Down goes the prices up goes the sales

The median home price in the Manatee-Sarasota area for October dropped 36 percent year over year.

I know I don't have to say anymore.

According to an article in the Sarasota Herald Tribune the median home price is down to $169,000 in October.

We have not seen that pricing according to the article since May of 2002.

The silver lining in all this. Like I have been saying the lower prices go the more people can afford to get into the market.

Sales were up 3 percent over last year.

Enough said.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

Happiness is

Housing starts are down.

Foreclosures are up.

Mortgage rates are down.

I have a smile across my face.

These things are all connected.

When people ask if it is a good time to buy. Think of a couple of questions.

Do you think housing prices have dropped? The answer is probably yes.

Do you think housing prices will ever go back up? If the answer is yes, then you have answered the question about is it a good time to buy.

The decrease in housing starts puts more pressure on the resale market, so that will help clear up the foreclosures eventually.

Foreclosures are helping keep the market prices down.

A combination of lower housing prices and lower mortgage rates means more people can afford homes which helps increase sale.

Yippee!

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

Look up there, its a ray of sunshine

This is a message for both buyers and sellers out there.

There are lessons in the market for both.

Gary Keller, our company founder, recently talked in Orlando about the shifting market.

He started this company in a similar market in the 80s, possibly a little worse, as mortgage rates were in the double digits.

A ray of sunshine he shared with us for the Florida market is this.

There are three main items that affect home buying, income, mortgage rates and home prices.

During the boom income could not keep up with the rising home prices and we know what happened then.

The ray of sunshine is home prices have dropped and mortgage rates are affordable. First time home buyers are jumping back in to the market because now it starts to make financial sense.

For sellers the lesson is this. The 80/20 rule. In this buyer's market 80 percent of the homes are overpriced 20 percent are priced right.

For the foreseeable future the prices will continue to drop on the 80 percent.

For the buyer's the lesson is the 20 percent that are well priced and in good condition are still selling.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

Rescue me

There is no doubt that a lot of our business so far this year has been foreclosures.

For a while it felt like you couldn't go anywhere without seeing one. More coming on the market everyday and more lenders going to the Manatee County courthouse to file suit for foreclosures every month.

Well this gravy train seems like it may come to and end soon. Fannie Mae and Freddie Mac are looking at a rescue plan.

Some of the major banks have already put a stop to foreclosures on principal residences and others are joining in.

What's up with that?

Imagine renegotiating loans so that people can afford to stay in their homes instead of going through the all the expense of foreclosing on them. What a novel idea for the lending world.

Well this may be good news for homeowners, I tip my hat to them for sticking in there while the lenders finally came to their senses.

On the other hand for my investors and clients looking for a steal of a deal we're going to have to get our running shoes on.

It doesn't appear the investment homes are protected but the best of those are being snapped up in the under 200k range.

The higher end ones of course are moving a tad more slowly.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

Steal me please

So the under 200k market for decent foreclosures in Manatee County is getting a whole lot tighter.

Well what about the $1 million plus home with the million dollar view for half price or less?

Yep, they are out there. And they are screaming steal me!

Well, as in steal of a deal.

I recently saw a foreclosure on open bay which had sold for nearly $1.7 million a couple of years ago. We're talking sunset views on three levels.

I mean 5,000 plus square feet under air.

Yes, it needs some up grading and yard work but heck the home is appraised at more than $1.5 million by the county property appraiser.

So what do you need to pay for this little piece of paradise. How about just a tad under $600k.

Yes, there is a Santa Clause.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

Bargain market continues to tighten

Across Manatee County from Palmetto, to Parrish to Anna Maria Island we are seeing a record in foreclosure suits being filed by lenders.

One would think this would create a glut of great bargains.

Well not exactly as I have mentioned before it takes a while for the foreclosures wield there way through the legal system and on to the market.

Add to that lenders who are telling people to stay in their homes even though they are not making payments.

As one banker told me recently they are in no rush in many instances to foreclose now because they would rather have owners stay at the house and take care of it.

Then when the really good foreclosures, as in desirable neighborhood good pricing, do come on the market they are being snapped up right away.

I was at foreclosure recently where people were three deep waiting to see it. There were eight showings the first day.

And the home was on the market one day before the lender received a full price offer.

This is starting to be the rule not exception in our county. Particularly in the Palmetto, Parrish area.

Junk is junk still but the good condition homes are going fast.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

Tick Tock, homestead deadline approaches

There is a rush to get a home in Manatee and Sarasota counties is you are looking to get a break on your property taxes.

If you want to get in on the Homestead Exemption on your property taxes you need to have taken possession of the home by December 31 and applied for the exemption by March 1.

In other words think of it this way. It is November, say it takes you a week or two to find a home then another 30 to 45 days to close the deal. You are now cutting it close.

Below is a Q&A from the Manatee County Property Appraisers office on the homestead exemption. You can also find more information at www.manateepao.com.

All the best
Greg Owens PA
Keller Williams Realty of Greater Manatee
941.932.6343
greg@teamworksfla.com

This excerpt is from the Manatee County Property Appraisers office.

What is homestead exemption?

Homestead exemption is a constitutional guarantee that reduces the assessed value of residential property up to $25,000 for qualified permanent residents.
When may a homeowner apply for homestead exemption?

