Destin Florida Real Estate: April 2008

Tuesday, April 29, 2008

Workouts on Prime Mortgages Increase Hope

Daily Real Estate News April 29, 2008

Workouts on Prime Mortgages Increase Hope

Now’s banker members say despite getting off to a slow start, the coalition is making a difference.Hope Now, an alliance of mortgage servicing and counseling companies, reports 502,520 mortgage workouts -- changes to repayment schedules or contractual terms of loans to prime borrowers -- in the first quarter, up 6 percent from the 2007 fourth quarter and 26 percent from the third quarter. Mortgage companies negotiated new terms on 206,495 prime loans last quarter, a 19 percent gain from the fourth quarter's 173,499, according to Hope Now. The alliance reports that subprime workouts fell to 296,025 from 301,244. Members of Hope Now include Bank of America Corp., Citigroup Inc., Washington Mutual Inc., and Wells Fargo & Co.Robert Steel, Treasury undersecretary for domestic finance, defended Hope Now’s still relatively low mortgage rescue rate, saying falling house values do not necessarily change a borrower’s ability to afford a monthly mortgage payment."We strongly believe people should and will continue paying their mortgages regardless of short-term price fluctuations," Steel said in remarks to a business journalists conference.Source: Reuters News (04/28/08)

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Saturday, April 26, 2008

30-Year Rates Jump to 6.03%

Daily Real Estate News April 25, 2008

30-Year Rates Jump to 6.03%

Freddie Mac reports a jump in the 30-year fixed mortgage rate to 6.03 percent during the week ended April 24, from 5.88 percent the prior week, marking the first time in six weeks that mortgage rates rose above 6 percent. The 15-year fixed mortgage rate climbed during the same period, edging up to 5.62 percent from 5.40 percent. The five-year adjustable mortgage rate increased to 5.68 percent from 5.48 percent, while the one-year adjustable rate shot up to 5.28 percent from 5.10 percent. Freddie Mac chief economist Frank Nothaft attributes the gains to heightened inflationary concerns. Source: Baltimore Sun (04/25/08) © Copyright 2008 Information Inc.

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Thursday, April 24, 2008

Lenders Stall Short Sales, Practitioners Say

Daily Real Estate News April 24, 2008

Lenders Stall Short Sales, Practitioners Say

Real estate practitioners across the country believe mortgage lenders are worsening the housing downturn by taking months to make decisions on short sales and sticking to high internal target prices. As a result, home buyers are abandoning short sale properties, forcing them to be sold in foreclosure sales that typically result in lenders accepting lower prices than they could have achieved in a short sale. "The only question banks should ask is can they make more in a short sale than in foreclosure," according to Lighthouse Point, Fla.-based real estate practitioner Ron Rosen, who cites a "broken" system. "The answer is that in nine out of 10 cases they will lose more money in a foreclosure. But banks seem to be asking a different question." Some practitioners contend that lenders lack the appropriate systems and staff to handle short sale requests, while lenders insist the short sale process is complicated by the need for approvals from investors and mortgage insurers. Still, practitioners note that a more efficient short sale process would boost prices and reduce inventory.Source: Reuters, Nick Carey (04/22/08)

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Destin Florida Real Estate Market Trends-Week of 4/24/08

Wednesday, April 23, 2008

New Blogs Created to Be More Specific to Property Type and Area

We thank everyone for their support and hope that the blogs provided here have been helpful. We have gotten requests to begin breaking the blogs into categories as seen below. We always welcome feedback and growth potential. We are trying to transition also into a more feedback/Q&A oriented advice section also so please feel free to publish any questions or solutions here or on http://www.investsmarter.com/forum/. This is a new section to the Invest Smarter family. Thank all of you again and let's try to make 2008 and solid year for investing in Real Estate along the Emerald Coast!

For the 30A Florida Real Estate You will have:
http://30afloridarealestate.blogspot.com/ Dedicated to information that will be helpful for investing along 30A Florida including Rosemary, Santa Rosa Beach, Seaside, Seacrest, etc.

For Destin Florida Real Estate You will have:
http://destinfloridacondominiums.blogspot.com/ Dedicated to Destin Florida Condominiums
http://destinfloridacommercialrealestate.blogspot.com/ Dedicated to Destin Florida Commercial Real Estate and investment properties including rental income producing property.

For Panama City Beach Florida Real Estate You will have: http://panamacitybeachfloridacondominiums.blogspot.com/ Dedicated to Panama City and Panama City Beach Florida Condominiums http://panamacitybeachfloridacommercial.blogspot.com/ Dedicated to Panama City and Panama City Beach Florida Commercial Real Estate

The main blog of Panama City and Panama City Beach Florida Real Estate will continue to service the homes and general information about the area.

