of Treasury in an attempt to give the economy a lift.
It has lowered rates. However, low levels historically, have done little to boost property market in crisis, which suffered its worst summer in more than a decade. Autumn sales should not be much better.
High unemployment and low employment growth have prevented people from buying homes. And most of the affected markets are preparing for a wave of sales of homes sold in foreclosure or short. A short sale is when a lender allows a homeowner to sell for less than the mortgage is worth.
To calculate the average mortgage, Freddie Mac collects fees from lenders in the country, from Monday to Wednesday each week. Prices often fluctuate significantly, even on a given day.
Offers a five-year adjustable rate mortgage average 3.52 percent, down 3.54 percent a week ago. Rates for one-year adjustable-rate mortgages rose to an average of 3.48 percent to 3.46 percent.
Prices do not include add-on fees known as points. One point equals 1 percent of the loan whole. National payment of loans Freddie Mac study an average of 0.8 points in 30-year mortgages. It was an average of 0.7 points, and for 15 years and 1 year and 0.6 percentage points for loans of five years of loans.
October 1, 2010 - Congress has extended a policy that allows housing market expensive real estate, mortgages backed by the government to guarantee nearly $ 730,000.
The legislators of the Congress voted to maintain the maximum amount of loans guaranteed by Fannie Mae and Freddie Mac and the Federal Housing Administration at its current level until the end of 2011.
These limits apply expensive areas like New York and San Francisco. Absolutely, the limit would be reduced to approximately $ 625,000. The limit was $ 417,000 before 2008 and remains at that level most of the country.
The measure was a temporary spending bill that the legislature has sent to Barack Obama early on Thursday.
Real estate agents, mortgage bankers and builders keep lobbying for the upper limit of the high market price, as the housing market would suffer if the limits are not extended. Critics have argued that the lower limits of the housing market could help wean the state support.
Maintaining the current limit will help about 60,000 borrowers in a year, said Mahesh Swaminathan, a mortgage analyst at Credit Suisse.
Although relatively few borrowers will be assisted by Guy Cecala, publisher of trade publication Inside Mortgage Finance, said lawmakers are focused on maintaining control of the housing sector happy. "Nobody wants to oppose or interfere with realtors and home builders in an election year", he said.
Anything above the limit set by Congress falls into a category known as "Jumbo" loans. They made a 5 percent market share in mortgages this year, against a normal level of around 18 percent, according to Inside Mortgage Finance, a trade publication.
During the financial crisis, lenders have been much less willing to make these loans. In December 2008, who wanted a jumbo borrowers were paying 1.8 percentage points higher on their mortgage rate conventional loans backed by the government, according to financial publisher HSH Associates.
This gap has narrowed, as the crisis eased. Last week, borrowers who receive loans jumbo pay a premium of 0.8 percentage points, according to SAS. It is still a pre-crisis level of 0.25 percentage points.
A number of factors have contributed to the decline in home sales nationally and in Florida in particular, but the growing importance of foreign buyers has offset some of the damage. About two of three real estate agents of the state had at least one international operation in the last year.
While US buyers continue to struggle, foreign buyers generally consider the US real estate as a desirable investment, cost effective and safe. In addition, the weak dollar has made Florida real estate even more attractive recently.
The National Association of Realtors ® in collaboration with real estate agents in Florida, conducted a survey of members of Florida, asking them about their experience working with international clients. The study was conducted in July-August 2010. A total of 936 responses.
Highlights of the report
65 percent of respondents - members of the Florida Realtors - worked with an international client in the last 12 months. Five worked with two international customers and 18 percent work with three or more.
• Half of respondents said that international customers accounted for 25 percent or less of their company, 15 percent said international buyers accounted for more than half of its business.
• One in three said that international customers have been an increasing proportion of their clients over the past two years, while nearly half (48 percent) stated that its share of international clients remained more or less the same.
• Canada was the largest buyers accounted for 36 percent of sales. Purchasers of the United Kingdom accounted for 15 percent, and the rest of Western Europe accounted for 14 per cent increase. Latin America is defined for the report includes Mexico, the Caribbean, Central and South America accounted for 16 per cent. Other countries, a small but significant share of sales in Germany (5 percent), Venezuela (3 percent), Brazil (3 percent) and France (3 percent).
