Remodeling Urges Help Push ome Prices Upward, Expert Says. Does a desire for two-person showers, travertine floors and granite countertops push home prices up? Housing economist Tom Lawler, a Vienna, Va., consultant, argues that it does—and says these cravings are partly responsible for ballooning home prices throughout much of this decade.

So what if housing has hit the skids? The outlook is still pretty sunny for the commercial and multifamily building industry, according to the second-quarter databook on the sector just released by the Mortgage Bankers Association. Although the report acknowledges that consumers may not be spending as freely as they did when they thought their homes were ATMs, it’s cautiously optimistic about the future, noting “consumers are still hanging in there.” Meanwhile, demand is still strong for rental apartments in many markets.

Real estate agent Caesar Parisi stands ready with effective advice on buying or selling a Boca Raton FL condo. Visiting the Delray Beach community? Contact Realtor® Caesar Parisi for information on buying or selling an Atlantic Grove Condo in Delray Beach Real Estate.

search for : ballooning home prices, multifamily building industry, Mortgage Bankers Association

Many real estate prognosticators have been worrying about the slowing of the appreciation rates across real estate markets nationwide, scaring many buyers out of the market. The Office of Federal Housing Enterprise Oversite released its 2nd quarter figures on average housing prices this month and many market watchers jumped on the “dropping prices” bandwagon.

Have you been watching the interest rates lately? Bankrate.com has its average 30-year fixed rate at 6.4 percent—a drop of 3 basis points in one week and the lowest level all year. In addition, for those willing to pay more points, you could get a rate under the 6 percent threshold. Meanwhile, if the prices in your area are about to flatten before beginning their next cycle upward, and you MUST buy now, your waiting may have paid off—if you jump over the fence of indecision and get a contract written now.

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Without her knowledge, an unknown perpetrator used the name, Social Security number, credit history and identification of Aurora Lepe to purchase a residence and obtain two mortgages secured by the property. Lepe’s signatures on the documents were forged. Due to nonpayment of its mortgage, lender CTC Real Estate Services sold the property at a foreclosure auction sale.

After paying off the balances on the first and second mortgages, $51,334 surplus funds remained.

Not knowing what to do with the remaining funds, the lender interpleaded the money into court. The lender said to the judge the fair and equitable result would be to have Ms. Lepe receive the surplus funds to help compensate for her identity theft and all her inconveniences. Nobody contested the interpleader.

Looking for that perfect Sarasota FL home for sale? Realtor® Annette Smith is ready to help you buy or sell your dream property. Read the rest of this entry

search for : Social Security number, mortgage, foreclosure auction sale

Several members of Congress are making their strongest suggestions yet for regulators to ease their proposed guidelines on banks’ commercial real estate lending. That congressional concern could prompt regulators to make some “significant changes” when they issue final guidelines, said Mark Tenhundfeld, director of the Office of Regulatory Policy at the Washington, D.C.-based American Bankers Association. That could include more clearly applying any new requirements on a case-by-case basis, rather than banks in general, he said.

The proposals would make banks subject to extra scrutiny and possible orders to raise more capital or improve underwriting, if they exceed two ratios on real estate loans to capital. The percentage of South Florida-based banks above the threshold for a proposal on construction loans is more than double the percentage of banks nationwide in that category. Rep. Spencer Bachus, R-Ala., chairman of the Subcommittee on Financial Institutions, said at the hearing that he fears the proposals “may cause banks to shift lending patterns to what the regulator wants instead of what the market dictates.” “I’m not sure the government should be in the business of telling a bank where it ought to lend money,” he said.

To find the perfect home, Palm Beach realtor Annette Smith is available to help you be an informed home buyer or home seller in today’s changing Sarasota real estate market. Read the rest of this entry

search for : Office of Regulatory Policy, American Bankers Association, South Florida-based banks

It was hard to miss when a huge article entitled, “The Last of the 6-Percenters?” appeared on the front page of The New York Times Sunday business section. It discussed discounted brokerage services at length. In many cities,” said the Times, “real estate agents have tried to restrict access to M.L.S. information or to limit its use on the database. Some have asked state legislatures to pass laws forcing brokers to offer certain levels of service.”

These words are all about minimum services and the perception that the growing industry demand for minimum standards of practice is nothing more than a cloaked effort to stymie discount brokers. As the Times explained, “The Justice Department and the Federal Trade Commission have fought these tactics in Texas, Kentucky, Tennessee and Oklahoma, among other states, and the department is suing the National Association of Realtors, the powerful trade group of agents and brokers, over what it calls anti-competitive rules.” Anti-competitive? Why aren’t these contentions addressed head-on? The presumptions found within this article are simply unchallenged. Does this mean they’re true?

Looking for that perfect Sarasota home for sale or condo? Realtor® Annette Smith is ready to help you buy or sell your dream property. Read the rest of this entry

search for : The Last of the 6-Percenters, discounted brokerage services, minimum standards of practice, agents and brokers, anti-competitive rules

If you’re planning on buying or selling a home, I’ve got good news for you: Commissions taken by real estate agents have been falling in recent years and are now, on average, around 5% compared to a historical average of around 6%. On a $250,000 home, that 1% difference amounts to $2,500—not chump change.

