FLORIDA EXISTING HOME & CONDO SALES RISE IN JANUARY, 2010
Existing-home sales down by month, higher by year, says National Association of Realtors (NAR)
Orlando, Fla. – Feb. 26, 2010 – Florida’s existing home sales rose in January, marking 17 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®.
Existing home sales increased 24 percent last month with a total of 10,465 homes sold statewide compared to 8,444 homes sold in January 2009, according to Florida Realtors. January’s statewide sales of existing condos rose 81 percent compared to the previous year’s sales figure.
“Now is the time for anyone thinking of buying a home in Florida to make that decision,” said 2010 Florida Realtors President Wendell Davis, a broker and regional vice president with Watson Realty Corp. in Jacksonville. “Markets across the state are seeing increased sales, yet conditions remain very favorable with still-low mortgage rates, a range of housing inventory and attractive prices. As an added incentive, buyers need to accelerate their plans because a purchase contract must be in place by the end of April to take advantage of the extended and expanded federal tax credit. To find out more, consult a Realtor about options, qualification criteria and opportunities in your local housing market.”
Florida’s median sales price for existing homes last month was $130,900; a year ago, it was $139,400 for a 6 percent decrease. Analysts with the National Association of Realtors (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
According to NAR’s latest outlook, homebuyers are taking advantage of the federal tax credit. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices,” said NAR Chief Economist Lawrence Yun.
In Florida’s year-to-year comparison for condos, 4,631 units sold statewide last month compared to 2,554 units in January 2009 for an increase of 81 percent. The statewide existing condo median sales price last month was $97,300; in January 2009 it was $113,300 for a 14 percent decrease. The national median existing condo price was $183,700 in December 2009, according to NAR.
Interest rates for a 30-year fixed-rate mortgage averaged 5.03 percent last month, slightly lower than the average rate of 5.05 percent in January 2009, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
© 2010 Florida Realtors
HOMESTEAD EXEMPTION DEADLINE - MARCH 1, 2010
Homestead exemption is a constitutional benefit of a $50,000 exemption from the property's assessed value. It is granted to those applicants with legal or beneficial title in equity to real property as recorded in official records who are bona fide Florida residents living in a dwelling and making it their permanent home on January 1 of the taxable year. The first $25,000 is entirely exempt. The second $25,000 is to be applied to the value between $50,000 and $75,000, and does not include school taxes. For example: If a home's assessed value is $75,000 or more, the owner would receive the full $50,000 exemption benefit. If the property value is between $50,000 and $75,000, he or she would receive a pro-rated exemption amount. (Example: If the property value is $65,000, the additional exemption would be $15,000, for a total exemption amount of $40,000 (the original $25,000 plus the prorated amount of $15,000.)) The exemption results in approximately a $500 - $800 property tax savings to Florida residents.
When you purchase a home and want to qualify for an exemption, you must file your application in person at one of our offices. You may file anytime during the year, but before the state's deadline of March 1 for the tax year in which you wish to qualify. However, you are urged to file AS SOON AS POSSIBLE once you own, occupy and make that home your legal residence.
If you purchased your property after January 1, and your TRIM Notice reflects a homestead exemption, this is an exemption which was granted to the prior owner, and will be removed on December 31. If you wish to qualify for an exemption for the following year, you must file an original application in one of our offices by March 1.
If you received your homestead exemption for the previous year and still occupy, own, and make that residence your permanent home, a receipt will be mailed to you early in January. You need to notify the Property Appraiser's office if you no longer qualify for these exemptions or you wish additional exemptions.
YOU NO LONGER QUALIFY FOR YOUR EXEMPTION IF: Property granted an exemption is sold or otherwise disposed of, if the property has been rented, when ownership changes in any manner, when the applicant for homestead exemption ceases to use the property as his or her homestead, or when the status of the owner changes so as to change the exempt status of the property. 196.011 (9) (a) F.S.
