If you have questions about portability, the additional homestead exemption or other benefits of Amendment 1? Check out the Florida Department of Revenue’s (DOR) Web site (http://dor.myflorida.com/dor/property/sb4d.html). If you sold a homestead property in 2007 and qualified for homestead on a new home as of Jan. 1, 2008. You have only one month – until March 1, 2008 – to apply for property tax portability and the homestead exemption. The portability application and other pertinent forms can be found at the Florida Department of Revenue's Web site.

Jupiter High School Auditorium

October 10th, Wednesday @ 7pm in Jupiter, Florida 3 renowned scientists, Dr. Marr of Perry Institute for Marine Science, Professor Ray McCallister, and Dr. Boukerrou will discuss Global Warming Impacts. This symposium is free to the public, with an open discussion moderated by Dr. Stefan Harzen.

This truly is an unbelievable event to speak with the Executive Director of Perry. visit the web-site www.perryinstitute.org

If anyone on this planet understands Coral Reef Eco-systems and the effect they have on our coastline in Florida this doctor does.

The Perry Institute for Marine Science could utilize further community support for their mission, goto www.mygreenlicenseplate.com and order your GREEN Environmental license plate today and choose Perry for proceeds. Display your concern today for our planet.

UF study: Florida’s housing market shows surprising resilience

GAINESVILLE, Fla. – Sept. 5, 2007 – Despite the bleak real estate outlook nationwide, Florida’s new home market appears for now to be stabilizing as a result of persistent demand for homes and lack of overbuilding, according to a University of Florida study released today.

“There’s a growing feeling of apprehension or caution, but the results from our survey remind us that the underlying markets for real estate in Florida are still in good shape,” says Wayne Archer, director of UF’s Bergstrom Center for Real Estate Studies. “Owner residential is the only area of real estate markets where there are problems at this time. Apartments, retail, office, industrial and hospitality all remain stable and healthy.”

The findings are from the center’s quarterly survey of Florida real estate trends completed in July.

New single-family home development is sluggish but considered stable by industry experts, while the condominium market continues to struggle, Archer says. However, overall the state is in better condition than the rest of the country, he says.

What sets Florida apart is its high growth rate, allowing quicker recovery from setbacks in the real estate market, Archer says. “If there is a problem with the housing market in Chicago, Indianapolis or Kansas City, people there may have to live with it for a long time because growth is relatively slow and it takes awhile for the problem to work itself out,” he says.

Another advantage Florida has is a rate of building that is moderate enough – with the exception of condos – to prevent large imbalances in supply and demand, he says.

The greatest fear right now is that subprime loans underlying many real estate securities will result in increasingly high defaults, foreclosures and losses for investors, Archer says. The crisis involving these unconventional loans has pervaded the entire financial system, causing declines in the stock market and generating fears about the kind of damage that might result in the future, he says.

“We have a liquidity crisis that is at the top of the news hour by hour and it’s very hard to conjecture how much impact this will have on the real estate picture in Florida,” he says.

The latest UF housing survey was conducted in July before the crisis had escalated. “If we could poll our respondents now, they might be quite a bit more apprehensive than they were two or three weeks ago,” he says. But Archer, who has spent most of his professional career studying mortgages, says people underestimate the tenacity of homeowners to remain in their homes.

“Even if a homeowner gets in trouble, it takes a severe disruption in their household or their life before they will abandon their mortgage and their home,” he says. “They will fight to keep that house. They’ll give up their car. They’ll take on four jobs. They’ll do whatever it takes.” The same cannot be said, though, about people buying second homes or houses as speculative investments.

Unlike second homes or condominiums, owner-occupied single-family homes continue to be a good investment, Archer says. Although there has been a flattening in single-family housing prices, with prices in some markets likely to drop over the next year to adjust to a correction in the market, Archer says he does not foresee widespread declines.

“I think homeowners have not yet come to terms with the fact that the price increases we’ve seen in the last two or three years are not going to continue,” he says.

Condos, especially in certain cities, are in much bigger trouble, Archer says. By some estimates, there are as many as 40,000 condo units for sale in Miami and not even a fraction of those are needed, he says. Unless there is some movement by foreign investors to buy these condos, the market is likely to be hurting for a long time.

On a positive note, the survey shows remarkable stability in capitalization rates, the measure of how fast an investment pays off in net cash, Archer says. If there is growing apprehension about the real estate market, capitalization rates should increase in response to lenders’ rising fears about perceived risk.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

UF survey: Few Floridians think their house values will dip in five years

GAINESVILLE, Fla. – Aug. 9, 2007 – Floridians are optimistic about housing prices despite the gloom pervading much of the real estate industry, a new University of Florida survey finds.

Only 5 percent of 287 Florida homeowners said they think their house values will fall during the next five years, according to the survey, which was conducted in July by UF’s Bureau of Economic and Business Research.

Eighty-two percent expected the value of their houses to rise, and 13 percent said they would remain the same. The median respondent expected a gain of 18 percent, or a little more than 3 percent a year.

UF economists said they were not surprised by the results.

“The last time housing prices fell and didn’t recover within five years was during the Great Depression,” said Jonathan Hamilton, a UF economics professor and chairman of the economics department. “Most of the problem in Florida right now is that we’ve had a huge amount of building and lots of speculative buying, and things are now catching up.”

Although there is a large inventory of condominiums for sale statewide, many of these units are likely to be sold and occupied within the next few years, he said.

Florida’s draw as a retirement destination as the baby boomers age is another factor that bodes well for the state, said David Denslow, a UF economics professor who led the research. “As these baby boomers flood into Florida, they will be pushing housing prices up,” he said.

The questions were asked as part of the bureau’s monthly consumer confidence telephone survey. The responses about housing price expectations did not vary significantly by age, race, gender, region within the state or current house value, Denslow said.

“This surprised me a little bit because we expect people to be more pessimistic where there is a huge glut on the market such as the Tampa Bay or the Orlando area,” he said. “The people who do distressed house sales, the Web sites where they say they’ll buy your house for only 80 percent of its value, they love Orlando right now.”

The housing market is in a period of correction after the dramatic appreciation in real estate values nationally and particularly in Florida since 2000, Denslow said. In most Florida markets the median price of existing homes is declining, he said.

“Although these declines are temporary, there will be at least some Florida markets where house price appreciation will be very low over the next five years,” he said. “My guess would be that you’ll see low house price appreciation in the Tampa Bay, Orlando and Miami area simply because of the number of existing units on the market.”

In contrast, large price reductions are unlikely in Gainesville or Tallahassee where the housing boom has not been nearly as dramatic, Denslow said. “And similarly, I don’t think that Jacksonville is going to be hurt as badly as Fort Myers or Naples or the Fort Pierce area,” he said.

The survey’s error rate was 4 percent.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

The market is likely to stabilize in the months ahead, according to the NATIONAL ASSOCIATION OF REALTORS®’ forward-looking indicator on pending home sales.

The Pending Home Sales Index, based on contracts signed in June, was 5 percent higher from the downwardly revised May index of 97.5, but is still 8.6 percent below June 2006 when it stood at 112. The 5 percent monthly gain is the largest in more than three years, since a 6.1 percent increase was recorded in March 2004.

Lawrence Yun, NAR senior economist, says it’s encouraging that the increase occurred in all four major regions of the United States. “However, it is too early to say if home sales have already passed bottom,” he says. “Still, major declines in home sales are likely to have occurred already and further declines, if any, are likely to be modest given the accumulating pent-up demand.”

The index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed.

What Happened Regionally

Here’s a breakdown of what the PHSI showed across the country:

West: the PHSI increased 8.6 percent in June to 103.6, but was 5.5 percent below a year ago.
Northeast: the index rose 3.1 percent from May to 96, which is 2.4 percent lower than June 2006.
South: the index increased 4.7 percent in June to 111.6, but was 12.7 percent below a year ago.
Midwest: the PHSI rose 3.5 percent in June to 92.5, which is 8.2 percent lower than June 2006.

-REALTOR® Magazine Online

Hank Fishkind: Other economists wrong - housing on slow upswing

ORLANDO, Fla. - July 26, 2007 - Economist Hank Fishkind calls other economists' dire warnings and negative news about the housing market overblown, and says that, outside of Miami's condominium market, the state's housing markets hit bottom months ago and are now on a slow return to normalcy.

Fishkind, speaking Tuesday on his radio talk show, pointed to recent stories released by respected economists. Last Friday, for example, Bloomberg news published a story with an ominous headline - "Miami condo glut pushes Florida's economy to brink of recession." It quoted Moody's/Economy.com's Mark Zandi who predicted Miami condo price drops as much as 30 percent and a state recession perhaps by October.

"There is no doubt that the Miami condominium market is severely overbuilt, and that there will be sharp price drops and massive defaults," says Fishkind. "But, this is no surprise to anyone who has followed this market." But, he adds, "It is also important to note that Florida's housing markets, outside of Miami's condo market, have hit bottom months ago. The closing volume for new and for existing homes has stabilized."

Fishkind doesn't predict a huge upswing in closings, but "they are no longer declining. Therefore, we have already seen the worst for this cycle. There is no evidence of sharp price drops anywhere in the state, and there is no reason to expect any such drops outside of Miami condos. Population growth is holding up well as the state continues to attract large volumes of retirees and working families looking for jobs."

Fishkind says that rising gas prices could impact consumer spending more than expected, but he calls that a nationwide problem, one that "Florida will ride out better than most other places."

Source: WMFE Radio News, 90.7 FM/Fishkind & Associates Inc.
© 2007 FLORIDA ASSOCIATION OF REALTORS®

When it comes to property tax reform, the Florida Association of Realtors® (FAR), the largest trade group in the state with 150,000 members, means business.

FAR has pledged up to $1 million to support passage of an amendment to reform Save Our Homes. The amendment, which goes before voters Jan. 29, 2008, would allow property owners to continue the 3 percent tax cap they currently enjoy as a result of the 1992 Save Our Homes amendment, or to choose a new "super-homestead" exemption. This option would take up to $195,000 off their home's taxable value - providing meaningful tax relief for thousands of families.

"Passage of this amendment is critical to the future of Florida," says FAR President Nancy Riley. "It will provide first-time homebuyers a large tax exemption. It will begin to equalize property taxes among neighbors. And it will allow the people who are the foundation of our neighborhoods - teachers, nurses, police officers and emergency first responders - to afford to live in the communities they serve.

"It's time to reform Save Our Homes," Riley continues. "We invite other groups to make an investment in Florida's future by supporting this amendment."

©2007 FLORIDA ASSOCIATION OF REALTORS®

Get ready: The Florida Department of Financial Services (FLDFS) has scheduled a number of hurricane expos around the state, and many are open to the public.

Topics vary for each meeting but focus on hurricane mitigation techniques to boost a home's defenses against a storm, including information about the state's My Safe Florida Home program and defensive moves such as storm shutters and fortified garage doors.

Currently scheduled expos and topics are listed below, but for more information or to see future events, visit the FLDFS Web site at: http://www.fldfs.com/Consumers/consumerOutReach/eventsbycategory.asp.

By phone, call the FLDFS Consumer Services Helpline at (800) 342-2762.

July 12: Jacksonville

Habitat for Humanity/UNF hurricane preparedness

July 14: Miami-Dade

Hardening your home against hurricanes

July 18: Jacksonville

Hurricane preparedness

July 20: Delray Beach

Hurricane preparation lecture

July 21: Orlando

Hurricane mitigation (What to do before and after a storm)

July 23: Jacksonville

First time homeowner's workshop - hurricane preparedness

Aug. 8: Jacksonville

First time homeowners' workshop - hurricane preparedness

Aug. 9: Kissimmee

Homeowner insurance class - hurricane preparedness

Aug. 11: Jacksonville

SHADCO safety fair - hurricane preparedness

Aug. 24: Naples

Resource to create, maintain and grow your business - hurricane preparedness

Aug. 27: Jacksonville

First time homeowner's workshop - hurricane preparedness

Sept. 24: Jacksonville

First time homeowners' workshop - hurricane preparedness

©2007 FLORIDA ASSOCIATION OF REALTORS®

TALLAHASSEE, Fla. - June 28, 2007 - It's official: Gov. Charlie Crist signed SB 2234, which creates a program to license home inspectors, mold assessors and remediators working in Florida. The Florida Association of Realtors (FAR) issued a Call-to-Action on Monday asking members to call Gov. Crist in support of passage.

Don't expect quick changes, however. The new law becomes effective July 1, 2010. The three-year gap until implementation gives the Department of Business and Professional Regulation (DBPR) time to create a program for certification, establish licensing fees and draft rules.

The newly signed law, which covers 30 pages and establishes the maximum fees DBPR may charge for applications and renewals. Home inspectors, for example, would pay a maximum of $200 for an initial license fee; and the law requires 14 hours of continuing education every two years and 120 hours of pre-license education.

In creating the bills, the Legislature said it "recognizes that there is a need to require the licensing of home inspectors and to ensure that consumers of home inspection services can rely on the competence of home inspectors, as determined by educational and experience requirements and testing." In 2006, a similar bill, also promoted by FAR, died in committee.

To read SB 2234, go to: http://www.flsenate.gov. On the left side, select 2007 session and search using the bill number.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

TALLAHASSEE - Gov. Charlie Crist signed a property-tax cut into law this morning, which will mean about $200 in savings for the average homeowner this year, and is on his way to West Palm Beach to celebrate. "This is the people's tax cut," Crist said.

Crist started his day in Tallahassee this morning signing one bill that forces local governments to cut up to $15 billion in property taxes during the next five years and another that authorizes a special election to ask voters to reform the way primary homes, known as homesteads, are taxed.

At the Tallahassee ceremony, Crist brought along two local residents who could save about $200 this year and potentially could cut their property tax bills by 66 percent next year with the Save Our Homes reform.

In West Palm Beach, Crist's ceremony will include Michael and Jeanette Waddle, who could save $350 this year and about $2,000 with the constitutional amendment.

Crist will also appear with local families at stops in Miami and Tampa later in the day.

"The people will have the power to further drop their property taxes like a boulder," Crist said of the special election on Jan. 29. "The people will have that power to cut their taxes in a historic way."

In the special election, the same day as the presidential primary in Florida, voters will decide whether to phase out Save Our Homes, which caps homestead assessments at 3 percent yearly, in exchange for homestead exemptions of up to $195,000.

A divided legislature approved the ballot question that, if voters agreed, would give the larger homestead exemptions to new homebuyers instead of the Save Our Homes cap.

Current homestead owners could decide whether to keep their Save Our Homes protection or give it up in favor of the larger exemptions, which total 75 percent of the first $200,000 in value and 15 percent of the next $300,000.

Gov. Charlie Crist vetoed a bill that would have allowed landlords
to charge up to two months rent if a tenant breaks the lease and leaves
early - even if the unit could be filled immediately with a new tenant. HB
1277 would have changed the current law that allows renters to move without
penalty, even if it breaks a lease, providing the unit can be immediately
re-leased and the landlord incurs no loss. "While I understand that this
would provide another option for landlords who manage rental property, I
believe the impact on those Floridians least able to afford to pay such fees
would be just too great," Crist said in a letter to Secretary of State Kurt
S. Browning, announcing the veto. "With escalating insurance and ad valorem
tax cost that are passed on to renters, Florida is experiencing a lack of
affordable housing for those workers critical to maintaining the state's
robust economy." Crist said he could not "allow legislation to become law
that would add to the housing burden of these Floridians."

Grassroots organizations are active in property taxes, value
assessments, portability, transportation, development, school concurrency
all of which you can follow.

You can visit www.tootaxed.com for additional information.

Survey: Consumers very confused about insurance coverage When it comes to homeowners insurance, what you don't know could cost you.

Even in the shadow of Hurricane Katrina's losses, a survey finds that one-third of today's homeowners believe that flooding is covered under their standard homeowners policy, according to the National Association of Insurance Commissioners (NAIC).

In fact, typical property and liability policies don't cover home damage from floods, earthquakes, water line breaks, termites, mold and several other perils, large and small. The survey found that 33 percent of U.S. heads of household, who own a home and have homeowners insurance, incorrectly believe flood damages would be covered by a standard homeowners or property and liability policy, despite extensive media coverage on Hurricane Katrina victims whose claims were denied because they lacked flood insurance.

"Many homeowners learned the hard way that their insurance policies did not provide flood protection," says Walter Bell, NAIC President and Alabama Insurance Commissioner. "As we enter the 2007 hurricane season, we strongly encourage consumers in flood-prone areas to check whether they are properly covered."

The NAIC survey also revealed other homeowner misunderstandings when it comes to common loss situations - none of which are covered by standard homeowners insurance policies - such as:

68 percent think vehicles such as cars, boats and motorcycles stolen from or damaged on their property are covered.
51 percent think damage resulting from a break of their property's water supply line is covered.
37 percent think damage resulting from a break in the sewer line on their property is covered.
35 percent think damage from earthquakes is covered.
34 percent think damage from mold is covered.
31 percent think damage from termites or other infestation is covered.
22 percent think pets stolen or injured on their property are covered.

In addition, 24 percent of respondents believe they're covered for the actual cash value of losses, while 64 percent said their policies covered replacement cost. Another 12 percent said they did not know which type of coverage - actual cash value or replacement cost - they purchased.

Actual cash value is the amount it would take to repair or replace damage to a home and its contents after depreciation. Replacement cost is the amount it would take to replace or rebuild a home or repair damages with materials of similar kind and quality, without deducting for depreciation.

"It's important that consumers understand this distinction," Bell said. "In the event of a covered loss, an actual cash value payout could be thousands of dollars lower than a benefit calculated at the replacement cost."
The NAIC survey also uncovered a growing concern among homeowners about being sued. Twenty-eight percent of respondents reported they were more concerned today than they were five years ago about being the target of a lawsuit.

"Consumers can better protect themselves from lawsuits by adding umbrella liability coverage to their homeowners policy," Bell said. According to the NAIC survey, a majority of homeowners - 63 percent - lack this umbrella coverage.

The NAIC provides information, tips and considerations regarding homeowners insurance on its consumer education Web site, Insure U (www.InsureUonline.org). The entire site is also available in Spanish (www.insureuonline.org/espanol). Headquartered in Kansas City, Mo., NAIC is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and the five U.S. territories.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

West Palm Beach to consider major move on waterfront project. The city will escape a monumentally bad lease with 67 years to run if the city commission and Florida Cabinet back a $40 million marina and hotel project at the downtown Palm Harbor Marina. The plan that city commissioners will consider Monday expands the docks from 14 to 25 acres, includes a 5 or 6 story boutique hotel with a waterfront restaurant and shops. They make money. The city makes $27,000 annually leasing the docks and submerged land to the Chases' firm, Leisure Resorts.

The new deal would guarantee the city 8 percent of the project's revenue as much as $600,000 but a minimum of $180,000. The deal would mean a 100 year lease and requires a swap of submerged land with the state. On June 12, the Cabinet will consider accepting 8 submerged city acres in front of the library in exchange for state submerged land at the marina. With the land the city already has at the marina, the total would be 26 acres. The city would also agree to spend $600,000 in improvements at Grassy Waters Preserve off Northlake Boulevard.

Florida's small-time commercial landlords and many of the small-business owners who rent space from them have been hit with the same fast-rising insurance premiums that have been shocking homeowners since a series of hurricanes raked the state in 2004-05. Earlier this year, lawmakers handed the problem to Citizens Property Insurance Corp., the state-backed insurer of last resort, whose commercial coverage until now has been limited to high-risk coastal areas. As a result, Citizens will offer windstorm coverage to commercial-property owners statewide starting June 1 - the official start of the 2007 hurricane season. It could find itself flooded with applications. As of April 30, Citizens had little more than 9,800 commercial policies in force a total dwarfed by its residential portfolio of more than 1.2 million policies. According to Sam Miller, executive vice president of the Florida Insurance Council, the state's commercial insurers are simply doing what residential insurers have been doing with homeowners: reassessing their risk after back-to-back costly hurricane seasons in 2004-05. During their special January session on insurance, state lawmakers ordered Citizens to expand its presence in the commercial-property market beyond the coasts.

The insurer is also absorbing a previous state effort to provide premium relief for commercial-property owners: the Florida Property Casualty Joint Underwriting Association. That entity, known as "the JUA," had a $1 million cap on its policies and, to qualify for coverage, a property owner had to have been rejected by three private insurers and one "surplus lines" company: an unregulated operator not subject to state rate controls.

Citizens will initially offer windstorm coverage up to $1 million on structures valued up to $10 million on a single policy. But starting Sept. 1, it plans to boost its damage limit to $2.5 million on structures valued up to $20 million. Those limits clearly target small landlords.

Citizens' statewide offerings starting Sept. 1 will also include not just wind damage but other perils such as fire, theft and business interruptions. Citizens has opened a commercial-insurance office in Tampa. International Catastrophic Insurance Managers of Boulder, Colo., has been hired to issue policies and handle claims initially, but Citizens will eventually assume those functions.

Our newest real estate newsletter is posted in our e-newsletter section. We encourage you to take a few minutes to read it and, if you like what you read, sign up to receive automatic notifications when one of our real estate newsletters is posted.

This month we cover topics such as Florida property taxes, Florida insurance reform, our participation in Habitat for Humanity, real estate information sites, developments, and more.

Please feel free to send us feedback if you have any questions or comments.

May 2007 Real Estate Newsletter

Two legal advocacy groups that sued the city last year over its use of eminent domain will withdraw their lawsuits on May 9th, and declare victory for local businesses and homeowners. The Pacific Legal Foundation and the Institute for Justice represent Riviera Beach business and home owners who sued after the city council entered into an agreement with its master developer, Viking Inlet Harbor Properties, to use eminent domain.

In the deal a year ago today, the council agreed to take private property on behalf of Viking as part of its $2.4 billion waterfront redevelopment. Viking had plans to turn 400 acres of mostly blight along the Intracoastal Waterway into shops, restaurants, a hotel, marina, aquarium and condos.

The council's deal with Viking was an attempt to continue using eminent domain even though then-Gov. Jeb Bush was about to sign Florida's new eminent domain law, which outlawed the practice of governments taking private land and giving it to developers for the purpose of economic development. The Pacific Legal Foundation's managing attorney said it was withdrawing the lawsuit because her clients feel secure that the city will not try to use eminent domain in violation of the law. In November, the council adopted a resolution agreeing to abide by Florida's new eminent domain law. But both legal groups believed the resolution left the door open for the city to challenge the law. New Council Chairman Shelby Lowe welcomed the news that the lawsuits were being withdrawn. He said it was good that the two legal groups believed that the new mayor and council would fulfill their constituents' will.

Special session on property tax formally called on May 10, 2007 - House and Senate leaders Wednesday formally called a special session on property tax relief for June 12-22 and appointed a joint committee to draft proposed legislation in the interim. Senate President Ken Pruitt, R-Port St. Lucie, and House Speaker Marco Rubio, R-West Miami, had announced plans for the special session last week after the chambers were unable to sort out their differences on the issue with only two days left in the 60-day regular 2007 session. It ended last Friday. The joint committee is scheduled to meet May 21 to review and discuss options and June 4 to present proposed legislation.

Lawmakers are trying to find a solution to soaring tax bills resulting mainly from rising property values. They also are looking at inequities inthe system that have resulted in some taxpayers getting bills many times higher than neighbors with similar properties. Pruitt and Rubio called the special session to deal exclusively with property taxes, and they have been adamant that lawmakers should focus only on that issue.

Gov. Charlie Crist said Monday that the Legislature should resolve property tax issues, not leave them to a constitutional panel that is taking a broader look at Florida's taxation and budget systems. Crist and lawmakers have promised to cut soaring property taxes and make them fairer in response to taxpayer protests, but they were unable to get that done during the Legislature's regular 60-day session, which ended last Friday.

The governor, though, said he hoped the Taxation and Budget Reform Commission, which is meeting this year and next, would have "as little as possible" to do on those issues. The Legislature will try again during a June 12-22 special session called by House Speaker Marco Rubio, R-West Miami, and Senate President Ken Pruitt, R-Port St. Lucie. The Florida Constitution requires the commission to be formed this year and again every 20 years thereafter. It has the power to put proposed constitutional amendments on the ballot but also can make recommendations to the governor and Legislature. Its next meeting is May 18 in Tallahassee. Crist said he met with or called about 50 legislators over the weekend to discuss property taxes. He said he told them "We need to get this done." Crist also has consulted with former Gov. Reubin Askew, who advised him not to worry that lawmakers failed to resolve it during the regular session because they could either get it done in special session or leave it to the constitutional commission.

Florida's scary property insurance market is becoming more welcoming to new
insurers thanks to recent changes in laws that are helping them financially. Four new homeowners insurance carriers have entered the Florida market since the state passed legislation in January to lower premiums and entice new carriers to write policies. Another three companies have applications pending with regulators to begin doing business in the state, according to the Florida Office of Insurance Regulation. New carriers entering the market is a sign companies are finding it more attractive to do business in the Sunshine State after the Legislature expanded the Florida Hurricane Catastrophe Fund in January to give insurers cheaper reinsurance, which is insurance for insurance companies. Legislators set aside $250 million to provide matches of up to $25 million per company to build capital reserves.

One of those changes involved Citizens Property Insurance Corp., the state's insurer of last resort, no longer being able to offer coverage on $1 million homes in order to limit risk exposure.