Of course all users can still search the MLS in each region below:

For the Destin Real Estate Market, Fort Walton Beach Real Estate Market, Niceville Real Estate Market, Crestview Real Estate Market and Pensacola Real Estate Market You will have:
www.Destin-Florida-MLS.com
www.Destin-Florida-Condominiums.info
www.Destin-Florida-Commercial-Real-Estate.com

For the 30A Florida Real Estate Market including :Alys Beach, Blue Mountain Beach, Carillon Beach, Crystal Beach, Grayton Beach, Laguna Beach, Rosemary Beach, Santa Rosa Beach, Seaside, Seacrest, Seacrest Beach, Seagrove You will have:
www.30A-Florida-MLS.com

For the Panama City and Panama City Beach Real Estate Markets:
www.Panama-City-Beach-Florida-MLS.com
www.Panama-City-Beach-Florida-Condominiums.com
www.Panama-City-Beach-Florida-Commercial-Real-Estate.com

And the Gold Standard of Real Estate! www.InvestSmarter.com and www.RandBCoastalRealEstate.com

Monday, April 21, 2008

Mortgage Rates Hit Low Point

Daily Real Estate News April 21, 2008

Mortgage Rates Hit Low Point

The 30-year fixed rate mortgage currently sits at 5.88 percent, and analysts say they are unlikely to fall any further for the rest of the year. The rate on the fixed loans is only down a quarter of a point this year, as the credit markets have cut the link between it and yields on 10-year Treasuries; and while skittish investors have moved to Treasuries to trim the yields, mortgage lenders have not eased lending standards.Mortgage rates are likely to close 2008 at about 6 percent as investors in bonds focus on rising inflation, driving interest rates higher. Long-term rates will also increase due to the additional supply of Treasuries as Congress borrows to raise money for the growing federal budget deficit. Source: Kiplinger.com, Jerome Idaszak(04/21/08) © Copyright 2008 Information Inc.

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Flip That House and TV Viewers

Daily Real Estate News April 21, 2008

Plenty Still Watching Real Estate TV

Despite a market that is tough in many areas, people continue to watch real estate television.Real-estate programming specialist HGTV's viewership rose 11 percent year-to-year in the first three months of 2008. Nine of its top-10-rated shows among the target 25- to 54-year-olds are real estate based. Property Virgins (Sundays, 10 ET/PT), which premiered last fall with a focus on first-time buyers, has hit peak viewership (about 1.5 million) in the past few weeks.This summer Bravo will revive Million Dollar Listing and Flipping Out, which did well in their first seasons. "Looking at big, beautiful houses is real-estate porn," says Andy Cohen, Bravo's production chief. "We're wary of the real estate market. But we have the most affluent audience on cable, and we program for them."TLC has dropped Property Ladder, and Date My House replaces one of the Saturday time slots of Flip That House, whose viewership has dropped significantly from its peak of 1.8 million in fall 2006. TLC plans a late-spring rollout of Your Place or Mine, a novel game show that offers home makeovers."People are looking at homes in different ways," says TLC's says chief programmer Brant Pinvidic. "A couple of years ago, selling a house was considered the quickest way to get rich. Now it's, 'How much could I sell it for?' It's more a question mark rather than an exclamation point. We want to be reflective of our audience and continue to adjust. But this is a genre we'll always be in."Source: USA Today, Gary Strauss (04/18/2008)

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Fannie, Freddie to Buy More Jumbos

Daily Real Estate News April 21, 2008

Fannie, Freddie to Buy More Jumbos

Fannie Mae and Freddie Mac agreed last Friday to buy more jumbo loans from major lenders, making it easier for borrowers to get these kinds of mortgages.Freddie Mac said it expects to buy up to $15 billion of jumbo conforming loans from Wells Fargo & Co., Chase, Citi Bank, Washington Mutual, and other lenders.None of the banks were able to provide rates for the jumbo conforming loans. But Tom Kelly, a spokesman for Chase, said the Freddie Mac agreement "is going to make more money available in high-cost markets and the rates are obviously going to be less" than they have been since February when Congress first raised the size of mortgages Freddie and Fannie are able to buy.Since the increase, jumbo mortgages have been more than 2 percentage points higher than other conforming mortgages. Plus they have had stiffer requirements, including higher credit scores and bigger down payments."The idea is to provide more liquidity, to lower the rates, and provide more money from the investor side," said Jon Skarin, director of federal policy for the Massachusetts Bankers Association. For the program to work, he said, rates "are going to have to come down significantly, and we'll see."Source: The Boston Globe, Kimberly Blanton (04/19/2008)

