Tax Law Could Energize South Florida Market

Tax Law Could Energize South Florida Market

(March 30, 2006) -- A proposed law in Florida, which has gained widespread support from real estate professionals, would allow property owners to take their lower tax bills with them when they move from one property to another within the state.

Florida homeowners currently get a $25,000 homestead exemption. And a Save Our Homes amendment, passed in 1992, limits the rise in taxable value on homes to 3 percent a year. But once residents move, they lose that 3 percent benefit. Property is reassessed every time it changes hands.

“We’re going to reach a point where people are not going to be able to afford to move,” Palm Beach County Property Appraiser Gary Nikolits told a seminar attended by about 100 real estate professionals.

Many residents say they can't afford to move up or even downsize because they would have to pay much higher taxes on their new properties. That reason often is cited for the slowdown in South Florida's housing market.

Nikolits told the group he prefers a cap of $250,000 so wealthy homeowners don't get out of having to pay their fair share of taxes.

Source: South Florida Sun-Sentinel, Paul Owers (03/30/2006)

30-Year Mortgage Rates Fall a Second Week

30-Year Mortgage Rates Fall a Second Week: "WASHINGTON (AP) -- March 24, 2006 -- Rates on 30-year mortgages, which had jumped to the highest level in 2 1/2 years, edged down for a second straight week.

Mortgage giant Freddie Mac reported Thursday that rates on 30-year, fixed-rate mortgages averaged 6.32 percent this week, down from 6.34 percent the previous week.

The latest decline was the second in a row after 30-year rates had reached a high of 6.37 percent the week of March 9, the highest point since rates averaged 6.44 percent the week of Sept. 5, 2003."

Futures predicting 5 percent Fed funds rate

Futures predicting 5 percent Fed funds rate: "NEW YORK -- March 22, 2006 -- While they still expect the central bank to boost the federal-funds rate to 4.75 percent during next week's policy-setting meeting, recent economic reports have further validated the belief by futures traders that the Federal Reserve will lift the rate again at its June 29 session.

Monday's contracts indicated an 84-percent chance of the federal-funds rate reaching 5 percent before July. Also, a government report that wholesale prices rose three times more than anticipated growth in February convinced traders that the Fed will continue with its quarter-percentage-point rate hikes into August.

Traders felt certain on Monday that the Fed would not kick up the fed-funds rate to 5.25 percent at its Aug. 8 meeting."

Roof tiles scarce, soaring in price

Roof tiles scarce, soaring in price: "PALM BEACH COUNTY, Fla. -- March 20, 2006 -- Homeowners desperate to repair cracked or broken roof tiles are taking matters into their own hands. Literally.

'People are going to places where roofs are being repaired to try and get salvaged tiles that are not damaged,' said Robert Bryson, an associate broker with Mersky Realty Group. 'It's, 'Hey can I have a couple of roof tiles?' Because they can't get them anywhere else.'

Clay: It's the new gold.

An unpublished survey conducted by the Florida Roofing, Sheet Metal and Air Conditioning Contractors Association reports that since late 2004, the cost of clay roof tiles has doubled from $500 to $1,000 per 100 square feet. At about $700 per 100 square feet, concrete tiles are a little less expensive, but you'll need to take a number and be seated: Delivery delays that last year stretched from six to eight months are now running between nine months and a year."

Roof tiles scarce, soaring in price

Roof tiles scarce, soaring in price: "PALM BEACH COUNTY, Fla. -- March 20, 2006 -- Homeowners desperate to repair cracked or broken roof tiles are taking matters into their own hands. Literally.

'People are going to places where roofs are being repaired to try and get salvaged tiles that are not damaged,' said Robert Bryson, an associate broker with Mersky Realty Group. 'It's, 'Hey can I have a couple of roof tiles?' Because they can't get them anywhere else.'

Clay: It's the new gold.

An unpublished survey conducted by the Florida Roofing, Sheet Metal and Air Conditioning Contractors Association reports that since late 2004, the cost of clay roof tiles has doubled from $500 to $1,000 per 100 square feet. At about $700 per 100 square feet, concrete tiles are a little less expensive, but you'll need to take a number and be seated: Delivery delays that last year stretched from six to eight months are now running between nine months and a year."

LSU AgCenter . Efforts under way to prevent spread of Formosan subterranean termites in mulch from Louisiana following hurricanes Katrina and Rita

LSU AgCenter . Efforts under way to prevent spread of Formosan subterranean termites in mulch from Louisiana following hurricanes Katrina and Rita
It is true that there is a lot of cellulose debris (wood, paper and their products) in Louisiana following these two hurricanes. Yes, Formosan subterranean termites are found in the parishes affected by the hurricanes and will get in mulch. However, the Louisiana Department of Agriculture and Forestry (LDAF) in Louisiana imposed a quarantine for the Formosan subterranean termite on October 3, 2005, in Calcasieu, Cameron, Jefferson, Jefferson Davis, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist, St. Tammany, Tangipahoa and Washington parishes (the parishes affected by the hurricanes). "

Hot real estate prices extend to rural land

Hot real estate prices extend to rural land: "WASHINGTON -- March 9, 2006 -- The fastest-growing commodity in Florida farm country last year? Land values, which jumped 50 percent to 88 percent, depending on the area.

While not quite as dramatic, a similar story has been playing out across the country. Rural real estate prices soared 11 percent to an average of $1,510 per acre from Jan. 1, 2004, to Jan. 1, 2005. That's the fastest annual increase since 1981 and the biggest on record in dollar terms, according to the U.S. Department of Agriculture (USDA).

More recent data from Iowa State University show prices in Iowa rose nearly 11 percent in 2005. In Texas, the median rural land price rose 15 percent in 2005. State and USDA estimates differ because of sampling times and techniques but show similar trends."