The Florida Department of Financial Services' (FDFS) Division of Agent and Agency Services, Bureau of Investigation, investigates property insurance violations by Florida insurance agents, as well as health, life, auto, workers' compensation, bail bond and title insurance. "Consumers trust insurance agents to ensure they receive adequate coverage and the services they pay for," says Florida Chief Financial Officer Alex Sink. "We will aggressively pursue any agent who takes advantage of a customer, especially as so many Floridians are struggling to keep up with rising premiums." Sink yesterday announced the arrest of Christopher Millsaps, 45, of Orlando, who targeted several larger commercial business clients in Orange and Seminole counties. Millsaps told them they owed additional insurance premiums and to remit the payments directly to him, though he then deposited the money into his personal account. With the assistance of Millsaps' agency employer, the FDFS confirmed necessary coverage to all of his victims. To check on the status of an insurance agent's license or to file a complaint against an agent, call (800) 342-2762 or log on to the FDFS Web site at http://www.fldfs.com.

GAINESVILLE, Fla. - Hurricanes failed to dampen Florida's growth, as the number of year-round households in the Sunshine State grew an estimated 15 percent between 2000 and 2006 to more than 7 million residences, a new University of Florida study shows.

"At this point we haven't seen any real drop in growth from the hurricanes - the sky hasn't fallen," says Scott Cody, a demographer at UF's Bureau of Economic and Business Research, who prepared the report with Stan Smith, an economics professor and the bureau's director.

Florida was struck by four hurricanes in 2004 and two in 2005.

The number of housing units in Florida occupied by permanent residents increased by 952,938 in 2000 to an estimated 7,291,013 on April 1, Cody said.

The 2006 household estimates were based on 2000 census data and changes in electric customer and building permit information since 2000. Households are defined as housing units occupied by permanent residents and do not include those for seasonal residents.

Flagler County had the largest growth rate, experiencing a whopping 76 percent increase in its number of households over the six-year period, from 21,294 to 37,522. It was followed by Sumter, Osceola, Walton, St. Johns, St. Lucie, Lee and Lake counties.

"These places have cheaper land and space to grow compared to larger counties like Broward, where it's harder to build single-family homes because they're running out of space," Cody says. "And as the baby boomers get older, they're not tied as much to commuting to work in metropolitan areas and can live in communities like the Villages in Central Florida that
are farther away."

In sheer numbers, Miami-Dade had the largest increase, growing by 69,844 households between 2000 and 2006. It was followed by Hillsborough, 65,800; Orange, 64,006; Palm Beach, 63,959; Lee, 61,751; and Broward, 43,694. Hardee actually experienced a net loss, losing 82 households between 2000 and 2006.

"These smaller counties, many of them in the Panhandle, do not have as many people and typically do not experience the kind of growth that some of the counties in coastal areas do," Cody says. The study also found that Florida's average household size since the 1990s has remained steady at 2.46 people, after falling rapidly in the 1960s, 1970s and 1980s. The average household size in the United States is slightly higher at 2.59, falling from 2.63 between 1990 and 2000 after several decades of substantial declines. "It may be that Florida not mirroring the U.S. decline relates to more families moving here permanently with the availability of greater numbers of jobs in places like Tampa and Orlando," Cody says. "We still have many retirees but they are balanced out by the large influx of Hispanics who tend to have bigger families."

The study found that counties with the largest average household sizes tended to have low proportions of older residents and high proportions of black or Hispanic residents, Cody said. "Fertility rates are higher for these groups, which is one factor in household size," he said. Between 2000 and 2006, average household size declined slightly in 43 Florida counties, rose slightly in 10 counties and remained constant in 14 counties, the study found. In 2006, average household size was largest in Hendry, Hardee, Baker, Miami-Dade, Osceola, Union and Clay counties. It was smallest in Sarasota, Charlotte, Pinellas, Monroe, Sumter and Citrus counties.

Estimates of average household size were based on each area's average household size in 2000, the national change in average household size since 2000, the local change in the mix of housing units, and factors such as birth, school enrollment and Medicare. The Medicare data picks up changes in the older population, which tends to have fewer persons per household than younger populations.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

The Florida Office of Insurance Regulation announced it has added a new page to its website that allows Floridians to view adjustments to their premiums based on recent insurer filings. The rate changes are required by the new property insurance reform law. The web page will allow consumers to view the amount of the new rate cuts and is available at http://www.floir.com/PresumedFactor/Report1.pdf*(external pdf). Legislation passed during the recent Special Session of the Florida Legislature required the Office to calculate the Presumed Factors to estimate cost savings for consumers living in various regions of the state.

It is important for the public to understand these are average savings. The discounts in region 1, which contains zip codes from North Florida and the Panhandle, could average 10.2 percent of the total policy premium. The discounts could increase to an average of 52.8 percent of the total policy premium in region 25, which contains zip codes from Miami-Dade. When the insurer's filing is approved, policyholders can work with their agent to determine the exact savings based on their particular circumstances.

Also know that some insurers have not yet filed or have filings in process. Policyholders who do not see their insurance company on the webpage should not be concerned, as the webpage will be updated as additional information becomes available. All insurers are required to submit a second "reconciliation" filing by September 30, 2007 when all reinsurance arrangements have been finalized. If insurance companies have underestimated the potential savings, they will be required to provide an additional discount following this "true-up" filing.

State officials approved a new business plan for Citizens Property Insurance, allowing the state-run insurer to be more competitive with private insurers and offer some savings to policyholders. The plan, required by the new insurance law passed in January, calls for Citizens to offer a complete policy covering windstorm damage as well as fire, theft and liability in the state's designated windpool area.

Bruce Douglas, chairman of Citizens' board of governors, told the Cabinet that 900,000 policyholders, out of its total 1.3 million, already have multiperil coverage with the company. "This plan is a natural extension of what Citizens already does," said Douglas. It would make Citizens more efficient because it would have to service just one policy. Also, the company estimates that policyholders who opt to buy a single, complete policy from Citizens will see a 10 percent reduction in rates. Mixed policies out of its 400,000 windstorm-only policies, some 118,000 homeowners have their fire and theft coverage with a private insurer. The remainder already have all their coverage with Citizens, but in two separate policies.

The insurer is hoping those 118,000 opt for Citizens' single policy. But Douglas said the company realizes these homeowners might have multiline discounts with their current private carrier, such as for autos and home.

That discount could be greater than the savings Citizens is offering. Douglas also noted that with expansion Citizens can "compete with the voluntary market." Both Citizens officials and state lawmakers are hopeful that element of competition could bring about some lower rates from the private insurers, possibly fearful of losing business to the state-run pool. Gov. Charlie Crist endorsed that approach in comments before Tuesday's meeting". The more rate reductions that we have, the more competition Citizens is able to present, the greater empowerment there will be of the people," he said.

The plan still needs to be approved by the Legislative Budget Commission later this month before Citizens implements it.

Price declines appear to be easing for single-family homes, according to a quarterly study by the University of Florida's Bergstrom Center for Real Estate Studies.

Statewide existing-home median sales prices remained stable at $242,100 in the fourth quarter. A year ago, it was $245,600, a slight 1 percent decrease.

In 2001, the fourth-quarter statewide median sales price was $128,400, which reflects an increase of 88.5 percent over the five-year period.

The statewide median sales price for condos decreased 3 percent to $205,200 for the three-month period; a year ago, it was $212,100.

The study, which interviews 318 experts, including lawyers, financial advisers, title insurers, and real estate professionals, concluded that fundamentally the Florida market is strong.

"One important indicator of the real estate market is occupancy rates, and these appear to be stable or increasing in most markets, including apartments, office buildings, retail space, and industrial warehouse and distribution space," says Wayne Archer, director of the Bergstrom Center.

-REALTOR® Magazine Online

WASHINGTON – Jan. 31, 2007 – Census Bureau data shows that the U.S. homeownership rate held steady in the fourth quarter at 68.9 percent.

Regionally, the homeownership rate was 73 percent in the Midwest, 70.8 percent in the South, 65.3 percent in the Northeast, and 64.5 percent in the West.

The homeownership rate for non-Hispanic whites was 76 percent, vs. 49.5 percent for Hispanics and 48.2 percent for blacks. The data also reveals a jump in the homeownership rate for those in the 65-and-up age segment to 81.2 percent from 80.6 percent in the fourth quarter of 2005, while the rate of homeownership for the 55-64 age group held steady at 80.7 percent.

However, the homeownership rate fell to 76.4 percent from 76.7 percent in the 45-54 segment, to 68.9 percent from 69.7 percent for those between the ages of 35 and 44, and to 42.8 percent from 43.1 percent for the under-35 set.

In terms of income level, the homeownership rate held steady at 84.5 percent for those earning the median income or more and at 52.9 percent for households earning less than the median income.

Source: Inman News (01/30/07)

Calling soaring property taxes one of the most crippling challenges facing Floridians, Gov. Charlie Crist proposed a constitutional amendment Tuesday that would cut property taxes by as much as $4.7 billion a year and urged legislators to put it on the ballot in a special election.

The key aspects of the governor's proposal: allowing homeowners to take their property tax savings with them when they move to another home anywhere in the state; doubling the homestead exemption for homeowners, and capping taxes on businesses and non-homestead residential property such as rentals.

The governor's suggestion comes on the heels of a successful legislative effort to curb property insurance costs and underscores the issues that legislative leaders have said will be their top priority when they meet in regular session in March. House Speaker Marco Rubio has already called for a special election on a constitutional amendment, and House and Senate leaders have launched a campaign to hear voter concerns.

Crist said he will leave it to legislators to work out the details of his proposals, but he outlined the following priorities:

* Allow counties to double the homestead exemption from $25,000 to $50,000 – the first change in the bedrock tax break for Florida homeowners since the 1980s. Estimated total yearly tax cut: $1 billion.

* Make the Save Our Homes property-tax cap portable, so that homeowners may transfer their existing tax rate to a new home anywhere in the state. Estimated total tax cut annually after the fifth year: $2.5 billion.

* Place a 3 percent yearly cap on the assessed value of commercial and other non-homestead property, allowing businesses and owners of rental property the same break that homeowners receive from the Save Our Homes amendment passed in 1992. Estimated total tax cut: $1 billion.

* Exempt small businesses from the tangible personal property tax on computers, equipment and office furniture valued at less than $25,000. Estimated annual total tax cut: $200 million.

The governor's proposal goes beyond his original campaign promise to pursue the doubling of the property tax exemption. Critics had said Crist's original plan would push more of the property tax burden onto business and exacerbate an already inequitable system.at the tax cuts will leave less money for counties and cities to provide local services.

Cities and counties counter that total state taxation under the Legislature's control increased from $23 billion to $40 billion in the same period.

Want to help sell your home faster? Below are 10 east to do things that will help make your house more appealing.

1. Repair, Sand, and Paint the interior and exterior trim.
2. If you have a storm door, make sure it is appealing and has full height glass.
3. Wash all windows and clean all the window screens.
4. Re-mulch any garden areas and spruce up the exterior and interior entry way with a nice potted plant.
5. Don't hide your fireplace. Remove photos form the mantle as well as any large mirrors that may be taking the eye away from the focal point of the room.
6. Pull your furniture from the walls a foot or so. This makes the room look bigger.
7. Remove non permanent items from the kitchen and kitchen counters. This includes small appliances as well as storage bins and items stuck on the refrigerator.
8. Clean all tile and grout. Re-grout any areas needing more attention.
9. Replace dated bathroom vanities with updated pedestal sinks which can be purchased in expensively.
10. Get new linens and matching curtains that are colorful & bright.

Florida’s existing home market in Dec. 2006: Sales down, median price softens

ORLANDO, Fla. – Jan. 25, 2007 – Sales of existing homes and condos in Florida were down in December; at the same time, many markets reported that the inventory of homes available for sale continued to stabilize while still low-mortgage rates sparked buyer interest.

A total of 12,415 existing single-family homes sold statewide last month, a decrease of 28 percent from the 17,215 homes sold during the previous December, according to the Florida Association of Realtors® (FAR). The statewide existing-home median price was $241,100 last month; a year ago, it was $245,600 for a decrease of 2 percent, according to FAR.

In December 2001, the statewide median sales price was $130,700, representing an increase of about 84.4 percent over the five-year period, according to FAR records. The median is a typical market price where half the homes sold for more, half sold for less.

Nationally, the median sales price for existing single-family homes was $217,200 in November, down 3.6 percent from a year ago, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $555,290 in November; in Massachusetts, it was $340,000; in Maryland, it was $307,654; and in New York, it was $250,000.

NAR’s latest market outlook predicts that 2006 will close out as the third strongest sales year on record nationally. Heading into 2007, NAR Chief Economist David Lereah anticipates a steady improvement in sales, which will support price appreciation “moving forward.” Mortgage rates continue to hover near cyclical lows, he notes, which keeps financing costs low for buyers; at the same time, stable inventories of homes for sale represent more choices for buyers.

Looking to Florida's existing condominium market, sales also declined in December with a total of 3,788 condos sold statewide compared to 5,428 in December 2005 for a 30 percent decrease, according to FAR. The statewide median sales price for condos last month was $200,600; a year ago, it was $205,500 for a 2 percent decrease. The national median existing condo price in November 2006 was $224,600, according to NAR.

According to Freddie Mac, a 30-year fixed-rate mortgage averaged 6.14 percent last month, down from 6.27 percent in December 2005. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s larger markets, theFort Lauderdale metropolitan statistical area (MSA) reported 618 existing homes sold last month, compared to 666 homes sold a year ago for a 7 percent decrease. The market’s median existing home price remained stable at $367,600; a year ago, it was $369,000. A total of 622 existing condos changed hands in Fort Lauderdale in December for a 27 percent decrease over the 856 condos sold the previous year. The market's median existing condo price was $199,700; a year ago, it was $197,700 for a 1 percent increase.

“It’s a great time to buy a home – inventory had been so sparse that there were few options, but buyers have more choices now, and interest rates remain low and very favorable,” says Jim Balistreri, FAR district 11 vice president and broker-owner of Balistreri Realty Inc., with offices across South Florida. “Fort Lauderdale is a world destination: We’re the yachting capital of the world and a top tourist seaport vacation destination, and our commerce and businesses remain vibrant and strong.”

Of the state’s smaller markets, the Pensacola MSA reported a total of 402 existing homes sold in December compared to 493 homes sold a year earlier for an 18 percent decrease. The area’s median existing home sales price was $166,200 last month; a year ago, it was $170,700 for a 3 percent decrease. Fifty-three existing condos sold in the MSA last month for a 29 percent increase compared to the 41 condos sold a year ago. The market's median existing condo price was $305,000; a year ago, it was $225,000 for an increase of 36 percent.

“This year, 2006, tied as the third best year on record for home sales in the Pensacola market,” says Doug Gooch, president of the Pensacola Association of Realtors and office manager for Palm Realty of Pensacola. “And we’re expecting 2007 to be better than ever, with opportunities for buyers and sellers. Our area has a lot to offer, including a variety of recreational and cultural amenities, a range of housing options and some of the most beautiful beaches around.”

© 2007 FLORIDA ASSOCIATION OF REALTORS

PORT CHARLOTTE, Fla. - Gov. Charlie Crist signed a bill Thursday that he and
others hope will lower Floridians' property insurance costs, although it
could mean large assessments for homeowners if a catastrophic hurricane
hits.

After officially signing the bill - his first as governor - in Tallahassee,
Crist visited homes of some people he said were the inspiration for the law,
including Stan Whitney of Port Charlotte. During the special session this
month in which lawmakers crafted the legislation, Crist told them about a
letter he'd received from Whitney about his premiums. Crist urged them to
cut rates with an admonishment that they needed to just "remember Stan," and
get the bill written and passed.

Crist greeted Stan and his wife Joan in the driveway of their one-story
stucco home and did a ceremonial bill signing, before handing the Whitneys
the pens.

"It is the voice of people like Stan and Joan that made this thing happen,"
Crist said.

Many lawmakers agreed that the voices of Floridians around the state
prompted them into action.

Residents have bombarded, not just Crist, but legislators with complaints
about rising insurance costs since the storm seasons of 2004 and 2005. Those
two years brought eight hurricanes to the state and cost insurance companies
$36 billion, leading to large premium hikes.

"We have a message for the people of Florida today: Help is on the way,"
Crist said in Tallahassee before signing the official version of the bill
into law.

Although the measure (HB 1A) will provide some relief to a large number of
home owners, how much remains murky. Estimates range from 5 percent for many
inland customers to averages of nearly 20 percent for others.

Also unclear is exactly when people will see savings.

Crist acknowledged it may take time for Floridians to start seeing the
relief. First, companies must file new rate plans with regulators. Then most
will see new premiums when they renew their policies.

"I'm real excited about getting these reductions to the people as quickly as
possible," Crist said. "It's going to take a little while, candidly, but
it's going to be a lot sooner than it would have been if this had not
happened today."

Between the Capitol signing and Crist's visit with Whitney, he did another
ceremonial signing on the front porch of Becky and Charlie Isiminger's home
in North Palm Beach. The couple saw their premium shoot from around $2,300 a
year to almost $7,000 when they were forced out of Citizens and into a
private company as part of the state's effort to limit the size of Citizens.

Under the new law, no one will be forced out of Citizens and into a private
"take-out company" if the private company's premiums would be higher.

Whitney, 78, had written the governor about his high insurance costs,
complaining that he wanted to drop the wind part of his coverage, but that
the law wouldn't allow that. One of the many provisions in the new law would
allow Whitney and others to forgo wind coverage if a mortgage lender lets
them.

Whitney said the attention that Crist has given to his problem has already
resulted in action. After someone from Crist's office called his insurer,
Tower Hill, to verify some information, Whitney said he got a call from the
company.

"They feel they'll be able to give me some relief," Whitney said.

A key provision of the bill forces an immediate rate decrease for Florida's
largest insurance company, state-created Citizens Property Insurance Corp.,
and cancels another planned increase for the company.

The other main way the bill seeks to lower rates is to make more state
backup insurance available to private insurance companies. By taking on more
of the responsibility to pay out of the Hurricane Catastrophe Fund if there
is a large storm, the state will reduce insurers' ultimate risk, cutting
their need to raise rates.

The backup coverage also will be cheaper than the private reinsurance that
most companies buy, immediately cutting one of their biggest costs. Those
savings will also be passed on to consumers.

But the state and its residents take on that risk.

If there's a large storm that wipes out the Catastrophe Fund, everyone with
insurance will be hit with assessments, or state tax money could be used to
make up the shortfall.

The measure also makes an effort to allow consumers to change their coverage
to try to save money. Besides going without wind coverage, some might be
able to have a higher deductible, for example. Many of those changes,
however, won't be available to homeowners who haven't paid off their house,
because mortgage lenders often dictate how much coverage they must have.

"The highest compliment we can pay to any piece of legislation is that it
makes Florida a better place than it was before it passed and I have no
doubt that is the case here. This bill makes Florida a better place to
live," House Speaker Marco Rubio, R-Coral Gables, said.

By: DAVID ROYSE, A.P.

Florida Association of Realtors® Applauds Passage of Property Insurance Reform Legislation

ORLANDO, Fla., Jan. 23, 2007 – Charged with the daunting task of reducing homeowners insurance premiums for millions of Florida property owners, the Florida Legislature has passed a 167-page bill that could lower premiums between 5 percent and 40 percent and provide other insurance relief to millions of property owners.

"Florida’s 160,000 Realtors® congratulate Governor Charlie Crist for his commitment to reducing property insurance costs, and to the Legislature for acting in a truly non-partisan manner to provide relief to those who call Florida home," says Nancy Riley, 2007 president of the Florida Association of Realtors® (FAR). "This is a good first step in reenergizing the housing sector of our economy so buyers can take advantage of very attractive interest rates. But there’s more work to be done in order to create a vibrant and competitive insurance market. FAR’s leadership and public policy teams will continue to work with legislators throughout the 2007 legislative session to keep the American Dream of homeownership alive for all families."

Gov. Charlie Crist is expected to soon sign the legislation, possibly as early as today.

The Florida Association of Realtors, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation for its more than 165,000 members in 68 local boards/associations.

WASHINGTON – Dec. 5, 2006 – Pending home sales are hovering in a narrow range, another indication that a stabilization is occurring in the housing sector, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index, based on contracts signed in October, slipped 1.7 percent to a reading of 107.2 and is 13.2 percent lower than October 2005. The index had trended up from a cyclical low of 105.6 in July, and a decline from year-ago levels is narrowing. In September, the index was 13.6 percent below a year earlier, while in August the decline was 14.0 percent.

David Lereah, NAR’s chief economist, says a fairly steady pace of home sales can be expected for the next two months. “It’s important to focus on where the housing market is now – it appears to be stabilizing, and comparisons with an unsustainable boom mask the fact that home sales remain historically high – they’ll stay that way through 2007,” he says. “In addition, a temporary correction in prices distracts from the fact that it is primarily the number of home sales that affects the economy, and the number for this year will be the third highest on record.”

The index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed, but the sale usually is finalized within one or two months of signing.

For information on selling your home now that the market is stabilizing call One World Realty Inc. 561-845-1357. Always on top of the current market.

Homeownership is at an all-time high in the United States, but racial gaps are still broad, according to recently released 2005 U.S. Census Bureau data.

Three-fourths of white households owned homes in 2005, compared with 46 percent of African-American households and 48 percent of Hispanic households, the American Community Survey data show.

Experts point to homeownership as part of the answer to the persistent racial disparities in the United States.

Homeownership creates wealth, which enables families to live in good neighborhoods with good schools. It also helps families finance college, which leads to better-paying jobs, perpetuating the cycle, says Lance Freeman, assistant professor of urban planning at Columbia University and author of There Goes the 'Hood.

Homeownership grew among white middle-class families after World War II when access to credit and government programs made buying houses affordable. African-American families were largely left out because of discrimination, and the effects are still being felt today, Freeman says.

Source: The Associated Press (11/14/06)

© Copyright 2006 INFORMATION, INC. Bethesda, MD

Just when you thought it was safe to turn 55 with just a few friends around to notice, someone goes and surveys the baby-boom generation.

Someone like the National Association of Realtors, which commissioned a Harris Interactive survey of 2,000 members of that rather diverse group – the roughly 78 million Americans born between 1946 and 1964. Among the results:

• Most boomers are far from ready to retire.

• Their timelines and plans are as diverse as they are as a group.

• Their housing needs differ significantly from those of previous generations.

Baby boomers “are living longer and are different from previous generations because they have no set path for retirement and have more varied circumstances in life,” said the Realtors’ chief economist, David Lereah.

“The differences from past generations – and between baby boomers themselves – will have a significant impact on housing needs over the next 10 to 20 years that is very different from the World War II generation, and many boomers simply don’t know how they will retire,” he said.

Many boomers will work past traditional retirement age because they married and had children later than previous generations did, Lereah said. Older boomers are thinking about retiring, but go between leisure periods and part-time jobs.

Though most of those surveyed pointed to 70 as their retirement age, 27 percent said they would never retire.

“Just over a quarter of the boomer generation is aged 55 to 60, which is when many people traditionally begin to focus on their retirement plans,” Lereah said, “but analysis of the survey suggests they are more likely to stay in the workforce longer and will be less likely to downsize than previous generations – the leading edge of the boomer generation is the key to future housing impact.”

U.S. Census data indicate that most boomers live in two-income households, with a median income in 2005 of $64,700, 31 percent higher than the median for all households. This generation makes up 37.5 percent of U.S. households, census data say, but receives nearly half of all aggregate household income. Of baby boomers earning $100,000 or more, more than nine in 10 are homeowners. Among middle-income boomer homeowners, home equity accounts for fully half of their net worth.

Even so, 19 percent of survey respondents were renters, 37 percent said they had just enough to make ends meet, and 17 percent said they were having financial difficulty.

A quarter of baby boomers own one or more other kinds of real estate in addition to a primary residence, the survey said: 13 percent own land; 8 percent own rental property; 7 percent, a vacation home or seasonally occupied property; 2 percent, commercial real estate; and 3 percent, some other kind of real estate.

Four out of 10 respondents said they intend to convert their vacation home into a primary residence in retirement. Analysis by the Realtors’ group shows baby boomers are proportionately more active in the second-home market, owning 57 percent of all vacation/seasonal homes and 58 percent of rental property.

Ten percent of the boomers responding to the survey indicated they plan to buy some form of real estate within the next year, which corresponds with U.S. Census data that show 3.5 million boomer households moved during the last year. Two-thirds said they were considering a primary residence, but the rest were thinking about land, second homes, or commercial property.

Most survey respondents were unsure of their financial future, with three-quarters saying they were not financially prepared for retirement and many expressing anxiety about their ability to retire. Some boomers said they might withdraw retirement funds for housing or real estate expenses.

Peter Francese, an independent demographic-trends analyst and founder of American Demographics magazine, consulted on the findings.

“For the vast majority of baby boomers, retirement is somewhere off in the future,” Francese said. “Considering that boomers are healthier than their predecessors, and are more likely to work in an office setting, many of them may work five or 10 years beyond the traditional retirement age of 65.”

