Naples Florida Real Estate Blog

Bear at Naples Zoo

noreply@blogger.com (Naples Real Estate Guy) — Fri, 13 Nov 2009 09:46:44 PST

Bear at Naples Zoo
Originally uploaded by naplesrealestate

Naples Zoo created Black Bear Hammock featuring two distinct habitats: a natural habitat and a backyard habitat. Both areas feature clear viewing through 2" zoo-grade glass. It is the largest Black bear exhibit at any Association of Zoos and Aquariums accredited zoo east of the Mississippi. Courtesy of A Delta Realty of Naples.

Naples Foreclosure Condos

noreply@blogger.com (Naples Real Estate Guy) — Sat, 25 Jul 2009 05:11:24 PDT

During the month of June a total of 65 Naples foreclosure condos were sold. During the month of June a total of 290 condos were sold. The foreclosure condos represents about 23 percent of the total sales.

In the month of June a total of 662 condos were placed under awaiting closing in the Naples area. Of the 662 condos pending sale, 83 condos were foreclosures. This represents approximately 13 percent of the total condos awaiting closing - pended sales.

At the beginning of July 64 condos were active listings for sale or about 2 percent of the 4416 condos for sale.

Based upon the activity in June there is less than one month of condo inventory for sale.

Search for foreclosed condos for sale in Naples.

Naples Foreclosure Homes

noreply@blogger.com (Naples Real Estate Guy) — Sat, 25 Jul 2009 05:12:46 PDT

On July 1st there were a total of 144 Naples foreclosure homes on the market or roughly 3 percent of the total number of active listing with the Naples area.

During the month of June a total of 263 homes offers were presented to either banks, lenders, or REO companies which were accepted, thus pending sale. The number of Naples foreclosures which pended equated to approximately 26 percent of the 1126 homes which had offers accepted.

During the month of June a total of 164 foreclosed homes were sold, which represents about 43 percent of 43 percent of total of 377 homes sold.

Search for foreclosed homes for sale in Naples.

Egrets Walk at Pelican Marsh

noreply@blogger.com (Naples Real Estate Guy) — Mon, 13 Oct 2008 12:03:06 PDT

Many prospective buyers over during the past several months have been monitoring the average prices paid for residences in various subdivisions within many of Naples developments.

Below is a graph showing the quarterly average prices paid for a condo in Egrets Walk at Pelican Marsh for the past 4 years.

During the first quarter of 2006 the average price paid was the highest at $520,000.

The average price paid in the most recent quarter ending September 30, 2008 was $330,000.

The difference represents a decline in value of $190,000 or about 36.5 percent.

Arielle at Pelican Marsh

noreply@blogger.com (Naples Real Estate Guy) — Mon, 13 Oct 2008 11:50:30 PDT

Below is a graphical representation of the average prices paid for condos in Arielle at Pelican Marsh over the past 4 years.

The highest average quarterly price was $493,000 during the third calendar quarter of 2005. The average price paid during the third quarter of 2008 was $306,666. A reduction of $186,334 or about 37.8 percent.

Augusta at Pelican Marsh

noreply@blogger.com (Naples Real Estate Guy) — Fri, 03 Oct 2008 12:20:54 PDT

A new customer service feature has been added to Augusta at Pelican Marsh which shows calendar quarterly market trends over the past four years for median sold price, new listings, number of sold listings and pending sales.

In the first quarter of 2007 the highest median price paid was $1.5 million.

Charles Richey A Great Guy In Need of Help

noreply@blogger.com (Naples Real Estate Guy) — Wed, 25 Jun 2008 10:50:10 PDT

Charles Richey is a friend of mine, that I met through the Internet and had the pleasure to meet in person a few years.

Today, thru the Internet we have the opportunity to meet many people, few we actually meet in person.

Charles is an individual whenever I had a problem with any of my web sites or even this blog, he was there for me. In some cases he actually did the coding for me. He was not only this way with me, but with other people. He has been extremely active in the animal rescue in his hometown of Las Vegas.

