Real Estate Information

FORT LAUDERDALE, Fla. – May 22, 2012 – GL Homes reported a strong weekend of sales at The Bridges near Delray Beach, another indication that builders are gradually recovering from the housing meltdown.

“Interest is definitely coming back,” said Marcie DePlaza, a division president for GL. “We feel really good about where the market is right now.”

Other builders also are enjoying a resurgence.

The 198-unit Centra townhome development in Boca Raton is nearing completion, says Harry Posin, a builder working on the project with Fort Lauderdale-based Stiles Corp. as a joint venture.

In Broward County, the Monterra development in Cooper City had 400 housing starts last year, representing most of the county’s new residential construction, according to the Metrostudy research and consulting firm.

Originally scheduled to be complete by 2015, Monterra is on pace to be finished next year, says Jim Carr, principal of the builder, CC Devco. Monterra features 850 single-family homes from $325,000 to $700,000.

Last week, Standard Pacific Homes of California broke ground on 450 homes in Parkland. Watercrest at Parkland will feature one- and two-story single-family homes priced from the mid $300,000s to $700,000.

The home construction is expected to start later this year. Some officials estimate that Parkland’s population will increase by 15,000 once the development is completed.

Sunrise-based GL wrote 18 contracts after unveiling nine model homes at The Bridges along Lyons Road between Clint Moore Road and Atlantic Avenue. The builder says more than 5,000 people visited Saturday and Sunday.

GL now has contracts for 121 homes worth almost $100 million since the 600-home development opened in February. The first buyers will move in by late summer.

The homes range from 2,400 to 7,500 square feet, with prices from $500,000 to $1.5 million. GL is targeting families, empty nesters, move-up and international buyers.

Amenities include impact glass, a poolside bistro, indoor sports complex and a children’s and teen activity center.

The housing bust starting in 2006 sent builders into bankruptcy or out of business altogether, but 36-year-old GL weathered the downturn as well as most companies.

A recent survey from the National Association of Home Builders and Wells Fargo showed builder confidence was at its highest level since May 2007. The builder trade group said “stabilizing prices and excellent affordability encourage more people to pursue a new-home purchase.”

Builders are benefiting as buyers realize that prices are at or near the bottom, said Brad Hunter, South Florida director of Metrostudy.

“Pretty much every market is seeing improvement right now,” he said. “The ones that got beaten up the most are coming back the strongest.”

WASHINGTON – May 22, 2012 – Despite a lack of empirical data, interviews with more than 30 Realtors, lenders, builders and consumers suggest that a small but growing number of American borrowers are bouncing back to homeownership relatively quickly following a foreclosure, bankruptcy or short sale.

“Most are not ashamed or bashful about what happened because so many people were forced into that reality in the last six years,” says Graham Epperson, an executive with major homebuilder PulteGroup.

The bulk of consumers who have reentered the ownership market have done so because of FHA loans. Home financing backed by the agency may have a higher interest rate than conventional mortgages, but it does not demand proof of income, a high credit score or a sizable downpayment like other loans.

The rising number of FHA-insured loans, however, is giving some economists flashbacks of the subprime-lending era. “FHA is putting people back into situations that still have a high risk of default,” warns American Enterprise Institute resident fellow Edward Pinto.

Frank Donnelly, president of the Mortgage Bankers Association of Metropolitan Washington, D.C., however, insists that most of the loans going through FHA are for borrowers who have significantly repaired their credit. “They have to prove (to the lender that) it was something like a job loss that caused this and not chronic delinquency,” he says.

Lenders tend to be more forgiving if a consumer suffered a job loss than if he or she simply chose to walk away from the mortgage when they could afford the payments.

WASHINGTON – May 21, 2012 – The National Association of Realtors® (NAR) expanded Internet Data Exchange (IDX) policy at its board of directors meeting this weekend. Under the new guidelines, IDX listings may be displayed on mobile devices, such as smartphones and iPads, as long as an MLS participant controls the displays.