© 2006 FLORIDA ASSOCIATION OF REALTORS®

TALLAHASSEE, Fla. -- Free home inspections will soon begin in Palm Beach, Martin, St. Lucie and Indian River counties for nearly 2,200 homeowners who applied through the My Safe Florida Home program. The program, funded with $250 million by the 2006 Florida Legislature, was created to help Floridians strengthen their homes against hurricanes and to reduce the state’s exposure to hurricane damage.

"Before this hurricane season ends, my goal is to provide 12,000 free home inspections across the state to help Floridians strengthen their homes and better protect their families against catastrophic storms,” said Tom Gallagher, Florida’s chief financial officer. Gallagher is head of the Department of Financial Services, which administers the My Safe Florida Home program.

Homeowners in Palm Beach, Martin, St. Lucie and Indian River counties who have already submitted completed applications will be contacted by a department-approved inspector to schedule an inspection. The department has already received 1,935 completed applications and will be able to serve another 265 homeowners in these four counties. Future applicants will be served with additional funding of the My Safe Florida Home program.

Following an inspection, homeowners will receive a report that outlines up to seven areas that could be improved to better protect the home against hurricanes, an estimate of how much improvements would cost, the expected insurance savings the homeowner would receive if improvements were made, and a rating of the home’s current ability to withstand hurricanes and its future ability to withstand hurricanes with improvements.

The expansion of the program into these counties was made possible due to a partnership with the Federal Alliance for Safe Homes (FLASH) to screen and train an additional 350 inspectors, according to Gallagher.

Applying and obtaining a free home inspection is just the first step of the program. Homeowners who undergo the My Safe Florida Home inspection may also qualify for matching grants of up to $5,000 to fortify their homes. As directed by the new law to reduce hurricane exposure and property losses in Florida, grants will be prioritized and awarded to homeowners who live in high-risk, hurricane-vulnerable areas of the state.

Since the My Safe Florida Home program launched in late August, approximately 5,300 inspections have been completed or scheduled in Broward, Miami-Dade and Lee counties. To ensure each county receives a fair share of free home inspections, the My Safe Florida Home program is limiting the number of inspections in each county based upon population. Applicants who do not receive a free home inspection before this limit is met will have their applications held for future phases of the program.

Eligible Floridians must live in a single-family, site-built home with an insured value of $500,000 or less and have a valid homestead exemption. Documents verifying this information must be submitted with a completed application. Floridians can apply on-line at www.mysafefloridahome.com or by calling 1-800-342-2762 to get an application packet.

© 2006 FLORIDA ASSOCIATION OF REALTORS

TALLAHASSEE, Fla. – Nov. 16, 2006 – Will Gov. Jeb Bush call a special session of the Florida Legislature in December to deal with property insurance issues? It depends on whom you ask and when you ask the question.

Yesterday, the answer seemed to be “maybe.” Gov. Bush said there now appears to be a consensus but he’ll defer the decision to incoming Gov. Charlie Crist.

Crist, however, has not said whether he would approve a special session, and many legislative leaders have not yet reacted to the 107-page Property and Casualty Insurance Reform Committee report released yesterday. The report outlined 50 recommendations for improving the property insurance market in Florida.

“Charlie made a series of proposals that I think are important to be added to a bill,” Bush said Tuesday. ‘‘If there is a general consensus to go forward while I’m here, we’ll do it. If there isn’t, and that may actually be what happens, then we will pass these recommendations and work done to the governor-elect, and it will be dealt with.”

Crist generally sides with Bush in saying a special session should be called but only if there is a general consensus first, though he has not commented since the recent insurance report. If a special session does not take place, “It will be a priority of the Crist administration,” he says. Crist takes office Jan. 2, 2007.

© 2006 FLORIDA ASSOCIATION OF REALTORS®

WASHINGTON -- Construction of new homes and apartments, which had been falling in the face of a weakening housing market, posted an unexpected increase in September.

The Commerce Department reported that construction rose by 5.9 percent last month to a seasonally adjusted annual rate of 1.772 million units. It was the first increase after three consecutive monthly declines.

Analysts, however, still expect housing to move lower as builders continue to work through record levels of unsold homes. Building permits, a good sign of future activity, fell in September for an eighth consecutive month.

From: PlanetRealtor.com

For the last few months an identity theft ring has been targeting property owners, mortgage lenders and the title insurance industry -- an international scheme in that many of the suspects appear to be of Eastern European origin and much of the stolen money is being wired to accounts in Greece, the Slovak Republic, Russia, Latvia and elsewhere.

The scheme involves absentee-owned property and includes both vacant land and improved residential and commercial properties. In most of the cases reported, the true owners reside outside Florida. Additionally, in some of the cases, the properties are listed for sale through the local Multiple Listing Service (MLS).

"This involves millions and millions of dollars, and it's all over the state -- not just South Florida," says Doug Pollock, President and Founder of Information Data Services, Inc.IDS, (http://www.idsnetwork.com) which serves the legal, corporate, title insurance and mortgage lending industry.

The refinance scheme

The perpetrators assume the identity of the real property owner and obtain a physical mailing address (always a "mail drop location") in the community near the residence of the real property owner. They then contact a mortgage broker or lender as well as a title agent to originate and close a new refinance mortgage loan using the identity of the real owner. In most cases, the properties are owned free and clear of any liens or mortgages of record.

After receiving loan approval from a mortgage lender, the perpetrator then contacts the title agent and requests that they either transmit the closing documents to one of the Internet's free e-mail addresses or the mail drop address. After the executed closing documents have been returned to the title agent, the perpetrator provides written instructions for the agent to wire the loan proceeds to bank accounts held outside the United States, mostly in Eastern European countries.

The foreign banks accounts were previously opened based on fraudulent identification, and shortly after funds are deposited, they're withdrawn in cash.

Many times, the perpetrators attempt to defraud more than one lender using the same property as collateral. A different title agent is used for this second loan; and both closings must occur at almost the same time so neither settlement agent is aware of the other closing until after the funds have been disbursed and the money has left the country.

Similar characteristics of Florida cases

1. All contact with the perpetrators is by telephone or e-mail. There is no personal contact. They will refuse to attend a closing or come by the office to pick up a check.

2. They require the settlement agent to execute a letter agreeing that they will wire the proceeds from the closing to bank accounts held outside the United States.

3. All contact addresses provided are " mail drop box" locations.

4. All telephone numbers provided are pre-paid cell phones and are untraceable.

5. All identification provided are fraudulent driver's licenses and do not bear the likeness or resemblance to the identity theft victim.

6. The proceeds from each of the closings exceed $300,000.

Source: Information Data Services Inc.
©2006 FLORIDA ASSOCIATION OF REALTORS®

Despite cooling in the overall U.S. residential property market, experts say the Sunshine State -- and Northeast Florida, in particular -- continues to be a robust market for home sales that is attracting more and more mortgage firms to the region.

Drawn by its affordable housing and market growth, national mortgage providers, including Memphis, Tenn.'s Macquarie Mortgages USA Inc. and Heartwell Mortgage Corp. of Grand Rapids, Mich., recently have expanded into Northeast Florida. The growing presence of national mortgage lenders, in turn, allows the exchange of services within the industry, making the region even more appealing to other mortgage brokers and companies.

According to the Florida Agency for Workforce Innovation's Labor Market Statistics, industry employment jumped 13.4 percent in the area this year compared to 2005 levels.

Source: Jacksonville Business Journal (10/16/06) Witkowski, Rachel
© Copyright 2006 INFORMATION, INC. Bethesda, MD

TALLAHASSEE, Fla. -- More than 100,000 former customers of Citizens Property Insurance Corp. whose policies were taken over by two start-up home insurers will be allowed to return to the state-backed company rather than pay dramatically higher premiums, under an order issued Wednesday by Florida Insurance Commissioner Kevin McCarty.

McCarty's order allows homeowners to go back to Citizens if their Citizens policies were taken over by Florida Peninsula Insurance Co. of Boca Raton and Homewise Insurance of Tampa, said Bob Lotane, a spokesman for the state Office of Insurance Regulation. The order targets companies, such as Florida Peninsula and Homewise, that take policies from Citizens and charge higher rates that have not been approved by state regulators.

State law allows insurance companies to collect higher rates before getting approval from state insurance regulators. Should the increase be rejected, companies must refund the difference.

Citizens' takeout program, which gives incentives to private companies to take over policies, is well-intended, McCarty said Wednesday in a statement.

"However, because of unintended consequences these people have been hit with a financial nightmare," he said. "They were already being charged the highest insurance rates where they live only to see their premiums skyrocket even higher. Clearly this is not what the law intended, but, fortunately, the law does allow the relief I am ordering."

The insurance commissioner's order could apply to 108,000 people -- roughly 79,000 with Florida Peninsula and 29,000 with Homewise, Lotane said. The order is effective immediately and will last as long as the companies are charging rates that aren't approved by the state.

Both private insurers targeted customers in Citizens' high-risk area, generally east of Interstate 95 in most of South Florida and east of U.S. 1 in northern Palm Beach County. Many homeowners' insurance premiums more than doubled after the two insurers took over their policies via Citizens' takeout program.

Citizens, which is supposed to be Florida's insurer of last resort, has mushroomed into the state's largest property insurance company. The company insures more than 1.2 million people.

Florida Peninsula is examining McCarty's order, company president Roger Desjadon said in a statement. The company is in talks with state insurance officials over a proposed rate increase that would raise rates as much as 84.9 percent in Broward County and 100.7 percent in Palm Beach County.

State insurance regulators informed Florida Peninsula in May that it intended to reject the company's rate request, Lotane said. Once such a notice is issued, insurers have three options: Request an administrative hearing, appeal to the state's arbitration panel or try to work out differences with state regulators.

Officials from Homewise could not be reached for comment Wednesday. The company has a rate request pending with regulators that could raise premiums as much as 78.9 percent in Broward and 79.6 percent in Palm Beach County.

McCarty's order could mean fewer private companies would be willing to take over Citizens policies, and increases the chance that other insurance policyholders will have to pay extra charges to cover Citizens' deficits, said William Stander, regional manager for the Property Casualty Insurers Association of America.

"I think it's absolutely the wrong message for the market," Stander said. "The market's going to look at this and say, 'The state does not want private insurance companies doing business in Florida. The state wants to write the insurance by themselves, and maybe we should just let them.' And I don't think that's good for the consumer."

But the move is certain to be popular with thousands of South Florida homeowners who have struggled with higher premiums charged by the two companies.

Keith Jackson, a cabinetmaker in Boca Raton whose Citizens policy was taken over by Homewise, said he had to negotiate with company officials and lowered his coverage to bring his $6,000 premium down to $2,300. Unless his premium was lowered, he wouldn't have been able to afford to pay it, he said.

"You have no idea what kind of stress this put on my life," said Jackson, 35, who has two young sons.

His Homewise policy renewed last week, but he said he'd return to Citizens as soon as he's able.

Copyright © 2006 South Florida Sun-Sentinel, Kathy Bushouse. Distributed by McClatchy-Tribune Business News.

PALM BEACH COUNTY, Fla. - Existing home sales across South Florida could rebound in the next three to six months, but demand for new homes probably won't pick up until 2008, a real estate analyst said Wednesday.

"The Realtors will get happy before the builders," Brad Hunter told more than 400 people attending an Urban Land Institute conference at the Palm Beach County Convention Center in West Palm Beach.

If hurricane season ends Nov. 30 without another storm hitting the region, hesitant buyers will start making offers on the glut of unsold homes, said Hunter, who runs the South Florida division of MetroStudy, a West Palm Beach consulting firm. It will take about 18 months after that for new home sales to increase, he said.

Other real estate observers are more skeptical of short-term improvement in a local housing market that slowed dramatically in 2006 after the five-year boom when the price of a typical home more than doubled to well above $300,000.

Aside from the threat of hurricanes, buyers are afraid to commit for fear that falling prices will tumble more, Hunter said. But Moody's Economy.com issued a report last week that suggested the worst of the housing squeeze has occurred in South Florida.

The West Chester, Pa., research firm said Palm Beach County's median price for existing homes fell from late 2005 through the third quarter of 2006 but won't go any lower. Broward County's median will continue to decline through the third quarter of 2007, according to the report.

Palm Beach County's median price declined $25,400 to $386,000 in August, marking the first year-over-year drop in seven years, according to the Florida Association of Realtors. The August median for Broward County fell $24,200 to $362,800. It was the second month in a row that Broward's median declined on an annual basis.

Mortgage rates are holding steady, and former Federal Reserve Chairman Alan Greenspan said this week that he expects the slumping market to stabilize.

"The key thing that has to happen," Hunter said, "is that the (buyers') psychology has to change, and it's going to."

Still, rising insurance premiums and property-tax bills are major deterrents to buying homes. Consumers are looking to lawmakers to offer relief on those fronts.

"A lot of people are sitting and waiting," said Debbie Anderson, an agent for Prudential Florida WCI Realty in northwest Broward County. "I don't blame them."

Ashley Ostroff is asking $498,900 for her three-bedroom Palm Beach Gardens home even though her agent said she could get more. Ostroff, a marketing director, has yet to field an offer.

"Even people who are ready to buy now are waiting because of what they're hearing in the media," she said. "It doesn't matter what the market is doing. Buy at the price that's right for you."

Minto Communities, a Coconut Creek-based home builder, said it's starting to find more interest in new homes.

About 3,000 people turned out last weekend for a townhouse and condominium development in Sunrise, while 1,500 showed up in August for a single-family home project in St. Lucie County, Minto President Harry Posin said.

"The consumer is responding," he said. "We just have to work through this."

Copyright © 2006, South Florida Sun-Sentinel, Paul Owers. Distributed by McClatchy-Tribune Business News.

ORLANDO, Fla. (AP) -- Sept. 21, 2006 -- A county official who spearheaded a
petition drive that gave homeowners a property tax break in 1992 announced
plans Wednesday for another citizens initiative in 2008 to let taxpayers
take that benefit with them if they move.

The proposal would add ''portability'' to the Florida Constitution's Save
Our Homes amendment, said Lee County Property Appraiser Ken Wilkinson of
Fort Myers.

He announced the new initiative during a meeting of Gov. Jeb Bush's Property
Tax Reform Committee. The panel's tasks include making recommendations on
how to resolve inequities that have resulted from Save Our Homes.

The new initiative is intended to address one of those. Under the existing
amendment, homeowners lose their tax break if they move. Many homeowners
have complained they feel trapped in their old homes.

Several measures were introduced in the Legislature earlier this year to let
homeowners take the tax break with them but none were approved.

''As the Florida Legislature has not come forth with a viable solution, we
have written another citizens initiative, which will allow Florida
homesteaders the portability of some of the Save Our Homes savings if they
move within Florida,'' Wilkinson said in a statement.

The amendment now caps property tax increases for homeowners at 3 percent
per year or the percentage that the Consumer Price Index has gone up,
whichever is less.

The new proposal would allow a resident to apply the cap to a new home
anywhere in Florida, but it would be limited to the percentage of the old
house's market value represented by its taxable value.

That means if a homeowner pays tax on only half of the market value of his
old home, he also would pay half on the new home. The tax break, however,
could not exceed $400,000 of assessed value.

Save Our Homes Portability, a not-for-profit corporation, has been formed to
gather more than 600,000 signatures needed to get the proposal on the
ballot.

Its directors include state Sen. Burt Saunders, R-Naples, who introduced one
of the legislative measures. He said he will try again next year. If
lawmakers agree to put something on the ballot that is satisfactory, the
petition drive could be discontinued.

ORLANDO, Fla. -- In second quarter 2006, Florida's housing sector followed the national trend, showing signs of a market adjusting to a better balance between buyers and sellers. Statewide sales of single-family existing homes totaled 53,161 during the three-month period, a decrease of 27 percent compared to 72,870 homes sold during the same time a year ago, according to the Florida Association of Realtors® (FAR).

"Sales of existing single-family homes in Florida behaved like much of the U.S. in the 2006 second quarter, with the declining strength of the domestic economy continuing to act like a stiff wind in the face of the existing real estate market," says Dr. David Scott, executive director of the Dr. Phillips Institute for the Study of American Business Activity and professor of finance at the University of Central Florida (UCF).

The statewide existing-home median sales price rose 9 percent to reach $254,800 in the second quarter; a year ago, it was $234,500. In 2001, the second-quarter statewide median sales price was $127,400, which is an increase of about 100 percent over the five-year period. The median is a typical market price where half the homes sold for more, half for less.

This environment is likely to endure across the remaining months of 2006 owing to several factors, Scott says, including the declining rate of growth in the real gross domestic product (GPD); a tepid increase in the number of jobs being created over the past three months; rising conventional mortgage rates; and a rising inventory of homes for sale. He notes that the rising costs of gasoline and energy are starting to strain many household budgets while wages are just barely keeping up with the recent price inflation of about 3.6 percent a year.

Looking to Florida's existing condominium market, sales of existing condos also decreased during the quarter, with a total of 16,522 condos sold statewide compared to 24,599 in second quarter 2005 for a 33 percent decline, according to FAR. The statewide median sales price for condos rose 1 percent to $219,100 for the three-month period; a year ago, it was $217,900.

The latest economy outlook from the National Association of Realtors® (NAR) notes that the housing market is in the process of stabilizing with little change in overall sales volume expected over the balance of the year. Analysts report that the level of activity remains high historically -- 2006 is expected to be the third best year for existing home sales. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 6.60 percent in first quarter 2006; last year, it was 6.24 percent.

Among the state’s larger markets, the Orlando metropolitan statistical area (MSA) reported 8,189 existing homes sold for the quarter, a decrease of 23 percent compared to the 10,585 homes sold a year ago. The market’s existing-home median sales price increased 18 percent to $265,500; a year ago, it was $224,500. A total of 1,456 existing condos sold in the market over the three-month period, up 24 percent from a year ago, while the existing-condo median price rose 1 percent to $163,500.

The GainesvilleMSA, one of the smaller markets in the state, reported that 992 homes changed hands in the second quarter, down 24 percent compared to 1,297 homes sold a year ago. Over the same period, the market’s existing-home median home price rose 21 percent to $214,300; a year ago, it was $176,400. A total of 426 existing condos sold in the market during the second quarter, up 37 percent from a year ago, while the existing-condo median price rose 16 percent to $146,600.

"The student population is a strong stabilizing factor for our condo market, and with prices rising, condos are a good product for many first-time buyers," says Deborah Minck, president of the Gainesville-Alachua County Association of Realtors and broker-vice president of Tioga Realty Inc. in Gainesville. "Conditions now are more balanced for buyers and sellers, and the key is working with someone who knows the local housing market. That's why it is so important for buyers and sellers to work with a Realtor -- someone who knows the ins and outs of the local real estate market and can help them with all of the complex details involved in buying or selling a home."

© 2006 FLORIDA ASSOCIATION OF REALTORS

Want a free hurricane home inspection? Want the state to pay half the cost
of any recommended repair to prepare your home for the next storm? Inspection applications are available at http://www.mysafefloridahome.com, a Web site operated by the Florida Comprehensive Hurricane Damage Mitigation Program. If you have an inspection and hurricane upgrades are recommended, the state will pay up to $5,000 in matching funds to qualified Florida homeowners; and low-income homeowners will be eligible for $5,000 grants with no match required.

There are rules:The program applies only to Floridians who own a single-family, site-built home with an insured value less than $500,000; or owners in a residential building of up to four units providing all unit owners agree to participate. Mobile homes, manufactured homes, second homes, rental properties, apartments and businesses are not eligible. Interested homeowners should apply as soon as possible -- the program's funding, part of the state
budget, has a limit.

For immediate assistance, visit the Web site or call toll-free: (800) 342-2762 in Florida or out-of-state (850) 413-3089.

1,060 new Floridians every day. For a half-century, Florida has trailed only California in net migration, averaging three million in population growth during each of the last three decades. "This decade will bring the 'largest absolute population increase of any decade in Florida’s history,' another 3.6 million," reports Stanley K. Smith, Director of the University of Florida’s Bureau of Economic and Business Research. In just four years, Florida will pass New York as the third-largest state. Most people site the “weather” as the main reason for this dramatic growth, the real reason is economic opportunity, states Tim Chapin, FSU professor. Florida routinely leads the country in job growth and 2005 was no exception.

David Lereah, Chief Economist at the National Association of Realtors painted a long term positive picture for real estate in Florida based upon a very good state-wide economy and the tremendous demographic trends which will propel Florida into the third largest state within a few years. Lereah pointed out that Baby Boomers are still buying second homes and the massive Generation Y are about to enter their home-buying years and this generation will follow the job market which is booming in Florida. He also noted the large immigrant growth which Florida again ranks very high in as a reason for continued price appreciation in Florida real estate. He also dismissed widespread concerns about affordable homes in Palm Beach County and the Treasure Coast. “They’re still affordable, particularly when the demand is coming from the Northeast,” Lereah noted.

Home prices continued on an upward trend statewide as the median price rose 17 percent from a year ago to $248,200. Nationally, the median was $218,000 up 7 percent. Palm Beach County median price increased to $393,700 in March from $371,500 in March of 2005. The Treasure Coast rose to $258,000 from $235,000 a year ago. In Broward County, the median home price increased 11 percent over one year ago to $368,000 and in Miami-Dade the increase was 19 percent. Realtors in the tri-county area have indicated that their inventory of product is the best in 5 years and the opportunity for buyers to find the right home has never been better.

WASHINGTON - Pending home sales, a leading indicator for the housing sector, have risen for the last two months, according to the National Association of Realtors (NAR).

The Pending Home Sales Index, based on contracts signed in June, increased 0.4 percent to a reading of 113.9 from an upwardly revised level of 113.5 in May, but is 9.6 percent below June 2005.

The index is based on pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed, but the sale usually is finalized within one or two months of signing.

An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined, and was the first of five consecutive record years for existing-home sales.

David Lereah, NAR’s chief economist, says the small rise in the index is good news, indicating that the trend is stabilizing. “Once again, we have various housing indicators moving in different directions, which itself is an indicator of a market in transition,” he says. “The housing market is striving for balance -- a process that will take several months. A quieting in the movement of indicators should restore confidence to home buyers who’ve been on the sidelines, waiting for the right time to get into the market, and now is the best time we’ve seen since the 1990s in terms of housing choices and flexible terms.”

Regionally, the PHSI in the South rose 2.5 percent in June to 130.7 but was 4.8 percent below June 2005. The index in the Midwest increased 1.9 percent to 103.3 in June but was 11.9 percent below a year ago. The index in the West was unchanged, holding at 110.1 in June, and was 14.2 percent lower than June 2005. In the Northeast, the index dropped 6.3 percent in June to 99.4 and was 11.6 percent below a year ago.

© 2006 FLORIDA ASSOCIATION OF REALTORS

Gov. Jeb Bush said on Friday that he is seriously thinking of calling a special legislative session to address the soaring cost of windstorm insurance for homes, condominiums and businesses -- an issue that has been smacking state legislators in the face during an election year.

Bush made clear that an acceptable framework for new legislation would have to be worked out before he would summon lawmakers to Tallahassee for what could be the last time of his administration.

"I am not going to call a special session just to call one, because that is foolish," he told the Watchdog Report during a Friday visit to Miami. "But we are working to build consensus."

"We don't want to do harm. We don't want to create policies that end up in the long run hurting the state," Bush said after attending the morning groundbreaking for the first All Kids Can Boundless Playground at Jorge Mas Canosa Park in Miami. The CVS/Pharmacy Charitable Trust is funding eight such parks, which are universally accessible playgrounds, around Florida.

Bush cited one policy change he would never let fly: "having the state be the insurer of first resort."

"That would be a very bad idea," he said.

Instead, he said, Florida needs to expand its mitigation program, which he called "one of a kind in the country." He said he's waiting to hear from federal officials about "hopefully over $100 million" that could boost the program.

Bush noted that "the reinsurance market has totally dried up," which is driving commercial insurers out of Florida.

"There is a lot we can do, maybe, to provide some financial support on a short-term basis, and all that is on the table" in discussions with lawmakers, he said.

Locally, state Rep. Julio Robaina, R- Miami, is sounding a clarion call on the issue.

He held a brainstorming session on windstorm insurance Saturday at the Coral Gables High School auditorium.

At a luncheon of the Ponce Development Association last week, he said insurance costs are at crisis levels -- and if they're not addressed, they "will paralyze the economy in this county and the state."

BY DANIEL A. RICKER
watchdogreport@earthlink.net

Some federal grant money that normally goes for hurricane recovery could be used in Florida to help make older homes better able to stand up to storms.

The federal Department of Housing and Urban Development (HUD) plans to make nearly $1 billion available to Florida and three other Gulf Coast states through the Community Development Block Grant program. Florida wants to use its share of that money to harden older homes that were built when building codes weren't as strong.

The money hasn't been awarded yet and it's not clear how much Florida will get. But Florida officials recently made a pitch to HUD for some of the money with a proposal to use it for upgrading older homes. The money is separate from nearly $90-million HUD approved last week for various hurricane recovery projects in Florida.

Several state officials say making houses better able to withstand hurricane winds ultimately is the solution to the state's insurance crisis. Increasingly, Floridians are having difficulties buying homeowners' coverage.

Lt. Gov. Toni Jennings said Wednesday that since the storms that hit Florida in 2004 and 2005, the state has taken care of many of the immediate restoration needs that typically arise after hurricanes.

Jennings said Florida and other states were asked by HUD officials what they would do if they had extra grant money, which is typically used for post-storm rebuilding and other relief needs.