Bring evidence of residency and qualifications for all owners, including spouses, when filing:
Florida Automobile Registration and Driver License
Florida Voter's Registration or Declaration of Domicile
Proper certification for a disability exemption
A death certificate or obituary notice for widow's/widower's exemption
Social security numbers for all owners and spouses (required even if spouses are separated or if only one is on the deed)
NOTE: Disclosure of your social security number is mandatory. It is required by section 196.011(1), Florida Statutes. The social security number will be used to verify taxpayer information, homestead exemption information submitted to Property Appraisers, and intangible tax information.
For more information about widow/widower exemptions, veteran's exemptions and disability exemptions, visit the Pinellas County Property Appraiser's website at:
http://www.pcpao.org/index1.html
SAVE OUR HOMES AND PORTABIITY
Homestead property owners are able to transfer their Save Our Homes (SOH) benefit (up to $500,000) to a new homestead within two years of giving up their previous homestead.
If the just value of the new homestead is more than the previous home's just value, the entire cap value can be transferred.
If the new homestead has a lower just value, the percentage of the accumulated benefit may be transferred to the new homestead.
Homeowners may transfer their SOH benefit to a new homestead anywhere in Florida within two years of leaving their former homestead if they establish the new homestead by January 1. This provision applies to all taxes, including school taxes.
For property owners who have the homestead exemption and the Save Our Homes cap, and who do not give up their homestead, the exemption and cap status remain unchanged.
Click on this link for an example of portability.
FOUR GOOD REASONS TO SELL YOUR HOME NOW
ORLANDO, Fla. – Feb. 9, 2010 – Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign:
• Sell low and buy low. Because all property values are down, the loss on the property a homeowner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
• Downpayment help is widely available. While nothing-down loans have disappeared, it’s easy to find downpayment assistance for lower-income and first-time homebuyers. Programs vary all over the country, but one good way to find them is to search online for “downpayment assistance programs” and the name of your region.
• Your Uncle Sam has money to share. Besides the $8,000 first-time homebuyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
• Good help is available. Really talented real estate practitioners, contractors and designers are available and eager for business.
Source: McClatchy Tribune, Kate Forgach (02/07/2010)
© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
.Dec. 7, 2009 - New guidelines from the Federal Housing Administration could make it easier to get FHA-backed mortgages for condos and possibly help the slow condo market. Changes include reducing the number of units in a new condominium that must be owner-occupied. Most banks have shied from condo lending because the units are considered high risk Those that still lend often want 20 to 30 percent down, a requirement that can eliminate the average buyer. FHA-backed loans allow for smaller downpayments. The new temporary guidelines allow for 50 percent of units to be owner-occupied and doesn't count units that are bank-owned, rented out or vacant.
MORTGAGE AID MAY BE ON THE WAY
Dec. 8, 2009 – House Democrats are seeking to tap the government’s massive bailout fund to help homeowners who have lost their jobs and are struggling to make their mortgage payments.
House Financial Services Committee Chairman Barney Frank (D-Mass.) on Monday signed on to a proposal by Rep. Maxine Waters (D-Calif.) that would channel $3 billion from the federal Troubled Assets Relief Program toward mortgage relief for jobless Americans. The measure would designate another $1 billion for a program that gives grants to state and local governments to purchase foreclosed properties and use them for more productive purposes.
“The combination of unemployment and foreclosures may be the greatest threat to our economic recovery,” Waters said.
CONGRESS EXTENDS AND EXPANDS TAX CREDIT !!!
First-time homebuyers (people who have not owned a home within the last three years) may be eligible for the 2010 tax credit. The credit is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified buyers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Tax Credit Versus Tax Deduction
It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500.. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, they would owe nothing.
Also, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, they can still receive a check for the remaining $4,000!
Higher Income Caps
The amount of income someone can earn and still qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sale price of $800,000.
(For more information, click on the FAQ’s tab on our homepage)
OTHER NEWS:
Tax Incentives to Spur Energy Savings and Green Jobs
This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings
This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
JUST FOR FUN: DUNEDIN OSPREY CAM
Click here for a bird's eye view into an Osprey nest!
(http://www.ospreynestcam.com/index.php?pagecontent=home)