• 11 percent of foreign buyers bought a new house, and the remaining 89 percent purchased a home previously owned.
• 51 percent bought a single family detached, 37 percent bought a condo, 11 percent bought a townhouse, and 1 percent have bought a second type of home.
• 38 percent are bought in a suburban area 30 per cent have bought property in a resort area, 25 percent is purchased in a city center, 7 percent were bought in a small town or rural area.
• 15 percent of buyers will use their property less than one month per year, 21 percent expect to use 1-2 months, and 34 three to six months. Percent
• 19 percent bought a house in the Orlando area, Kissimmee, 17 percent chose Miami-Ft. Lauderdale, 13 percent chose Sarasota-Bradenton and Tampa, Cape Coral-Fort Myers and Naples have completed the first six by at least 5 percent of purchases.
TALLAHASSEE, Fla. – Sept. 8, 2010 – Citizens
Property Insurance Corp. asked state regulators Tuesday for a premium
increase, in part because sinkhole costs are swallowing up more and more
of the company’s money.
The company is asking for premium increases averaging 10.9 percent in
2011 for its riskiest homeowner policies. While much of the attention
around property insurance involves hurricane risk, Citizens officials
say that the state-run company took in $19 million in premiums for
sinkhole coverage last year, while paying out $97 million in
sinkhole-related claims.
The Office of Insurance Regulation panel did not take a vote on the rate
request, which would begin to take effect Jan. 1. While the average
rate increase requested would be just under 11 percent, homeowners in
low-risk areas would see their rates rise an average of 9.8 percent.
Even the state’s consumer advocate’s office acknowledges higher rates
may be needed because of sinkhole risk. Either a 10 percent cap on rate
increases needs to be reconsidered, or sinkhole premiums should be
considered separately, said Steve Alexander, an actuary in the Office of
Insurance Consumer Advocate.
Citizens is now taking over the vast majority of sinkhole policies as private insurers try to reduce their risk.
“The rates are insufficient for what is an increasingly larger portion
of claims,” Alexander told a panel of regulators led by Belinda Miller,
Office of Insurance Regulation deputy commissioner for property and
casualty insurance.
“We need to think of a lot more comprehensive approach to sinkhole
insurance as a state,” said Paul Polumbo, senior vice president of
underwriting for Citizens, which now handles 1.2 million residential and
commercial policies in the state’s most hurricane prone regions.
By law, Citizens cannot increase premiums more than 10 percent in a
single year, but the state-run insurance company can ask for additional
money to help rebuild the state’s hurricane catastrophe fund, which is
why the proposed rates are slightly in excess of the 10 percent cap.
Critics say the 10 percent limit hinders Citizens’ ability to raise
rates sufficiently to become actuarially sound. But political
considerations are playing a big role in recent legislative actions to
cushion the blow of premium increases on coastal residents who find
Citizens the only practical choice.
The same dynamic holds true for sinkhole coverage, as the state-run pool
is increasingly becoming the state’s sinkhole insurance provider – an
additional book of business that creates more pressure to raise rates in
excess of 10 percent.
Source: News Service of Florida, Michael Peltier
WASHINGTON – Sept. 8, 2010 – In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development (HUD) now provides a new refinancing option for underwater borrowers. Originally announced in March, the enhancement of a Federal Housing Administration (FHA) refinance program offers non-FHA borrowers the opportunity to qualify for a new FHA-insured mortgage. To qualify, the homeowner must be current on his existing mortgage and lien holders must agree to write off at least 10 percent of the unpaid principal balance.
The FHA Short Refinance option is targeted to people who owe more on their mortgage than their home is worth because the local market saw large declines in home values. The Obama Administration hopes the change, as well as other programs that have been put in place, will help up to 4 million struggling homeowners through the end of 2012.
Participation in FHA’s short refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must also qualify under standard FHA underwriting requirements. The property must be the homeowner’s primary residence and the borrower’s existing first lien holder must agree to write off at least 10 percent of their unpaid principal balance. In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent, and a combined loan-to-value ratio no greater than 115 percent.
