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NOW IS THE PERFECT TIME TO BUY REAL ESTATE

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The Housing Market Myth – Busted!

The truth is there is an inventory of empty foreclosures; the housing market may drop another 10%; existing home sellers are desperate.  All of this is true.
Only a select number of home builders can offer buyers new custom luxury homes in the “Vacation Capital of the World” at near foreclosure prices.
The price of Preconstruction Homes has bottomed.  These homes will not fall another 10%.  If you are contemplating a new home, vacation home, or investment real estate on Florida ’s East Coast, the time will never be any better than now!
Banks are loaning at, soon to be rising, historically low interest rates; Vero Beach Florida will be in the top 1% of real estate markets to recover rapidly, providing immediate equity.

Study this report then call 561-775-5660 for a private consultation.

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Wednesday, 15 October 2008  

Sarasota Real Estate Firm Promotes Sarasota on German Television

SARASOTA , FL , The topic of the televised interviews has been the real estate market in Florida and especially in the Sarasota Area [ Vero Beach is the Sarasota of the East Coast of Florida]. In July, two German TV crews, one with “Spiegel TV” and the other with “Stern TV”, filmed German buyers in Sarasota and interviewed them about the current Real Estate market, emphasizing the advantage European buyers have now, due to the strong Euro.

These reports not only promoted the real estate market, it also promoted the beauty and affordability of Florida . Both reports have been broadcasted several times nationwide in Germany on VOX TV in September and early October.

This media interest has triggered a huge amount of e-mails and calls from German viewers and it will definitely lure more buyers and tourists to Florida .

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Fred Pawle | October 15, 2008

Is now the time to snap up a holiday or investment property in the US ?

The rate of forced sales suggests the answer is yes, although the strengthening US dollar and uncertain capital gains mean it's not quite a foreign buyer's bonanza.

Already, 2.2 per cent of all US homes are in the foreclosure process, according to foreclosures.com. The Wall Street Journal predicted this week that there could be 1 million foreclosed properties on the US market by the end of the year.

Surprisingly, Florida ranks high among the states with significant rates of negative equity and foreclosures, and not just in the poorer areas. Fort Lauderdale and Coral Gables in west Miami have a surplus of large family homes in urgent sales.  [In Vero Beach , Florida foreclosures are rare, attesting to the quality of living on the “ Treasure Coast .”]

"I expect the bottom is very near," said Fort Lauderdale agent John Sabia. "It is expected that foreclosures will continue to rise into early 2009 and then begin to trim and decline as we move through the year."

California also had high rates of foreclosures, but mostly in the lower socio-economic towns between Merced and Stockton , inland from San Francisco .

Meanwhile, in more salubrious Santa Monica , foreclosures were low [akin to Vero Beach , Florida ], but the overarching depressed economic mood was still having an effect. "There are some very good buys," says agent Simon Salloom. "This is the best I've seen it since 2000. It's definitely a buyer's market. The ratio of rent to prices is good.

"It could still go down a little more, maybe 5 or 10 per cent. But if we do go down, I expect it will go back up real fast. Once the credit market thing figures itself out and we get a new President, I think things will really get better. I feel we’re at the epicentre of the storm right now."

“There is an opportunity to buy quality right now,” said west Los Angeles agent Jason Sturman. “There are a lot of properties on the market and still a lot of buyers, but our biggest problem right now is the lack of financing. It’s becoming more difficult for people to get loans. So people coming in with cash have a tremendous advantage.”

He said the prices would stay low through 2009, and would not rise until banks were able to start lending again.

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October 14, 2008: 4:05 PM ET

By Jeanne Sahadi, CNNMoney.com senior writer

NEW YORK (CNNMoney.com) -- The federal government on Tuesday announced a historic plan to restore confidence in the U.S. financial system and to spur banks to begin lending again more normally - both to each other and to consumers and businesses.

Here are the key elements that will be put in place first:

Buying equity in banks

The Treasury will buy up to $250 billion in senior preferred shares in a wide variety of banks.

Nine of the largest banks have agreed to be the first institutions in which the government takes a stake. But the program will be available potentially to thousands of banks.

The government may take senior preferred shares up to the lesser of $25 billion or 3% of the bank's risk-weighted assets.

The stakes will come largely in the form of non-voting shares and may be sold to a third-party if the government wishes.