"We brought them a whole new perspective," Jennings said. "Our approach was totally different, and it was all about making homes more durable during a storm."

State officials say that newer homes have proven to do better during hurricanes because of stronger building codes put in place in the last decade. But most homes by far are still older ones built under weaker codes. And many of those homes are owned by poor people who can least afford to upgrade them, Jennings noted.

The federal grant money is in addition to $11.5-billion in grant money HUD allocated earlier this year for Gulf Coast states that were hit by hurricanes last year. Four hurricanes hit at least a part of Florida in 2005.

Copyright © 2006 The St. Petersburg Times

Well before Hurricane Wilma’s first rain drops fell in South Florida last October, Kathryn Danella, general manager of the community association for Boca Pointe, a development of 4,044 residences, had shifted into disaster mode.

And thanks to her training as a certified manager of community associations (CMCA), her recovery program in the 1,000-acre community of 7,600 residents, located just outside the city of Boca Raton, was underway as soon as the last drops fell.

The CMCA program is the only national certification designed for managers of homeowner and condominium associations, according to the National Board of Certification for Community Association Managers (NBC-CAM), which administers the CMCA certification. According to the Community Associations Institute, there are more than 286,000 such communities, home to one in five Americans or approximately 57 million people.

The Community Associations Institute created the NBC-CAM in 1995. Since then, 6,000 managers have been trained.

According to CMCA, CMCA specialists help reassure potential homebuyers that a community is well run, has adequate reserves and will continue to enhance the value of a property. They can also help real estate practitioners acquire relevant documentation and information regarding budgets, insurance, assessments and reserves when a residence is sold.

“Our requirements for earning and maintaining the CMCA were designed to provide homeowners with a port in the storm -- a certified professional ready, trained and able to handle almost any situation -- from emergency conditions such as floods or fires to community management of finances and contracting,” says Judi Phares, NBC-CAM’s chair.

Last year, disasters touched 48 states in some way, according to the Federal Emergency Management Agency (FEMA). In a recent survey conducted by NBC-CAM, 94 percent of those certified said they were better equipped to handle natural disasters than they had been prior to the training.

Establishing on-going relationships with vendors ahead of time helps communities recover rapidly, says Danella. At Boca Pointe, she says, these relationships meant they were able to begin clearing roadways immediately after the storm.

Another essential function for association managers facing a disaster is to be a communication hub for absentee residents and families of residents who remain on site. This means, says Danella, developing a Web site and having access to communications that can be maintained during power outages.

NBC-CAM also offers a brochure, “Community Matters,” designed to inform consumers about living in a community association

Source: Realtor Magazine Online, Camilla McLaughlin © 2006 FLORIDA ASSOCIATION OF REALTORS

GAINESVILLE, Fla. -- July 26, 2006 -- Consumer confidence among Floridians rose one point to 89 in July, but the slowing real estate market is likely to cause it to decline over the next several months, University of Florida economists report.

“The rise in confidence among Floridians was weak and is starting to show signs of the increased burden on consumers,” says Chris McCarty, director of the survey research center at UF’s Bureau of Economic and Business Research. “The index and all five of its components are below their values from a year ago.”

The source of this month’s gain from June was derived from two of the five components that make up the index. Perceptions of whether it is a good time to buy big-ticket items rose five points to 103 and expectations about personal finances a year from now rose five points to 99. However, perceptions of personal finances compared to a year ago fell four points to 83, while expectations of economic conditions over the next five years fell three points to 83. Perceptions of U.S. economic conditions over the next year remained the same at 77.

The decline in the component measuring perceptions of personal finances was particularly large for Florida seniors and lower-income households, McCarty says. The major reasons for the downturn were consistently high-energy prices and the rise in interest rates, he said.

“Although consumer confidence was up a point in July, we expect the index to decline over the next several months,” McCarty says. “We expect a fairly pronounced effect here in Florida from the decline in the real estate market. This will come as a leveling or decline in home equity, the loss of construction jobs and declining sales for products related to home construction, such as appliances.”

McCarty says he expects to see the full effect of this decline by the end of the year or by the end of the first quarter of 2007. Retail sales and chain store sales are already falling off, he says.

The research center conducts the Florida Consumer Attitude survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for July was conducted from 456 responses. The error rate is plus or minus 5 percent.

Consumer confidence is designed to help predict buying patterns by measuring the mood of consumers toward purchasing. Although other economic indicators also predict buying patterns, consumer confidence tends to be available sooner.

The index is benchmarked to 1966, so a value of 100 represents the same level of confidence for the year. The value of the index is in comparing changes over time rather than looking at an isolated month.

© 2006 FLORIDA ASSOCIATION OF REALTORS

A credit report includes information on where you live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. Errors could impede your ability to obtain credit and increase the rates at which you can borrow.

Reviewing your credit report at least once a year can alert you to any mistakes and identity theft issues, where someone else is using your credit card number to charge purchases, or using your personal data to obtain credit cards, loans, and other financing.

One way to get a copy of your credit report is to go to annualcreditreport.com, call 877.322.8228, or write to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Each of the nationwide consumer reporting companies - Equifax, Experian, and TransUnion - must provide you with a free copy of your credit report, at your request, once every 12 months.

LONDON, U.K. -- Gov. Jeb Bush leads an economic trade mission to Ireland and the United Kingdom this week, joined by FAR President Mike Dooley. He and FAR Vice President of Public Policy John Sebree hope to persuade surplus line insurance carriers, such as Lloyds of London, to do business in Florida.

A surplus carrier is regulated in the state or country where it is located but not in the state or country where it writes policies. Since these carriers are not strictly regulated by Florida, they are generally free from the form or rate regulations imposed on licensed insurers. This gives them freedom to maintain broader internal guidelines to design and price their policies, and can, therefore, accept risks that licensed insurers will not.

The one-week Team Florida trade mission to the United Kingdom (U.K.) and Ireland includes more than 100 leaders from Florida's international business community.

"The United Kingdom is one of Florida's most vital business partners, and our emerging trade relationship with Ireland has grown dramatically just in the last year," says Governor Bush. "The mission will grow our already extensive commercial relationship with these countries."

The U.K. is Florida's second-largest source of foreign direct investment, with $4.2 billion invested by British companies. It is Florida's largest European investor country and the top generator of foreign-affiliated employment in Florida, accounting for 48,600 jobs within the state. The U.K. is also Florida's No. 1 source for overseas tourists, with 1.49 million U.K. residents visiting the Sunshine State in 2005.

For more information on Florida's international business activities and Team Florida trade missions, visit www.eflorida.com.

©2006 FLORIDA ASSOCIATION OF REALTORS®

WASHINGTON (July 11, 2006) - Home sales are projected to ease modestly but
should stay within a relatively narrow range over the balance of the year,
according to the National Association of Realtors.

David Lereah, NAR's chief economist, said the market is showing signs of
stabilizing. "The major housing indicators have been moving up and down
within a reasonable range, which means the market should even-out just below
present levels," he said. "At the same time, housing inventory levels are
balanced in much of the country, so overall price appreciation will be at a
normal rate. We should see home sales rise and fall month to month, but
don't look for any big shifts one way or the other."

Existing-home sales are expected to decline 6.7 percent to 6.60 million in
2006 from 7.08 million last year. That would still be the third highest
level on record. New-home sales should fall 12.8 percent this year to 1.12
million from 1.28 million in 2005. Housing starts are forecast to decline
6.8 percent to 1.93 million this year from 2.07 million in 2005.
The 30-year fixed-rate mortgage is likely to reach 7.0 percent by the end of
the year.

"The uptick in interest rates has been slowing home sales," Lereah said. "We
remain concerned about the potential impact of higher interest rates in some
of the more expensive areas of the country."

NAR President Thomas M. Stevens from Vienna, Va., said consumers who have
been on the sidelines should feel more confident about the market
normalization. "When it comes to big ticket purchases, buyers are more
comfortable in a stabilizing environment," said Stevens, senior vice
president of NRT Inc. "At the same time, home sellers in most areas
understand that the period of abnormal price growth is over, and they have
become more realistic about the current market. This is helping to ease the
pressure on home prices in some areas."

The national median existing-home price for all housing types is expected to
rise 5.3 percent to $231,300 in 2006. With more construction in lower cost
regions as well as price incentives that are helping to clear unsold
inventory, the median new-home price should increase 1.0 percent this year
to $243,300.

The unemployment rate is projected to average 4.7 percent in 2006, while
inflation, as measured by the Consumer Price Index, is forecast at 3.4
percent. Growth in the U.S. gross domestic product is expected to be 3.4
percent this year, and inflation-adjusted disposable personal income is
likely to grow 3.1 percent.

The National Association of RealtorsR, "The Voice for Real Estate," is
America's largest trade association, representing more than 1.3 million
members involved in all aspects of the residential and commercial real
estate industries.

# # #
Existing-home sales for June will be released July 25; the Pending Home
Sales Index is scheduled for August 1 and the next forecast will be August
8.

Florida moved up just one tiny notch in a key state-by-state ranking of biotechnology business centers, but it was a move that placed it in a group the industry is bound to notice.

The Sunshine State edged upward to 10th place from 11th, eclipsing Washington, which has a biotech hub in the Seattle area, according to the Ernst & Young Global Biotechnology Report. The report, released recently at the Biotechnology Industry Organization convention in Chicago, is widely used as a barometer of how regions of the country, as well as the world, fared from one year compared to the next, and how they compared to each other.

Beginning July 7, only the homeowners listed on recorded documents can sell properties slated for Federal Housing Administration-backed financing, according to new FHA rules intended to discourage property flipping. Additionally, FHA financing will not be available for homes sold within 90 days of purchase. Sellers will have to provide additional valuation data to unload properties between 91 and 180 days after the last transaction, in cases where the new sales price is 100 percent or more higher than the previous sales price.

HUD, Fannie Mae, Freddie Mac, lenders unloading their real estate owned (REO) portfolios, local or state housing agencies, nonprofits with HUD permission to purchase discounted REO properties, inherited properties, and dwellings located in presidentially declared disaster areas are exempt from the anti-flipping rules.

Are Banks, Newspapers Behind Recent Real Estate Industry Rants?
by Blanche Evans

First, the blow below the belt.

On Tuesday, June 20, 2006, dozens of newspapers across the nation published the so-called report, "How The Real Estate Cartel Harms Consumers and How Consumers Can Protect Themselves," by the executive director of the Consumer Federation of America.

Then the uppercut, published the same day in the New York Times by a Brookings Institution senior fellow. "Commission Accomplished" is also a diatribe that criticizes the real estate industry and its commissions. Both reports are unabashed, unsubstantiated opinion pieces, and what's strange is that they both appeared on exactly the same day. Why?

Dozens of news services gleefully joined in the tarring and feathering of the real estate industry by reporting the CFA opinion piece as news when it should have been placed in the editorial section along with the Brookings Institution fellow's piece.

News organizations reported that the consumer group called the real estate industry a "cartel." Not one paper questioned why neither the CFA report or the Brookings Institute editorial had any quotes, facts, or anything other than the opinion of the authors. The real estate industry's side of the commission question was all but ignored by virtually every newspaper.

This isn't journalism. It's complicity. And with good reason -- newspapers are part of a different cartel -- the "Replace-Realtors-With-Us" Cartel.

To begin with, real journalists should ask themselves why they're getting a gift of a story. There are two sides to every story, and if you don't find out what the other side is, you're not doing your job.

Here are just a few questions that should have crossed these journalists' minds:

1. Why is opinion being released as news? What does the CFA or Brookings Institute have to gain from slamming real estate agents and what they earn?

2. Is this story true? Can it be substantiated? Are the facts correct? Why would CFA acknowledge that real estate commissions have come down from 6-7 percent, yet accuse the "real estate cartel" of holding consumers hostage to paying 6-7 percent? One of these can't be true -- so which is it? In all fairness, the CFA report dimly acknowledges other studies that have shown that commissions have fallen as much as two points nationwide, but failed to name the studies. And, if commissions are falling, then what's the complaint?

3. By now, any decent journalist's suspicions should be in overdrive. Next question. Why now? And what about that timing? Two prestigious consumer-oriented groups slamming commissions on exactly the same day? Sorry, folks, but that's a little too coincidental for me.

So, let's turn the tables. Who's interested in using the biggest newspapers in the nation to slam the real estate industry? And why did each paper go along? Why did the Chicago Tribune, Los Angeles Times, Washington Post and dozens of others do the exact same story in the exact same way without giving any attention or voice to the other side?

That should make a good journalist wonder: Do the newspapers have something to gain, too? Are newspapers part of the "Replace-Realtors-With-Us Cartel"? Let's find out.

(By the way, we don't have to prove there's a cartel. All we have to do is suggest that one exists, just as the research institutions and newspapers have done. Let's see if we can smear the "Replace-Realtors-With-Us" Cartel with as few facts as they used to smear the real estate industry.)

What we have is two venerable research institutions slamming real estate commissions on exactly the same day using the biggest name newspapers in the country. Coincidence? No. Planned attack. Yes. So who are the generals in the war room?

So find out using some questions from Journalism 101. We have the what happened and where it happened, so who, when, and why?

Who: Both research organizations claim to benefit consumers. Can the answer can be found in the donor-contributors to these institutions? Who is asking for these so-called opinion reports and editorials to be published, and what do they have to gain?

Surprise! With only a little digging we find out who. Guess who's been a major contributor to the Consumer Federation of America since 2001? "Bank of America," says Tom Stevens, president of the National Association of Realtors. Bank of America is the leading voice to get banks into real estate.

And to the Brookings Institution? "LendingTree and Bank of America funded a research report that was very unfavorable to the real estate industry last year," says Stevens.

Hmmmm. Now we're getting somewhere.

When: Since it was obvious from the timing of the two reports that they were intended to do maximum damage to the real estate industry, what was so important about this date - Tuesday, June 20, 2006? Why would more eyes have been tuned to this story on that particular date?

Turns out there was a reason. Congressman Mike Oxley -- that friend of banks and enemy of Realtors and chairman of the Financial Services Committee (that oversees banks) was scheduled to hold hearings about the real estate industry this week. (Oxley's number one campaign contributor category is commercial banks, by the way.) Unfortunately, due to a personal integrity problem, he had to cancel. Too late to pull the CFA release and the Brookings editorial? We wonder. Oxley is in hot water over alleged violations of federal campaign finance law. He has bigger fish to fry than Realtors right now.

Why: What do these people have to gain? It's no secret that banks want to get into real estate, and have used everything from the Treasury, to Oxley, to HUD, to the Department of Justice to accomplish it. They are the leaders of the Replace-Realtors-With-Us Cartel.

But guess what? There's a willing ally. Newspapers want to get into real estate, too. So they're only too happy to pile on Realtors. And they come with a handy cartel of their own!

Most of the major newspapers that published the CFA commission rants are partners in a strategic venture called Classified Ventures. The strategic partners, "whose objectives are to collectively capitalize on the revenue growth in the online classified advertising categories of automotive, apartments, and real estate," are Belo Corporation, Gannett Company, Knight Ridder, Inc., The McClatchy Company, Tribune Company, and The Washington Post Company.

Having had their butts kicked by Craigslist and eBay, not to mention Realtor.com, the newspaper cartel members are determined to get their classified ad business back. Managed by former Bank of America executive Tim Fagan, Classified Ventures owns HomeGain, a company that gives real estate agents the opportunity to compete for customers. One of the criteria used is commissions! May the lowest agent win! Then the agent gets to pay a hefty "referral fee" to HomeGain. (Whoever says commissions haven't come down hasn't been doing his homework! Another popular commission-crushing idea to get Realtors to give rebates to buyers, paid for out of referral fees they've given to companies like HomeGain and LendingTree. What's cool is that sellers don't know they're giving something to the buyer and the online company looks like a hero. What will they think of next?)

Also, because newspapers have largely been denied access to the real estate cartel's MLS listings, (even while they charge real estate agents ridiculous classified and display ad fees,) they are forced to pursue the FSBO market. According to the Classified Ventures website, the company allows consumers "access listings throughout our national network of local newspapers."

Hmmm. It's all coming together!

(Wasn't that clever -- making an accusation look like fact? So, prove it isn't true, Chicago, Washington, et al.)

Realtors - are you angry yet? Have you had enough yet? It's high time the real estate industry hit 'em back where it hurts, just like they hit the real estate industry.

What really ought to happen here is two things:

1. Every Realtor in America should jerk their housing ads to any newspaper that published the Brookings or the CFA "editorials." We should have a advertising holiday where not one agent puts an ad in the newspaper out of protest. Then, we can see if not having newspaper ads really hurt sales, which my guess is, it won't.

2. Forward this story to every Realtor in America so they'll stop putting money in the enemy's war chest. Every dime you give to newspapers is a dime that will be used to put you out of business. Stop supporting any company that wants to put you out of business!

If money talks for donors, it should sure as hell talk for advertisers.

Published: June 21, 2006 - Blanche Evans of Realty Times

For a half-century, Florida has trailed only California in net migration, averaging three million in population growth during each of the last three decades. "This decade will bring the 'largest absolute population increase of any decade in Florida’s history,' another 3.6 million," reports Stanley K. Smith, Director of the University of Florida’s Bureau of Economic and Business Research. In just four years, Florida will pass New York as the third-largest state. Most people site the “weather” as the main reason for this dramatic growth, the real reason is economic opportunity, states Tim Chapin, FSU professor. Florida routinely leads the country in job growth and 2005 was no exception.

David Lereah, Chief Economist at the National Association of Realtors painted a long term positive picture for real estate in Florida based upon a very good state-wide economy and the tremendous demographic trends which will propel Florida into the third largest state within a few years. Lereah pointed out that Baby Boomers are still buying second homes and the massive Generation Y are about to enter their home-buying years and this generation will follow the job market which is booming in Florida. He also noted the large immigrant growth which Florida again ranks very high in as a reason for continued price appreciation in Florida real estate. He also dismissed widespread concerns about affordable homes in Palm Beach County and the Treasure Coast. “They’re still affordable, particularly when the demand is coming from the Northeast,” Lereah noted.

Home prices continued on an upward trend statewide as the median price rose 17 percent from a year ago to $248,200. Nationally, the median was $218,000 up 7 percent. Palm Beach County median price increased to $393,700 in March from $371,500 in March of 2005. The Treasure Coast rose to $258,000 from $235,000 a year ago. In Broward County, the median home price increased 11 percent over one year ago to $368,000 and in Miami-Dade the increase was 19 percent. Realtors in the tri-county area have indicated that their inventory of product is the best in 5 years and the opportunity for buyers to find the right home has never been better.

ORLANDO, Fla. -- Flooding is nature's most common natural disaster, affecting tens of thousands of homeowners and renters nationally each year and causing over $2 billion in property damage annually in the United States, according to the latest statistics from the Federal Emergency Management Agency (FEMA).

"People are often surprised to discover that flooding could happen to them, and some are even unaware that flood damage isn't covered by standard homeowners insurance policies," says MetLife Auto & Home Assistant Vice President Franklin Reid. "Flooding occurs in all 50 states in the United States, and, in fact, up to 25 percent of all flood claims come from people living in low-to-moderate-risk zones."

Standard homeowners' policies don't always cover flooding that results from a hurricane. It depends on the source of the water -- storm surge, wind-driven or slowly rising. In some cases, only flood insurance reimburses a homeowner for damages. And since a homeowner must wait 30 days for flood coverage to become effective, it's important to apply before the hurricane season starts.

Exceptions to the 30-day rule include:

• There is no waiting period when flood insurance is required by a lender in connection with the making, increasing, extending or renewing of a loan. The policy will be effective at the date of the loan closing, as long as the application has been completed and the premium payment has been made at or before the closing date.

• There is no waiting period when flood insurance is required by a lender after a mortgage portfolio review shows that the building is in a high-risk area. The policy is effective upon completion of the application and receipt of the premium payment by the insurer.

• There is a one-day waiting period when a new policy or additional amounts of coverage are required by the lender during the 13-month period when a map revision changes the structure's designation from a non-high-risk area to a high-risk area.

For more information on flood insurance, visit the FEMA Web site at http://www.fema.gov or download an informational brochure (Item No. 596N, National Flood Insurance Guide) from the federal information Web site, http://www.pueblo.gsa.gov.

© 2006 FLORIDA ASSOCIATION OF REALTORS®

Compare the cost of owning a home to the cost of renting a similar property and you'll see that real estate bubbles do not exist in the vast majority of U.S. markets, says a pair of economics professors from Pomona College, located in Claremont, Calif.

Professors Gary Smith and Margaret H. Smith found bubble conditions in only one of the 10 metropolitan U.S. housing markets they studied – San Francisco. In every other market, buying a house is an excellent long-term investment, they conclude.

In each market they studied, the Smiths matched up similar homes and compared the cost of buying versus renting, using Multiple Listing Service data from summer 2005. They projected home owners' savings on rent over time, discounted by a required after-tax rate of return of 6 percent because the money sunk into the home purchase could have been invested elsewhere — for example, in stocks and bonds.

The analysis factored in expenses such as one-time closing costs, taxes, maintenance, and insurance. On the other side of the ledger, they also factored in tax benefits from ownership and the fact that rents will rise over time, while payments on a fixed-rate mortgage will not.

They assumed a 20 percent down payment, with a 30-year mortgage at a 5.7 percent fixed rate.

Under the Smiths' model, many home purchases initially generate negative cash flow, as the expenses of owning exceed the rental value and tax benefits. But over time, cash flow becomes positive. And in some of the more dramatically undervalued markets, such as Indianapolis, owning a home generated an immediate positive cash flow.

But the bottom line is personal, says Smith. “You’ve got to run your own numbers.”

Source: Ascribe News

Sales of vacation homes and investment homes set new records in 2005, with the combined total of second-home sales accounting for four out of 10 residential transactions, according to the NATIONAL ASSOCIATION OF REALTORS®.

The annual report, based on two surveys, shows that 27.7 percent of all homes purchased in 2005 were for investment and another 12.2 percent were vacation homes. All together, there were 3.34 million second-home sales in 2005, up 16 percent from an upwardly revised total of 2.88 million in 2004. The market share of second homes rose from 36.0 percent of transactions in 2004 to 39.9 percent in 2005.

Vacation-home sales increased 16.9 percent last year to a record 1.02 million from a downwardly revised 872,000 in 2004, while investment-home sales rose 15.7 percent to a record 2.32 million in 2005 from an upwardly revised 2.00 million in 2004.

David Lereah, NAR’s chief economist, says all the factors at play in the second home market were favorable in 2005.

“To begin with, the baby boom generation is driving second home sales – they’re at the optimum point in life when people become interested in second homes, they’re at the peak of their earnings, interest rates remain historically low and boomers want to diversify investments,” Lereah says.

There are significant motivational differences between vacation-home buyers and investment buyers, he adds.

“Vacation-home buyers are making lifestyle choices and purchasing primarily for their own enjoyment,” he says. “Investment-home buyers are seeking rental income and portfolio diversification, although vacation-home buyers also mentioned diversification.”

What factors are driving second-home purchases? For vacation-home buyers, 41 percent plan to use the property vacations, 31 percent to use as a family retreat and 28 percent to diversify investments, according to an NAR survey. For investment-home buyers, 55 percent are seeking rental income and 35 percent want to diversify investments.

The median price of a vacation home in 2005 was $204,100, up 7.4 percent from $190,000 in 2004. The typical investment property cost $183,500 last year, up 24 percent from $148,000 in 2004.

NAR President Thomas M. Stevens from Vienna, Va., says that not all second-homes sales are necessarily a second home: “Some of these purchases may be a third, fourth or fifth investment property, showing that housing is a good investment,” says Stevens, senior vice president of NRT Inc. “The lion’s share of investment homes is actually the primary residence of a renter. Most investment owners are seasoned buyers who understand the long-term benefits of ownership, but not everybody is cut out to be a landlord.”

Four percent of all home owners hold three or more properties; 11 percent own two properties.

Typical vacation-home buyers in 2005 were 52 years old, earned $82,800, and purchased a property that was a median of 197 miles from their primary residence. However, 47 percent of vacation homes were less than 100 miles and 43 percent were 500 miles or more.

Investment-home buyers last year had a median age of 49, an income of $81,400, and bought a home that was close by – a median of 15 miles from their primary residence.

More than three-fourths of vacation-home buyers have no interest in renting their property, and 21 percent say it would become a primary residence on retirement, compared with only 2 percent of investment buyers. Fourteen percent of investment buyers and 6 percent of vacation-home buyers purchased a property that their son or daughter can occupy while in school.

In describing characteristics that vacation home buyers value about their property, 40 percent want to be close to an ocean, river or lake; 34 percent close to family members; 27 percent close to preferred recreational activities; 27 percent close to their primary residence; 26 percent close to mountains; 24 percent close to a preferred vacation area; and 17 percent close to a job or school.

Activities of interest that affected the decision to buy a particular vacation home include beach, lake or water sports, cited by 37 percent of buyers; golf, 29 percent; theme parks, 18 percent; winter recreation, 16 percent; hunting or fishing, 12 percent; and boating, 9 percent. Smaller categories included gambling; biking, hiking or horseback riding; and tennis.

