Planet Realtor News Item

Planet Realtor News Item: "PANAMA CITY, Fla. -- Sept. 30, 2005 -- To some, the perk of qualifying for a homestead exemption is so attractive they figure they should have the savings on more than one home. Trouble is, that runs afoul of the law. After two years in office, Bay County Property Appraiser Rick Barnett and his staff have stepped up investigations into fraudulent filings. The result: $6.9 million went back on the tax rolls for 2004.

That equates to $142,706 in additional revenue for Bay County, minus $30,000 of staff time to do the job.

The homestead exemption reduces the taxable value of a property by $25,000.

'There is a big issue in Florida on homestead exemption because everyone wants that cap,' Barnett said."

Condo flipping popular around the country

Condo flipping popular around the country: "MIAMI -- Sept. 29, 2005 -- The 'flipping' of apartments and condominiums, a practice in which investors purchase units before they are built and sell them at a profit before closing, was made popular in Florida and now is gaining steam in Las Vegas and New York City.

Jack Winston, a Goodkin Consulting analyst, says this so-called Miami Model works best for developers with in-house sales representatives and numerous projects in different phases of development. He adds that the model is profitable only if enough investors jump aboard.

According to Metrostudy South Florida director Bradley Hunter, developers became more accepting of flipping when they found that restricting the practice gave investors all the profits and put a large number of units on the market after closing.

'We went down to Miami and saw that this is a great way to protect the value of the building,' says Paul Scaringe of Panorama Towers in Las Vegas. 'With this program you can control the amount of inventory that is out there at any given time; supply and demand will dictate the pricing.'

Christopher Mathieson, managing partner of JC DeNiro and Associates, plans to use the Miami Model when he begins selling a trio of developments in Manhattan, which he says allows developers to shift risks to investors.

Source: The New York Times (09/25/05); Bahney, Anna"

New-home sales fell 9.9 percent in August

New-home sales fell 9.9 percent in August: "WASHINGTON -- Sept. 28, 2005 -- Sales of new homes fell a surprising 9.9 percent in August from July to a seasonally adjusted annual rate of 1.24 million units -- the biggest decline since a 10 percent plunge in November 2004, according to the U.S. Commerce Department. Sales rose 6.2 percent compared to the same month one year earlier, however.

The federal government report sends a mixed signal on whether the housing market is slowing, considering that the median sales price jumped 2.5 percent from the previous month to $220,300 and that the National Association of Realtors� reported earlier in the week that housing resale activity rose 2 percent last month to 7.29 million units -- the second-highest rate on record.

Rising mortgage rates finally may be affecting the housing market, according to some economists. Nonetheless, they still expect 2005 to be the fifth consecutive year in which a record number of new and previously owned homes are sold."

Florida home sales, prices gain in August

Florida home sales, prices gain in August: "ORLANDO, Fla. -- Sept. 26, 2005 -- Sales of single-family existing homes in Florida rose 4 percent in August, following a dip in statewide resales activity reported for each of the previous two months, according to the Florida Association of Realtors� (FAR). Statewide, a total of 21,318 homes changed hands in August 2005 compared to 20,491 homes a year ago.

The statewide median sales price rose 31 percent last month to $246,500; a year ago, it was $188,700. In 2000, the statewide median sales price for single-family existing homes was $117,100, which translates to an increase of about 97.8 percent over the five-year period, according to FAR records."

More homeowners invest in second properties

More homeowners invest in second properties: "WASHINGTON -- Sept. 22, 2005 -- As the lure of investment sends many back into the real estate market for a second or third home, buyers are encountering stricter loan requirements than apply on their primary home, such as downpayments of up to 30 percent, compared to the 20 percent that is standard on conventional loans with no mortgage insurance.

Additionally, lenders will demand a lower debt-to-income ratio, meaning that investors' total debt may not exceed 35 percent to 40 percent of their gross monthly income whereas debt payments on a primary residence may stretch as wide as 50 percent.

Moreover, loans for second homes or investment property frequently are issued at interest rates one to two percentage points higher than those funding first purchases, due largely to the belief that owners will have less incentive to make the payments on a second home than on their primary residence should financial trouble arise.

Many investors are drawn to interest-only products, as they intend to sell the property by the time their payments increase to include principal."

Housing construction falls for 2nd month

Housing construction falls for 2nd month: "WASHINGTON -- Sept. 20, 2005 -- Construction of new homes edged down in August for a second consecutive month, providing evidence that the nation's red-hot housing market may finally be cooling a bit.
The Commerce Department reported that construction of new homes and apartments dropped 1.3 percent last month after a decline of 1.5 percent in July. The decrease was larger than had been expected and it marked the first back-to-back declines in housing starts in 17 months."

Already hot real estate market blazes

Already hot real estate market blazes: "NEW ORLEANS -- Sept. 19, 2005 -- The exodus of Hurricane Katrina evacuees seeking homes and places to run their businesses is rocking already-hot real estate markets throughout the Southeast.
From Pensacola, Fla., to Houston, legions of people and companies that fled the disaster are snapping up houses, apartment rentals and office and warehouse space as soon as they discover it. Real estate investors also are buying homes and renting them out."

Planet Realtor News Item

Planet Realtor News Item: "KEY LARGO, Fla. -- Sept. 15, 2005 -- U.S. District Judge K. Michael Moore has ordered the Federal Emergency Management Agency to stop writing federal flood policies on new development in environmentally sensitive areas of the Florida Keys. The total acreage impacted by the injunction has yet to be calculated."

Planet Realtor News Item

Planet Realtor News Item: "WASHINGTON -- Sept. 13, 2005 -- Homeowners who currently are grappling with the decision of whether or not to sell must consider a number of contradictory economic indicators. While median residential prices are rising, surveys indicate that existing-home sales overall are declining."