The shares will pay 5% a year in dividends for the first five years and 9% after that. The increase in the dividend may serve as incentive for the banks - if they have the private capital to do it - to buy back the government's shares before the five years are up.

The government will also receive warrants to buy additional shares worth up to 15% of the preferred stock it buys. The strike price for Uncle Sam: the average price the stock was selling for over the 20-day period preceding the government's purchase of preferred shares.

Given the battering bank shares have taken in the past week, if the government exercises its warrants soon, it is likely to make a profit from its investment in the first nine banks in the program, said Jaret Seiberg, financial services analyst at The Stanford Group, a policy research firm.

Participants in the program will be subject to the restrictions on executive compensation that Congress included in the financial rescue law that it passed on Oct. 3. One such measure, for example, requires that any bonus or incentive paid to a senior executive officer for targets met will have to be repaid if it's later proven that earnings or profit statements were inaccurate.

Backing new debt from banks

The Federal Deposit Insurance Corp. will guarantee new, senior unsecured debt issued by banks, thrifts and bank holding companies. The new debt that will be covered must mature within three years, and banks may opt in to this program until the end of June 2009.

The intent is to give confidence to the buyers of bank debt that they will get paid back no matter what.

The program will be paid for by user fees imposed on banks. No taxpayer dollars or dollars from the FDIC insurance fund will be used.

Providing more coverage for bank deposits

The FDIC will temporarily provide unlimited coverage for all non-interest-bearing accounts, which typically are those where businesses park money to cover their near-term expenses such as payroll. The increased coverage will last through the end of 2009.

The program will be paid for by user fees that are part of the premium the bank pays the FDIC to insure deposits. No taxpayer dollars or dollars from the FDIC insurance fund will be used.

The goal is to boost liquidity for otherwise healthy banks - particularly regional and local ones - that might otherwise have seen nervous depositors pull their money out in favor of putting them at larger institutions.

Buy short-term commercial paper

The Federal Reserve is finalizing plans for a temporary program in which it will buy high-quality three-month debt issued by businesses in the commercial paper market.

The commercial paper market, which has been sharply curtailed in recent weeks, is the prime source of funding used to cover operating costs at many of the nation's largest companies and financial institutions.

The program would begin on Oct. 27 and would remain in effect until April 30, 2009.

The intent of the program is to guarantee there will be a buyer of the debt, which in turn will make private-sector buyers more confident that they will get paid back if they, too, buy a company's short-term debt. That's because the company pays back debt holders by issuing new commercial paper.

But what about buying troubled assets?

When the government's rescue plan was first formally proposed little more than two weeks ago, the major initiative was supposed to be the purchase of troubled assets off of banks' balance sheets.

The rationale: Banks are having a hard time attracting capital because there is concern that they may be holding so-called "toxic" assets. Those assets have underlying value but no one has known how to price them in the wake of the housing crisis.

The four major steps the government announced on Tuesday do not preclude the Treasury from pursuing its asset-purchase option. Indeed, Treasury and White House officials have indicated they are still working on structuring a program to buy troubled assets, which the government could hold until the market recovers and then sell back to investors at a profit. But it clearly isn't going to be the first effort out of the gate.

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View the following two videos for further explanation on instilling confidence in world markets.
http://money.cnn.com/video/#/video/news/2008/10/14/news.bair.101408.cnnmoney

The recession? It's already here

Sept. 9, 2008 U.S Gov. Bailout of Fannie & Freddie. The government slips a floor under existing home prices and opens banks’ lending channels.

Aug. 14, 2008 (CNBC) – U.S. New Home and Preconstruction Prices Have BOTTOMED!  

Aug. 7, 2008 (Bloomberg) -- U.S. pending sales of previously owned homes unexpectedly rose in June as buyers swept up foreclosed and lower-priced properties.

The index of pending home resales rose 5.3 percent after a revised 4.9 percent decline in May, the National Association of Realtors said today in Washington .

The most foreclosures on record have forced property values down enough to stir interest among buyers, helping to stabilize the market.  “What we're getting is a little bit of foreclosures thrown in with voluntary home sales,'' John Silvia, chief economist at Wachovia Corp. in Charlotte, North Carolina, said in an interview with Bloomberg Television. `There seems to be enough of a price decline that buyers are starting to look for bargains.''