To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.
For more information on FHA Short Refinance option, read FHA’s mortgagee letter:
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-23ml.pdf
© 2010 Florida Realtors®
YORK, Pa., – Sept. 3, 2010 – An uptick in
homeowners are opting to remodel to increase a potential sales price or
just upgrade their living space. According to StateofLife.com,
remodelers should keep the following in mind:
Tip No. 1: Does your contractor have proof of insurance?
Ask the contractor to have his insurance company mail or fax a copy of
his current contractor insurance card to you. If the contractor can’t do
this – stay away. Why? If there is an accident at your home, you are
then liable. This also applies to any sub-contractor or employee that
the contractor may use – those individuals should have active insurance
cards faxed or mailed to you as well.
Tip No. 2: Check references and see photos
Ask for at least three references with two for the same type of project
you’re planning – and call the references. Additionally, ask the
contractor to provide photos of previous work, especially for the same
type of project. If he produces lawn and garden photos and you’re
planning a bathroom remodel, you may want to check with another
contractor.
Tip No. 3: Does your contractor take debit or credit cards?
Besides your ability to earn a few points, bonus miles or cash back,
credit card acceptance is a good sign that a contractor is financially
savvy and has a bank behind his business. Even many small, one-man shops
take cards if they have a good relationship with their business bank or
credit union.
Tip No. 4: Manners and appearance
If the contractor drove his vehicle to your home to give you an
estimate, take a look at the way he keeps the equipment and vehicle. Are
things clean? Neatly arranged? The way a contractor treats his tools is
a direct connection to how he’ll treat your home. During the initial
meeting, does the contractor present himself in a professional way? Do
you feel comfortable around him or his employees? They will be working
in your home.
Tip No. 5: Clean up policy
If your improvement is a multi-day project, will the contractor clean up
at the end of every day or will he leave the dust, wood chips and other
mess lying there for day No. 2?
Tip No. 6: Will the contractor put it in writing?
Is your contractor willing to put both his bid and the scope of work in
writing? If not – walk away immediately. Many homeowners have been duped
by contractors who verbally say what’s included, but, in the middle of
the job, require extra money to finish, effectively holding the owner
hostage with an uncompleted home project.
Tip No. 7: Availability
Can the contractor get the job done in your timeline rather than his
timeline? On the flip side, if you can’t find a good contractor that’s
willing to commit to your timeline, your expectations may be too high
and you may need to adjust your timeline.
Tip No. 8: The use of subcontractors
Does your contractor do everything himself or will he subcontract work?
For example, if remodeling a bathroom, you may need a plumber,
electrician and carpenter. It’s okay if the contractor subcontracts work
out to these specific trades – it shows he wants the work done right –
and it’s standard practice for the contractor to mark up the services to
earn a profit. To save money, owners can subcontract the work
themselves, but managing a total project brings its own challenges.
Tip No. 9: Quoting and billing procedure
Ask the contractor about his quoting procedure. Will it contain general
information, or will it be specific? For example, most contractors will
charge a fuel surcharge, material up-charges, waste removal, labor, etc.
Some will show you these exact costs in a line item invoice, but others
roll it up into one big bill. How much detail do you want? Clarify that
with your contractor upfront. Also: What is the payment or billing
policy? If money is required upfront, go back to No. 1 and No. 2 above
to make sure you have the contractor’s references checked and have a
copy of his contractor’s insurance.
Tip No. 10: Did your contractor get the permits?
Ask your contractor to take care of the permits. Although permits cost
money, the inspection process also protects you from poor workmanship
and makes sure everything is being built to code.
Resource:
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=246307 © 2010 Florida Realtors®
GAINESVILLE, Fla. – After declining for the
first time since the end of World War II, Florida’s population grew once
again last year, a hopeful yet tentative sign that the worst of the
recession may have passed, according to the latest preliminary
population estimates from the University of Florida (UF).
Stan Smith, director of UF’s Bureau of Economic and Business Research,
estimates that Florida added a modest 21,000 residents between 2009 and
2010, but that follows a population decline greater than 56,000 between
2008 and 2009.