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Saturday, April 19, 2008

Lenders Balk at Short Sales

Daily Real Estate News April 17, 2008

Why Lenders Balk at Short Sales

The NATIONAL ASSOCIATION OF REALTORS® says 18 percent of home transactions are now short sales, though experts point out that lenders are reluctant to approve such deals. Research from Clayton Holdings Inc. indicates that lenders lose only 19 percent of the loan amount on average with a short sale, compared to 40 percent on a traditional foreclosure sale. However, short sales require approvals from primary lenders, servicers, investors, and home-equity lenders--a process that can take several months to complete. Mortgage servicers blame delays on staff shortages resulting from the unexpected rise in problem loans, and Mortgage Bankers Association Senior Director Vicki Vidal points out that pricing also poses a challenge because buyers are making low-ball offers on distressed properties. While servicers prefer repayment plans and modifications to short sales, the process is getting easier for borrowers who are encountering financial difficulties but continue to make timely payments. Additionally, Fannie Mae and Freddie Mac both are taking steps to speed up the process, with Fannie Mae looking to make acceptable minimum prices known beforehand and Freddie Mac giving servicers more leeway in approving short sales. Source: Wall Street Journal, Ruth Simon and James Hagerty (04/17/08) © Copyright 2006 Information Inc.

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Buyers Market? Or Just a More Realistic Market?

Daily Real Estate News April 17, 2008

Bargain Home Prices Boost Sales

In cities where housing prices have fallen dramatically, bargain hunters are swooping in and pushing sales upward.Boston, Cleveland, Detroit, Sacramento, and San Diego have all seen sales increases recently after a period of price declines, according to a March report by Radar Logic, a real estate data and analytics firm. In Detroit, sales of homes and condos rose 12.8 percent in February compared with a year ago, according to Realcomp.The most aggressive shoppers include investors, particularly nationally based ones who are cherry-picking single-family homes in good neighborhoods all over the country.International buyers also see U.S. home prices as a bargain. With the dollar down against the Euro, European buyers get particularly good deals, but buyers from Asia and Canada also are active, according to international real estate practitioners.First-time homebuyers are finding this a good time to dip toes in the water. In November 2007, 39 percent of purchasers were first-time homebuyers, according to the NATIONAL ASSOCIATION OF REALTORS®.Source: USA Today, Stephanie Armour (04/17/2008)

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Wednesday, April 16, 2008

Below is the weekly Real Estate Sales Data For Destin, Pensacola, Crestview, Niceville Areas: 4/16/08

Mortgage Applications Rise

Daily Real Estate News April 16, 2008

Mortgage Applications Rise

Mortgage applications rose last week for the second week in a row, up 2.5 percent to 743.4 on a seasonally adjusted basis from 725.6 a week earlier, according to the Mortgage Bankers Association’s weekly mortgage applications survey.On an unadjusted basis, the index increased 2.7 percent compared with the previous week and was up 16.4 percent compared to the same week a year ago.Most of the increase came from refinances, which increased 5.2 percent from the previous week. Purchases actually decreased 0.8 percent.The refinance share of mortgage activity was 53.5 percent of total applications, up from 52.2 percent the previous week.Interest rates decreased slightly.

30-year fixed-rate mortgages decreased to 5.74 percent from 5.78 percent.
15-year fixed-rate mortgages decreased to 5.27 percent from 5.39 percent.
1-year ARMs decreased to 7.02 percent from 7.06 percent.Source: Mortgage Bankers Association (04/16/2008)

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Foreclosures Up 57% Since March 2007

Daily Real Estate News April 15, 2008

Foreclosures Up 57% Since March 2007

Foreclosure filings continue to increase, up 5 percent in March over February, and up 57 percent from March 2007. This includes default notices, auction sale notices, and bank repossessions. "What we're really looking at is ongoing fallout from people overextending themselves to buy homes they couldn't afford and using highly toxic loan products to get into the houses in the first place," Rick Sharga, vice president of marketing at RealtyTrac, an online publisher of foreclosure data.Sharga predicts a record number of foreclosures in the third or fourth quarter of this year, reflecting a round of rate increases on subprime mortgages in May and June.Nevada, California and Florida posted the highest rate of foreclosure filings in March, followed by Arizona, Colorado, Georgia, Ohio, Michigan, Massachusetts, and Maryland.California, Florida, and Ohio report the highest actual number of foreclosures. Other states in the top 10 for total properties with filings are Texas, Georgia, Michigan, Arizona, Illinois, Nevada and Colorado.Source: Reuters News, Lynn Adler, and RealtyTrac (04/15/2008)Browse all of today's news

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Smaller Floor Plans in Big Demand