The measure increased in all four regions of the country from May, led by a 9.3 percent gain in the South. Purchase contracts also rose 4.6 percent in the West, 3.4 percent in the Northeast and 1.3 percent in the Midwest . Compared with a year ago, contract signings remained down in all four regions.

Gains Broadening

Sales ``have been consistently strong'' in cities such as Sacramento , California , Las Vegas and Ft. Myers , Florida , according to the report. The increases are also broadening to more ``affordable'' markets like Columbus , Ohio , and Charleston , West Virginia , the NAR also said.

Economists had projected the index would fall 1 percent after a previously reported 4.7 percent decrease in May, according to the median of 37 forecasts in a Bloomberg News survey. The June gain is the third this year.

“The rate of decline is decelerating,'' Bethune added. `Affordability has improved. We're starting to move toward a bottom.''

The pending resales report is considered a leading indicator because it tracks contract signings. Closings, which typically occur a month or two later, are tallied in a separate report from the Realtors.

Decade Low

The group's figures on July existing home sales are due Aug. 25. Purchases in June fell 2.6 percent to a 4.86 million annual pace, the lowest level in a decade, from a 4.99 million rate the prior month. The median home price in June was $215,100, down 6.1 percent from the same month last year.

Aug. 7, 2008 (Mayur Pahilajani - AHN News Writer)

New York , NY (AHN) - The housing market may not be driving the U.S. economy in to the recession, after all.

The number of homes under contract to be sold surged unexpectedly in the month of June, according to a report released Thursday.

The National Association of Realtors reported on Thursday that pending U.S. homes sales rose by 5.3 percent in June, more than the prior month that was revised downwardly to 4.9 percent.

The report showed that its seasonally adjusted index of pending sales for existing homes increased to 89, compared to the reading of 84.5 in the month of May.

The market analysts had expected the NAR's Pending Home Sales Index to dropped to 84.3 in the month of June.

Some market analysts speculated that bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price drops.

"Buyers entering the hardest-hit markets, in some cases with multiple-bid offers, may have put a floor on prices," Lawrence Yun, chief economist for the NAR, said in a statement.

The NAR's index, which was down to a record low of 83 in March this year, was at 101.4 in June 2007.

The pending home sales index, which is considered to be a leading indicator of existing home sales, increased in all the four regions of the country.

In the Northeast in the month of June the index was up by 3.4 percent. The index increased by 1.3 percent in the Midwest, 4.6 percent in the West and 9.3 percent in the South of the U.S.

Despite the monthly gains, all four regions remain below year-ago levels, as the June index was 12 percent down.

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Meanwhile, some market analysts are expecting the last month's “Housing Bill” to help the sales recover from the slumping market condition in the following months.

The U.S. Senate voted 72 to 13 in favor of the bill that offers up to $300 billion in loan guarantees for homeowners to get cheaper loans.

The new law will also be used to rescue the beleaguered firms, Fannie Mae and Freddie Mac, which have found difficult to raise fresh capital enough to shore up its weakened balance sheet.

The housing legislation, which is the second major step by the Bush administration after economy stimulus package in tax rebates, is aimed to help hundreds of thousands of families from losing their homes to foreclosure.

The new law signed by President Bush last week include a $7,500 tax credit for first-time homebuyers, which is likely to improve the housing market.

The basic rendering of the bill revolves around the following:

·     Help to Fannie Mae and Freddie Mac from the Treasury if they need it.  (Together with a supposedly stronger regulator)

·     Refinancing help for homeowners under stress from the FHA.

·     Grants for municipalities to buy abandoned properties.

·     Housing tax breaks, including a credit to first time buyers.

·     Money for pre-foreclosure counseling and legal services.

·     Some profits from Fannie and Freddie will build affordable rental housing. 

By PAUL GORES
pgores@journalsentinel.com

Posted: Aug. 7, 2008

The weak real estate market received a dose of good news Thursday when a report showed pending sales of homes in the U.S. took an unexpected jump.

The National Association of Realtors’ index of pending home sales rose 5.3% in June after a 4.9% slide in May. Economists had projected the index would fall 1%. Pending home sales are those on which the seller has accepted an offer but the transaction hasn’t yet closed.