“Even though the state turned it around, it still represents the
smallest population increase since the 1940s and does not make up for
last year’s loss,” Smith said. “Florida’s population growth continues to
be very, very slow by historical standards.”
Florida grew by more than 125,000 residents in every year from 1950 to
2008. It’s estimated that Florida added 21,285 residents during the past
year, with its total population increasing from 18,750,483 on April 1,
2009, to 18,771,768 on April 1, 2010, Smith says. The previous year it
lost an estimated 56,736 residents.
“Two years ago, the economy was deteriorating rapidly, while over the
past year there have been some signs that it is leveling off or even
improving slightly,” he says. “I think that’s the reason we’re seeing a
small increase in population. Although technically the recession has
ended, the economy continues to be in bad shape, particularly in terms
of its ability to create jobs. There have been some jobs added in the
last few months, but unemployment is still very high and job growth is
very weak.”
Slightly more counties lost rather than added population, but the split
was fairly even. In percentage terms, both increases and decreases in
counties’ populations were generally very small, with no dramatic
changes.
“At the state level, foreign immigration continues to be relatively
strong, and the state also continues to have substantially more births
than deaths, which are really the drivers of Florida’s growth in the
last year,” Smith says.
The largest population gains were in some of the biggest counties.
Miami-Dade led by adding an estimated 8,253 residents, followed by
Hillsborough, 6,353, and Broward, 5,834. “Because they’re the largest
counties, they have fairly sizeable numbers of births,” Smith says.
“They also receive a substantial number of foreign immigrants.”
The county with the biggest percentage increase was Lafayette, which
grew by 5.2 percent, but that change was largely attributed to the
addition of state prison inmates. There was no pattern to which counties
lost population, which were spread throughout the state and include
both large urban counties and small rural counties.
The largest population decline was in Seminole County, which lost 3,659
residents, followed by Pinellas, 3,119, and Volusia, 2,055. In
percentage terms, the county with the biggest decline was Glades,
followed by Jackson and Holmes.
With a quick economic turnaround unlikely at either the state or
national level, Smith expects Florida’s population to continue to grow
slowly during the next year or two. But within the next 10 to 20 years,
the state’s annual population growth could be as high as 250,000.
“From 2003 to 2006, Florida’s population grew by more than 400,000 per
year, and in the previous three decades increases averaged about 300,000
per year, although there were certainly ups and downs from year to
year,” he says.
Last year’s population decline, a result of the economic slump, was the
first since 1946, when military personnel left the state at the end of
World War II.
“If the economy recovers sooner than people expect, we would expect
faster growth,” Smith says. “If it recovers less rapidly or even slips
back into recession, we would expect that growth will continue to be
very slow and possibly even be negative again.”
Between 2000 and 2010, the counties that grew the most in absolute
numbers were Miami-Dade, Orange and Hillsborough. Flagler had the
highest growth rate, 90.4 percent, followed by Sumter, 82.6 percent,
Osceola, 59.8 percent, St. Johns, 50.6 percent, and Wakulla, 41.7
percent.
The population figures are interim estimates that will be replaced by
numbers from the 2010 census when they become available early next year.
Resource:
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=246322 © 2010 Florida Realtors®
September 1, 2010--The Federal Housing Administration (FHA) is giving homeowners and buyers until October 4 to lock in a low monthly insurance premium, according to Gibran Nicholas, chairman of the CMPS Institute, an organization that trains and certifies mortgage bankers and brokers. “After October 4, the monthly insurance premiums on FHA loans will increase by over 63%.”
What does this mean for home buyers?
A home buyer purchasing a $200,000 home using a $193,000 FHA mortgage before October 4 would pay an insurance premium of $88.46 per month. If the same home buyer waits until after October 4, the insurance premium would jump to $148.01.
“In this example, the home buyer would lose $59.55 per month, or $7,146 over a 10-year time frame,” Nicholas said. “Although the upfront mortgage insurance premium is going down after October 4, the real impact to the home buyer is actually a net increase in their out of pocket costs because the monthly premium is going up by 63%. Remember, sellers can pay the upfront premium or it can be financed into the loan amount, so home buyers rarely pay the upfront premium out of pocket. On the other hand, the increase in the monthly premiums will be paid right out of the home buyer’s pocket with their mortgage payment each month.”