On Tuesday, I learned from another netizen that Charles was hospitalized with Guillain-Barre Syndrome. The unfortunate thing is that he and his wife do not have any health insurance and with the present economic situation that we are all facing, he and his family will be faced with very large medical bills as he is currently in the ICU.

If you care to offer some words of encouragement or make a contribution, please visit this site.

Thank you.

Laguna Royale at The Vineyards

noreply@blogger.com (Naples Real Estate Guy) — Tue, 29 Apr 2008 11:30:51 PDT

March 31st represents the end of the first calendar quarter, I have started to update community and neighborhood information showing the annual median sold prices since 1998. The neighborhood updated, for no particular reason was Laguna Royale at The Vineyards. It is interesting to note that in 1998 the median sold price was $257,500 and in 2007 it was $450,000 - an annual increase over the ten years - 6.40%.

Naples Real Estate Market Updates Completed

noreply@blogger.com (Naples Real Estate Guy) — Wed, 06 Feb 2008 07:20:18 PST

Over the past few days the market updates for Naples and Bonita Springs have been updated and posted on my Naples Real Estate News and Market Updates blog.

When doing the market updates, certain criteria are applied as follows:
1)they are based upon ownership - single family home (fee simple) or condominium.
2)the statistics do not include Marco Island, since I service the Naples, Bonita Springs and Estero areas of southwest Florida, nor manufactured or mobile homes.
3)the statistics are taken from the Sunshine MLS, which is a combination of the Naples MLS, Bonita Springs MLS, and Estero MLS.

Real estate has always been know as being local and it is true when you look at the analysis and market updates.

It is expected that the real estate market update for the Estero area will be posted today, sometime.

Avalon at Pelican Bay in Naples

noreply@blogger.com (Naples Real Estate Guy) — Fri, 11 Jan 2008 08:22:38 PST

Below is a graphical presentation of the quarterly median price paid for condominium in Avalon at Pelican Bay.

You can read more about Pelican Bay and Avalon at Pelican Bay, as well as, finding historical median sold prices from 1998.

Naples Foreclosures

noreply@blogger.com (Naples Real Estate Guy) — Mon, 09 Jul 2007 05:12:05 PDT

Collier County's Clerk of Courts office during the month of June recorded a couple hundred residential Naples real estate foreclosures. It was interesting to note where the majority of the foreclosure actions are taking place, as well as, the age of the lien. More details are found on Naples Florida real estate blog.

Naples Florida Condo Real Estate Updated

noreply@blogger.com (Naples Real Estate Guy) — Tue, 01 May 2007 05:10:56 PDT

Yesterday I updated information for the March Naples Florida condo real estate market. Overall, the Naples condo market remains weak for sellers and strong for buyers.

Berkshire Lakes Naples - New Feature

noreply@blogger.com (Naples Real Estate Guy) — Mon, 26 Feb 2007 12:21:42 PST

A new feature has been to my Berkshire Lakes Naples real estate web page. The feature will enable visitors to view current homes and condos for sale on the market.

The benefit to my web site visitors will be they can select homes or condos that they are interested in and view more pictures and details about a particular property.

This solves the problem of insuring that accurate pricing for prospective buyers as well as prospective sellers seeing at what price competing properties are on the market.

New Blog Started

noreply@blogger.com (Naples Real Estate Guy) — Sun, 05 Nov 2006 05:08:34 PST

I recently started a new blog called Naples Florida Real Estate Homes. The website is http://naplesfloridarealestatehomes.com The name refers to Naples, but the information also includes Bonita Springs and Estero.

On this blog I will be reporting real estate statistics and analysis of the market. Other useful information will also be posted there.

This blog will be used whenever I add new information to my website - Naples Real Estate

Please feel free to post your comments on either of these blog. I will be more than happy to answer any questions about the Naples, Bonita Springs or Estero real estate markets.