The largest concentration of vacation home buyers are in the Midwest, accounting for 33 percent of vacation home sales, although the property may be located in another region. Buyers in the South accounted for 30 percent of vacation home transactions, the West, 20 percent, and the Northeast, 17 percent.

Most investment home buyers are in the South – 38 percent of the total. Buyers in the Midwest and Western regions each purchased 24 percent of investment property, and the Northeast, 15 percent.

One-third of vacation-home buyers and 36 percent of investment-home buyers said it was very likely that they would purchase another home, in addition to properties currently owned, within the next two years.

Lereah says it is difficult to project where the market will go in 2006. “Vacation-home sales will remain strong for the foreseeable future given the fact that baby boomers are favorably positioned in terms of affordability, as well as being at the stage in life when people are most interested in making that kind of a lifestyle purchase,” he said. “Discretionary purchases of that nature are more likely in a healthy economy, and that is looking positive as well.”

“On the other hand, investment home sales are likely to decline this year, in part because of higher interest rates,” Lereah says. “There are fewer incentives to speculate in the market with price appreciation cooling in much of the country, and more oversight is being encouraged in the mortgage market. It’s hard to say how much speculation there may be in housing, but it’s probably a single-digit percentage of total home sales.”

NAR survey data shows only 2 percent of homes are sold in one year or less, but investment homes likely are under-represented in that particular reporting sample.

Lereah expects a soft landing for the housing sector in 2006 with existing-home sales declining 5.7 percent to 6.67 million, the third highest on record. “Long term, the outlook for second homes is favorable because more people will be moving into the prime years for buying a second home,” he says.

Currently, there are 36 million people aged 50 to 59. However, there are 45.2 million people aged 40 to 49. “That younger segment will become a driving force in the second home market over the next decade,” he says.

The second-home report is based on two surveys. One, to determine market share and to extrapolate sales data, was conducted in March 2006 of a panel of recent home buyers. That survey captured data for 3,406 home buyers in 2004 and 2005, with roughly equal samples for each year; data were weighted to correspond with demographic findings in an earlier mailed survey.

To determine median home prices, most of the demographics and buyer preferences, NAR mailed an eight-page questionnaire to a national sample of 145,000 buyers who purchased their homes between mid-2004 and mid-2005 based on county records. It generated 7,813 usable responses; the response rate was 5.4 percent.

Data in this report only includes data from respondents who indicated that they purchased a vacation home or investment property. A more extensive study, The 2006 National Association of Realtors® Profile of Second Home Owners, currently is underway and will be released in late spring. This study will be based on a large sample of existing owners and will update NAR’s benchmark study of second home owners that was published in 2002.

—NAR

Editor's Note: For more housing market statistics and research reports,visit NAR's Research Department at REALTOR.org.

TALLAHASSEE, Fla. -- The Department of Environmental Protection (DEP) recently launched an interactive Web site to provide information about Florida-friendly plants and landscaping. A partnership between DEP, the University of Florida, Florida Yards & Neighborhoods and the Southwest Florida Water Management District, the site helps visitors plan environmentally-friendly yards that reduce the need for fertilizers and pesticides and promote water conservation.

“Florida-friendly landscaping safeguards the environment and protects the state’s natural resources,” says DEP Secretary Colleen M. Castille. “The Florida Yards Web site allows both citizens and professionals to access information on native plants, plan their own landscaping and explore additional resources to design a Florida-friendly yard.”

The site provides basic information of Florida-friendly landscaping, including environmental benefits and guiding principles, and includes a database of native Florida plants. An interactive feature allows visitors to design a Florida-friendly yard using indigenous plants best suited to the state's sub-tropical environment. Also included is a professionals’ corner, complete with stories and resources for professional landscaping organizations.

Irrigation of lawns and landscaping in Florida represents the single largest use of water from municipal water supplies. This water use has impacted the state’s aquifer, which is the source of drinking water and water that supports Florida’s springs and other ecosystems. In addition, fertilizers and pesticides used on lawns can impact water quality in lakes, rivers and bays. By using native plants during landscaping, homeowners can reduce the amount of fertilizers and pesticides used, conserve water, provide habitat for native wildlife and preserve water quality.

For more information, visit the Florida-Friendly Landscaping Web site at www.FloridaYards.org.

© 2006 FLORIDA ASSOCIATION OF REALTORS®

WASHINGTON -- According to the National Association of Realtors'® (NAR) monthly housing market report, home sales should generally level out and remain at historically high levels, making 2006 the third-strongest year on record.

David Lereah, NAR’s chief economist, says mortgage interest rates are trending up but will remain favorable. “Economic growth and job creation are providing a favorable backdrop for the housing market, but rising interest rates have an offsetting effect,” Lereah said. “Home sales will move up and down somewhat over the remainder of the year but stay at a high plateau, meaning this will be the third strongest year on record.” He expects the 30-year fixed-rate mortgage to rise to 6.9 percent by the end of the year.

Growth in the U.S. gross domestic product is forecast at 3.7 percent in 2006, while the unemployment rate should average 4.8 percent.

Existing-home sales are projected to drop 6.0 percent to 6.65 million this year from a record 7.08 million in 2005. New-home sales are likely to fall 10.9 percent to 1.14 million from the record 1.28 million last year -- both sectors would see the third best year following 2005 and 2004. Housing starts are forecast at 2.00 million in 2006, which is 3.2 percent below the 2.07 million in total starts last year.

NAR President Thomas M. Stevens notes that home prices are expected to cool, but not as much as in earlier projections. “Although housing inventories have been improving, the balance is still a bit more favorable for sellers and annual appreciation remains in double-digit territory,” says Stevens. “Even so, the market is in a process of normalization -- appreciation will return to normal single-digit patterns, providing solid investment returns into the future.”

The national median existing-home price for all housing types is likely to increase 6.4 percent this year to $221,700, while the median new-home price is expected to rise 2.3 percent to $242,700.

Inflation as measured by the Consumer Price Index is seen at 3.4 percent in 2006. Inflation-adjusted disposable personal income should grow 3.8 percent this year.

© 2006 FLORIDA ASSOCIATION OF REALTORS®

Florida still holds the title as the hottest market in the Southeast for
home prices, soaring nearly 27 percent last year, according to an analysis
report issued by the Federal Deposit Insurance Corp. The median price for a
home in Florida rose by a record rate of $56,000 in 2005. Leading the pack
was Naples at $113,000 in appreciation last year. The overall report also
shows healthy job creation across the region. Florida is generating jobs at
the fifth-fastest rate in the nation and tops in the Southeast.

Construction, retail and temporary jobs are multiplying the most, creating
pockets of worker shortages in southwestern parts of the state. As a result,
the state has the third-best unemployment rate in the United States.

Source: The Florida Times-Union, (04/06/2006)

Florida will add at least 5 million residents over the next generation, and the state needs regional solutions to address such mounting problems as traffic and pollution that cross county lines, Gov. Jeb Bush and urban planners said Friday at a Miami conference.

It won't be easy. Officials are used to focusing on the city or county where residents elect them; funding is often assigned by county, not region; and counties long have competed for business -- not collaborated, panelists said.

To fuel cooperation in such regions like Southeast or Central Florida, Bush said the state plans to spend more than $2 billion for programs including the Transportation Regional Incentive Program. That program pays up to half the costs not covered by the federal government for transportation projects that benefit travel across counties.

The state also is looking at regional approaches to ensure clean water for residents without hurting the environment.

"It makes no sense to continue to develop westward and westward and westward, unless we can develop an alternate water supply" to ground water, that will not harm the Everglades and the seas that attract people to Florida in the first place, the governor said.

Talk of regionalism came at a morning conference of the Urban Land Institute, an international, not-for-profit group focused on research and education about land use and development. The institute and its four district councils in Florida in 2003 launched an initiative on regional cooperation, spent a year doing studies and holding forums, and recently released its recommendations.

Its main finding: If Florida is to enhance its quality of life and succeed in the global economy, it must breed leadership and resources that encourage regional solutions.

Not acting regionally -- for example, not recognizing that Miami-Dade, Broward and Palm Beach residents regularly cross county lines for work and play and use each other's roads and other facilities -- will only compound problems, especially as the population swells and the costs rise for water systems, mass transit and other basics, panelists warned.

"In a state like Florida, we will define our future as much by inaction, as the actions we take," Bush told an audience of more than 400 people.

Miami-Dade County Commissioner Katy Sorenson said parochialism hurts because areas sometimes undercut each other to lure business or duplicate efforts. She pointed to ongoing rivalry between Miami International and Fort Lauderdale-Hollywood International airports as an example.

"We all benefit," Sorenson said, "from the success of both airports."

The call for regional action comes as Florida expects dramatic growth and urbanization in the coming decades:

By 2030, the state's population will rise nearly 40 percent from 2000 levels of roughly 16.5 million people, the U.S. census projects. Much of that growth will be clustered in regions that cross county lines, including southeast Florida.

By 2020, more than 2.6 million acres of agricultural land -- 7.5 percent of the state's total land area -- is expected to be converted to urban use, according to a Brookings Institution study.

At a separate event Friday, Bush also called on Latin American government and business leaders to help develop ethanol in an effort to diversify the region's energy sources and reduce reliance on oil from Venezuela. The governor made his pitch during the second annual Miami Latin America Conference, calling the proposal a "win-win for Florida and the region."

"It's important for us to be a leader in the development of alternative sources of energy, and whether those sources are developed homegrown here or imported from the region, to me is less relevant than it may be in other places in the country," Bush told the audience of nearly 100 executives from around the hemisphere.

Saturday, March 18, 2006
by Doreen Hemlock - Sun Sentinel

Driving around, touring homes, and meeting people is the universal way to judge a neighborhood. But a recent study by the Real Estate Center at Texas A&M University reveals that, in general, different ethnic groups go about choosing neighborhoods in different ways.

The study found African Americans are much more likely than other groups to learn about neighborhoods by driving through them. Asian American buyers are more likely to use real estate information sources. Hispanics rely significantly on friends, family, and work associates for neighborhood information.

The Real Estate Center offers these key issues for people choosing a new neighborhood to consider.

How do neighborhood schools rank in areas important to you? The school district and the Internet are good resources for information.
How will your children get to school, and how long will it take them to get there?
Are municipal services available?
Is there a home owners’ association, and what are its fees? Are there other fees or user charges for public services?
Are streets and other public facilities well maintained?
Do home owners exhibit pride with well-kept homes?
What do police statistics show about crime in the area?
Is the neighborhood well regarded by those familiar with the area?
Are there deed restrictions? What are they? Are they enforced?
What are the city or county’s long-range plans for the area? You don’t want to be the last one to find out a freeway is coming through.
How is the area zoned? Don’t forget, however, that zoning can be changed.
What are the plans for any nearby open spaces?

Source: Texas A&M Real Estate Center, David S. Jones (03/05)

Homes listed by discount brokers take about five days longer to sell than those listed by full-service real estate brokerages and are 12 percent less likely to sell at all, according to a study by Penn State’s Smeal College of Business and the University of Texas at San Antonio.

Abdullah Yavas, research director of the Institute for Real Estate Studies at Smeal, and Ron Rutherford, professor of building and development for UT, examined nearly 300,000 single-family home listings in several Texas MLSs. The researchers concluded that although discount brokers were slower and less reliable, using one had no affect on the price for which the house sold.

—REALTOR® Magazine Online

National existing-home sales rebound in February

ORLANDO, Fla. -- March 23, 2006 -- Rising inventory levels and still-low mortgage rates continued to affect Florida's housing market, which is adjusting to a better balance between buyers and sellers following a five-year run of record-pace sales. Statewide, sales of single-family existing homes totaled 13,539 in February compared to 16,916 homes a year ago, for a 20 percent decrease, according to the Florida Association of Realtors® (FAR).

Realtors from across the state report that the supply of homes available for sale in their markets is improving, offering buyers more housing opportunities. The statewide median price for single-family existing homes last month was $244,200, up 24 percent from the February 2005 statewide median of $197,700.

In February 2001, the statewide median sales price was $118,200, which shows an increase of about 106 percent over the five-year period, according to FAR records. The median is a typical market price where half the homes sold for more, half for less.

In California, the statewide median resales price in January 2006 was $551,300; in New York, it was $319,000; in Maryland, it was $290,776; and in North Carolina, the average resales price was $206,788. Nationally, the median sales price for existing single-family homes in January was $210,500, up 13.1 percent from January 2005.

Sales of existing condominiums in Florida also decreased last month, with a total of 4,342 condos sold statewide compared to 5,643 in February 2005 for a 23 percent decline, according to FAR. The statewide median sales price for condos rose 11 percent to $218,700 last month; a year ago, it was $197,000. The national median existing condo price was $216,900 in January 2006.

Along with the University of Florida Real Estate Research Center, the Florida Association of Realtors began compiling data on closed condo sales for comparison purposes in 2005; the condo data series began in January 2006.

Favorable mortgage rates continued to spark buyers' interest in markets across the state. Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.25 percent, up from the 5.63 percent average rate in February 2005. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s larger markets, the Jacksonville Metropolitan Statistical Area (MSA) reported a total of 1,200 single-family existing homes sold in the area in February compared to 1,218 homes a year ago for a 1 percent decrease. The median sales price rose 14 percent to $196,200; a year ago, it was $171,800.

Kay Seitzinger, president of the Northeast Florida Association of Realtors and assistant manager with Watson Realty Corp. in Ponte Vedra, says a convenient location, employment opportunities and appealing lifestyle attract people to the Jacksonville area.

"The continued strong market we are having here in Northeast Florida is considerably influenced by our area's stable economy," she says. "With our diverse business base and positive job outlook, people continue to relocate to the greater Jacksonville area. Add to that our great quality of life -- with so many arts and leisure activities, who wouldn't want to live here?"

As for smaller markets in Florida, the Tallahassee MSA, reported strong resales activity last month with a total of 330 single-family homes changing hands compared to 298 homes a year ago for an increase of 11 percent. The area's median sales price rose 15 percent to $185,800; a year ago, it was $161,300.

Kenny Ayers, president of the Tallahassee Board of Realtors and new-home specialist with Heritage Homes Realty of Tallahassee representing Turner Heritage Homes, notes that the area's changing seasons and friendly community appeal to many homebuyers.

"As the state capital, we have a lot of job opportunities with the government and state offices, plus three big universities and colleges," he says. "The Tallahassee area is convenient to the coast and offers a nice mix of art and cultural activities along with a laid-back, friendly lifestyle."

© 2006 FLORIDA ASSOCIATION OF REALTORS

WASHINGTON -- March 21, 2006 -- Rather than being enamored with the fashionable décor, smart home buyers should pay attention to aspects of a home that really count in the long run, says Greg Haskett, vice president of HomeTeam Inspection Service Inc., an Ohio-based national franchiser. Here are Haskett’s chief buyer bewares:

• Driveways, walkways or low spots that pitch toward the home. Water should be directed away from the foundation, not toward it. The cost to regrade or repair: $1,000 to $10,000.

• Wall cracks in the basement or interior rooms. As a foundation shifts, floors and walls can move with it. It could be a sign of age, sagging or bowed basement walls, or other factors. Cost to repair the foundation: $10,000 to $30,000.

• Buckled or wavy roofing. Caused by aging shingles, heat trapped in an unventilated attic or ice dams. Cost to repair or replace faulty roofing: $2,500 to $20,000.

• High utility bills. If the heating or cooling bills are whoppers, the insulation and drafty windows could be upgraded or replaced. Cost for new windows: $2,000 to $15,000 installed. Insulation costs: $750 for the attic.

• Aging infrastructure. The furnace may be a relic and air conditioners may be aging or inadequate. Inefficient HVAC systems will probably need a total makeover. Cost to repair and replace major components: $5,000 and up.

• Sagging or cracked floors or ceilings. May be evidence of past water damage or damaged support beams. Cost to replace: $1,500 to $7,500.

Source: The Washington Post, David Bradley (03/18/06)

© Copyright 2006 INFORMATION, INC. Bethesda, MD (301) 215-4688

The three major consumer credit reporting agencies announced Tuesday that
they have created a new credit score aimed at simplifying the loan process
for both lenders and borrowers. The announcement by Equifax, Experian and
TransUnion said the new "VantageScore" was a direct result of market demand
for a more consistent and objective approach to credit scoring. The agencies
in the past each provided their own scores, meaning that a lender dealing
with a consumer's application for a credit card or a mortgage might have to
reconcile three different scores. The scores are important because they
measure how much debt a consumer is carrying and how well the consumer keeps up with bills.

The higher the score, the more creditworthy the consumer is considered and
the lower the interest rate the consumer is likely to be charged. The three
credit agencies termed the move to a unified score as "unprecedented. In its
joint announcement, the agencies said: Under the new scoring system, credit
score variance between credit reporting companies will be attributed to data
differences within each of the three consumer credit files and not to the
structure of the scoring model or data interpretation. The scores will range
from 501 to 990. The top end is slightly higher than scores currently in
use.

The credit reporting agencies are operated by Equifax Inc. of Atlanta,
Experian Information Solutions Inc. of Costa Mesa, Calif., and TransUnion
LLC of Chicago.

On the Net:

http://www.equifax.com

http://www.experian.com

http://www.transunion.com

Young buyers like a pretty house, so when a house won’t sell, Mark Nash, author of 1001 Tips for Buying and Selling a Home, urges home sellers to make these simple cosmetic updates.

Expose hardwood floors and buff them until they shine. Nash, who sells homes in the Chicago area, says an increasing number of younger buyers dislike homes with wall-to-wall carpeting. ''It's amazing how often I hear from young clients who won't even look at a place unless it has hardwood floors,'' he says.

Remove antiquated furnishings. Many young buyers have eclectic tastes. Get rid of matched sets of look-alike furniture from the ’70s and ’80s then rearrange what’s left to make the house feel more contemporary.

Take down your old draperies and light fixtures, including old-style track lightings. Nash says outdated lighting and heavy, elaborate draperies (the kind with swags and valances) are a turn-off to young buyers.

Remove wallpaper. Young buyers are unwilling to purchase any home that needs wallpaper removal—it’s just too daunting.

Repaint your walls. Nash encourages home sellers to stick with neutrals or calm earth tones, like a light sage green. Using bold tones can be very tricky, he cautions. “I call these ‘commitment colors.’ Chances are good that your buyers won't like them as much as you do,'' he says.

Source: The Miami Herald, Ellen James Martin (01/22/06)

NORTH PALM BEACH, Fla. -- Jan. 24, 2006 -- The major new laws of 2005 were prompted by Mother Nature.

The violent hurricane season wreaked havoc on millions of coastal residents, motivating lawmakers to enact measures to help out the storm victims. In the process, they also added some storm-related breaks for the rest of the country's taxpayers.

The Internal Revenue Service also issued a couple of rulings that many taxpayers will welcome, such as increased mileage deduction rates and an easier way to put off the inevitable task of filing.

But other changes, most notably the new tax definition of a child, will cause some filers extra effort and potentially costly headaches.

There's also one welcome change that's due simply to the calendar. This year, April 15 falls on a Saturday, pushing the filing deadline to the next business day, Monday, April 17.

Now that you have all that spare time, let's put it to use by looking at 10 tax changes that could make a difference on your 2005 return and to your 2006 tax planning.

Tax help for hurricane victims

There are myriad hurricane-related new tax provisions to help the millions of 2005 storm victims. The changes include ways for people to cover their immediate living expenses, pay longer-term recovery costs and take advantage of other benefits on their tax returns.

The measures apply to specially designated areas: the Gulf Opportunity, or GO, Zone, the Rita GO Zone, the Wilma GO Zone and separate disaster areas for these three hurricanes, affecting residents in Alabama, Florida, Louisiana, Mississippi and Texas.

The various new laws and geographic eligibility standards mean that storm victims will have to do extra work to make sure they find and utilize tax benefits specific to their situations. The Internal Revenue Service has a Web page with details, but here are some of the major provisions and how they could help.

1. Easier access to retirement money

People who need to tap their retirement accounts to cover post-hurricane expenses can take out the money without paying the normal early distribution penalty. This option is available to victims of hurricanes Rita, Wilma and Katrina, says Mark Luscombe, a principal analyst with the tax-research, publishing and software firm CCH Inc., of Riverwoods, Ill.

Eligible taxpayers can withdraw up to $100,000 total from all of their retirement plans, annuities or IRAs. Accountholders still will have to pay taxes due on any distributions of tax-deferred money and earnings, but the 10-percent charge usually assessed when someone younger than 591?2 takes out retirement money is waived.

As for those taxes, Luscombe says the law offers taxpayers the option to recover them by repaying the early distributions into a qualified plan within three years. In this case, you would file an amended return when you repay the retirement money and get back the taxes you paid.

If you can't repay the money, you can spread any tax due over a three-year period instead of having to come up with all of it this year.

The effective date for such penalty-free distributions differs, depending on which hurricane necessitated the withdrawal of the funds, so check with the IRS or your personal tax adviser to make sure you qualify. But in all cases, hurricane victims have until the end of 2006 to take advantage of this distribution provision.

2. Larger casualty loss deduction

Many hurricane victims will rely on existing tax provisions that will allow them to deduct their losses. This tax break helps, but it also generally limits the deduction to the loss amount that is more than 10 percent of the taxpayer's adjusted gross income plus $100. Tax-law changes now eliminate those limits for taxpayers whose losses are attributable to hurricanes Katrina, Rita or Wilma. For them, the entire amount of unreimbursed personal property losses is fully deductible.

3. Education breaks for storm-affected students

Persons who attend college in the federally designated Gulf Opportunity Zone, which encompasses parts of Alabama, Louisiana and Mississippi, can now get double the standard Hope or Lifetime Learning credit amounts. This could provide up to $3,000 for the Hope Credit. The Lifetime benefit is expanded from 20 percent to 40 percent of eligible costs up to $10,000, meaning this credit could reach a maximum $4,000.

Even better, says Luscombe, this added credit amount is not restricted to specific storm dates. The increase applies to all qualified costs in 2005 and 2006.

"So someone at Tulane who hasn't been able to go back to school can use the larger credit to pay the tuition applied to the first part of the [2005 school] year," says Luscombe. "This is aimed at encouraging persons to go back to those [storm-affected] schools, so it applies through 2006 to give them incentive to go back."

In addition to providing tax considerations for individuals directly affected by the storms, several new laws also offer tax breaks for persons who came to the aid of hurricane victims.

4. Additional personal exemption

Most Hurricane Katrina evacuees initially went to public shelters, but many soon found themselves welcomed into private homes nationwide. If you made a place in your residence for someone who lost their home in the storm or subsequent flooding, you might be eligible for additional personal exemptions.

"Individuals who put up a displaced person at their residence for at least 60 consecutive days can get an added exemption of $500 per person," says Luscombe. You can claim exemptions for up to four persons, giving you a potential maximum benefit of $2,000.

Luscombe says the hurricane guest doesn't have to be a stranger.

"This can also apply to putting up a relative, as long as it's someone who's not a dependent of the taxpayer," he says. That means you couldn't claim it for your child who was living in New Orleans, while attending school there, and who returned home in the wake of Katrina. But a sister or brother, or aunt or other relative could count toward the exemption, says Luscombe.

This exemption is also available in 2006. However, you cannot claim more than $2,000 total for both years. So if you claim four displaced individuals on your 2005 return and they continue to live with you for several months this year, you cannot take the exemptions again on your 2006 return.

If you are confident you will meet the added exemption requirements in 2006 and they would be more worthwhile on that tax return instead of your 2005 one, you might consider waiting until next year to claim this benefit.

5. Enhanced donation and driving breaks

In response to the outpouring of hurricane-related charitable gifts, several tax-law changes in this area were enacted last year.

In most cases, you can't contribute more than 50 percent of your adjusted gross income in a tax year, meaning if your AGI is $30,000 you can only deduct gifts up to $15,000 on a return. You can carry forward any excess into future tax years.

This doesn't affect most of us, but wealthier donors sometimes run into this donation-deduction limit. These filers also find that their total deductions, charitable and all other categories, are reduced because of their higher incomes.

Katrina tax legislation removes both of these charitable-giving restrictions on gifts made between Aug. 28 and Dec. 31. The best part for donors able to give substantial amounts is that the limits aren't restricted to Katrina-connected donations. They are removed for any gift, regardless of the receiving organization's designated cause. So if you made substantial donations in the latter part of 2005, make sure you take the full deduction.

Another new law substantially increases the charitable mileage deduction, normally 14 cents a mile. If you used your vehicle in connection with Katrina relief services last year, you can deduct qualified miles driven between Aug. 25 and Aug. 31 at 29 cents a mile, and at 34 cents per mile for Katrina-related miles on Sept. 1 through Dec. 31. The higher-than-normal rate continues into 2006 at 32 cents per mile.

In both years, the increased deduction rates apply only to miles driven in connection with Hurricane Katrina relief services. Any other transportation for other charities must be calculated at only 14 cents per mile.

In addition to the charitable mileage changes, there are a couple of other auto-related tax laws that might be of note on your 2005 and 2006 returns.

6. Accounting for car contributions

Suspecting that automobile donors inflated the price of their gifts to charity, and thus overstated the associated tax deductions, Congress last year mandated tougher vehicle-donation rules.

Now when you give an auto (or boat or other motorized vehicle) to a charity, you can no longer automatically claim its fair market value as your deduction if that amount is more than $500. Instead, your deduction is limited to the actual amount the charity received when it sold the auto.