The legal owner is urged to file as soon as they occupy the residence and they have proof of Florida residency. The homeowner must establish permanent Florida residency on or before January 1, and apply by mail or in person at the Property Appraiser’s office no later than the March 1 deadline of the year the exemption is to begin. The homestead application and instructions will be mailed to the property owner on request or may be printed from our website forms page.

What information is needed to file for the property owner’s first homestead exemption?

a) A deed or tax bill in the applicant’s name.
b) All of the following information is to establish proof of residency on or before January 1 for all owners who occupy the property. The information may be presented in person or copies may be mailed along with the application to our office no later than the March 1 deadline:
1) Social security numbers.
2) Florida driver’s licenses or Florida identification cards for non-drivers.
3) Florida vehicle tag number(s) on all vehicles privately owned or Manatee County voter registration cards.
4) Resident Alien Card if not a US Citizen.
5) Copy of the entire trust agreement, or a recorded memorandum of trust, if property is held in a trust.

If the applicant does not possess all these items, they may call us for further information.
Can a home be rented and still benefit from homestead exemption?

No. Rental of a primary residence constitutes abandonment of homestead exemption. Our Tangible Personal Property Department should be contacted for filing requirements on rental properties.

Is a mobile home eligible for homestead exemption?

Yes, if the mobile home and land on which it is permanently affixed are both owned by the applicant.
When applying, it is necessary to mail a copy or bring in the title or registration to the mobile home in addition to the residency documentation.

Does a homeowner have to be a United States citizen to qualify?

Citizenship is not required to file for homestead exemption. An applicant who is not a U.S. citizen must mail or present a copy of both sides of their permanent resident alien card.
If the homeowner’s spouse is deceased, are they eligible for a widow’s or widower’s exemption?
Yes. If the homeowner is a qualified Florida resident they may apply for the widow’s or widower’s exemption. This may be applied for by mail or in person.

When a new residence is purchased, is the homestead exemption transferred to the new home?

No. Exemptions are not transferred. For a homeowner to receive the exemption on their new home, they must qualify and apply either by mail or in person at the property appraiser’s office by the March 1 deadline. If the application is mailed, it must be postmarked no later than the March 1 deadline.

If a home is purchased which has a homestead exemption, will that exemption continue?
The new owner will receive the benefit of the previous owner’s exemption only for that year. However, the new homeowner must apply by mail or in person by March 1 of the next year to continue the exemption.

What if the property is in a trust?

In these cases, it is necessary for the applicant to furnish this office with a copy of the entire trust agreement or a recorded memorandum of trust. Florida law specifies those situations under which the resident may obtain homestead exemption. The Florida Constitution requires that the homestead claimant have a legal title or beneficial title in equity to the property.

Are there other tax exemptions?

Yes. Qualified Florida residents may also apply for medical, disabled veterans, total and permanent disability, quadriplegic, blind, wheelchair confined, service connected disability, widow’s or widower’s and low income senior exemptions. Instructions and forms can be obtained by printing them from our website by clicking on the following: Homestead Application and Instructions or by calling 941.748.8208. Our office may be contacted for additional information regarding filing requirements.

What is Amendment 10?

Amendment 10, also known as “Save Our Homes,” is a Constitutional Amendment that was approved by Florida voters in 1992 as a result of a citizen’s initiative. Basically, it limits, or caps the annual increase in assessed value of property that has a homestead exemption. The increase cannot exceed the lesser of 3% or the Consumer Price Index (CPI) for the previous year. Furthermore, in no event can the assessed value be greater than the market value.

When does Amendment 10 take effect?

The base year is the year in which the property owner qualifies and receives their homestead exemption. Future increases in assessed value are then capped at the lesser of 3% or the CPI.
FOR EXAMPLE: if a person bought a home and applied for homestead exemption in June 2006, the exemption would take effect January 1, 2007. Therefore, 2007 becomes the base year. The property would then be subject to the cap for the first time in 2008.

Are there any reasons that would cause the cap to be removed?

Yes. If the home is sold or if the homeowner no longer qualifies for homestead exemption on the property (e.g. the house is rented), the exemption and capped value will remain effective through December 31st. As of January 1st of the following year, both the exemption and the cap will be removed and the assessed value restored to the full market value. If the new owner is eligible for a homestead exemption, the capping process begins at the current market value as soon as the new owner qualifies for the homestead exemption.

NOTE: Please remember, the homestead exemption is granted only if the homeowner qualifies. However, if the homeowner moves, the exemption will remain on the property through the end of the year before being removed. If another home is purchased that has an existing homestead exemption, the exemption will remain in effect until December 31st. To maintain a homestead exemption on newly acquired property, the new owner must apply by March 1st of the year following the purchase of the home. This will start the Amendment 10 process for the new owner.

What about partial exemptions and the cap?

The cap only applies to the portion of the property receiving homestead exemption. For example, if a property owner lives in a duplex where one side is rented, only half the value will receive the cap. Since there are many circumstances where a partial exemption may apply, we urge the property owner to contact the Property Appraiser’s office for clarification should the property fall into this category.

What about additions or remodels?

The value of additions, remodels, etc. will be added to the capped value at the current market value and will be under the cap the next year. If a pool is added, the assessed value will increase by the value of the pool in the first year and will be capped with the rest of the property the following year.