Daily Real Estate News April 15, 2008

Smaller Floor Plans in Big Demand

American’s appetite for big homes and over-sized furniture appears to be shrinking.New-home buyers began asking builder KB Home for smaller floor plans right after the collapse in subprime lending last year, says CEO Jeffrey Mezger.The demand for a huge, high-ceilinged great room is giving way to the desire for special-purpose rooms, including media rooms and home offices, says a spokesman for luxury specialist Pulte Homes.In three of its four new sofa collections, Younger Furniture is offering "apartment size" sofas, which are about 10 inches shorter than full-sized ones. Citing a trend toward smaller homes, Rowe Fine Furniture says it expects its Mini Mod line will account for a quarter of its collection this fall."They're finally getting it," says Jodi FitzGerald, owner of Door Store Furniture, an 11-store retail chain in metropolitan New York that specializes in small-scale furniture. She estimates the number of smaller offerings has grown by about a third over the past year.Source: The Wall Street Journal, Nancy Keates (03/21/2008)Browse all of today's news

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Who Has to Foot the Bill?

Broward County may tax new businesses for affordable housing
By Scott Wyman South Florida Sun-Sentinel
10:52 PM EDT, April 15, 2008

New businesses could be taxed to help generate affordable housing needed for workers under a proposal that Broward County officials agreed to explore Tuesday.About $2.6 million could be raised to build homes or rental complexes or help families with home purchases if the county were to charge developers an extra $1 per square foot for their projects.Builders have expressed skepticism about the housing fees, but supporters argue it will provide needed financing to solve a long-standing problem. Independent studies have repeatedly shown the area has a shortfall of housing for low- and middle-income families because wages have not kept pace with real estate prices and rents."This is new to us, but other communities that have faced affordable housing crises do this," County Commissioner Kristin Jacobs said. "It is important if we are ever going to get ahead of the curve on housing. We have to take control of this problem."

Based on a flat $1-a-square-foot fee, a new pharmacy would be charged $15,000 while a new fast-food restaurant would owe $4,000. A new grocery store would pay about $50,000 in housing fees.The fees would apply to business development and are similar to those charged on new housing to cover the impact on roads and other government services.Commissioners agreed to study the idea further although some said the fee could drive away new business and questioned what would happen if cities begin charging their own fee as well. A detailed proposal would likely be brought back to the commission later this year.Such housing fees are common in California and other urban areas. In Florida, Coconut Creek, Winter Park and Marathon are among cities that charge developers such fees. Fees range to as high as $15 per square foot in San Francisco even though charges of between $3 and $4 a square foot are more common.Developers spend about $200 a square foot to build a warehouse and $345 a square foot to build an office building.County housing administrators said rentals for low-income households and homes for moderate-income families are Broward's most pressing housing needs.A study released this year by the private not-for-profit Broward Housing Partnership concluded the current $314,200 median sales price for a single-family home in Broward is still too high for the average worker. Affordability gaps — the average difference between the amount of house a buyer can afford and what is available — ranged from $153,558 in Pompano Beach to $277,499 in Fort Lauderdale, the study said.The Associated Builders and Contractors wrote the county in December, saying the cost will likely be passed on and thus raise costs for the person trying to afford a home. County attorneys said the fee is legal and can be pursued.County Mayor Lois Wexler said the county must find solutions to affordable housing soon. She is leading a task force that is to present other ideas to the commission this summer."I don't want to lose track of the American dream just because this country is in a crisis right now," she said.Scott Wyman can be reached at swyman@sun-sentinel.com or 954-356-4511.
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Copyright © 2008, South Florida Sun-Sentinel

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Friday, April 11, 2008

FHA Loans Can Ease Mortgage

Daily Real Estate News April 11, 2008

FHA Loans Can Ease Mortgage

Dilemmas Potential home buyers may be hesitant as they start their hunt in today's market, but many quickly discover that their market is full of choices, sellers are becoming more willing to negotiate, and interest rates are still low.That's not to say there will be no setbacks. The hard part may come when they go shopping for a mortgage. Minnesota Mortgage Association President Tim Bendel said 100 percent financing has all but disappeared. He advises borrowers with good credit scores seeking a conventional loan to come to the table with at least a 5 percent down payment. Borrowers with credit scores below 700 may need a more significant 20 percent down payment.But there is help on that front. The answer for some buyers is a Federal Housing Administration (FHA) loan. Credit scores count less with FHA loans; the more important factor is whether the potential borrower has paid other bills on time, says Todd Johnson, CEO of Edina Realty Mortgage. FHA's government-backed loans require only 3 percent down and allow cosigners and gifts for down payments.Source: Star-Tribune, Kara McGuire (08/06/2008

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Prove You're Not Like the Rest