There are some exceptions that would allow you to claim the fair market amount. If, for instance, the charity uses the car, say, to deliver meals to homebound individuals, or sells it at a bargain price to a needy person, you then can claim the fair market value.

The key is to find out from the charity exactly what is planned for your donation. You'll also have to get written acknowledgement of your gift, with the price noted, and attach it to your tax return. In the past, you simply had to hold onto such receipts in case the IRS later questioned the gift.

7. Environmentally friendly auto tax breaks

The tax deduction for buying a clean-fuel car was supposed to drop to $500 last year. The law was changed, however, maintaining the deduction at the $2,000 level for 2005 returns. If you bought one of these vehicles, be sure to claim your deduction for it on the long Form 1040.

The news for environmentally conscious drivers gets even better for 2006.

Purchase a clean-fuel vehicle this year and you'll get a more-valuable tax credit, ranging from $250 to $3,400. The exact amount will be based on a complicated formula involving the vehicle's fuel economy and its total expected lifetime fuel savings. The IRS is working with auto manufacturers to certify specific autos, such as the popular hybrids, and calculate precise credit amounts.

One drawback of the credit is that its full value applies only to the first 60,000 eligible vehicles each automaker produces. That means credits for especially popular hybrid cars or trucks could be quickly gone. If you don't get one of the initial models, you'll receive a reduced credit.

8. Uniform definition of a child

There are several tax breaks that pertain to children. Taxpayers often found the different requirements to claim each break was confusing. So the IRS developed a uniform definition of a child for tax purposes.

In essence, says Luscombe, where the IRS found a broader definition of a child in any tax break, it applied it to all of the child-related benefits.

"While the standardization was generally supposed to be helpful, and it is more generous than it had been, they also changed some of the tests, and that could pose problems for some filers," says Luscombe.

The biggest hurdle is that what had been primarily a support test now is primarily a relationship test. This has led to some people who previously were able to claim child-related tax breaks losing those benefits.

"Take an unmarried couple that has a household that includes a child that is the biological child of only one of the adults," says Luscombe. "In addition, one of the adults is the sole wage earner for the household.

"Under the previous support test, the wage earner could claim head of household status. But now, using the relationship test, the exemption would apply to the biological parent in the house, who in this case has no earnings.

"And the other adult, who does have income, now loses the $3,200 exemption."

If you have a similar living arrangement and share custody with another parent or live with several adults who contribute to a child's upbringing, read the new definition carefully to make sure you and other taxpayers involved in the child's care take full and appropriate advantage of the new definition.

9. Increased IRA contribution amounts

Thanks to a tax-law change enacted years ago, contribution limits on retirement accounts have been steadily increasing. For 2005, you can put up to $4,000 into an IRA. Persons age 50 and older can contribute an added $500.

The $4,000 limit remains in 2006, but older filers this year can contribute an added $1,000.

10. Changes in the filing process

Finally, changes in ways to file your 1040 will make some computer-competent taxpayers happy, upset those who preferred a phone to a PC and delight the millions of procrastinators who don't want to think about taxes until they absolutely have to.

The IRS again is offering some taxpayers the opportunity to prepare and e-file their returns at no charge through the Free File Alliance. Nineteen software companies have made their services available at the IRS Web site, and taxpayers who make $50,000 or less should be able to find at least one company that will let them file for free.

The IRS has, however, done away with its TeleFile program that allowed taxpayers with less-complicated returns to file over the phone. These filers will now have to go back to pen and paper or try the Free File program, for which they are automatically eligible.

If you just can't get your taxes done, whether online or on paper, for free or by paying a professional, it's easier this year to delay the task. Now, instead of filing a request in April for a four-month extension and then another in August seeking two more months, the IRS says you just have to ask once.

Form 4868, used previously to make the first extension request, now will give you an automatic six-month delay. File it and you don't have to worry about your 1040 until Oct. 16.

One thing hasn't changed, though. Form 4868 will only get you more time to file your tax form. If you owe Uncle Sam money, you still have to come up with that amount or a close approximation of it by April 17 or face possible penalties and interest.

In addition to the changes wrought by these 10 laws, many pre-existing laws have had new dollar amounts added. See "Old tax laws remain, but effective amounts change."

© 2006 Bankrate.com

TALLAHASSEE, Fla. -- Jan. 24, 2006 -- Florida homebuyers who originated a home loan through Ameriquest will share in the $325 million court settlement announced yesterday, with about $19 million going to homeowners in the state. Florida has the second largest pool of Ameriquest consumers eligible for compensation.

The Office of Financial Regulation and the Attorney General's Office negotiated Florida's share of the settlement for Ameriquest's approximately 62,000 borrowers in Florida. Consumers do not need to take any action at this point to pursue recoveries -- they will be contacted later after specific recovery terms and plans are determined.

The California-based company has agreed to refund $295 million to consumers and make sweeping reforms of practices that the states alleged amounted to predatory lending. Ameriquest also will pay a total of $30 million to the states for costs of the investigation and consumer education and enforcement.

Ameriquest is the nation's largest lender specializing in sub- prime loans, which are loans to individuals with marginal credit histories. The settlement resolves allegations of predatory practices by the company, including claims of inflated appraisals, unjustified fees and penalties, and high-pressure and deceptive tactics against prospective borrowers. Today's agreement culminates two years of investigation by the Attorneys General, state banking regulators and local prosecutors, followed by a year of settlement negotiations.

"This landmark agreement sets high standards that we expect other mortgage lenders to follow," says Florida Attorney General Charlie Crist. "Floridians and other consumers should be protected from predatory business practices."

Under the agreement, Ameriquest must exceed current requirements in the law to protect prospective borrowers. The new requirements include provisions for full disclosure of loan terms, including specific language to be included in loan documents. Potential borrowers must be told what kind of loan they will be getting and whether the loan includes a prepayment penalty. Appraisals cannot be inflated, and there will be restrictions on refinancing offers and prepayment penalties. No refinancings may be made that do not benefit the borrower. Independent third parties will now handle closings, at which borrowers are asked to review and sign final loan documents. The courts must approve the settlement before it becomes final.

The settlement is between the states and ACC Capital Holding Corporation, along with its subsidiaries Ameriquest Mortgage Company, Town & Country Credit Corporation and AMC Mortgage Services, Inc., formerly known as Bedford Home Loans.

©2006 FLORIDA ASSOCIATION OF REALTORS®

(January 25, 2006) -- Existing-home sales declined in December but easily set an annual record, according to the NATIONAL ASSOCIATION OF REALTORS®.

There were 7.07 million existing-home sales in all of 2005, up 4.2 percent from 6.78 million in 2004. This is the fifth consecutive annual record; NAR began tracking the sales series in 1968.

However, total existing-home sales for December — including single-family, townhomes, condominiums and co-ops — were down 5.7 percent to a seasonally adjusted annual rate of 6.60 million units from an upwardly revised pace of 7.00 million in November. Sales were 3.1 percent lower than a 6.81 million-unit level in December 2004.

David Lereah, NAR’s chief economist, expected the monthly sales decline. “This is part of the market adjustment we’ve been discussing, with a soft landing in sight for the housing sector,” he says. “The level of home sales activity is now at a sustainable level, and is likely to pick up a bit in the months ahead. Overall fundamentals remain solid, driven by population and employment growth as well as favorable affordability conditions in most of the country, so we expect the housing market to remain historically high but lower than last year’s record.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.27 percent in December, down from 6.33 percent in November; the rate was 5.75 percent in December 2004. Last week, Freddie Mac reported the 30-year fixed rate was down to 6.10 percent.

“Mortgage interest rates have been trending down from a peak in November, and are lower than expected – if lower interest rates are sustained, the housing market could see some unexpected lift,” Lereah said.

The national median existing-home price for all housing types was $211,000 in December, up 10.5 percent from December 2004 when the median was $191,000. The median is a typical market price where half of the homes sold for more and half sold for less.

For all of 2005, the median price was $208,700, up 12.7 percent from a median of $185,200 in 2004.

NAR President Thomas M. Stevens from Vienna, Va., says it may take a while for home price growth to cool. “We’re coming off of five years of tight supply, and many sellers are accustomed to expecting very strong price gains and exceptional returns on their investment,” said Stevens, senior vice president of NRT Inc. “With the supply of homes improving and buyers having more choices, the rate of price growth should come down to more normal levels this year.”

Total housing inventory levels declined 4.4 percent at the end of December to 2.80 million existing homes available for sale, which represents a 5.1-month supply at the current sales pace.

Condo Sales Activity Picks Up

Existing condominium and cooperative housing sales increased in December by 1.6 percent to a seasonally adjusted annual rate of 877,000 units from a level of 863,000 in November. Last month’s sales activity was 4.5 percent higher than the 839,000-unit pace in December 2004. For all of 2005, condo sales jumped 9.3 percent to 896,000 units, the 10th consecutive annual record.

The median existing condo price was $228,100 in December, which was 10.2 percent above a year ago. In 2005, the median condo price was $218,200, up 12.7 percent from 2004.

Single-Family Sales Slip, Prices Rise

Single-family home sales declined 6.8 percent to a seasonally adjusted annual rate of 5.72 million in December from 6.14 million in November, and were 4.2 percent lower than the 5.97 million-unit pace in December 2004. In 2005, single-family sales rose 3.6 percent to 6.18 million, the fifth straight yearly record.

The median existing single-family home price was $209,300 in December, which was 10.8 percent above a year ago. For 2005, the median single-family price was $207,300, up 12.6 percent from 2004.

Sales Pace Differs by Region

Regionally, total existing-home sales in the Northeast held even at an annual sales rate of 1.09 million units in December, and were 3.5 percent lower than December 2004. The median price in the Northeast was $245,000, up 11.4 percent from a year ago.

In the Midwest, existing-home sales eased by 2.6 percent to an annual pace of 1.52 million in December, and were 1.9 percent below a year ago. The median price in the Midwest was $173,000, which was 10.9 percent higher than December 2004.

Existing-home sales in the South declined 7.2 percent in December to a level of 2.58 million, but were 1.2 percent higher than December 2004. The median price in the South was $182,000, up 4.6 percent from a year earlier.

In the West, existing-home sales fell 11.4 percent to a pace of 1.40 million in December, and were 11.4 percent below a year ago. The median existing-home price in the West was $318,000, up 14.0 percent from December 2004.

—NAR

Editor's Note: For more housing market statistics and research reports,visit NAR's Research Department at REALTOR.org.

Reprinted from Realtor.org.

Adding to his real estate holdings in Orlando, California, Sweden, Wyoming; Tiger Woods has recently paid $38 million for a 10 acre residential lot on Jupiter Island that stretches from the intracoastal to the ocean.

This record setting purchase features a 13,000 squarefoot home, two docks and of course a few guests houses. It was purchased by three different companies who are all registered at the same Orlando address which is owned by ETW Corporation and who's owner's consist of Tiger and his father.

Tiger is just the most recent celebrity to call Jupiter Island Home. Also with residences on the Island are Alan Jackson, Nick Price, Greg Norman, & Celine Dion.

The new Energy Tax Incentives Act of 2005 took effect on January 1st and offer dollar for dollar federal tax reductions for improving energy efficiency for homes and have no maximum income restrictions.

For the calendar years of 2006 and 2007, homeowners can recieve a credit of up to 30% of the cost for installation of sloar powered water heating equipment and solar powered electricty producers. Also available for credit is up to $500 of the installation cost for fuel cells.

For more information, visit http://www.energy.gov/taxbreaks.htm.

The Causeway in Jensen beach which cost $76.7 million dollars has been completed by Archer Western. The Fort Lauderdale contractor finished the causeway recently by installing a fiberglass railing on the fishing pier under the new 65 foot high span. Even though it has been completed there are still hurricane related repairs to make which could take a couple months longer. The pier will remain closed until hurricane repairs have been completed due to safety concerns.

The Palm Beach Hilton was recently sold to Ceebraid-Signal Corp. According to reports the deal cost the company $42 million. This factors out to be about $313,000 per room in the 134-room complex. The plan is to turn the hotel into a condo-hotel which lets owners rent out their rooms on a nightly basis when not in use.

Current plans have the company operating the Ocean Club Beach Resort, the new name now that the franchise deal has ended, through the upcoming "season". In the spring work will begin on renovations for the 15 year old building and will decrease the rooms from 134 to 119. Prices have not yet been established for the units, but current plans have them ranging in size from 350 to 750 square feet.

A key rule for homebuyers: Don't do anything that would hurt your credit score.
But a lot of savvy Internet users hurt their credit scores inadvertently because the act of applying for a mortgage can, by itself, lower a borrower's credit score, and applying is easy to do online.

A loan inquiry raises a red flag to lenders, suggesting a possible financial problem, and multiple loan inquiries automatically lower a credit score if done over a period of time. To offset problems for mortgage shoppers, most credit scores ignore multiple mortgage applications submitted within the 30 days prior to a credit check because they assume people will shop around for the best rate. Beyond 30 days, credit scores will consider mortgage inquiries as separate events within each 14-day period. Anyone who shops for a loan for three months could find themselves getting offers and interest rates that are progressively less attractive. Best advice for your buyers: Use the Internet for research but only apply for a mortgage when you're ready to make a commitment, apply to a handful of companies, and make a decision within 30 days.

Federal officials announced an expedited housing assistance program recently for evacuees that affects apartment owners nationwide, and Pres. Bush signed two bills into law regarding flood insurance, including one that benefits workforce families.

Rental assistance: According to Federal Emergency Management Agency (FEMA) officials, eligible evacuees will be able to get rental assistance either from the U.S. Department of Housing and Urban Development (HUD) or FEMA for up to the next 18 months. In brief, families who previously lived in public housing or received Section 8 vouchers will not be eligible for FEMA housing assistance but will receive HUD vouchers worth 100 percent of the fair market rent in the community where they relocate. Families eligible for FEMA assistance will get a lump sum check for $2,358 beginning next week to pay for three months of rental assistance. Additional details on each initiative follow.

FEMA aid: Households who have registered with FEMA and are eligible for assistance and whose house was destroyed or made uninhabitable will receive a lump sum check (or direct deposit) for $2,358 to cover three months of rent. The amount is based on the average $786 fair market rent for Louisiana and Mississippi. Specific program rules and guidelines apply. If participants remain eligible, housing assistance will be available for up to 18 months. After the first three months, the rental subsidy will be adjusted to the fair market rent of the locality where they have relocated. To date, 747,000 households have applied for FEMA assistance. FEMA representatives say they understand that the average fair market rent will be less than is needed to cover rental costs in some areas where families have relocated. However, they say this was "the only equitable way to deliver payments right away," and they stress that the rental amounts will be adjusted after the first three months. FEMA also explains that this is not new assistance. They are simply expediting assistance already available under FEMA's Individual and Households Program (IHP). Specifically, they're eliminating the red tape that families normally have to maneuver through in order to get these payments. Families who have already applied for FEMA assistance will automatically receive checks beginning next week. Those who have not must register with FEMA at (800) 621-FEMA or online at www.fema.gov.

The payments will count toward the $26,200 maximum possible aid for personal property and housing assistance. FEMA reports it will continue to provide trailers and mobile homes for those households who prefer those. Households who select trailers will not get this three-month payment. (One exception is first responders who have been assigned to the disaster area. Many will be offered trailers, but their families who are located elsewhere will get the rental assistance.) If people choose to leave rental housing for trailers, they will no longer receive financial assistance.

Public and federally assisted housing: Evacuees who were homeless, lived in public housing, or held Section 8 vouchers and are not eligible for FEMA individual assistance will receive vouchers worth 100 percent of the fair market rent in the community where the evacuee has relocated. These vouchers can be used at any public or private housing community. Households should contact the local housing authority to participate. HUD has established a single toll-free housing hotline for these families at 888-297-8685. This number operates from 7 a.m. to 8 p.m. CT, seven days a week. Evacuees will be given priority for vouchers, HUD says. People coming to a new place will be given top priority over those already on the local waiting list for housing assistance.

Flood assistance bills signed into law: H.R. 804, introduced by Rep. Baker (R-La.), amends the National Flood Insurance Act to declare that flood assistance won't be considered a source of income when determining eligibility, or benefit levels, for federal income assistance programs such as Social Security, Medicaid or food stamps. The second bill, H.R. 3669, sponsored by Rep. Ney (R-Ohio), Rep. Waters (D-Calif.), Rep. Baker (R-La.) and Rep. Brown-Waite (R-Fla.), temporarily increases the National Flood Insurance Program's (NFIP) borrowing authority to pay claims.

Hurricane-related tax savings: In other legislative action, federal lawmakers in both houses have sent to President Bush a series of tax provisions intended to provide relief to individuals and small businesses displaced and harmed by Hurricane Katrina. Almost all the provisions are temporary and nearly all apply only within the hurricane disaster zone.

The bill eliminates tax on any amounts of debt that are forgiven through Dec. 31, 2006. Individuals are permitted penalty-free withdrawals from IRA and similar retirement accounts and, unlike current law, have a mechanism to restore the withdrawn funds to their accounts. Individuals who provide rent-free housing within their own principal residence for displaced persons for 60 days or more will be permitted to reduce their taxable income by $500 per person, up to a total of $2000. Casualty loss deduction limitations are set aside, and those who qualify to treat their losses as involuntary conversions will have five years, rather than two, to re-invest in new property, so long as the new property is located within the disaster zone.

Source: NAR, National Apartment Association and National Multi Housing Council

Withholding Required on Certain U.S. Real Property Transactions Involving Foreign Persons, IRS Warns. The IRS recently reminded all real estate and tax professionals of the withholding tax and the filing obligations with respect to two transactions in which a foreign person disposes of a U.S. real property interest. The transactions involve the disposition by a foreign person of an option or contract to acquire a U.S. real property interest, and the disposition by a foreign corporation of a U.S. real property interest by way of a transfer to a shareholder.

Disposition of an Option or Contract to Acquire a United States Real Property Interest

Under U.S. tax law, a foreign person that sells or exchanges a U.S. real property interest must report the gain on a U.S. tax return and the buyer of the U.S. real property interest must withhold and pay to the IRS 10 percent of the gross amount paid to the foreign person. A U.S. real property interest includes options or contracts to acquire land or land improvements and leaseholds of land or land improvements. The disposition of such an option or contract by a foreign seller is reportable on the foreign seller’s U.S. tax return and is subject to a 10 percent withholding tax payable by the buyer to the IRS. Under U.S. tax law, the buyer must determine if the seller is a foreign person. If the seller is a foreign person and the buyer fails to withhold, the buyer can be held liable for the withholding tax. The IRS has become aware of instances in which foreign persons have acquired options or entered into contracts to purchase U.S. real property interests and sold the options or assigned the contracts before such instruments are exercised or executed and title to the underlying property is taken. Buyers of the options or contracts are failing to withhold and remit to the IRS the required 10 percent from the proceeds of the sale.

Transfer to a Shareholder

The IRS is also aware of potentially abusive transactions where a foreign corporation arranges a sale of its U.S. real property interest to a buyer and then transfers its U.S. real property interest to its foreign individual shareholder. The corporation often uses a quitclaim deed for the transfer, which conveys to the shareholder only the corporation’s interest in the property and does not warrant good title, but other deed transfers may present similar issues. The foreign shareholder then sells the U.S. real property interest to the buyer. The foreign shareholder takes the position that, because he or she, rather than the corporation, is selling the property, some or all of the gain inherent in the foreign corporation’s U.S. real property interest is subject to a maximum capital gains rate of 15 percent. That is, the foreign shareholder claims that the transfer of the U.S. real property interest by the foreign corporation to the shareholder does not result in a corporate level tax. If the foreign corporation had directly sold the U.S. real property interest, it could be subject to tax at a rate as high as 35 percent. The shareholder’s position is incorrect. Generally, the foreign corporation (and not the foreign individual shareholder) is taxed on all of the gain inherent in the U.S. real property interest. The transaction is treated as a taxable sale of the U.S. real property interest by the corporation, either because the corporation is making a distribution to the foreign shareholder of the U.S. real property interest (which would constitute a deemed sale of such interest at the corporate level) or because the corporation is viewed as selling the entire U.S. real property interest directly to the buyer. In cases where the foreign corporation is treated as making a distribution of the U.S. real property interest, the foreign corporation is also subject to a withholding tax of 35 percent on the gain in the property, unless it qualifies for reduced withholding (see Publication 515).

Environmentally safe homes could be the key to curbing rising energy and home building costs. SIP Community Homes is building a 3-bedroom, 1,500 square foot home in Lake Worth that is soundproof, mold resistant, energy efficient and that can withstand hurricane force winds. SIP, or Structural Insulated Panel is one of the alternative building processes that uses compressed plastic foam between slabs of wood or concrete that is both affordable and environmentally friendly. Since the walls are solid with foam sealing up any holes, the interior temperature of the home is more easily regulated and stays constant with little effort by the heating or cooling mechanism. This in turn can create a very noticeable cost differential that most home owners would find appealing. The current home being built y the company is being offered for $229,000 and they have plans to build more in the near future.

According to J.D. Power & Associates’ 2005 New Home Builder Customer Satisfaction Study, DiVosta ranks number 1 in customer Satisfaction. This marks the third straight year for the Palm Beach Gardens Based builder to win this award. DiVosta, now owned by Michigan based Pulte Homes, scored the highest in all ten survey areas. Some of these included warranty, customer service, home readiness, sales staff, and home quality.

For the latest DiVosta development information, send us an E-mail to info@askmrpalmbeach.com and let us know what you are interested in learning more about.

Newest mortgage rule opens new door for immigrants. Traditionally homebuyers have needed a Social Security number to obtain a mortgage, making home loans out of reach for many immigrants living and working in the U.S. on temporary visas since they don't have Social Security numbers. However, some lenders now allow legal and illegal immigrants to secure mortgages using their taxpayer identification number, or ITIN, which is issued by the Internal Revenue Service instead of requiring Social Security numbers. The potential market for these loans is huge. For example, undocumented Latino immigrants alone could add an estimated $44 billion in new mortgages to the housing economy if allowed to buy homes, according to a study released last October by the National Association of Hispanic Real Estate Professionals (NAHREP). However, there has been some hesitancy by potential homebuyers to take advantage of the ITIN loans, particularly among undocumented aliens who fear deportation. Larger banks also have been slow to offer ITIN loans. Only about 2,000 have originated nationally, according to Gary Acosta, co-founder of the National Association of Real Estate Professionals (NAREP). Many of those loans come from smaller regional banks or through state-funded programs.

Planning a trip to Palm Beach County, Florida during a specific month? Looking to plan your trip around a special event or holiday vacation? Sporting events range from boat shows to fishing, catch a golf tournament or a classic car show; PalmBeachFL.com offers an array of cultural performances, shows and art exhibitions. Enjoy wild-life and nature tours, dog racing or drag-car racing. Art and antique shows are showcased every season, as well as greenmarkets and culinary and wine festivals. Winter equestrian events are exciting, and the Kravis Center for the Performing Arts Center features world renowned performances, shows and opera.

Be sure to sign up for thier e-newsletters to have the latest listing of the top events in the area sent directly to you. You don’t want to miss the fun! Visit them at PalmBeachFL.com

Homebuyers and investors continue to flock to Florida, despite the threat of hurricanes.

They typically are drawn to the region by reasonable property prices, scenic views and the climate. Hurricane Charley hit Punta Gorda in August 2004 and razed 12,000 residences. However, single-family existing home sales there rose 6 percent last November from the same month in 2003, according to FAR records. During the year-over-year period ended December 2004, sales surged 26 percent.

Real Estate Industry Gives Nearly $8M for Hurricane Relief. REALTORS® and their industry collectively have donated almost $8 million toward relief efforts for Hurricane Katrina victims in the less than three weeks since the natural disaster struck the Gulf Coast, in addition to the industry's donations of goods and services and countless hours of aiding in temporary housing efforts. Of the $8 million, $3.6 million is from direct contributions to the REALTORS® Relief Foundation, administered by the NATIONAL ASSOCIATION OF REALTORS®. State and local REALTOR® associations and MLSs have contributed an estimated $1.7 million, some to RRF; some directly to the three state REALTOR® associations in Alabama, Louisiana, and Mississippi; and some to other aid groups, such as the American Red Cross.

Millions more are coming from the large real estate companies, who've announced donations to a variety of relief organizations, including the American Red Cross and the United Way. The total monetary contributions from the REALTOR® family is expected to continue to climb in the coming weeks as individual REALTORS®, REALTOR® associations, and real estate companies continue their fund-raising drives and make additional donations. In addition to donating money, REALTORS® are providing assistance in a number of other ways. They have been especially instrumental in efforts to provide temporary housing to displaced victims of the hurricane. In addition to individual efforts to find vacant listings, warehouse space, and any other structures that can serve as temporary housing in the weeks following the hurricane, two Louisiana REALTORS® launched HurricaneHousing.net, which is now serving as the federal government's central clearinghouse for information about available housing for hurricane victims.

Real estate investors who quickly buy and resell properties, while declaring the transactions under section 1031 of the Internal Revenue Service Code, could find themselves being audited. In these "like-kind" exchanges, investors can defer capital-gains taxes when they sell a business or investment property by sinking the profits into a comparable property right away. However, they cannot use the proceeds to purchase a primary residence or vacation home. Moreover, the profits must be put into an escrow account, not taken as cash.

