Luxury Orlando Real Estate Resource

Can Obama save us from falling home prices?

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The National Association of Realtors reported Tuesday that 33% of May existing-home sales were distressed and the median sales price is now $173,000.

The NAR, is still looking to spin that as good news, the trade association pointed out that the share of sales that were distressed has declined from the 45% rate in April.

But the current median sales price is still 25% below its May 2006 level and down 17% from the year-ago figure. Suggesting a decline in distressed sales to merely one-third of market volume is a step in the right direction but we still have a long way to go.

The National Foundation for Credit Counseling released a survey last week indicating that nearly one-third of current homeowners doubt they will ever be able to buy another home. Forty-nine percent of respondents agreed with the statement, "Because of the current economic climate, the American dream of home ownership is no longer a realistic strategy for building wealth."Read more »

Florida's Existing Homes and Condo sales up in May 2009

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Orlando Florida - June 23, 2009- Florida's existing home sales rose in May- the ninth month in a row that sales activity increased in the year to year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). Statewide sales showed gains over the previous month's sales level in both the existing home and existing condominium markets. Also, for the first time in many months, the statewide median sales price in May for existing homes and for existing condos rose over the previous month's figure.

Existing home sales rose 16 percent last month with a total of 13,921 homes sold statewide compared to 12,044 homes sold in May 2008, according to FAR. Statewide existing home sales in May increased 6.2 percent over April's statewide activity. Florida Realtors also reported a 21 percent rise in statewide sales of existing condos in May; existing condo sales last month rose 3.8 percent over the total units sold in April.

"The improving sales of existing single family homes and condos is a trend we have been seeing for several months in Florida. What is new in this month's data release is that we are seeing evidence of prices beginning to firm," says Dr. Sean Snaith, director for the University of Central Florida's Institute for Economic Competitiveness. "While one month of data does not a trend make, it is the first green shoot we have seen in some time as far as prices are concerned. Until prices stop declining, we cannot state with confidence that the housing market has stabilized. Sales have risen to levels we have not seen since 2006, though the economy still faces headwinds. As credit markets begin to thaw this will help speed along this process of recovery in the housing market."Read more »

Possibility of Tax Credit Expansion

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WASHINGTON - June 24, 2009 - A first-time homebuyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle, according to industry analysts. Now both legislators and the business community are hoping to build on the incentive's success by expanding it.

A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure. Among the proposed changes:Read more »

SBA issues loan refinancing rule changes

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WASHINGTON - June 25, 2009 - Easing current rules, the U.S. Small Business Administration said Wednesday that small businesses will be able to refinance existing loans used to purchase real estate and equipment.

The SBA made changes authorized by the Obama administration's recovery plan to alter its 504 loan program.

"Lower interest rates mean lower payments and less money going out the door each month in debt repayments. That means more cash on hand to keep their doors open, their employees working and to even expand and create more jobs," Karen G. Mills, SBA Administrator, said in a statement.

But in a teleconference announcing the refinancing, the nation's small business agency was questioned about the ability of small companies to take advantage of the program. The refinancing can only be used for businesses for expansion, which includes an acquisition, construction or improvement of land, and building or equipment. Up to one third of the total loan package can be refinanced.Read more »

Are REITs a key to real estate recovery?

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NEW YORK - June 24, 2009 - If you want to bet on the real estate recovery without finding financing and taking possession of property, then consider buying real estate investment trusts.

Fortune magazine says that blue-chip REITs offer a reasonably conservative opportunity for individual investors to profit from the coming real estate rebound. Boston Properties (BXP), Regency Centers (REG), Simon Property Group (SPG), and Vornado Realty Trust (VNO) appear to be among the strongest, the magazine says.Read more »