Some analysts attributed the rise in pending sales to the record number of foreclosures and a decrease in home prices. 

“On the demand side, what’s really been active is housing under $300,000,” Ruzicka said, adding that he was optimistic about sales picking up in the second half of this year and next spring.

A package of housing legislation signed last week by President Bush, which includes a tax credit of up to $7,500 for first-time buyers, also might be stirring interest.

“I was shocked at how many Realtors, in the first couple days, got calls from buyers saying, ‘We heard about the $7,500 tax credit, and we want to start looking at houses,’ ” Ruzicka said.

This program could help as many as 400,000 homeowners across the country facing foreclosure.  The 700-page bill also contains funding for counseling agencies, block grants for communities to buy and rehabilitate foreclosed properties, tax breaks for first-time home buyers and protections for older Americans and veterans returning from military service.

By: JBS Staff
August 18, 2008

An emergency monetary “bazooka” has been provided the Treasury.    Three hundred billion dollars for FHA loan guarantees was also authorized through fiscal year 2011 to assist borrowers at risk of foreclosure to refinance into affordable fixed-rate mortgages. The plan requires that voluntarily participating lenders take a write-down on each existing mortgage off-loaded to the FHA lender.  Authority was also provided for $3.9 billion in grants to state and local governments to buy abandoned and foreclosed residential properties.

Sunday, August 10, 2008

By KATHY JUMPER

Real Estate Editor

First-time homebuyers have a $7,500 incentive to buy a house, but here's the kicker: For the purposes of the new federal housing stimulus bill, a "first-time" homebuyer is anyone who has not owned a house in the past three years.

The Housing and Economic Recovery Act of 2008 is aimed at jump-starting the sluggish real estate market.  Realtors and builders predict it will reduce inventory and spur some move-up buyers to purchase new construction. "It should help all builders," said custom builder Mark Swanson, president of the Home Builders Association of Metro Mobile. "A lot of people are sitting on a house that they need to sell before they can move up. I think we'll see some first-time homebuyers purchasing those houses."

Key elements of the legislation signed by President Bush in late July include:

A temporary tax credit up to $7,500 available for first-time buyers who purchased the home on or after April 9 of this year, or who buy before July 1, 2009. Single taxpayers with incomes up to $75,000 and married couples who earn up to $150,000 qualify for the tax credit, which must be paid back over 15 years starting in 2010.

Revitalizing the Federal Housing Administration so more working families can become homeowners. The FHA will be able to insure up to $300 billion in mortgages to refinance loans headed for foreclosure.

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Downsizing the American Home - by Shawn Tully
Friday, June 6, 2008provided by

When the real estate market comes back, it will not be with a sonic boom. It is likely to be subtle, below the public's radar. The revival will probably begin in the areas hit hardest by the bust: in Florida , Las Vegas , and the honeycombed tracts that flank the broad freeways east of Los Angeles known as the Inland Empire . (Indeed, home sales in Southern California surged 22% from March to April, hitting their highest levels since August.) Why will housing come back? For a reason as solid as floor joists; the entry-level buyer, for the first time in years, is finding that owning a new house is suddenly just as cheap as renting. "Those first-time buyers got locked out by high prices," says John Karevoll of DataQuick, a research firm that assembles data on the U.S. real estate market. "Now the buying activity that was on hold is starting to come back."

In hindsight, the reason for the current malaise is simple: too few buyers. By 2007 more and more people were frozen out of the market - especially the entry-level buyers, who now account for as much as 30% of new-home sales. From 2005 to 2006 some first-timers rushed to purchase homes they couldn't afford with the help of exotic loans. But another big group of consumers steered clear and are finally looking to buy. Now that prices of new houses have fallen as much as 30% they are returning - prompting a turning point in the housing cycle. Call it the New Affordability.

Three factors are driving the New Affordability: housing prices, house size, and the government's expanding role in the mortgage market. [Step one for Uncle Sam was providing a floor for falling property values.  Step two is raising interest rates to stimulate a buying frenzy and turn the housing market around.]  The experience of Richard Murkey, 28, and his wife, Kayla, 25, epitomizes the trend. These Las Vegas residents started shopping in 2006 but couldn't remotely afford the $300,000-plus prices that modest houses were fetching at the height of the frenzy. "Then, in the middle of 2007, we saw prices dropping, so we started looking again," says Richard, who sells safety products to construction sites. In January the Murkeys went to contract on a four-bedroom, Tuscan-style house at $246,000, more than $50,000 less than it sold for 18 months before.