Daily Real Estate News April 11, 2008

Prove You're Not Like the Rest

In a crowded real estate field, you must be a good marketer in order to generate business. To snag the customer, you've got to find a way to stand out, experts say. "Real estate is an emotional business and, because the market has changed so much, visibility is often more important than ability," says The Personal Marketing Company Chief Marketing Officer Rob Murry.Here are some of Murry's tips for making yourself known:
Appeal to emotions. To distinguish yourself from the competition, create a brand that makes an emotional connection with your target audience. Once prospects find a real estate practitioner whose personality they like or with whom they can connect, they are more likely to select that agent over a competitor.
Be consistent. An agent's brand, once established, should be applied consistently in all of his or her marketing media in order to attract business, entrench brand recognition, and keep the agent in the forefront of house-hunters' minds. "This is all about perception," according to Murry.
Market your specialty. "Consumers think that all real estate agents are the same. Because they don't see any differentiators, they don't see the perceived value, and are more likely to want to pay less if they think they can get the same thing somewhere else. But when you're a specialist, you have a unique value and are known for something specific. Position yourself as a specialist and market yourself as such to get the business." Source: RISMedia, Beth McGuire (04/10/08)

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Wednesday, April 9, 2008

Opportunities in the Mortgage Business Possible

Daily Real Estate News April 9, 2008

Final Innings of Credit Crisis?

Morgan Stanley CEO John Mack says he believes the global credit crisis is probably “in the final innings.”"We're keeping powder dry," he says. "We feel the risks on the market, the run on Bear Stearns, and we think it is important to have very liquid positions and we're working toward that."Mack says Morgan Stanley is seeing opportunities in the same mortgage market that caused Wall Street's pain this year. He expects more bad news will come out as the world's banks recover from the subprime mortgage crisis, particularly from "overseas and some small retail banks in this country."But he adds that he's optimistic the mortgage market is turning, and that
could provide opportunity.Source: The Associated Press, Joe Bel Bruno (04/08/2008)

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Weekly Real Estate Sales Data For Destin, Pensacola, Crestview, Niceville Areas

Tuesday, April 8, 2008

Can the local tourism industry lure Chinese here?

Can the local tourism industry lure Chinese here?
By LINDA RAWLS
Palm Beach Post Staff Writer
Monday, April 07, 2008

With the U.S. economy in the doldrums, tourism leaders are pinning their hopes on a country that just a short time ago would have been unthinkable: China.

As recently as the 1980s, all but a select few Chinese were forbidden to travel overseas.

International travelers were almost akin to traitors. Now, thanks to loosened travel restrictions and a growing middle class that craves world travel, an astounding 100 million Chinese tourists a year are expected to travel overseas by 2020.

Every tourist destination in the world - including Palm Beach County - hungers for them.
Working against Palm Beach County: an indifference to sunny beaches. One other problem: "They know nothing at all about you," said Alexander Glos, chief executive of i2i Media of Orlando and Beijing and an international consultant on Chinese tourism. Speaking to Florida's tourism operators, Glos said wooing Chinese tourists away from the West Coast, their traditional point of entry, won't be easy, either. "Everything Florida has to offer they can get on the way - beaches, Disneyland. Why would they come all the way across the country to Florida? "

That doesn't stop local tourism operators from drooling over billions of dollars in potential tourist
spending by Chinese travelers.

"They watch American movies, and they would love to come to America," said Rose Liu, owner of the Lucky Star Chinese restaurant in West Palm Beach. Liu, who came to America from China as a child with her family to escape communism, confirms the World Tourism Organization's finding that modern Chinese travelers are light-years away from the gray tunics of Chairman Mao.

With an almost fanatical appetite for Louis Vuitton purses and Estee Lauder perfumes, Chinese travel parties spend an average of $6,000 per trip, excluding airfare, compared to the $4,000 that other international travelers spend, according to the World Tourism Organization.
"Chinese like anything name brand," Liu said. "In China they will work two jobs just to have a Louis Vuitton bag to show."

What about Florida's outlet malls? "They'd go crazy," she said. "They love designer stuff."
Yet Palm Beach County's premier attraction - its beaches and sunshine - are likely to leave them cold.

"Most Chinese see beach life as a waste of time," said Wolfgang Arlt, director of the China Outbound Tourism Research Institute at the West Coast University of Economics and Technology in Germany. "There are wonderful beaches in China."

Culture isn't that important to them, either.

"Everything with language is no-no," he said.

So what do they want?

"What they do want is to see how America measures up to the American Dream," Arlt said. "They're familiar with the stereotypes of the United States as the richest and most advanced nation in the world, its lifestyle as the holy grail of development.

"And they want to see it in all its brilliant modernity to understand how far China has to go to catch up - and whether the struggle will be worth it."

European priorities
Miami-Dade County has been trying to lure Chinese tourists for a decade. In the past two years alone, the greater Miami tourism bureau has made four sales missions to China.
South Carolina's Department of Commerce opened an office in Shanghai three years ago. California's Palm Desert Chamber of Commerce had an eight-day trade mission to four major Chinese cities last year. Another is planned this year.