Increases in Condominium Insurance

noreply@blogger.com (Naples Real Estate Guy) — Sun, 05 Nov 2006 05:08:34 PST

As the financial affects of the previous 2 hurricane seasons are felt by insurance companies, these are now being passed onto the consumer. Recently, condominium maintenance fees are increasing significantly, due to higher insurance premiums for liability coverage (building replacement, etc. - similar to homeowners insurance).

Another reason for the increases is the increase in building supply replacement costs, as well as, property value increases.

These represent a double edged sword for the significant increase in premiums.

In one case the condominium association which consists of 5 buildings with 8 units or a total of 40 units the budget called for an annual insurance premium of $23,000 for one year. This equates to about $575 per unit annually. The current year's renewal had a premium of $48,000, or about $1,200 per unit. Or, an increase of $625 per year.

The condominium units are generally 2 bedroom, 2 bath units which in January 2005 were selling for in the $160's and $170's. In today's real estate market the estimated values are in the $210,000 to $225,000 range. This equates to about a 32% increase in estimated value. This could explain part of the increase or about $184 or the $625. The remaining portion could be attributable to risk assigned and losses incurred by the insurance industry.

When purchasing a newly constructed condominium, where the developer is still in control, there maybe some relief found by the new purchasers. A careful review of the Declaration of Condominium may reveal a clause entitled "Statutory Assessment Guarantee; Liability of Developer for Common Expenses." Within this clause, it specifically states the developer's guarantees for common expenses on a per unit basis(insurance coverage is a common expense) for a period of three years from the date of recording the Declaration of Condominium or the "turnover date" (a majority of the condominium directors are elected by the unit owners), which ever is the earlier date. The guarantee is not based on a line item basis of the budgetted expenses, but by total common fees. A condominium buyer should check the "Statutory Assessment Guarantee; Liability of Developer for Common Expenses." to determine if any increase of the common maintenance fees falls within the guarantees stated.

Buyers of condominiums, often ask, "Will the maintenance fee increase significantly after they purchase?" The "Statutory Assessment Guarantee; Liability of Developer for Common Expenses." may give a prospective buyer an indication of what future maintenance fees could be, if the condominium association directors (elected by the unit owners), continues to maintain the property in the same manner as the developer. Note - the condominium association directors need to be conservative in their goals and objectives for common maintenance.

Osprey Cove

noreply@blogger.com (Naples Real Estate Guy) — Sun, 05 Nov 2006 05:08:34 PST

I have created a new page for the condominium complex called Osprey Cove. Osprey Cove is located in Estero. It is strictly a condominium community with 6 distinctive floor plans. Garden style condos have either 2 bedrooms and 2 bathrooms or 2 bedrooms with den and 2 bathrooms in a 4 story elevator building. In addition, there are two story buildings with 2 bedrooms with den and 2 bathrooms, with a detached one car garage. A special bonus with these units is they have both a front and rear screened lanai or porch. All residences have lake views.

If you wish to view one of the floor plans for the 2 bedroom, 2 bath condo with 1,194 square feet of living area.

Some of the amenities in this community are: gated, community center with state of the art fitness center, community pool and spa.

Estero is located conveniently between Naples and Ft. Myers.

You can also select another fine Estero condos for sale on my Naples real estate site.

Technorati Tags:estero real estate

Bonita Real Estate Market - Single Family Homes

noreply@blogger.com (Naples Real Estate Guy) — Sun, 05 Nov 2006 05:08:34 PST

In the month of June '06 there were 44 single family homes sold with a median sales price of $492,000.

In Jume of 2005 there were 83 single family homes sold with a median sales price of $525,000.
Both sales volume and median price are down in June 2006 versus 2005.

Looking at the pending sales for Bonita Springs single family homes - there were as of June 30th - 81 homes with a median list price of $689,000. Estimated adjusted median list price to closed sales price is $659,000. These will close between 4 and 8 weeks from the date the sales contract was signed and are an indicator as to future closed sales prices.

The Bonita Springs area may have reached the bottom as far prices are concerned, however the volume of sales still remain down.