Today's buyers are willing to trade size and amenities for far lower prices. But they're extremely specific about what they want to keep. Buyers welcome houses half as big as the models that reigned at the peak, as long as they offer plenty of bedrooms. They also don't miss the formal living and dining rooms if a "great room" combines the two in one open space that includes a generous-sized kitchen.

Bargain-hunters are drawn to these smaller houses, which look just like the behemoths built in 2005 and 2006; right next to them are new houses with exactly the same 50-foot façades- and a big difference you don't notice from the street: They're about half as deep and roughly 2,000 square feet. Those homes preserve the community's curb appeal by keeping the façades looking similar and sumptuous. But purchasers love that the new homes boast five bedrooms, and they especially appreciate the price tag: about $220,000, vs. $420,000 for the big neighboring homes built at the peak (and that now sell for around $300,000). Over time this New Affordability may swell the ranks of buyers. "What's been killing the market is people who are waiting to buy or incapable of getting financing," says Jonathan Dienhart of Hanley Wood Market Intelligence, a residential real estate research firm.

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Today both land and construction costs are falling rapidly. In Florida , construction costs for a 2,000-square-foot home have dropped to $80,000, vs. $100,000 at the peak, a 20% reduction. The result is that the average sales price there has fallen from $275,000 to $215,000.

Consumer prices were 5% higher than a year ago and rose 1.1% on a monthly basis, the Labor Department said.

Federal Reserve boss Ben Bernanke has warned that the threat of rising inflation has intensified recently.

Minutes from the Fed's latest meeting on interest rates indicated the next move in borrowing costs could be up.

It faces the dilemma of having to stem the rise in inflation while not further choking an economy under serious strain.

'Fed in a hole'

June's annual inflation increase was the highest since 1991 while the monthly jump is the sharpest since September 2005.

In his second day of congressional testimony on Wednesday, the Fed boss said inflation was too high and it was a key objective for the central bank to bring it down.

Many analysts now believe that the central bank may have to leave borrowing costs on hold, or even increase them, as it tries to steer a faltering economy through turbulent times.

At the same time as inflationary pressures are rising, the US faces a severe housing slump, a credit crunch and financial market turmoil stemming from the collapse of the sub-prime mortgage market.

According to minutes of the Fed's interest rate meeting in June, policymakers believed "the next change in the stance of policy could well be an increase" due to "upside risks to inflation and inflation expectations".

The cost of taking out a mortgage in the US has climbed again due to fears over the fate of two huge lenders, according to The New York Times.

The interest rate on an average 30-year fixed rate mortgage rose to 6.71% from 6.44% on Friday, HSH Associates says.

And rates on loans of $729,750 or more hit 7.8%, the most since December 2000.

[Rising interest rates trump declining property values, if in fact there is any further declining.  Strength of the USD will shrink the spread of the dollar vs. the euro.]

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Updated Wednesday, July 16, 2008
The upside of Florida real estate: 20 market positives

Let’s take a look at some of the opportunities and positive indicators for the future of Florida ’s real estate market.

1. Long-term economic and demographic trends continue to favor Florida . By 2010 it has been forecast that Florida will be the third most populated state in the country. Florida ’s population is expected to increase about 75 percent by 2030. Florida demonstrates a long history of strong growth. It has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often it has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic growth such as new jobs and growing incomes.  All of which is good for real estate.

2. People continue to move here. It’s estimated that 900 people move here every day. Based on recent trends, Stan Smith, director of UF Bureau of Economic and Business Research, said he expects Florida to add about 300,000 residents a year during the next two to three years.

3. Five of the top 15 cities in the Milken Institute’s 2007 “Best Performing Cities” survey, which looks at sustainable economic growth, are in Florida , including the No. 1 city, Ocala . A total of 13 Florida cities are in the top 50.

4. Low unemployment. Almost 120,000 jobs were created in Florida in the year between August 2006 and August 2007.  Florida ’s unemployment rate has hovered at or under 4% for a long time; and was 4% in August 2007, according to the latest data available from the U.S. Department of Labor. That not only puts it well below the national unemployment average, it also is the lowest unemployment rate among all ten of the most populous states.