If Utah can't lasso Chinese tourists, no state can. Gov. Jon Huntsman, on a weeklong trade mission to China in 2006, extolled his state's virtues - in Mandarin, a taxing language he learned as a Mormon missionary.

Even if Florida Gov. Charlie Crist spoke Mandarin, the Sunshine State and Palm Beach County are at a competitive disadvantage.

"We would certainly welcome the business," said Enid Atwater, vice president of communications for the Palm Beach County Convention and Visitors Bureau.
Like most county tourism officials, though, Atwater believes local efforts should be directed to more attainable markets in Europe, Latin America and Canada. The county doesn't have the budget to market to China without the financial help of Visit Florida, the state's tourism marketing arm. "It will take several years of concerted effort to begin to make a measurable effort," she said.

Added David Semadeni, secretary of the Palm Beach County Hotel and Lodging Association, "There are priorities closer to home just at this time."

Bud Nocera, chief executive of Visit Florida, takes issue with the idea that the state is not actively pitching its attractions to the Chinese travel industry.

"The travel trade in China certainly knows Florida," he said. "We did trade missions for Florida destinations, including Palm Beach County. We found them very receptive."

But he acknowledged Florida's efforts this year are more difficult because of budget cuts and competing demands for a shrinking pool of state marketing money.

"We need to be in the China market now to remain competitive, not only with other states, but with sovereign nations that all want a piece of the Chinese market," Nocera said.

The Burberry lure
Visit Britain plans to spend millions of dollars this year to lure Chinese tourists to the island, where Burberry raincoats are a big shopping draw. Japan - which used to regard Chinese tourists as "illegal immigrants in disguise," as The New York Times' once reported - sent 20 representatives to the Shanghai World Tourism Expo a few years ago. Even tiny Jamaica opened an embassy in Beijing to make it easier for Chinese travelers to get visas.

Korean Air calls its China routes "golden lines" because they're so profitable. Japanese airlines have been fighting over the lucrative China routes for years.

With Chinese air passengers predicted to hit 215 million a year in 2014, Atlanta-based Delta Air Lines last week announced the only nonstop flight from the southeastern United States to China.
The journey from West Palm Beach to Shanghai will be an 18-hour itinerary with a change of planes in Atlanta and a ticket price of $1,100 for economy class.

"We're already seeing more and more" Chinese tourists said Roger Amidon, general manager of the Palm Beach Gardens Marriott.

In December, the United States won approved-destination status from the Chinese government. That opens the door for Chinese tour groups to travel here and for this country to market tours to them.

They couldn't come at a better time. Even before soaring oil prices raised airline fares and kept vacation drivers off the road, the United States had started to fall behind in overseas tourism.
Between 2000 and 2007, the country lost nearly 50 million overseas travelers. The number of international travelers to Florida dipped slightly in 2006, as well.

Of course, Chinese tourists could not be expected to like all they find here.

"Everything in your grocery stores is frozen," said Liu, the West Palm restaurateur. "The Chinese are fanatical about fresh food."

She pauses. Her eyes light up.

"That would mean more business for me," she said.

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Foreclosure Owners Get Even....