Naples Real Estate Market - Single Family Homes

noreply@blogger.com (Naples Real Estate Guy) — Sun, 05 Nov 2006 05:08:34 PST

The median price for closed sales in June '05 was $505,000 (492 sales). In June '06 the median price for closed sales is $455,000 (224 sales). Thus, prices have dropped by about 10%, since last year.

The next question - will the prices continue to drop? Pending sales can tell us what "future" closed sales will be. As you are probably aware, a pending sale is one that will close between 4 and 8 weeks from the time the sales contract is signed. The pending sales as of this morning have a median price of $499,000 (385). But, we need to factor in the difference between list and sales price, because pending sales generally do not sell for list price. Based upon the difference between sales price and list price was about 94% in June 06. Using that factor - the closed sales for the future should be about $469,000.

The single family home market may have reached the bottom, due to the projected median priced closed sales in the range of $469,000 versus the June '06 median closed sales price of $455,000.

The statistics compiled within this report are from the SunshineMLS, and does exclude Marco Island and manufactured homes.

Mortgage Fraud

noreply@blogger.com (Naples Real Estate Guy) — Sun, 05 Nov 2006 05:08:34 PST

In yesterday's Inman News morning report there was an article on mortgage fraud. Those of you that know me, know that I want people to get a fair shake with their financing as well as a good price for either the sale or purchase of their property.

I wanted to share with you my thoughts on the subject, which I did share with the author of the article.

Dear Ms. Mara,

This morning's article in Inman News regarding Mortgage Fraud was most interesting (usually I say enjoyable).

I am a Florida Licensed Real Estate Broker and Mortgage Broker. Prior to entering the real estate profession my background was in Accounting and Auditing, a specialization in Accounts Receivable turn-arounds in the hospital industry. In the area of accounts receivable turn-arounds, I had to be familar with the Fair Debt Collections Practices Act as well as the Fair Credit Reporting Act. While in the role of Internal Auditor for a Greater Boston area hospital, I conferred with an agent within the Commonwealth of Massachusetts, Attorney General's office, Medicaid Fraud Unit, regarding silver recovery and its reimbursement. This led to 2 corporations and numerous individuals being indicted.

Being a real estate professional and with my background, I find that mortgage fraud will continue to plague the industry. Maybe, I am seeing only the 20% Fraud for Property/Housing. Here are my reasons:
1) The escalating cost of housing and the "American Dream" of owning your own home.
2) Licensure for real estate agents and mortgage brokers is much too easy. The requirements for licensure need to require a greater level of education, more than a high school degree as a prequisite for licensing and harder licensing requirements, such as more pre-licensing education and harder tests. This will result in better people and less people entering the real estate profession.
3) Lenders need to offer less loan programs, for example, stated income loans (I my humble opinion it is probably inflated income) and no doc.
4) Most lenders require an IRS Form 4506 at time of closing. Now, there is something that an underwriter or lender can request information and stop an inflated (aka stated) income mortgage application dead in its tracks. If they lie on their income tax return, is it possible that they would lie on their mortgage application?
5) Lack of educational programs in the real estate profession to identify mortgage fraud - wishful thinking on my part, due to the Privacy Act - but atleast a start. Where to report suspected mortgage fraud situations to the appropriate law enforcement authorities.
6) The credit reporting and scoring system needs an overhaul. Too often, I find errors on credit reports, where the creditor is not reporting timely or accurately information. For example, a customer settled in full his collection action in the later part of February '06. The collection agency in the later part of April is still showing a portion of the account as outstanding with a current date. Yes, they reported the payment, but did not remove the negotiated portion of the balance.
7) Lack of control points within the existing system.