One reason for the drop is tied to the boom in housing prices in recent years. According to James Hagerty in The Wall Street Journal Online, “Residential real-estate commissions in the U.S. totaled $61 billion in 2004, up 42% from 2000, estimates Real Trends, an industry publication.” That wasn’t exactly good news for real estate agents, he explains, since their ranks boomed, too. The National Association of Realtors has seen its membership swell by some 63% since 2000, to roughly 1.25 million people. This was enough to drop the median annual income for Realtors by 4% between 2002 and 2004, to $37,600.

In the market for Delray Beach real estate? Consult with licensed agent Caesar Parisi. Caesar has assisted hundreds of buyers and sellers, giving sound advice on how to most effectively buy and sell property. Read the rest of this entry

search for : Commissions, real estate agents, Residential real-estate commissions

Rising insurance rates are threatening the Florida real estate market and overall economy and is the top concern of real estate professionals, according to a study from the University of Florida.UF’s Center for Real Estate Studies surveyed Florida real estate lawyers, market analysts, title insurers and financial advisers in July.

The active hurricane seasons in 2004 and 2005 have driven up insurance costs. Some of the effects will be felt gradually because businesses, which typically have leases of at least five years, may not be paying higher premiums yet. But when they do, the costs will be felt down the line.

“The entire economy will have to adjust to these higher insurance costs,” said Wayne Archer, director of the center. “It’s a big enough hit, just like gas prices, that it will ultimately affect every business and every price that is property intensive.”

Ready to buy or sell Palm Beach real estate? Consult with licensed agent Caesar Parisi. Caesar has assisted hundreds of buyers and sellers, giving sound advice on how to most effectively buy and sell property. Read the rest of this entry

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Despite a cool-off in home prices, more markets are overpriced than ever, according to a new survey. Higher interest rates, especially for adjustable-rate mortgages (ARMs), helped push some housing markets into the overpriced category last quarter, according to Jeannine Cataldi, an economist with Global Insight, which conducted the analysis with National City.

Though rates have declined since the end of the second quarter, the 30-year fixed rate is still at 6.4 percent versus 5.8 percent a year ago. The difference for ARMs is even bigger. The survey also takes into account differences in population density, relative income levels and historical valuations. Markets with premiums above 34 percent of “fair value” were deemed at risk for price corrections. “Price growth will have to be stagnant while income and employment rises for housing valuations to fall,” said Cataldi. Despite a substantial cooling of real estate markets, home prices were still 10.6 percent higher nationwide than a year ago, according to the Office of Federal Housing Enterprise Oversight.

For more information on this and other real estate matters, your first source for Palm Beach real estate should be licensed agent and long-time resident Caesar Parisi. Read the rest of this entry

search for : home prices, adjustable-rate mortgages

The housing market is a cornerstone of the nation’s economy and when it begins to crumble it only makes sense to shore it up with some fresh plaster. When the Federal Open Market Committee decided this week not to raise the federal funds rate it was, in part, a reaction to conditions chipping away at the very foundation of the economy. “The moderation in economic growth appears to be continuing, partly reflecting a cooling of the housing market,” said the Fed in a prepared release.

For years, the housing market was a bastion of double-digit inflation fueling a soft but humming economy with real estate cash from home buys, home improvements, equity tapping and growth in the number of home owners. Even as the stock market stumbled with fits, starts and stops, housing buoyed the economy.

Unfortunately, record levels of housing demand and spending boosted home prices beyond the affordability of more and more consumers. Consumers balked and sales this year have been falling like a rock.

At the current pace of change, what’s now single-digit price appreciation will become price depreciation in many markets before the end of the year, according to forecasts.

Real estate agent Caesar Parisi stands ready with effective advice on buying or selling Boca Raton FL condos. Read the rest of this entry

search for : housing market, Federal Open Market Committee, federal funds rate

If the real-estate market made sense, it would work like this: You’d put money down, take out a mortgage and buy a house for X number of dollars. Over the long haul, its value would steadily increase depending on variables such as interest rates and sweat equity. On a psycho-financial level, the homeowner would enjoy control over his/her shelter as well as tax benefits and the pleasant daydream of one day burning loan documents.

During periods of bubbly exuberance, prices can shoot up 20 percent or more a year. It’s like every homeowner is a lottery winner, drunk on dumb luck. Gimmicky instruments such as interest-only loans allow speculators to feed in a frenzy. Houses get flipped as fast as In-N-Out burgers during lunch hour.

Then, just like that, the mood changes from bubbly to flat. The flippers worry they’ll get caught upside down, owing more than their houses are worth. Buyers stand back, worried they’ll plunge in as the market heads south.

Real estate agent Caesar Parisi stands ready with effective advice on buying or selling a Boca Raton FL condo. Visiting the Delray Beach community? Contact Realtor® Caesar Parisi for information on buying or selling an Atlantic Grove Condo in Delray Beach Real Estate. Read the rest of this entry

search for : interest rates, sweat equity