5. Jobs are plentiful, and that trend will continue. A recent study by Bizjournals called “Where the Jobs Are” found that 7 of the hottest 15 job markets are in Florida .

6. Let’s take a look at the weather. If you think the hurricanes we experienced are going to have long-term effects on the Florida real estate market, consider this tidbit from Fortune Magazine.  It recently reported, “Economists and geographers who have studied how natural disasters affect real estate values have generally found there to be no lasting impact.”   Example #1:  When Hurricane Hugo hit Charleston , S. C., home values were actually higher one year later.  Example #2:  That same year, 1989, a huge earthquake made big news in San Francisco , and the same thing happened—house prices went up.

7. Grant Thrall, a professor of what’s called Economic Geography, explains this phenomenon this way—residents move away and home prices fall only when natural disasters start becoming regular occurrences in an area, not when they happen periodically.  And while the hurricane seasons of 2004 and 2005 may still be fresh in our minds, the fact is, historically it was a fluke.  Eight storms hit the Florida mainland in those two years.  But if you look back at the 50 years prior, only six Category 3 or higher storms hit the Florida mainland in half a century.  [ Florida ’s infra-structure was surprisingly resilient after the 2004 and 2005 storms.  Those storms spurned housing structural upgrades that will lower or eliminate damages if we ever experience further storms.]

8. Gov. Charlie Crist, state lawmakers and business groups are committed to finding real solutions to the escalating costs and shortage of property insurance in Florida , as well as much-needed property tax reform. Florida Realtors will continue working closely with lawmakers to help resolve these complicated issues and keep the state’s economy moving forward. For example, 2007 FAR President Nancy Riley sits on the governor’s property tax reform commission, and 2005 FAR President Frank Kowalski served on the governor’s insurance reform commission.

9. Interests rates currently are still low, on a par with interest rates in the 1960s.  And thanks to the Fed’s recent rate cut, we’re already seeing lower rates on home equity and mortgage loans, including jumbo loans. The Fed’s action effectively increases the number of homebuyers able to make a purchase, which should increase demand, and also help support home prices. Home prices continue to stabilize, inventory is plentiful and homebuyers have lots of options.

10. Homeownership has value: Realtors believe… and research supports that belief … that homeownership provides a variety of benefits, tangible and intangible, to the community as well as the individual homeowner.

11. Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group. Home value is the most important single aspect for homeowners.

12. Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.

13. Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They’re also shown to have a higher lifetime annual income.

14. People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact with their neighbors to gain wider influence over their neighborhoods and communities.

15. Homeowners join up to 41 percent more civic and/or nonprofessional organizations than renters, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.

16. 2007 Florida Association of Realtors® (FAR) President Nancy Riley says, “Florida Realtors know buying a home is a very personal investment – an investment in a family’s future. Although research shows it is the largest single investment most families make and helps to provide security for the future, owning a home isn't just a financial investment. Ownership is about having a place to call home: a place where families build a future and become part of a community.”

17. Over the past five years, the average homeowner has seen an increase of 50 percent in value, according to the National Association of Realtors® (NAR). Here in Florida , the statewide median home price has shown an increase of 52.5 percent from November 2002 to November 2007, according to FAR records. NAR housing industry analysts project that prices will rise about 2 percent next year, and in coming years, average home price appreciation should return to historical averages of around 6 percent.

18. Florida is a great place to live and work. According to Enterprise Florida Inc., the Sunshine State has one of the nation's strongest tourism industries; it is fourth in the nation in high-tech jobs; is the third largest exporter of high-tech goods and services; and is ranked as one of the best states in the nation to be an entrepreneur.

19. Orlando-based economist Dr. Hank Fishkind recently said in several media reports he believes that “the worst of the so-called housing crisis has probably been mitigated by the actions of the Fed. Recovery will take a while, but it has begun.” Another economist, Dr. Lawrence Yun, chief economist with the National Association of Realtors, predicts that the Florida housing market will get stronger in 2008 and will be booming again by 2010.

20. And let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax.  It’s no wonder that Florida ’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put us at the top of Harris Poll’s “most desirable places to live” survey.

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Why It's a Great Time To Buy Real Estate in Florida !