What could possibly be done to reduce the mortgage fraud:
1) More checks and balances within the system to identify potential mortgage fraud situations.
2) More education for all real estate professionals - real estate agents, REALTORs, underwriters, lenders, etc.
3) Greater licensing requirements for all. And maybe licensing requirements where no licensing is required at this time.
4) Implementation of a "whistle blower" protection system and telephone hotline.
5) Proactive preventative action on the part of lenders.
6) a. Enforcement of the following from the loan application (FNMA 1003):
"Each of the undersigned specifically represents to Lender and to Lender's actual or potential agents, brokers, processors, attorneys, insurers, servicers, successors and assigns and agrees and acknowledges that: (1) the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation of this information contained in this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001, et seq.; (2) the loan requested pursuant to this application (the "Loan") will be secured by a mortgage or deed of trust on the property described herein;.. (6) any owner or servicer of the Loan may verify or reverify any information contained in the application from any source named in this application, and Lender, its successors or assigns may retain the original and/or an electronic record of this application, even if the Loan is not approved; (7) the Lender and its agents, brokers, insurers, servicers, successors and assigns may continuously rely on the information contained in the application, and I am obligated to amend and/or supplement the information provided in this application if any of the material facts that I have represented herein should change prior to closing of the Loan; .. (11) my transaction of this application as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or my facsimile transmission of this application containing a facsimile of my signature, shall be as effective, enforceable and valid as if a paper version of this application were delivered containing my original written signature."
b. Enforcement of the following paragraphs from the mortgage itself:
Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of the Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to the Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence.
Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument. The notice shall specify (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section, including, but not limited to, reasonable attorney's fees and costs of title evidence.
7) Better and possibly required education of prospective borrowers, so they can recognize the impact and identify situations.

Implementation of number 6 above will send shockwaves into the communities and cause the less desireable professionals out of business and awareness to borrowers. Many may agrue that this will be costly to the overall economy or lenders if foreclosure proceedings are needed, but in the long run there could considerable savings for all.

In summary, mortgage fraud may continue, until such time that the losses reach greater levels unless there is a proactive preventative overall program to curb it. Old country saying "you don't close the gate after the horse leaves the corral."

Question from Ms. Mara:
I've been told that stated income loans are referred to by some in the industry as "liar's loans," do you think they should be done away with?

My response:
LOL - I never heard that term used with stated income loans. Prefer the term inflated income because sometimes the borrower is not fully educated nor fully explained about the loan programs. This includes those wonderful option ARM's with the low rate of 1.0% or .95%. Just heard that about 4% of the mortgages are in arrears nationally and that some people that purchased within the past 2 years could face a situation where the market price of the property could be less than the amount owed on the loan.

Although no one has a crystal ball - someone with some common sense, during the rapid increase in property values should have tightened up credit for some borrowers or implemented a better system of checks and balances before making a loan. Could the horse be leaving the corral at this time?

With the Naples area, there is an area where 100% financing and the buyer's closing costs paid by the seller is very common. With some of the loans, there is a hard prepayment penalty of 5% for 3 years! Imagine the issues that some of those people will have to face, if they run into a bad financial stretch, relocate, or for any other reason need to sell.

You asked do I "think stated income loans be done away with?" I did not answer your question very directly - but there is a gray area that needs to be addressed - how does their stated income compare with their reported income per income tax returns or via some other independently generated documentation. Two other alternatives - credit scores above a higher than existing level or a margin above or below the reported income. Although we are discussing stated income loans (or "inflated"), what about someone that deflates their income? Question is "are they committing fraud to obtain a loan by under-stating their income?" Could this be where stated income loans really originated and for the purpose of wealthy people not having to disclose their true income?

Very interesting subject matter.

Ms Mara:
Yes, it's all very interesting! I never realized until I read your e-mail what a hardship a prepayment penalty could be. Do I understand correctly - means that if you pay the loan back before the 30 years are up, you have to pay a penalty, which means if you want to/have to leave the state for a new job or something, you have to pay a penalty?

My response:
First, there are 2 types of prepayment penalties:
1) hard prepayment - this is where regardless of a refi or sale of the property the borrower pays a prepayment penality
2) soft prepayment - this where the borrower pays the prepayment penality only if they elect to refinance.