Naive investors also risk being taxed at a rate of 35 percent, as those looking to qualify for the capital-gains tax rate of 15 percent must hold onto their properties for at least one year. Experts urge amateurs to speak with a CPA or tax attorney to ensure that they understand the rules prior to making a real estate investment.

A recent study by First American Real Estate Solutions, meanwhile, shows why flipping has become so popular. Those who flipped properties in Las Vegas, Miami, and Orange County, Calif., within three to six months of purchase between 1999 and June 2005 achieved a rate of return that exceeded the market appreciation rate by 20 percent to 40 percent.

According to the National Association of Realtors, with inventory of homes available for sale across the country so tight anyway, rebuilding the Gulf Coast will place additional pressure on all home prices.

"New home prices will be immediately impacted because of increased construction costs," says NAR economist Lawrence Yun, "and that will filter down to existing home prices as well." That's because as new house prices rise, more homebuyers will consider existing homes, increasing the demand (and prices) for them.

Home sales have already spiked, as has rental demand, in regions surrounding the disaster zone in the Gulf Coast, according to NAR.

Michael Carliner, economist with the National Association of Home Builders, points to increased housing demand in Baton Rouge and Houston, which pre-Katrina, had a large inventory of vacant rental housing. Much of that has now been snapped up, he said.

In Baton Rouge, evacuees have bid up property values by up to 30 percent in just the last week or two. (See that story here.)

But it isn't just a Katrina effect. With home prices having gained so much in the past few years, skeptics have been waiting for what they consider to be an inevitable slowdown, and were quick to point to sluggish activity over the summer.

Those skeptics are still worried, but for the time being, there already are signs that the rally is picking up where it left off.

Florida remains strong
Katrina has had little effect on neighboring Florida markets, except for a trickle of hurricane evacuees in the panhandle area. Some businesses have also temporarily relocated to Tampa and other Florida towns, putting a little more pressure on markets.

Overall though, Sunshine State markets have continued strong and high prices are transforming landscapes. As single-family home costs have exceeded affordability for many Floridians, condo sales have boomed.

That has, in turn, affected the rental market -- investors are snapping up apartment buildings for condo conversion and sending their prices climbing.

We build to rebuild. In the second quarter of 2005, remodeling activity continued to grow, though at a slightly slower rate of expansion compared to the first quarter of the year, according to the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI).

Second-quarter results were slightly below the seasonally adjusted first quarter of 2005 but remained positive.

"The high rates of home sales and home price appreciation are helping fuel strong remodeling activity," says Remodelors Council Chairman Don Novak. "Though we saw little change overall, the RMI still shows above average activity for the past quarter and this will continue into the third quarter."

The RMI is derived from a quarterly national survey of more than 500 remodelers and is seasonally adjusted. The current market conditions index dropped one half a point from 52.9 to 52.4. The future expectations index also moved down from 53.6 to 52.8. Both indexes continue to show above normal activity.

Regionally, strong readings in the Northeast, South and West were partially offset by a sub-par reading for the Midwest. Current market conditions in the Northeast improved from 53.8 to 59.1 and the West gained nearly five points from 53.6 to 58.5. Conditions dropped in the Midwest from 48.9 to 44.7 and in the South from 58.4 to 55.7.

"In markets where there is strong real estate appreciation, remodeling continues to see near-record growth," says NAHB Chief Economist Dave Seiders.

Owner-occupied units saw a slight increase in current market activity moving from 55.8 to 63.3. Renter-occupied units had a nearly two-point decrease from 47.7 to 45.8.

In the futures expectation index, the reverse trend was true. Owner-occupied units index dropped from 56.7 to 55.8 and renter-occupied units index increase from 41.0 to 43.0.

© 2005 FLORIDA ASSOCIATION OF REALTORS®

The majority of metropolitan areas experienced historically strong annual increases in median existing-home prices in second quarter 2005, according to the latest survey by the National Association of Realtors® (NAR).

The association’s second-quarter metro area home price report, covering changes in 149 metropolitan statistical areas, shows 67 areas with double-digit annual increases in median existing single-family home prices and seven areas posting generally modest price declines; none of the areas seeing declines had previously recorded rapid gains. NAR has expanded the number of metros covered in the report, and revised the definitions of metros due to changes in those areas over time.

The national median existing single-family home price was $208,500 in the second quarter, up 13.6 percent from the second quarter of 2004 when the median price was $183,500. The median is a typical market price where half of the homes sold for more and half sold for less. In all, 94 metro areas saw increases above the U.S. historic average of 6.4 percent. Since 1968, prices generally have risen 1-to-2 percentage points faster than the overall rate of inflation; the historic average price increase appears high because there was a period of high inflation in the U.S. during the 1970s and early 1980s.

David Lereah, NAR’s chief economist, says the price gains are unprecedented. “When you look at appreciation of home prices relative to the overall rate of inflation, these are the strongest increases on record,” he says. “The continuing shortages of housing inventory are driving the price gains.”

NAR President Al Mansell notes that housing remains a good investment. “Given the fact that the second quarter was a record for home sales, it’s clear that many people find it is an excellent time to buy a home, even with stiff competition from other buyers,” he says. “Americans view housing as a solid long-term investment, and they’re taking advantage of favorable conditions to improve their current lifestyle as well as their long term financial interests.”


According to the report many Florida Metropolitan areas made the top of the list. Including Cape Coral-Fort Myers, Palm Bay-Melbourne-Titusville, Orlando, Sarasota-Bradenton-Venice, and Miami-Ft. Lauderdale-Miami Beach.

© FLORIDA ASSOCIATION OF REALTORS®

Sales of single-family existing homes in Florida rose 4 percent in second quarter 2005 compared to the same time last year, according to the Florida Association of Realtors® (FAR). Statewide, a total of 74,317 homes changed hands during the three-month period; in second quarter 2004, a total of 71,724 homes sold.

The statewide median sales price for the second quarter rose 29 percent to $233,600; a year ago, it was $180,700, according to FAR. In June, the national median price of an existing single-family home was $218,600, up 14.5 percent from a year ago. The median is a typical market price where half of the units sold for more and half sold for less.

Continued low mortgage rates encouraged would-be buyers to make decisions quickly and helped boost demand. While still tight, inventory levels of homes available for sale in many markets appear to be on the rise, reported Realtors across the state.

Interest rates for a 30-year, fixed-rate mortgage averaged 5.72 percent during the second quarter, a notable drop from the 6.13 percent average reported during the second quarter of 2004.

Among the state’s larger markets, the Miami metropolitan statistical area (MSA) had a total of 3,721 homes sold during second quarter 2005 compared to 3,702 homes during the same period a year ago for a 1 percent increase. The median sales price rose 29 percent to $351,000; a year ago, it was $271,900.

Jay Chernoff, chairman of the Realtor Association of Greater Miami and the Beaches and district sales manager with Keyes Company Realtors in Aventura notes that the strong business economy in the Miami area is a major influence on home sales. “Our location also draws buyers,” he says. “With Fort Lauderdale nearby, there are two seaports and two major airports very close together in this area, which makes it very attractive.”

Also reporting robust sales among the state’s larger markets during the second quarter compared to the same time last year were: Tampa-St. Petersburg-Clearwater, where 15,817 homes changed hands for a 24 percent gain; and Jacksonville, where 5,022 homes sold for a 6 percent increase. The median sales price also rose in those markets compared to a year ago: in Tampa-St. Petersburg-Clearwater, 27 percent to $195,300; and in Jacksonville, 14 percent to $187,300.

Tallahassee, one of the state’s smaller markets, reported a double-digit increase in existing home sales during the second quarter, with a total of 1,480 homes sold compared to 1,244 homes a year ago for a 19 percent gain. The median sales price of those homes rose 9 percent to $163,300; a year ago, it was $150,200.

Buyers want to take advantage of the still-low mortgage rates, says Mike Ferrie, president of the Tallahassee Board of Realtors and sales associate with Blue Chip Realty Inc. in Tallahassee. “The Tallahassee area has a lot to offer,” he says. “Our economy tends to be stable with a strong growth potential for jobs from our universities, community college, state government and hospitals.”

Other smaller markets showing strong resales activity during the second quarter of this year compared to a year ago include: Gainesville, where 1,297 homes sold for a 26 percent boost; and Ocala, where 1,743 homes changed hands for a 9 percent gain. The median sales price also rose in those markets: in Ocala, 21 percent to $135,600; and in Gainesville, 7 percent to $176,400.

© 2005 FLORIDA ASSOCIATION OF REALTORS

The cost for building or remodeling homes could go down following a ruling by a North American Free Trade Agreement (NAFTA) panel that overturns tariffs on imported Canadian lumber, but the federal government may refuse to follow the recommendation.

The National Association of Home Builders (NAHB) backs removal of the tariff that it says creates a "hidden tax" that has cost American homebuyers and consumers more than $4 billion.

If followed by the federal government, the ruling by the NAFTA Extraordinary Challenge Committee would end a drawn-out, three-year legal battle to overturn punitive tariffs on Canadian lumber shipments, says David Wilson, president of NAHB. However, a statement released by the office of the U.S. Trade Representative indicates that it will not comply with the NAFTA ruling.

The U.S. government imposed anti-dumping and countervailing duties totaling over 20 percent on softwood lumber in May 2002, charging that Canadian imports represented a "threat" to domestic lumber producers. Canada filed appeals to overturn the duties before NAFTA and World Trade Organization panels, which repeatedly ruled that the duties on lumber were inconsistent with international agreements and U.S. law.

Last August, a NAFTA panel cleared the way for the removal of the tariffs when it unanimously ruled that there was no evidence to support the contention that Canadian lumber shipments threaten the domestic industry. It found no threat of injury from Canadian imports, which is the legal justification required for the duties to be imposed. It also stipulated that the U.S. was required to refund the billions of dollars of duties that Canada had paid to date. A NAFTA ruling carries the weight of law in Canada, the U.S. and Mexico.

The domestic lumber lobby convinced the office of the U.S. Trade Representative to file an "extraordinary challenge" under NAFTA, a rarely used procedure, but the bi-national Extraordinary Challenge Committee unanimously rejected that this week.

Nearly 50 members of Congress have signed a letter to President George W. Bush, calling on the administration to implement the NAFTA Extraordinary Challenge Committee ruling and to adhere to the international agreements that the U.S. has signed. The letter states that the "current duties, which have been found illegal under both the WTO and NAFTA, deprive Americans of affordable housing, the first step in the American dream. The border taxes should be stopped at once, and past payments given back."

© 2005 FLORIDA ASSOCIATION OF REALTORS®

Back in the 1950s, the one-car garage was standard in the 41 percent of homes that had any garage at all. More than half a century later, almost two-thirds of all new homes have two-car garages and on a nationwide basis, 19 percent have three-car or more garages.

“The home building industry is definitely seeing a growing trend toward the three-car garage,” said Jerry Howard, executive vice president and CEO of the National Association of Home Builders.

“Especially in areas where houses do not traditionally have basements, the three-car garage is becoming a must-have in new homes,” said Howard. “But it’s not just limited to those areas. Three-car garages are becoming more common in markets across the country.”

Census Bureau statistics confirm the trend toward three-car garages in all four census areas, although the Midwest and the West are definitely in the lead. When the Census Bureau first started tracking three-car or more garages in 1992, they accounted for 20 percent of the new homes in the West. In 2004, 31 percent of new homes in the West had three-car or more garages. In the Midwest, 16 percent had three-car or more garages in 1992 and 32 percent had three-car or more garages last year.

The number in the South has grown steadily from 4 percent in 1992 to 9 percent in 2004. The Northeast increased from 4 percent to 10 percent over the same time period, and anecdotal reports from builders indicate that more consumers in these areas are demanding three-car garages every day, especially in upscale houses.

For most buyers, the appeal of the three-car garage is simple: more storage space. NAHB studies of consumer preferences consistently show that extra storage space is very high on most consumers’ wish lists.

And while there may not be three vehicles parked in the garage on any given day, it’s a sure bet that it will hold yard and garden equipment, seasonal recreational equipment, and much more – many of them items that would be difficult to retrieve from a basement or attic.

Additionally, builders are finding that consumers increasingly prefer 8-foot by 10-foot garage doors compared to the more standard 7-foot by 9-foot doors so that their larger garages can more readily accommodate SUVs and the other bigger vehicles that are growing in popularity.

As they’ve gotten larger, garages have also become more sophisticated, said Howard. “Consumers find elaborate and extensive built-in storage and shelving systems, work areas, utility sinks and many other amenities very appealing,” he added. “They are also tending to view the garage as more of an extension of the house, and some buyers are even heating and cooling the space for comfort and year-round use.”

Another very appealing feature about a three-car garage is that it allow builders to offer a second floor “bonus room” that can be used for a multitude of purposes. “These bonus rooms are a growing trend in upscale homes and provide a very flexible space that can be put to any number of uses,” Howard said. “From a playroom for the kids to a home office, exercise room, loft, extra bedroom, an in-law or nanny suite, quarters for a boomerang child, and even extra storage, the uses are almost endless.

“With extra space, extra amenities and plenty of flexible customization options, the three-car garage is definitely a trend that consumers are embracing,” he said.

Ironically, he added, today’s three-car garage with an upstairs bonus area actually rivals the size of a typical new home of the 1950s, when homes averaged about 1,000 square feet.

It is also ironic that at a time when new home lots are generally decreasing in size, the three-car garage requires a slightly larger lot. Placement of the three-car garage is also challenging for builders, and typically they are sited at the side of the home rather than the front so that the garage does not become the most prominent point in the streetscape.

Source: National Association of Home Builders (NAHB)

Florida is home to three of the 10 counties with the highest rate of growth in the number of housing units, according to U.S. Census Bureau estimates released recently.

The county that ranked first on this list was Flagler, Fla., where the number of housing units increased 13.9 percent. The two other counties in Florida that made the top 10 were St. Lucie, ranked seventh, and Sumter, eighth.

The United States had an estimated 122.7 million housing units as of July 1, 2004. That represented an increase of 1.7 million, or 1.4 percent, since July 1, 2003. The increase since Census Day (April 1, 2000), was 6.8 million, or 5.8 percent.

At the state level, Florida ranked fourth for the most rapid housing growth coming in at a 2.5 percent increase. Additionally, Florida topped the list of the states adding the highest number of housing units, gaining nearly 200,000 homes over the period.

In its latest quarterly state banking profiles (link), the FDIC finds that worries about a housing bubble are mostly unfounded. In the 55 "boom" markets identified by the FDIC, housing prices are being sustained by strong growth in new jobs. Interest rates and mortgage delinquency rates are also both at historic lows, both of which are good signs.

But the optimistic outlook also comes with some concerns (link) : interest rates won't stay low forever, and affordability is becoming a problem as the gap between wages and home prices widens.

Teaching modules will be launched on www.hud.gov and espanol.hud.gov. The U. S. Department of Housing and Urban Development (HUD) today introduced five, 20-minute computer-based modules designed to help potential homeowners understand the home buying process. The modules were unveiled at HUD's "Owning Your Future", a nationwide outreach effort to showcase the tools and resources families need to gain self-sufficiency and homeownership.

"The importance of homebuyer education cannot be underestimated," explained HUD Secretary Alphonso Jackson. "Often, the home buying experience can be extremely daunting. An understanding of the basics of the process is the key to easing those concerns and anxieties. This computer-based tool will go a long way to educate families about the process."

HUD's homeownership modules not only explain the basics of buying a home, but they also guide the user in understanding what is expected of a buyer and what they should expect from others in the home buying process. The modules, which allow a self-paced learning experience, are as follow: The ABCs of Homebuying, Elevate Your Credit, Easy to Understand Mortgage Programs, Where to Find the Homeownership Money You Need, and Ten Homeownership Facts That Will Save You Thousands.

"In 2002, President Bush challenged HUD to create 5.5 million new minority homeowners by the end of the decade. Just three years later, we are nearly halfway to our goal," Jackson said. "I believe the American Dream is within reach for every family who desires to become homeowners and these education modules will help provide the tools necessary to get them moving in the right direction."

HUD provided participants at today's "Owning Your Future" program with computer disks containing two of the modules. The disks are interactive and take the user to HUD's websites that include all five modules, which are available in both English and Spanish. The teaching modules have been launched on www.hud.gov and espanol.hud.gov.

Jackson said that his vision was to make homebuying information easily accessible so that every citizen who wanted an opportunity to own a home could do so armed with accurate information. "Because of these modules, homebuying just became easier," Jackson, added. HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

The National Association of Realtors® (NAR) has again raised its forecast for the housing sector, with both existing- and new-home sales to set an even bigger all-time record in 2005. Existing-home sales are expected to rise 2.8 percent to 6.97 million this year; last month, NAR was expecting 6.89 million sales -- the current record is 6.78 million from 2004. Meanwhile, new-home sales are seen increasing 3.2 percent to 1.24 million in 2005, also a record. Total housing starts -- single-family and multifamily -- are forecast to grow by 5.0 percent to 2.05 million units, the second highest on record; the peak was 2.36 million in 1972. This year is seen to be a record for single-family construction, with 1.68 million homes started.

David Lereah, NAR's chief economist, says that in each month of 2005 the forecast has looked stronger than in previous projections. "The housing expansion is continuing as more Americans take advantage of favorable conditions to achieve the dream of homeownership," Lereah says in a release. "Earlier this year, we expected 2005 home sales to be the second-highest on record, but monthly sales have been at or close to record levels. Although we should come off of sales peaks in the months ahead, mortgage interest rates have remained lower than expected, and job gains are providing additional stimulus, meaning unprecedented sales totals this year." Lereah expects the national median existing-home price for all housing types to rise 9.4 percent this year to $202,600, with the typical new-home price increasing 5.8 percent to $233,900.

NAR President Al Mansell says low interest rates keep housing affordable in most of the country. "We have to go back to the mid-1960s to see a period of comparably low mortgage interest rates," he notes. "A big difference now is a decline in mortgage origination costs, plus a mushrooming in the availability of low- and no-downpayment loans. These are particularly helpful to first-time buyers in high-cost markets, but buyers need to shop loans and be aware of long-term consequences, and they may need to stay in their home longer to build enough equity to trade up to a larger home in the future."

The 30-year fixed-rate mortgage should rise slowly to above 6 percent by year's end, NAR says, and reach only 6.5 percent by the end of 2006.

A few years ago, the Florida Legislature passed the Intrastate Moving Act, mandating that companies cannot use underhanded tricks to squeeze money out of consumers. The Act, which was a response to a growing number of complaints about abuses, requires movers to: provide a written estimate to consumers; accept several forms of payment, including cash, check or major credit card; get a signed contract prior to taking possession of any household goods; and inform a consumer where goods will be stored prior to delivery.

On Monday, Florida Agriculture and Consumer Services Commissioner Charles H. Bronson is taking legal action against National Movers and Storage Inc. of Hollywood, which subcontracted a job to All Best Moving and Storage Inc. National Movers and Storage Inc. is charged with demanding payment higher than the estimate, not giving a firm delivery date, and not telling customers where their possessions were being held.

If you are having trouble with intrastate movers, you can call the state's consumer hotline at 800-HELPFLA (800-435-7352) and can obtain information about their consumer rights by visiting the Division of Consumer Services Web site at http://www.800helpfla.com.

With the first storm of 2005 now history after striking Florida's Panhandle, FAR and the Federal Emergency Management Agency (FEMA) are continuing their partnership to help displaced families by connecting them with available rental units in the area. It's a free service for consumers as well as Realtors who wish to advertise rental properties through a searchable database. To find housing, consumers should go to the Florida Living Network (http://fl.living.net) and click on "Emergency Housing" located in the upper left corner.

The Florida Supreme Court unanimously ruled that builders do not have to pay property taxes on a building that is under construction or being renovated until the work is completed.

The stakes in the case were high: If the ruling had gone the other way then developers of the many condominium towers going up across South Florida would have had to pay annual taxes on the structure, even if not finished. Currently they pay no taxes, except on the land, until completion. With many developers already wilting under the pressure of rising construction costs, a different result would likely have resulted in hundreds of thousands more in annual tax payments to developer's bottom line increasing sales cost to buyers.

Menin Development Companies Hires Clinton “Sandy” Lewis as General Manager for Downtown at the Gardens.

Palm Beach Gardens, Florida (June 28, 2005) – Menin Development Companies is pleased to announce the hiring of Clinton “Sandy” Lewis as General Manager for its newest 345,000 square foot retail project, Downtown at the Gardens.

Lewis brings with him twenty-six years of experience in retail management, leasing, marketing and development in mixed use developments, as well as urban and suburban regional shopping centers. He most recently served as Vice President of the retail division for Grubb Properties in Charlotte, North Carolina. Prior to that, Mr. Lewis was Vice President and General Manager of The Rouse Company’s Village of Merrick Park in Coral Gables, Florida. From 1986 to 2001, Mr. Lewis was Vice President and General Manager at the Hulen Mall in Fort Worth, Texas and the Collin Creek Mall in Plano, Texas. He holds a B.B.A. in Real Estate and an M.B.A. in Marketing from the University of Georgia.

About Downtown at the Gardens - Downtown at the Gardens is a 350,000 square foot open-air upscale specialty shopping center to be anchored by a 16-screen Cobb Theater and a 42,000-square-foot Whole Foods Market. The project will include over 60 specialty retailers including Urban Outfitters, Elizabeth Arden Red Door Spa, Scoop NYC, Sur La Table and Z Gallerie as well as the nation’s finest collection of restaurants including The Cheesecake Factory, RA Sushi, Strip House, Rosa Mexicano, Yard House, Terra Ristorante, The Grape, TooJays, Max’s Grille, Johnny Rockets and City Kitchen. Property amenities include three full service valet locations, five star concierge services, and a museum quality sculpture park that will run throughout the shopping center and ultimately around the lake park. Downtown at the Gardens will open November 10th, 2005.

About Menin Development - Menin Development, headquartered in Palm Beach Gardens, Florida, specializes in the development and management of neighborhood and regional retail centers. Founded in 1985, Menin’s mission is to create a premier portfolio of high quality, growth-oriented retail real estate assets. Other Menin Development properties in Florida include shopping centers in Port St. Lucie, Jupiter, Palm Beach Gardens, West Palm Beach, Coconut Creek and Sunrise/Weston.

Sign, sealed, delivered: Florida has a commercial lien law...

On June 20, 2005, Gov. Jeb Bush signed the Florida Association of Realtors’ (FAR) commercial lien legislation (HB 1459) into law. It takes effect Oct. 1, 2005. “Perseverance on the part of many commercial Realtors and FAR leadership got us to this point,” says 2005 FAR President Frank Kowalski, who attended the signing ceremony in Tallahassee with other FAR VIPs. “The fact that Realtors will finally have a way -- other than the courts -- to receive their earned commission from a commercial transaction makes it all worthwhile.” Also in attendance for the signing: Mike Dooley, president-elect; Chuck Bonfiglio, Sr., treasurer; Wendell Davis, secretary; 2004 President Russell Grooms; Commercial Alliance Chairman Steve Moreira; and Jim Morgan and Guy Trusty, former legislative chairmen and long-time champions of commercial lien legislation.

The legislation, sponsored by Don Brown (R-DeFuniak Springs) in the House and Bill Posey (R-Rockledge) in the Senate, was the result of months of discussions with opponents of last year’s bill, namely title insurers and the Real Property, Probate and Trust Law section of the Florida Bar Association. The law specifies that in commercial sales transactions, the lien is placed against the net proceeds of the owner. In a lease transaction, the lien is placed against the property. If the lease agreement is with a tenant, the broker can attach a lien to the tenant’s leasehold interest. In all cases, there are notice provisions, forms and steps specified in the law for accomplishing the lien. Details will be provided in an upcoming issue of the Florida Commercial Alliance newsletter and in the Legislative Section of FAR’s member Web site, Planet Realtor.

South Florida is a hot real estate market and now smaller counties in central Florida and on the west coast of Florida, six hours north of Miami, Florida, are starting to reap the benefits.

North Florida, far from the hip Miami Beach scene, once nick named the bible-belt, is reaping the benefits of higher land prices in major South Florida cities (Miami, Miami Beach, Ft. Lauderdale, Tampa, Boca Raton, Ocala, Tallahassee, and Weston). As developers search for cheaper land to build they are venturing to smaller counties in Northern Florida with smaller populations that still have affordable land prices. With an acre going for less than $10,000, a steal by developers, many first time investors are flocking to these areas.
Land developers are feeling the price squeeze in South Florida and are seeking to capitalize on the ability to build and buy for less in small Northern counties that are looking for growth and to profit from the booming Florida real estate market.

The same way many during the gold rush went digging to find the glimmering gold dust in the west, land developers, the new property cowboys, are heading to the west coast of Florida for cheap land buys to build condominium developments and single family homes.
Ocala and Tampa have become popular among developers in the past 8 months as more buy up land. Their good fortune is spreading now to surrounding west coast counties that are banking on their new popularity.

If you haven't heard of Jena, Chiefland, Cross City, Steinhachee, Suwannee River, Fanning Springs, Andrew, take a look at Map Quest or Yahoo Directions for a reference point. These small counties are becoming more popular than Ft.Lauderdale and Brickell, in Miami, as buyers go West to the new frontier to buy up land treasures at 90% less than prices in South Florida.

