JANUARY 2008 Newsletter
We hope that everyone had an enjoyable holiday and wish you a prosperous and healthy New Year.
The January 29 th vote of the Tax Reform is on the horizon. Much debate has taken place about the constitutionality of the bill, as well as others feeling it is just not the right thing to do. Palm Beach County, for one, is challenging the Save Our Homes portability element of the bill, claiming it is unfair to recent homeowners (4 years or less) versus the long-term homeowner who has amassed a very large tax credit in SOH. The next few weeks will be most interesting to see if the amendment stays on the ballot or alternative processes will be added. BUT… you be the judge. The following websites take up both sides of the issue. Check them out............. http://yeson1florida.com/scenarios and http://www.floridaballotinitiative.com/petitions/don/mht. As to the Property Insurance situation, other than the state fund to give homeowners more affordable choices, not much has happened. We have been two years without a hurricane, which has settled things down. However, I think we will still see insurers limit their risk in Florida – especially in the coastal areas like ours.
In 2007 home sales slowed to a crawl with a decline in sales of 29% over 2006. Interesting to note is that over the last 5-year period, prices have actually risen more than any other state, even with the recent price decline. In Florida prices are up 96.23% over what they were in 2002 according to the Government agency that tracks home price changes (OFHEO). The consensus of what happened in 2006-7 is that investors had more money than sense, mortgage lenders and banks were giving more money than could be paid back and homeowners did not take the time to read the terms of their financial deal.
What can we expect in 2008? Word is out that all analysts are saying, “it is time to buy”, with interest rates remaining historically low. If buyers sense the market has hit bottom, they will buy and others will jump in, afraid of missing the best prices. Hopefully, the Federal Government will put items in place that will save banks and other lenders (ie. freeze ARM rates) that could modestly impact foreclosures and eliminate a large dumping of houses on the market. Mortgage rates are the lowest in two years, but experts indicate a slight rise – but nothing to deter buyers. We may also see a strenthening real estate market boosting struggling builders to re-enter the new homes market.
Locally, things are looking up. Open Houses are drawing more people and agents are showing and selling homes at an increased pace. We have personally experienced a spike in the interest level. Our list of Buyers have become very interested in today’s market, requesting information and pictures of available properties. Hopefully this indicates an active and successful season ahead of us, as the experts continue to say the prices have hit bottom.
REMINDER…for those of you with property in Paradise, the new watering guidelines go into effect January 15. You can water from 4-8am and 4-8pm based on the last digit of your address. Monday 1-2, Wednesday
3-4, Thursday 5-6, Saturday 7-8 and Sunday 9-0. New plantings can be watered every day but Friday from 2-8am for the first 30 days. The next 30 days they can be watered Monday, Wednesday, Thursday & Saturday from 2-8am. No restrictions for car washing or power washing.
REMINDER….if you plan to make Florida your home, and you have owned and lived in the residence since January 1, 2008, you must file for the homestead exemption prior to March 1, 2008 to receive the exemption in 2008. See our website for links to the County to learn more.
REMINDER….as of January 31, 2008 –Passports are needed to visit Canada, Bermuda, Mexico and Caribbean.
REMEMBER…if you need assistance or have questions about your investment in Paradise or any other property in the area, please give us a call at the above number. We will be happy to provide any information you may need when making a Real Estate decision. And, do not forget to visit – and make part of your favorites – our new website at www.naplesgolf-marcobeach.com. | 