The prepayment penality ranges from 1 to 3 years (3 years is the maximum that I have seen), not 30 years.

Highlites for May 17th

noreply@blogger.com (Naples Real Estate Guy) — Sun, 05 Nov 2006 05:08:34 PST

PROPERTY INSURANCE:
Gov. Jeb Bush signed property insurance bill SB 1980 this morning, calling it a tough but necessary choice that he and others hope will keep coverage available in Florida. He acknowledged that it won't stop rates from going up in the short-run, but said there's ''really no other option.''

NATIONAL HOME PRICES:
The growth in single-family home prices in the U.S. continued to cool in first quarter 2006, but many metro areas are still showing double-digit annual gains, according to NAR. The national median existing single-family home price was $217,900 in the first quarter, up 10.3 percent from a year earlier.

HOUSING STARTS:
The U.S. Commerce Department reported this morning that the number of housing starts in April dropped 7.4 percent to a seasonally adjusted annual rate of 1.849 million units, the lowest level in 17 months and weaker than analysts expected.

OCEAN FRONT PROPERTY:
Despite the threat of hurricanes, prices for coastal property along the Gulf of Mexico and the Atlantic continue to climb, especially in Florida, because more Americans can afford to live there, according to real estate analysts.

Market Watch

noreply@blogger.com (Naples Real Estate Guy) — Sun, 05 Nov 2006 05:08:34 PST

The second-home market may be solid, but economists point to three subtle signs that the overall housing market is cooling:
• The yearly increase in mortgage interest paid by households rose to 15.8% in the first quarter-a 24-year high-from 2005's annual growth rate of 14%, indicating that borrowers are using variable rate mortgages to afford costlier housing.
• The national homeownership rate slipped from 69.1% last year to 68.5% this year. "This decline in homeownership has occurred in the face of strong rental-to-condo conversions of apartment buildings, which have expanded the supply of owner-occupied units," says Jan Hatzius, chief economist at investment firm Goldman Sachs.
• The owner-occupied vacancy rate is rising sharply. At 2.1%, the current rate is the highest on record. Hatzius believes this over-supply of homes for sale has already pushed existing home prices downward, and that home price inflation will turn negative by the end of the year.

Closer to home, there are other signs of a slowing market. Jacksonville-based St. Joe Co., reported a 76% decline in first-quarter profit, which it attributes to sagging resort residential sales. In a company statement, St. Joe says speculators are "no longer a major demand element" in the Florida real estate market, and that buyers are taking more time to shop.

David Lereah, NAR's chief economist, agrees the market is settling but says job growth and a growing economy should offset some of the effects of rising mortgage rates. His predictions for the balance of 2006: Long-term mortgage rates will climb to 7% this summer and hold steady through December; existing-home sales will drop 6.4% to 6.62 million (after reaching a record 7.08 million in 2005); the median price for all existing home types will rise 5.7% to $232,200; new home sales will decline 11.6% to 1.13 million (after reaching a record level of 1.28 million in '05); and housing starts will fall 3.7% to 1.99 million (after reaching 2.07 million in '05).

HOME SALES:
In first quarter 2006, Florida's housing sector followed the national trend, demonstrating signs of a market adjusting to rising mortgage rates, higher inventory levels, and a better balance between buyers and sellers. Sales of single-family existing homes totaled 45,864 statewide during the three-month period, a decrease of 20 percent compared to the same quarter a year ago. The statewide existing-home
median sales price rose 20 percent to reach $248,000.

CONSTRUCTION COSTS:
Rising costs and a shortage of construction materials continue to dog the building industry in Florida and other states, leading to price increases for new homes and home remodeling projects, as well as higher rental rates for apartments and offices.

naples real estate

Blips and Burbs about real estate for May 15th

noreply@blogger.com (Naples Real Estate Guy) — Sun, 05 Nov 2006 05:08:34 PST

EMINENT DOMAIN:
A bill that immediately limits the ability of local governments to condemn homes and other property for private redevelopment projects became law Thursday with Gov. Jeb Bush's signature.