NAR considers “participant websites” as ones in which MLS participants have “actual and apparent control.” “Control” means participants can add, delete, modify or update their information, and a reasonable consumer would recognize the information as the participant’s.

In a separate action, NAR’s board noted that technology changes quickly, and it’s not always easy for Realtors and MLSs to keep up. To combat the problem, the board created the MLS Technology and Emerging Issues Subcommittee, which will “anticipate and analyze MLS technology issues.”

The subcommittee will have a chair and 15 members, at least eight of which will be Realtors with experience in governance or operation of a local or regional MLS. The rest will be MLS administrators or MLS technology or administrative staff.

Prior to the board meeting, NAR’s Multiple Listing Issues and Policy Committee again considered a publication of rules for IDX listings on social networks, such as Facebook. However, the rule did not move forward.

MCLEAN, Va. – May 18, 2012 – Fixed mortgage rates again hit new record lows in Freddie Mac’s weekly survey. The 30-year fixed-rate mortgage at 3.79 percent continues to remain well below 4 percent, and 15-year fixed-rate mortgages are also slightly down at 3.04 percent.

“The European debt crisis overshadowed improving economic indicators for the U.S. and allowed … fixed mortgage rates to ease for another week,” said Frank Nothaft, vice president and chief economist, Freddie Mac. “For instance, industrial production rose 1.1 percent in April – the largest gain since December 2010 – and consumer sentiment in May rose to its highest reading since January 2008, according to the University of Michigan.”

At 3.79 percent, the 30-year fixed-rate mortgage (FRM) is down from last week when it averaged 3.83 percent. Last year at this time, the 30-year FRM averaged 4.61 percent. For the week ending May 17, 2012, it had an average 0.7 point.

The 15-year FRM this week averaged 3.04 percent with an average 0.7 point, down from last week when it averaged 3.05 percent. A year ago, the 15-year FRM averaged 3.80 percent.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent this week, with an average 0.6 point – an increase from last week when it averaged 2.81 percent. A year ago, the 5-year ARM averaged 3.48 percent. The one-year Treasury-indexed ARM averaged 2.78 percent this week with an average 0.5 point, up from last week when it averaged 2.73 percent. At this time last year, the one-year ARM averaged 3.15 percent.

Check out these stats and SPREAD the positive news.  Orlando MSA is making a comeback.   

   Median Home Price UP 10% Year over Year 

Only 3.67 month of inventory on the market.    

Avg Days on the market down to 87 from 104 Year over Year 

Interest Rates continue to maintain Historic Lows 

WASHINGTON – May 16, 2012 – The majority of Americans don’t fully understand how credit scores are formulated, according to a survey released by the Consumer Federation of America. That gap in knowledge can cost them when applying for a mortgage.

While the survey showed a big improvement over the last year in the number of Americans who understand how credit scores are used and how companies collect credit information, most still don’t fully comprehend how credit scores are calculated or used.

For example, the survey found that respondents did not fully understand how a low credit score could hurt them. “Only 29 percent are aware that, on a $20,000, 60-month auto loan, a borrower with a low credit score is likely to pay at least $5,000 more than a borrower with a high credit score,” according to the Consumer Federation of America survey.

The survey found that 56 percent of respondents mistakenly believe a person’s age and 54 percent believe a person’s marital status are used to calculate a credit score. Twenty-one percent also mistakenly said that a person’s ethnic origin was a factor.

The survey also found that less than half of respondents – 44 percent – understood that a credit score is used to measure a bank’s risk when lending money. Twenty-two percent mistakenly thought credit scores measured a person’s amount of debt and 21 percent said credit scores were “financial resources.”

Still, the survey found that more people are becoming aware of the factors that can hurt or help a credit score compared to last year’s results. More people in the recent survey knew that a missed payment, bankruptcy or carrying high credit card balances could lower their credit score. Most respondents also knew that making payments on time can raise their credit score, while missing a payment can lower it.

Celebrate, Remember, Fight Back !