Ironically, home buyers who plan to be in the mortgage for less than three years and decide to pay the upfront fee themselves (instead of having the seller pay it for them), may actually save money by waiting until after October 4 to apply for an FHA loan.
“Home buyers with a short term time horizon may actually benefit from this change because the upfront premium will be reduced to 1% from 2.25%,” Nicholas said. This change will impact over 30% of the home buyers in today’s market who use FHA-insured financing. Home buyers considering an FHA loan should find and contact a CMPS professional in their area to discuss their options and what this means for their situation.
Also, you can follow CMPS Institute on Twitter to stay updated on these and other mortgage and housing industry developments.
Resource: http://biz570.com/economy/banking/fha-gives-homebuyers-one-month-window-to-save-1.984283
“The government program as currently structured is petering out. It is taking in fewer homeowners, more are dropping out and fewer people are ending up in permanent modifications,” said Mark Zandi, chief economist at Moody’s Analytics.
The program is intended to help those who are at risk of foreclosure by lowering their monthly mortgage payments. Friday’s report from the Treasury Department suggests the $75 billion government effort is failing to slow the tide of foreclosures in the US, economists say.
More than 2.3 million homes have been repossessed by lenders since the recession began in in late 2007, according to foreclosure listing service RealtyTrac Inc. Economists expect the number of foreclosures to increase well into next year.
Besides forcing people from their homes, foreclosures and distressed home sales have pushed down on home values and crippled the broader housing industry. Home builders have found it difficult to compete with the depressed prices that have discouraged potential sellers from putting their homes on the market.
Approximately 630,000 people who had tried to get their monthly mortgage payments lowered through the government program have been cut loose through July, according to the Treasury report. That’s about 48% of the ones who had enrolled since March 2009, and it is up from more than 40% through June.
Roughly 32% or about 421,804 of those who started the program, have received permanent loan modifications and are making their payments on time.
RealtyTrac reported that the number of US homes lost to foreclosure surged in July to approximately 92,858 properties, up 9% from June. The steady rise of repossessions has been increasing and the nation is now on track to having over more than 1 million homes lost to foreclosure by the end of 2010. That would be a significance loss of more than 900,000 homes repossessed in 2009, the firm says. According to RealtyTrac, lenders have taken over an estimated 100,000 homes a year.
Zandi said the government effort will likely end up helping only about 500,000 homeowners lower their monthly payments on a permanent basis. That’s a small percentage of the number of people who have already lost their homes to foreclosure or distressed sales like short sales - when lenders let homeowners sell for less than they owe on their mortgages.
Zandi predicts another 1.5 million foreclosures or short sales in 2011.
“We still have a lot more foreclosures to come and further home price declines,” Zandi said. He said home prices, which have already fallen 30% since the peak of the housing boom, would drop by another 5% by next spring.
Many borrowers have complained that the government program has been a nightmare for them. Borrowers also claim banks often lose their documents and then claim the necessary paperwork wasn't returned.
The banking industry said borrowers weren’t sending back their paperwork. They also have accused the Obama administration of initially pressuring them to sign up borrowers without insisting first on proof of their income. When banks later moved to collect the information, many homeowners dropped out or were disqualified.
Obama officials dispute that they pressured banks. They have defended the program, saying lenders are making more significant cuts to borrowers’ monthly payments than before the program was launched. Some of the largest lenders in the program have offered alternative programs to those who fell out.
Homeowners who qualify can receive an interest rate as low as 2% for 5 years and a longer repayment period. Those who have successfully navigated the program to reach permanent modifications have seen their monthly payments cut on average by about $500.
After all the required paperwork is finished, homeowners receive a temporary modification, this is to become permanent after they make 3 on time payments. That includes proof of income and a letter explaining the reason for their troubles. This process has taken far longer.
Over 100 participating lenders get taxpayer incentives to reduce payments. As of mid-June only $490 million had been spent out of a potential $75 billion the government has made available to help stem the wave of foreclosures.