SECOND HOMES:
A new survey of second-home owners by NAR shows that baby boomers continue to dominate the market, and minorities own a growing number -- more than one-in-ten. A surprising majority of respondents own multiple properties in addition to their primary residence.

Minorities own 11% of second homes-up from 6% in 2002, according to a new NAR survey.

What's more, about six in 10 respondents own two or more homes in addition to their primary residence, and a majority are interested in purchasing additional homes. An analysis of U.S. Census Bureau data shows there are 6.8 million vacation homes in the U.S. and 37.4 million investment units in addition to 74.6 million owner-occupied units. "We've always known that a certain segment has invested heavily in the rental market, and some people earn their living simply by holding and managing investment property," says NAR President Thomas M. Stevens. "What we see now is a crossover between largely vacation and investment homeowners, with people recognizing the value of those investments and pouring more assets into real estate."

MORTGAGE RATES:
Rates on 30-year mortgages edged down this week, the first decline after six straight increases. Mortgage giant Freddie Mac reported Thursday that rates on 30-year fixed-rate mortgages averaged 6.58 percent.

HOME INSURANCE:
Even though the insurance industry paid out billions last year in hurricane claims, insurers, as a whole, are going into the 2006 storm season riding a wave of tidy profits. Allstate, for example, had $1.55 billion in hurricane-related losses but still rang up a 26 percent profit for the year.

State Farm Insurance Co., the largest home insurer in Florida, is seeking to boost premiums by an average of about 70 percent. If approved by state regulators, the increase would be effective Aug. 15. Coverage costs for mobile homes will almost double, and about 1,500 policies held by condominium complexes will be canceled.

MOVING ON DOWN:
Seniors leaving their long-time homes for a smaller apartment or assisted-living unit now have access to companies that manage all aspects of the move. These moving specialists handle everything, including helping the homeowners choose the furnishings and belongings they will keep; donating excess belongings to charity; purchasing new furniture; and even decorating the new digs to look similar to their old house. Transitional Assistance and Design in Gaithersburg, Md., and the national Moving Solutions franchise are examples of such firms. Though the exact cost varies based on location and services performed, most charge hourly fees of $65 to $125. They believe their services are worth it, as seniors often are too emotionally tied to their homes to make the transition on their own. "We are objective, we're not family," says Sue Ronnekamp, founder of Austin-based Living Transitions. Older children generally provide financial assistance, as they may be too busy with work and childrearing to help their parents make the move.

Source: Washington Post (05/11/06)

Today's Interesting Real Estate News

noreply@blogger.com (Naples Real Estate Guy) — Sun, 05 Nov 2006 05:08:34 PST

HOUSING OUTLOOK:
The housing market is settling but should experience its third best year in 2006, with job creation and a growing economy offsetting some of the effects of rising interest rates, according to NAR.

PROPERTY INSURANCE:
Southern Family, Atlantic Preferred and Florida Preferred, subsidiaries of Tampa-based Poe Financial Group, have yet to present a plan to recover from a $2 billion hit in 2004 and 2005 hurricane damage claims. Yesterday, the state asked a judge to liquidate the companies.

NATIONAL HOUSING MARKET:
Economists are pointing to several subtle signs that the housing market is cooling, including a dip in the homeownership rate to 68.5 percent this year from 69.1 percent last year, and the rising owner-occupied vacancy rate, which is the highest on record at 2.1 percent.

BUYERS MARKET: THE RIGHT APPROACH:
Homebuyers are getting the big breaks in an increasing number of U.S. markets, says Tom Early, president of the National Association of Exclusive Buyers Agents. But even as the market shifts to favor buyers, to get the best deal, buyers should take the right approach. Some advice from Early:
* Tell your buyers to stifle the guilt. Remind them, if the shoe were
on the other foot, the seller would show no mercy.
* Be patient. In slow-moving markets, it is sometimes a good bet to
simply wait until a seller sees the light and drops his price.
* When a seller drops the price, it may be a signal that he is facing
a deadline and will negotiate still more.
* Take advantage of a buyer's right to a home inspection. The buyer
may find an issue that can be used to his advantage in gaining
concessions.
* Insults don't work. Wounding the sellers' pride in their home is never
a good tactic.
* Also, making a ridiculously below-market bid may shock the owners
into refusing to talk anymore.