Inventory: Conditions are ideal for buyers to find their dream home. Inventory is plentiful. In Florida ’s three largest markets alone, more than 125,000 homes were for sale at year’s end in 2007. Even with these high inventory levels, economists predict that number will go down in 2008 – which, of course, is another great reason to buy now.

Favorable interest rates/reduced prices: Do the math. Lower rates multiply buyers’ financial power, especially now when rates are near a 40-year low. Even one/half of one percentage point difference means a buyer could save more than $1,000 per year on a median-priced home. Buyers get more home for the money, which is a perfect scenario for families looking to upsize.

Do the numbers

Ownership trumps renting: While renting may make sense for someone who expects to move in the next year or two, ownership continues to be a wise, long-term investment. Consider these financial benefits: Deductions on your annual income tax return, locked-in payment with a fixed rate mortgage, home price appreciation if you plan to live there for a few years, and a monthly mortgage payment comparable to rent payments. House values in the past decade have risen 88 percent on a national average, according to National Association of Realtor® research.

2008 NAR Public Awareness campaign

Attractive, secure financing options:  Having good credit and secured down-payment capital are the most sure-fire ways to get the best mortgage deal. Fixed rates are more affordable, and many federally funded programs are available for first-time homeowners, teachers and police officers. Affordable housing loan programs are back in the picture too.

Help for first-time homebuyers

Financial value to foreign buyers: International buyers benefit from the weaker U.S. dollar, multiplying their purchasing power. Buyers also appreciate the relatively low costs of Florida property compared with similar homes in their countries. According the “2007 NAR Profile of International Home Buying Activity Study,” Florida accounted for 26 percent of all international purchases.

US Dollar to Euro Currency Exchange Forecast

U.S. Dollars per one Euro.  Average of Month.

mbrannigan@MiamiHerald.com

Florida remains by far the most popular location for foreign buyers of real estate, accounting for 25.4 percent of all international purchases in the United States .

However, the number of foreign buyers nationwide declined over the past year, reflecting the deep U.S. housing slump, a new study released Thursday by the National Association of Realtors said.

The profile of international home buying activity said that ``foreign buyers -- like U.S. buyers -- may be waiting for home prices to continue to decline in order to purchase a property at a lower price.''

[The spur under the saddle of that philosophy is rising interest rates.  Even if the Fed drops interest rates again in the future, the banks will not.  Borrowers are not only going to find money harder to borrow, but also more expensive to borrow.  If property values drop another $10,000 to $20,000, rising interest rates will gobble that that up in no time.  So the real impetus to buy now is low prices combined with low interest rates.  As the Fed moves to wrangle-in inflation, interest rates will rise.  And let us not forget the Dollar vs. the Euro.  NOW IS THE TIME TO BUY.]

Despite the current downturn, 35.5 percent of Florida Realtors surveyed said their international business has grown in the past five years, the report said. Some 52.6 percent in Florida reported their foreign business remained about the same, and only 11.8 percent indicated foreign business had decreased.

Thirty-eight percent of the Realtors thought the weak dollar was having a significant impact on foreign buyers looking in the United States , the study said.

But there were also some factors putting the brakes on U.S. purchases. 'While U.S. real estate is still considered a `safe haven' for foreign funds, there are some perceived impediments to foreign purchases including cost of property, immigration laws, and property taxes,'' the report said.

Crist, Florida’s Govenor, said he plans to cut Florida property taxes in exchange for a higher sales tax. State officials said the $8 billion cut should be made up by raising sales tax by a penny.

NAR's 2007 Profile of International Home Buying Activity

Location/lifestyle. With the extensive inventories in urban and suburban locales, buyers can live closer to work, schools and rapid transit lines. First-time homebuyers now have a package of housing legislation signed last week by President Bush, which includes a tax credit of up to $7,500.  And let’s not forget Florida ’s climate, world-class beaches, vibrant economy and diverse population.

While homes may be selling slowly in Florida , the fact remains that homes in the Sunshine State are selling, and that’s good news. As Florida economist Stan Geberer recently said in various media reports: “If we had all this excess inventory and nobody wanted to move here, you wouldn't be able to sell the homes at any price. The fact that we have underlying demand and new job growth suggests this underlying demand is sufficient to clear the excess inventory without a dramatic collapse in prices.”