New hot spots like Sebring, Lake Wales and little known places like Wauchla are seeing demand for vacant land skyrocket.
Much of the land has been owned by Florida families for over 80 years. They are now parting with it because of the hot Florida property market. As land prices continue to rise in South Florida the move is on to the west toward the Gulf of Mexico, the last of the virgin Florida water.

For more information contact: David Horine ABR CIPS CRS One World Realty Inc. 1250 N. Ocean Blvd. Ste 4 Singer Island FL 33404 561-389-3323 Fax 561-514-9916

The American Jobs Creation Act of 2004 included numerous provisions designed to curtail corporate tax shelters. Among them is a provision that imposes restrictions resembling the passive-loss rules on partnerships that include both corporate and tax-exempt partners. These newly-enacted tax shelter limitations could reach real estate partnerships or tiered arrangements that include tax-exempt partners such as pension plans or certain insurance company arrangements. The IRS has noted that partnerships that include these large tax-exempt entities are not necessarily tax shelters. Accordingly, the IRS has issued IRS Notice 2005-29 providing that the rules enacted in 2004 will not be applied to partnerships in tax years beginning before Jan. 1, 2005. In practical terms, this means the U.S. Treasury and U.S. Congress will have until April 2006 to sort out the correct rule for real estate partnerships that include tax-exempt entities.

It has been nearly eight years since the law changed, but many homeowners still don't know that the old rules about having to "roll over" profits from the sale of a home into another home purchase to avoid capital gains taxes are history. Enacted in 1997, the not-so-new rule is that if you sell your main home and have lived in it for two of the past five years, the first $250,000 of any profit you make is tax-exempt if you're single, and the first $500,000 is exempt if you're married. Any profits above those amounts face a 15 percent capital gains tax, except for taxpayers in the 10 or 15 percent income tax brackets. For them the capital gains tax is usually 5 percent. Since the rule change, confusion has spread about when homeowners can get the tax break even if they have lived in their homes less than two years. If the reason for the sale of the home was because of a change in employment, a health reason or a list of defined "unforeseen circumstances," you can still qualify for a partial exemption of the profit you made on your sale. There's also an exception for homeowners in the military or foreign service who have been on "qualified official extended duty." But there are a couple of exceptions that won't work, the IRS said in 2004: Moving because road noise is worse than you expected, or moving to Florida because year-round golfing might be good for your health, for example. To figure out how much profit you made when you sold your home (or "gain" you had, in the language of IRS Publication 523, "Selling Your Home"), you take the selling price and subtract your expenses, such as commissions or legal fees. This gives you the "amount realized" on the sale. Then you subtract the "adjusted basis value" of your home from the amount realized, and now you have calculated your gain or loss for tax purposes. The adjusted basis value typically includes what you paid for the home, plus many of the costs of buying it -- such as escrow fees -- and the costs of any qualifying improvements you made to the home, and any closing costs you paid if you refinanced your mortgage. To document the expenses, be sure to keep records of the improvements you make to your home. Consult IRS Publication 530 ("Tax Information for First-Time Homeowners") to see which improvements will increase your home's basis value.

Three states, Florida, California, and Texas would account for nearly one-half (46 percent) of total U.S. population growth between 2000 and 2030, according to Census Bureau state population projections.

Consequently, Florida, now the fourth most populous state, would edge past New York into third place in total population by 2011; California and Texas would continue to rank first and second, respectively, in 2030.

These three states would each gain more than 12 million people between 2000 and 2030. Arizona, projected to add 5.6 million people, and North Carolina, with 4.2 million, would round out the top five numerical gainers.

The projections indicate that the top five fastest-growing states between 2000 and 2030 would be Nevada (114 percent), Arizona (109 percent), Florida (80 percent), Texas (60 percent), and Utah (56 percent). Most (88 percent) of the nation’s population growth between 2000 and 2030 would occur in the South and West, which would be home to the 10 fastest-growing states over the period. The share of the population living in the South and West would increase from 58 percent in 2000 to 65 percent in 2030, while the share in the Northeast and Midwest would decline from 42 percent to 35 percent.

WCI Communities has sold around 500 acres of Parcel 19 in the western part of Jupiter for $100 million to luxury homebuilder Toll Brothers. Toll Brothers has announce it will build a 483- acre golf course community, Jupiter Country Club, with approximately 266 detached single-family homes and 394 attached townhouses, with prices expected to begin in the $700,000s and reaching $1.3 million. The Jupiter Country Club project, according to Toll Brothers sill include an 18-hole Greg Norman Signature golf course, a private clubhouse and a health & fitness center. The property is expected to open sales in early 2006, with the construction of model homes to follow.

Two areas of Tequesta will being undergoing major enhancements with the approval for 59 unit townhouse development that spans two parcels at the corner of Old Dixie highway and Village Blvd. The design calls for 1, 2 and 3 bedroom townhomes of up to 2,200 sq. ft. The units will feature one-car garages, brick paver driveways and 1,200 additional square feet of scrub oaks. Part of the parcel presently contains a structure that, formerly was approved for an adult living facility known as Clair Bridge, and has been dormant since the developer ended in bankruptcy. Units will likely be priced between $150,000 to $400,000 plus according to Conorstone spokesperson.

Riviera agrees to allow Marriott to redevelop Ocean Mall site; Singer Island, Florida.

City council members voted 4-1 in May in favor of allowing Marriott Vacation Club International and the Brock family to build a 250-room, 27-story hotel, 250 time-share units, and a retail complex on the site. The time-share units would be housed in two 21-story buildings. Adopting the design paves the way for redeveloping the Ocean Mall, an aging cluster of shops perched on part of the city land. This plan does come with much opposition of the project however, it seems that redevelopment of this area is on its way.

Chip Lubeck partner of One World Realty Inc. appointed as President’s Liaison.
The National Association of Realtors has appointed our partner Chip Lubeck as the President’s Liaison to the Bahamas. Chip will be working closely with the Bahaman Real Estate Association to foster business relationships that will benefit both buyers and sellers from each country.

The Whitney condominiums in West Palm Beach condominium is fast approaching sell-out.

The Whitney has sold 170 of the 210 residences under construction, and this is the last chance to purchase at precompletion prices. A limited number of penthouses, with private rooftop terraces for sunbathing and star-gazing, are available. Several floor plans are available.

Living at The Whitney will combine the fun of fast-paced city living with resort-style activities, such as swimming and putting on rooftop decks and working out in the fitness center.

The eight-story Whitney will include a variety of amenities, including valet parking and magnetic-card-controlled elevator service to their home from the grand lobby.

A fresh, contemporary look prevails in every residence, which provides prewiring for telephone, fax, cable TV and high-speed Internet as well as wireless Internet access throughout the building's common areas. Kitchens feature Italian-style cabinetry, stainless-steel appliances, granite countertops and designer chrome faucets.

For current information, prices and availability contact us at info@AskMrPalmBeach.com.

As we prepare for the upcoming holidays and look forward to a new year it is only appropriate to wish you and your family the very best during this holiday season. The year 2004 has been a successful and prosperous year in the South Florida real estate market and we see 2005 to become even better.

As you might notice when you receive this news letter the Ask Mr. Palm Beach Team has a new company name and new members added to our already comprehensive real estate team. Just a few weeks ago old friends and colleagues finally joined forces to create what we all believe will be one of the most progressive customer service real estate companies in South Florida and beyond.

One World Realty Inc. is the new name and the founding partners of Chip Lubeck, Nancy Lubeck, David Horine and myself Don Urschalitz have been working for over a year to bring our dreams and ideas together to combine our individual talents and our long time experience to bring customer service to an all time high in Florida and the Bahamas. Along with our award winning sales and management team our Technology Director and Internet guru David Monsour will continue to expand our web site and keep us on the edge of all of the newest technology. Our automatic e-mail notification of property searches is being expanded and the thousands of you that receive our monthly newsletter will see an expanded version that will keep you posted on real estate news and investment opportunities in South Florida. If you take a minute and check out About Us on our website you will experience the extensive knowledge that our partnership brings to our new company. Additionally, Darley Davies our guest writer for AskMrPalmBeach.Com, and a certified Feng Shui Consultant, and the owner of Feng Shui Harmony in Martin County. Darley has been consulting for the past decade and moved to our area from Tampa three years ago will continue to contribute articles to our monthly newsletter.

The National Association of Realtors has appointed our partner Chip Lubeck as the President’s Liaison to the Bahamas. Chip will be working closely with the Bahaman Real Estate Association to foster business relationships that will benefit both buyers and sellers from each country. So please feel free to contact us for what we believe is the best in customer service that is available in the South Florida and Bahamas real estate markets in our world.

The Florida Legislature announced that it would convene Special Session 2004-A on Dec. 13, 2004.

The five-day session will cover, among other things, multiple deductibles for hurricanes during any single year and a discussion on the things the state should do in the future to effectively respond to natural disasters. “This hurricane season was one for the history books,” says Frank Kowalski, Florida Association of Realtors (FAR) president for 2005. “Florida lawmakers now have the opportunity to address some of the problems that came to light as a result, such as multiple deductibles. This is a serious issue that requires a lot of attention, and there are no easy answers. It will take a lot of people working together to come up with potential solutions.”

House Speaker Allan Bense and Senate President Tom Lee say that the Legislature could agree to spend as much as $600 million to $750 million on hurricane relief efforts, with some of the money going to about 29,000 homeowners who were forced to pay more than one hurricane deductible since their home was hit by more than one storm. Funds could also go to beach renourishment, citrus growers who lost part of the crop and school districts. While leadership in the House and Senate seem to be working together, it's still not clear how much will pass. Only one initiative under discussion -- a mandate by voters to create a prekindergarten program -- must pass this session, and Bense advises Floridians not to expect too much from lawmakers.

Chief Financial Officer Tom Gallagher had hoped for a broader discussion on property insurance reform, and he hopes that might still occur. Gallagher also wants lawmakers to consider new laws prohibiting some property insurance cancellations; he also wants leaders to take another look at the state's hurricane catastrophe reinsurance fund.

While insurers seem willing to consider once-per-year deductibles, the change may still impact homeowners' pocketbooks. According to Florida Insurance Council spokesman Sam Miller, State Farm has told lawmakers the change would cause the company to offset expected losses by requesting a yearly premium increase of 1 to 3 percent.

As of November 11th Tom Gallagher, chief financial officer for the State of Florida, has authorized an emergency mediation system that homeowners who suffered hurricane damage can use to resolve claims disputes with their insurance companies.

Homeowners filed approximately 1.3 million claims for a total of $17.1 billion in insured losses as a result of the four hurricanes that hit the state this fall. The state is establishing four mediation centers in Charlotte County, Orlando, Fort Pierce, and Pensacola. Any homeowner with a claim can participate in the program at no cost.

On Wednesday, June 30th the President signed The Flood Insurance Reform Act of 2004. The legislation extends the National Flood Insurance Program through September 2008. The program was set to expire on June 30, 2004, and this multi-year extension supported by MBA eliminates the annual scramble to reauthorize the program.

In addition to extending the program’s sunset date, the new law establishes a pilot program to help address the mitigation of severe repetitive loss properties. These properties, while only a small percentage of those insured, constitute a large share of claims paid. The law also includes an additional $40 million annually for mitigation activities to allow families that have lived through several floods and suffered substantial harm, both financial and emotional, to either flood-proof their home or have their home bought-out.

Officials Break Ground on Jupiter Riverwalk Retail Project. Riverwalk in Jupiter is one more step closer to reality with the ground breaking of the Shoppes of Riverwalk. Located on U.S. 1 just south of the Indiantown Road bridge this new facility will consist of 23,500 square feet of retail stores and restaurants that will be accessible by land and water. The Shoppes facility is immediately adjacent to the yacht club’s marina and will have 10 slips for visitors.

In Palm Beach County, the median price of an existing single-family home roes to $290,200, up 29 percent from May’s 2003’s median price of $240,000, according to the Florida Association of Realtors. The median is the mid-point at which half the homes sold cost more, half cost less. The high demand and the low inventory is one of the main factors that is driving prices up.
On the Treasure Coast specifically Port St. Lucie the median price of a used home rose in May to $187,800, a 31 percent leap over May 2003’s median price of $142,900.

Used homes sales are expected to break last record-setting pace, and May sales showed no signs of a slowdown. In Palm Beach County, buyers closed on 1,551 used homes, up 19% from the 1,306 sales in May 2003 according to the report.

Tequesta plans for $70 million mixed use project. A $70 million development is being considered at the old Tequesta Motor Cars site on U.S. 1 just south of County Line Road. Allied Capital Development has contracted to purchase the 6 acre property and is planning to create a mixed use development, with 108 multi-family unit town homes and 12,000 square feet of high end retail. Pricing is estimate to start at $6000,000 to $1 million.

The Sailfish Marina and Resort is under contract again to a Coral Gables company that plans to keep it the way it is. Sailfish was under contract this spring to WCI Communities but fell apart with the outcry of public sentiment fearing the ruin of the tranquil public access to the facility. County Commissioners still have a referendum scheduled to see whether to buy private marinas and maintain water front access, so stay tuned for developing news on this issue.

The U.S. Department of Housing and Urban Development has issued its Radon Gas and Mold Notice Release Agreement, which the NATIONAL ASSOCIATION OF REALTORS® has been working with the department to develop for more than a year. Starting on June 28, HUD will require that the agreement be included with all sales contracts.

The notice provides information to potential purchasers of single-family properties repossessed by the Federal Housing Administration that radon gas and some molds have the potential to cause health problems. The notice also ensures that potential purchasers of HUD-acquired single- family properties have the cautionary information in the release agreement, which mitigates potential liability.

Palm Beach Gardens Downtown Project is Underway. Downtown at the Gardens is the 60 acre project on the northeast corner of PGA Blvd, and Alternate A1A has started construction. Downtown will include 336,400 square feet of retail space, with a 3,200 seat, 16 screen Cobb theater, nationally known restaurants and specialty retailers.

Dear Don,

Prior to going to press with my newest UNPLUGGED issue for In The Bite, I received a phone call from a dockmaster friend on Palm Beach Shores who simply said "the deal fell through." The deal he was referring to was the sale of Sailfish Marina on Palm Beach Shores. WCI Communities, Inc had agreed to purchase the marina for a sum of 33.5 million. On the closing date, both parties agreed to terminate the sale. Prior to the announcement, word had quickly spread with rumors that the new owners would soon level and rebuild the marina into a luxurious, private dockominium community with no public access. I understand the marina is still for sale and hope future owners don't have this flatten and rebuild with no public access mentality that is sadly becoming a reality in many places. Just thought you would like to know.

Capt. Dale Wills

Under legislation approved by the 2004 Florida Legislature, an investor who buys a condo with plans to rent it out now has more protection. Thanks to a grandfather clause, even if a condo board votes to ban or limit rentals, a current condo owner is exempt from the new policy unless he or she voted for it.

Lawmakers passed two extensive yet substantially similar bills covering condominiums and homeowners’ associations, SB 2984 and SB 1184. Both include the grandfather clause:

"Any amendment restricting unit owners' rights relating to the rental of units applies only to unit owners who consent to the amendment and unit owners who purchase their units after the effective date of that amendment."

Gov. Jeb Bush must still sign the bills for them to become law and he could decide to sign only one since they duplicate information. If SB 1184 is signed, the protection becomes effective Oct. 1, 2004, meaning a condominium board that changes their rental rules prior to Oct. 1 still has the power to force those changes on all owners. SB 2984 is effective upon signing by the governor, however, which would make the grandfather clause protecting rentals effective immediately.

The bills do not mention specific types of rentals, but a condo association that attempts to ban or limit rentals would arguably be "restricting" the rights of existing owners living in condominiums that currently allow rentals by the week, the season or the year.

The potential sale of the Sailfish Marina on Singer Island has the county working to identify undeveloped waterfront properties and reserve them for public use. County commissioners said this week that as developers scoop up land for private projects, boaters will be without access to the Intracoastal Waterway and the Atlantic Ocean. WCI Communities Inc. has agreed to buy The Sailfish Marina for a proposed $33.5 million. Four scenarios have been suggested for the site, which include 48 condominiums however, WCI will not discuss pending acquisitions.

Commissioner Warren Newell has been selected to spearhead a plan to protect and enhance public access to waterways. The plan may include a proposal to establish a preservation program using county money to purchase sensitive property. Stay tuned for what is expected to be a lively debate on this issue.

Seniors who want to refinance their reverse mortgages to take advantage of recent equity gains now will be able to do so without paying for additional Federal Housing Administration (FHA) insurance under a new rule by the U.S. Department of Housing and Urban Development effective April 26.

Borrowers previously were charged 2 percent of their home's new value when they refinanced, having already paid either 2 percent of the property value or 2 percent of the regional FHA loan limit—whichever is less—when they obtained the original loan. The new rule will keep them from shelling out more than 2 percent of the difference between the claim ceilings on the two mortgages; in addition, borrowers refinancing within five years of the original loan as well as those whose gains are five times more than the refinancing costs are no longer required to attend counseling sessions.

The National Reverse Mortgage Lenders Association reports that loan volume in this niche has surged 39 percent in the last fiscal year; and industry insiders say inquiries have jumped anywhere from 5 percent to 30 percent since the new rule was made public.

Property Tax Clarification on the Horizon
Sales of Homestead Property -- passed the full Senate unanimously this month, with FAR-sponsored amendments. The bill, if approved by the House and signed by Gov. Jeb Bush, would require sellers to inform home buyers that the ad valorem tax they will be levied after the purchase "could be" higher than the amount paid by the current owner. It also gives a purchaser the right to cancel a contract under certain circumstances. Florida Association of realtors and the Florida Bar worked together to perfect this bill. The legislation includes language similar to that approved by the FAR/BAR Committee in January.

Fueled by demand and historically low interest rates home sales are soaring level this past March. In Palm Beach County, the median price (half cost more, half cost less) of an existing home rose in March to $272,100, a 20% jump over March 2003 median of $227,200 according to the Florida Association of Realtors. The Treasure Coast, one of the hottest housing markets in the country rose from $162,100 to $174,100 a 7% gain. The rise in the cost of existing homes in palm Beach County is even more significant in the past five years, during which used-home prices more than doubled, association records show. The strength of sales last month surprised analysts, reaching the second-highest level ever recorded in the U.S., and setting the fastest pace in two years according to the National Association of Realtors.

Buyers closed on 1,496 existing homes in March in Palm Beach County, up 21% from 1,240 home sales a year ago, according to the Florida Association of Realtors. This compares to the Treasure Coast (Martin and St. Lucie counties) that closed 689 used homes in March 2004, compared to 488 in March of 2003, up 41%. These numbers compared to the statewide sales of 29% increase are significant to the demand for our coast.

In a major victory for REALTORS®, a three-judge panel of the United States Trademark Trial and Appeal Board has unanimously ruled that "REALTOR"® and "REALTORS"® are not generic terms. The ruling came as part of the panel's denial of two petitions to cancel the rights in these terms held by the National Association of REALTORS®.

In the 39-page opinion, the judges made the affirmative finding that the terms are not generic; that is, they are not synonymous with real estate agent or real estate agents, and concluded that the petitioner failed to prove otherwise. The judges also pointed out that NAR had consistently taken steps to emphasize its ownership of the collective membership marks and to contest improper uses.

"This is a tremendous victory for REALTORS® everywhere, affirming our right
to the terms 'REALTOR®' and 'REALTORS®,' which designate the highest standards of professionalism and commitment to a strict Code of Ethics. The trademark decision puts to rest any question about NAR's exclusive rights to the use of these terms," said NAR President Walt McDonald.

Since 1916, when the term "REALTOR®" was coined, the term has come to be
recognized as identifying members of the National Association of REALTORS®. NAR registered the trademarks in 1949 and 1950, soon after a new trademark law went into effect.

The Trademark Board's decision was issued in a case involving a challenge
brought by Jacob Zimmerman, a former hotel management student at Cornell University who registered approximately 1,900 domain names containing the word "REALTOR®" in hopes of making money selling the URLs. The challenge was the most recent in a series of unsuccessful challenges to NAR's right to use the terms "REALTOR®" and "REALTORS®." The judges made the ruling on March 31 and NAR learned of the decision April 6th.

With the aging housing stock in certain areas of Palm Beach County, coupled with the renaissance of older neighborhoods, situations in which a home with unpermitted remodeling is sold to an unsuspecting buyer are becoming more frequent. Many times the seller is unaware that the work they did needed a permit, or it was done by a previous owner. In some cases the buyer does not find out about the problem until several years after purchase, but the unanticipated expense and hassle this situation causes can turn a dream home into a nightmare. The Realtors® Association of the Palm Beaches is working with the Palm Beach County Department of Planning, Building and Zoning to educate Realtors® with the goal of reducing cases that are brought before code enforcement.

There are two proactive procedures that can protect you as a buyer. This first ask for the Florida Association of Realtors ® standard form “Seller's Real Property Disclosure Statement” in all transactions. This form includes a portion for structure-related items. Section 9.c of the form reads “Are you aware of any improvements or additions to the property whether by you or by others, that have been constructed in violation of building codes or without necessary permits?” This form protects both the buyer and seller. The Florida Supreme Court's landmark decision in Johnson vs. Davis stated that when a seller of a home knows of facts materially affecting the value of the property, which are not readily observable and are not known to the buyer, the seller is under a duty to disclose them. By informing the buyer about un-permitted work, the seller will protect themselves from future lawsuits.

The other proactive procedure is to check with the municipality or County to confirm that any work done on the home has been properly permitted. Some sellers, especially in older neighborhoods, may go as far as including a list of permits with the property disclosure statement.

All governments have a permit record department, some will provide a limited amount of information over the phone, others may require you to make the request in person if they are busy. The following is a list of how to access various permit departments throughout Palm Beach County.

Palm Beach County 's Permit Records Department (for homes in the unincorporated area): (561) 233-5160, Jupiter: (561) 741-2286, Palm Beach Gardens Building Department: (561) 799-4283, Riviera Beach: (561) 845-4020, Greenacres Building Department: (561) 642-2052, Wellington: Must go to Building Department and fill out Public Request Form, Lake Worth: (561) 586-1644 ext 3 – Requests must be made in writing and there is a $35 charge, Boynton Beach: (561) 742-6365, Delray Beach Building Department: (561) 243-7200, Boca Raton: (561) 393-7930.

West Palm Beach : http://onestopshop.wpbgov.com/onestop/onestop.asp (website only includes permits from last 10 years). For searches before 1993 e-mail: apiccirillo@wpb.org or call (561) 805-6658.

Did your ever think your real estate attorney could help you obtain a mortgage? Mortgage Law is related to the Real Estate Law profession in which lawyers use their expertise to guide and protect clients through the mortgage process. When applying for a mortgage loan, the government requires the lenders to provide a number of legal documents to insure that borrowers understand the different options and costs. The large number of documents contain terms like APRs and Yield Spread Premiums and make the process difficult to understand. As a Mortgage Law attorney, we will explain these terms in order to educate the consumer throughout the mortgage process.

Our direct access to Fannie Mae, Freddie Mac and the secondary market through Attorney Mortgage Services, allows us, as attorneys, to offer you, the consumer, low, competitive mortgage rates while keeping costs down at the same time. As your lawyer, we are uniquely situated to represent your interests in this process because we represent you, not the lender. With the benefit of legal counsel, borrowers can make an informed decision regarding their money as Mortgage Law attorneys do not receive any commission and thus have no financial interest in helping you choose one particular mortgage over another. As a Mortgage Law attorney, we charge only a fee for our time in helping you through the mortgage process.

If you would like to know more about Mortgage Law or are thinking about purchasing a home or refinancing, please call our office and we will be happy to discuss Mortgage Law with you. Contact Kevin M. Rys, Esq. or Cherisse Roy at Scott, Harris, Bryan, Barra & Jorgensen, P.A. at (561) 624-3900, kevinrys@scott-harris.com. or croy@scott-harris.com.

Any Florida property owner with legal title to a home and who uses it as his or her permanent, primary residence by Jan. 1 is eligible for the exemption. Moreover, exactly what is the homestead exemption? It is generally a $25,000 deduction from a home’s assessed value (as determined by the county property appraiser). Take the home’s assessed value, subtract $25,000, and then apply the local millage rate to calculate the property taxes due.

Homeowners making their first claim at this time have to go to their respective county property appraiser’s office, bringing along the deed to their property or a property tax bill -- something to show they own the home.

Many local appraisers have set up procedures to allow for homestead exemption claims to be mailed to their offices; however, they usually require four to six weeks for processing the claim, which means a homeowner just getting started on filing the exemption would not receive their paperwork back in time to meet the March 1 deadline.

Also, buyers claiming the exemption for the first time will need to provide their Social Security number, and if they’re married, the Social Security number of their spouse when they go to the appraiser's office. According to officials, those applying should also bring their driver’s license and a Florida registration tag number. If the property owner lives in a mobile home, then he or she should bring the deed, Social Security number and a title or vehicle registration for the home.

Once a homeowner has applied for and received a homestead exemption, it will be automatically renewed for that property each year on Jan. 1. Renewal notices are mailed out identifying the property, and if the owners still live in the home and qualify for the homestead exemption, then it’s taken care of automatically. Property appraisers’ offices will accept applications for homestead exemption until the March 1 deadline.