Source: The Miami Herald, Ellen James Martin (05/07/2006)

Development helps push more residential space

noreply@blogger.com (Naples Real Estate Guy) — Sun, 05 Nov 2006 05:08:34 PST

A likely revision to development plans on a 100-acre site north of Coconut Point in Estero reveals a subtle shift in real estate market trends in that area. The site on U.S. 41 known as North Point might get rezoned in order to build more residential and less commercial space, a vast contrast from areas such as Cape Coral and Lehigh Acres, where commercial land is scarce and commercial development is lagging behind residential growth.

The North Point land was sold in February to two new owners — a joint venture between the Lutgert Companies and the Barron Collier Companies — who are in the process of planning their new mixed-use project to reflect the changing demands of the Estero real estate market.

The site is approved as a development of regional impact, located on the east side of US 41 between Williams Road and the Corkscrew Village Shopping Center. With the new regional mall just down the road and millions of square feet of commercial space under development, this hotspot carries a lot of potential.

The original plan by Illinois-based Oakbrook Properties was to build a whopping 550,000 square feet of retail space, along with 120,000 square feet of office space, a 150-unit hotel and 150 residential units. The new owners plan to apply for rezoning in order to reduce the commercial component for more housing.

Though plans have not been finalized, the retail component might be significantly reduced in favor of more housing units, and the office component might be slightly reduced as well.

"We are not far from putting our visions to the county once we have concluded our plan," said Dougall McCorkle, vice president of commercial development for Lutgert Companies. "We are still doing a traffic analysis."

Reducing the retail component of the project is expected to generate less traffic, which should provide some relief for travelers on U.S. 41 and adjoining roadways. McCorkle said there would still be the possibility of hotel rooms on the site.

Among other projects, Lutgert and Barron Collier have also partnered on another mixed-use development, The Mercato, located on a 53-acre site that fronts and connects U.S. 41 and Vanderbilt Beach Road in North Naples.

There is little vacant retail space in Estero — or in most of the county for that matter — but as more is constructed or being planned, a point may have been reached where the market demand needs to catch up.

That is where more residential development comes in to balance the mix. This is not unlike how Oakbrook modified its plans for the North and South Villages in the Coconut Point DRI to match the shifting pattern in the Estero real estate market over the past couple of years.

"I think there are two principal things driving the residential market in Estero," said Don Eslick, chairman of the Estero Council of Community Leaders. "The first is that the price of housing went up faster than the cost of housing.

"The second is that the area is zoned for so much more commercial development than it needs to be, so now you are seeing more mixed-use instead."

Eslick is optimistic that a fully integrated and balanced community will further enhance Estero's property values. Apparently developers like Lutgert and Barron Collier agree.

Source: The News Press

Models in a model !!!!

noreply@blogger.com (Naples Real Estate Guy) — Sun, 05 Nov 2006 05:08:34 PST

To help buyers envision life in a new community development, a builder has hired actors to "live" in a model home and portray a family going about daily activities --cooking, listening to music and hanging out. Beginning on May 20, actors will live in a model home in Centex Corp.'s Milestone community in Santa Clarita, Calif. The thespians will act as a two-child family, allowing prospective buyers to watch them as they go about their daily chores. The "homeowners" also will interact
with "guests," and provide information about prices, floor plans and local schools. This HomeLife program will be expanded to other Centex developments in the coming months. "Model complexes tend to be a bit stagnant and dry for people," says Amanda Larson of Centex. "What better way to show how someone might live in them?"

Source: The Wall Street Journal, Michael Corkery; Kemba J. Dunham;
Jennifer S. Forsyth (05/03/06)
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