By Paul Owers South Florida Sun-Sentinel
10:45 PM EDT, April 7, 2008

Some South Floridians who lose their houses to foreclosure try to get even. They'll strip the plumbing, ruin the carpets and rip out doors.At a home on Southwest 91st Avenue in Cooper City, listing agent Craig Green found the top of the toilet tank missing, the door to the dryer ripped off, the garage filled with junk and a wall in the master bedroom with a large hole in it.Jim Banford, broker-owner of Real Estate Asset Disposition Corp., saw roofing tar in the toilet of a house on 55th Street in West Palm Beach. A 2-foot fish and cement were poured down the toilet at another of his listings nearby."I've seen everything, but that was pretty memorable," said Banford, whose West Palm Beach-based firm markets and resells foreclosed properties across Florida.
Related links
See foreclosures and subprime loans in Broward and Palm Beach counties Multimedia
Complete coverage: Foreclosure crisis
Pending sales of existing homes fall to new low
Tips on buying a foreclosed home
Condition house was found in Photos
Exasperated lenders are getting wise to the ruse and offering "cash for keys" deals, essentially paying homeowners as much as $2,000 not to take out their frustrations on their properties before leaving. Roughly half of all foreclosed properties are returned to the bank with substantial damage, according to a national survey of 1,500 real estate agents by Campbell Communications, a marketing and research firm in Washington, D.C."Until you see and smell these properties, you don't really understand the problem," said Tom Popik, a partner at Campbell Communications and a market researcher in the mortgage industry for 15 years.Ransacked homes are another symptom of the housing crisis that began in 2006 after five years of record price increases. In many cases, people stretched to buy homes but can't keep up with the payments now that their adjustable-rate mortgages are resetting much higher.Some homeowners are bitter at their lenders for taking back the properties and feel they've been mistreated along the way, agents say.The owner of a home on Inlet Road in North Palm Beach left with the swimming pool motor, lighting fixtures and every appliance, said Wes Yancsurak, an agent with Coldwell Banker in Jupiter. Some of his other listings have been damaged."Unfortunately, it's always the bank's fault," Yancsurak said. "In a lot of cases, we have to bring in big dumpsters to clean these properties out. It's just an absolute disaster."Prices of foreclosed properties with significant damage drop by about 25 percent, Popik said. And that ultimately reduces the values of other homes nearby.The North Palm Beach house sold recently for $225,000 in a neighborhood where homes are valued at $300,000 or more. The Cooper City house had been appraised at $349,000 but likely will go on the market for $225,000 because it's in such poor condition."This hurts adjoining property owners, and it's having a major impact on the overall economy," Popik said.Not all the damage is deliberate, and some of it is done by vandals after the homeowners move out. Still, while lenders and agents can't always prove it, they're convinced occupants trash properties to be vindictive.Lenders could try to press charges, but most don't have the time and would just rather move on, agents say.Although lenders will authorize basic repairs to make the houses presentable again, they typically don't do wholesale renovations, and the houses are marketed for resale "as is."In Davie, a homeowner who lost the property in Foreclosure left behind a caged dog."Your eyes would water when you went in there," said Jane Caro, an agent for Prudential Florida WCI Realty who toured the home. "The lender had to put new drywall in because the smell wouldn't come out."Some owners skip basic maintenance once it becomes clear that Foreclosure is inevitable, said Terri Gerlach, an agent with Pat Hance Realty in Plantation."People have fallen out of love with their homes, and they treat them badly," Gerlach said.Typically, lenders are willing to offer $500 to $2,000 for people to vacate quickly and leave the homes in decent shape. But some homeowners aren't interested.Green said he tried to make a "cash for keys" deal on the Cooper City house, but the owner never responded. In another case, a woman in Weston turned down his offer and stripped the home of faucets, sinks, closet doors and the central air-conditioningunit.But other owners are happy to accept the cash and put it toward finding a place to live.About three months ago, a Sunrise homeowner swept her property clean, then turned it over to Green, who handed her a $500 check from the lender, Select Portfolio Servicing of Salt Lake City, Utah.Coral Gables-based Bayview Financial recently paid the owner of a Loxahatchee home $2,000 to leave. The agent, Lisa Creese, even helped the owner find a new home for a horse."After a Foreclosure, there are two options," Banford said. "People can leave voluntarily or with a sheriff literally pounding on the door. I think cash-for-keys is definitely the best outcome for both parties."Paul Owers can be reached at powers@sun-sentinel.com or 561-243-6529.
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Monday, April 7, 2008

Whole New Level of Marketing....

Daily Real Estate News April 7, 2008

Buy My Home, Be My Beneficiary

A Wisconsin home owner has an interesting gimmick that he hopes will persuade buyers to check out his Whitehall home, listed at $498,900.Whoever buys the home will become the beneficiary of his 10-year $500,000 life insurance policy. That means, if the 69-year-old seller Bob Fanning dies during the first 10-year period of ownership, the buyer of his home gets the payout."Life's a gamble, this is a gamble," Fanning says.Some wonder whether Fanning will fear for his life after selling his home. But Wayne Peters, the real estate practitioner who listed the property, says the there will be no payout if someone kills Fanning. “The attorneys have provided for that.”Peters agrees it is an unusual buyer incentive, but says it might work. "It's hard to get people's attention in this market. There are a lot more sellers than buyers."The two-story, 5,600-square-foot home has four bedrooms and four baths and is on a 30-acre property.Source: The Associated Press (04/04/2008)

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First Time Home Buyers Still Can't Get a Deal

Despite falling prices, many first-time buyers left out of the market
For many, falling prices haven't opened door to market
By Paul Owers South Florida Sun-Sentinel
April 7, 2008

http://www.sun-sentinel.com/business/sfl-flzybcover0407sbapr07,0,6907976.story

First-time home buyers just can't win.