March 30^th – March 31^st Join Celebration in its 10^th Anniversary supporting Relay for Life. This 18 hour walk at Lakeside Park raises funds in the fight against cancer for the American Cancer Society. Held around the downtown lake, the luminaries are breath taking while they glow though the night. Everyone is welcome to join in the festivities. In honor of the survivors, of those fighting the fight, and the ones we have lost, Celebration is turning the Town Purple.

Purchase a tree ribbon for a donation of $5.00 per tree and help us find a cure!

For more information call Dulcy Murchison at 407-566-1200 ext. 202

WASHINGTON – May 11, 2012 – Average U.S. rates for 30-year and 15-year fixed mortgages fell to fresh record lows this week. Cheap mortgage rates have made homebuying and refinancing more affordable than ever for those who can qualify.

Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan ticked down to 3.83 percent. That’s the lowest since long-term mortgages began in the 1950s. And it’s below the previous record rate of 3.84 percent reached last week.

The 15-year mortgage, a popular option for refinancing, dropped to 3.05 percent, also a record. That’s down from last week’s previous record of 3.07 percent.

Low mortgage rates haven’t done much to boost home sales. Rates have been below 4 percent for all but one week since early December. Yet sales of both previously occupied homes and new homes fell in March.

There have been some positive signs in recent months. January and February made up the best winter for sales of previously occupied homes in five years. And builders are laying plans to construct more homes in 2012 than at any other point in past 3 1/2 years. That suggests some see the housing market slowly starting to turn around.

Still, many would-be buyers can’t qualify for loans or afford higher downpayments required by banks. Home prices in many cities continue to fall. That has made those who can afford to buy uneasy about entering the market. And for those who are willing to brave the troubled market, many have already taken advantage of lower rates – mortgage rates have been below 5 percent for more than a year now.

Mortgage rates are lower because they tend to track the yield on the 10-year Treasury note. Slower U.S. job growth and uncertainty about how Europe will resolve its debt crisis have led investors to buy more Treasurys, which are considered safe investments. As demand for Treasurys increases, the yield falls.

To calculate the average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.

The average rage does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for 30-year loans was 0.7 last week, down from 0.8 the previous week. The fee on 15-year loans also was 0.7, unchanged from the previous week.

The average on one-year adjustable rate was 2.73 percent last week, down from 2.7 percent the previous week. The fee on one-year adjustable rate mortgages was 0.5, down from 0.6

TALLAHASSEE, Fla. – May 10, 2012 – The greater Miami area led the nation in the percentage of homeowners that went through a foreclosure or who were more than 90 days behind on their mortgage payment, according to a national review of 366 metropolitan areas released yesterday by Foreclosure-Response.org, a Washington-based advocacy group maintained by the Center for Housing Policy, the Local Initiatives Support Corporation and the Urban Institute.

Florida has been slow to get back on its feet because of a foreclosure process that, on average, takes more than two years to complete, according to the report.

Miami-Dade/Fort Lauderdale/Pompano Beach had the nation’s highest foreclosure rate and the highest percentage of delinquent loans in December. The Miami metropolitan area had a foreclosure rate of 18.9 percent. Add to that the percentage of mortgages more than 90 days late and the figure jumps to 23.6 percent – nearly one in four mortgages.

Florida cities captured nine out of the top 10 slots on both foreclosures and delinquencies for the month. Looking at just foreclosures, Florida held the top five spots, with Miami followed by Port St. Lucie (16.7 percent), Palm Coast (16.6 percent), Tampa (15.9 percent) and Orlando (15.6 percent.)

“The high and growing foreclosure rate reflects a buildup of homes that are stalled in the foreclosure process,” the report stated. “According to data from LPS Applied Analytics, foreclosure starts continue to outpace foreclosure sales, and the foreclosure rate will remain high until these properties fully complete the foreclosure process.”

Lenders who halted foreclosure proceedings amid the robo-signing investigations are now resuming their efforts to get rid of troubled properties. Like other large cities, Florida’s metropolitan areas have seen a steady uptick in foreclosures over the past few years.

Another major factor contributing to the backlog in Florida is that a judge must be involved in foreclosure proceedings, a requirement that has slowed the foreclosure process in Florida and other states that require judicial review.

In Florida, the average foreclosure takes more than 800 days to complete. Recent attempts to remove judges from the equation have not garnered the legislative support needed to pass.

“This year Florida re-hired retired judges to help sort through the backlog of foreclosures,” the group concluded. “However, the future still remains unclear in Florida and other judicial states.”

LOS ANGELES – May 9, 2012 – The percentage of U.S. homeowners behind on their mortgage payments dropped in the first three months of this year to the lowest level since 2009, according to a new report.

Some 5.78 percent of the nation’s mortgage holders were behind on their payments by 60 days or more in the January-to-March quarter, credit reporting agency TransUnion said Wednesday.

That’s down from 6.19 percent in the same period last year, and below the 6.01 percent delinquency rate for the last three months of 2011.

The decline in the U.S. mortgage delinquency rate follows two quarters of increases. But barring any severe shocks to the U.S. economy, the rate is expected to continue easing, said Tim Martin, group vice president of U.S. Housing for TransUnion.

“We had a couple quarters where it ticked up, so it’s nice to see it come back down,” Martin said. “That should be what happens the rest of the year, so we’re hopefully on the path of improvement now.”

TransUnion’s analysis is derived from a sample of 10 percent of U.S. mortgage holders.

Before the housing bust, mortgage delinquencies were running at less than 2 percent nationally. It took about three years after the housing market crashed for the delinquency rate on mortgages to climb to a peak of nearly 7 percent in the fourth quarter of 2009. The rate has been trending down since then.

Seasonal patterns – such as homeowners skipping payments to spend money elsewhere in the last three months of the year – were likely a factor in the uptick last fall.

Still, the national delinquency rate remains well above its historical range, an indication many homeowners are still struggling five years after the housing downturn.

“It’s coming down a lot more slowly than it went back up,” Martin said.

The delinquency rate won’t likely get back down to its normal 2 percent level until housing prices recover.

Home prices dropped in February in most major U.S. cities for a sixth-straight month, according to the Standard & Poor’s/Case-Shiller home-price index.

Still, there have been some bright spots in housing and economic trends this year that could point to further improvement in the mortgage delinquency rate.

The U.S. unemployment rate has fallen a full percentage point since August to 8.1 percent last month – the lowest level since January 2009. Hiring has strengthened, despite posting weaker-than-anticipated gains in March and April. And the economy grew at an annual rate of 2.2 percent in the first quarter, aided by stronger consumer spending.

And while sales of previously owned homes fell in March, a mild winter drove gains in January and February making this year’s winter the best for home sales in five years.

As long as the economy, housing market and jobs outlook continue to improve, it’s likely fewer homeowners will fall behind on their mortgage payments, Martin said.

Another factor: Loans made between 2008 and 2011, after the housing crisis had begun, have a lower delinquency rate than older loans.

“As time goes on, they become a bigger and bigger percentage of the total, so that helps bring the rates down as well,” Martin said.

All but eight states saw their mortgage delinquency rate decline in the first quarter versus the last three months of last year: Montana, Hawaii, Maine, North Dakota, New York, Maryland, Washington and Delaware.

Florida led the nation with the highest mortgage delinquency rate of any state at 13.87 percent, down from 14.27 in the fourth quarter of last year.

The Sunshine State wasn’t the only foreclosure hotbed where mortgage delinquency improved in the first quarter.

The mortgage delinquency rate in Arizona was 6.86 percent, down from 7.50 percent in the fourth quarter of 2011. California’s declined to 6.66 percent from 7.14 percent, while Nevada’s fell to 11.16 percent from 12.08 percent.
Copyright © 2012 The Associated Press, Alex Veiga, AP real estate writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.