Many were left out of the market during the housing boom of 2000 to 2005 because homes were too expensive. But now, even with sellers desperate and prices plummeting across South Florida, first-time buyers still can't realize the American Dream with property taxes remaining too big a burden and lenders tightening credit standards."It's tough, regardless of when they pull the trigger," said Bob Tenace, head of Century 21 Tenace Realty in Coral Springs and Boynton Beach.Having moved six times in seven years, renter Stacy Bailen of Palm Beach Gardens would like to buy a little starter house and start building equity.
Related links
Tips for first-time home buyers
Real estate tracker: Trends, homes for sale, more
Complete coverage: Foreclosure crisis
But the 31-year-old administrative assistant worries about obtaining a mortgage and the still-hefty home ownership costs, particularly property taxes. In the end, Bailen decided to postpone buying."I'm not a risk-taker," she said. "When I hear that I should look to buy something, I say, 'With what?'"Real estate agent Douglas Rill said he has a three-bedroom listing in West Palm Beach that was just reduced to $149,900 from $179,000. It does need work, but the house has a new roof and would be ideal for a first-time buyer, he said."I don't have a lot of action on it," Rill said. "I thought people would be breaking the door down."Rill and other agents complain that Florida legislators didn't consider first-time home buyers when overhauling the state's property-tax system.Under the new plan approved by Florida voters in January, all buyers will benefit from an estimated $15,000 increase to the $25,000 homestead exemption. But first-time buyers won't be able to take advantage of the more-lucrative "portability" measure, which allows existing homeowners to transfer their accrued tax savings to another property within the state.First-time buyers would be stuck with the large tax bills that prompted the Florida Legislature to take action in the first place. They would have to hope homes they buy appreciate in value for them to realize a tax savings that could help cushion buying a more expensive property down the line."It's hard for me to comment because you can't print expletives," Rill said. "But the Legislature missed a huge opportunity."Despite the credit crunch and tax problems, first-time buyers are trying to find a way to get into the market, if only because they're tired of renting, said Beverly Rothstein, a real estate agent with Re/Max Professionals in Coral Springs.Rothstein said she meets with first-time buyers at length, shows how far prices have fallen and helps them decide whether buying makes sense."My job is almost like a teacher and a confidant," Rothstein said.Luis Pichardo, 27, was one who grew tired of renting, so he recently bought a condominium in Tamarac. It was a learning experience, he said.Pichardo put no money down, and the lender, Citimortgage, took several weeks to scrutinize his application."There was a time when I didn't think it was going to be possible," said Pichardo, a painter.Real estate agents and mortgage brokers insist that first-time buyers get preapproved for a loan even before they start looking at houses. Having a letter of commitment from a lender shows sellers that buyers are serious.First-time buyers also should strongly consider Federal Housing Administration financing.The popular government program fell out of favor during the boom years, in part because median home prices in Palm Beach and Broward counties escalated beyond the $362,790 FHA loan limit, said Jim Giacone of Element Funding in West Palm Beach.As a result, prospective buyers rented instead, while others forged ahead with so-called subprime loans. The onerous terms helped push many into Foreclosure.Now, however, the government has increased the loan limit to $423,750. FHA requires less than 3 percent down payments on homes and offers easier credit qualifying and lower mortgage insurance than conventional loans, brokers and agents say."Don't forget about FHA," said John Mike, chairman of the Realtors Association of the Palm Beaches. "You don't need this big down payment, and you don't have to sell your soul."Paul Owers can be reached at powers@sun-sentinel.com or 561-243-6529.

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Saturday, April 5, 2008

Rates Creap Back Up....

Daily Real Estate News April 4, 2008

30-Year Rates Climb for Week

Mortgage borrowing costs were up for the week, reports Freddie Mac. According to the company's figures, interest on 30-year fixed loans bumped up to 5.88 percent from 5.85 percent a week ago; while 15-year fixed loans climbed to 5.42 percent from 5.34 percent. On the other hand, adjustable-rate products moved in the opposite direction, with the one-year ARM dipping to 5.19 percent from 5.24 percent and the five-year ARM sliding to 5.59 percent from 5.67 percent. Source: San Diego Union-Tribune (04/04/08)© Copyright 2008 Information Inc.

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Jumbo FHA Loan Requirements Not Helping!

Daily Real Estate News April 4, 2008

Banks Up Rates for FHA Jumbo Loans

Banks are adding fees and increasing interest rates on Federal Housing Administration loans that make the government-guaranteed mortgages less likely to assist their target customers.Congress recently approved an increase in the ceiling on loans the FHA can insure to as much as $729,750 in the highest-cost areas, up from $362,790.J.P. Morgan Chase & Co. is only one of the lenders saying it will charge at least a half-point premium and demand a minimum 580 credit score from borrowers seeking the FHA jumbos.

Kevin W. Lynch, a mortgage broker at A. Anderson Scott Mortgage Group in Rockville, Md., says he has been quoted rates of nearly 7 percent on jumbo FHA loans. The loans are so expensive they "aren't going to sell," Lynch says. "It's a waste of everybody's time."Source: The Wall Street Journal, James R. Hagerty (04/04/08

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Thursday, April 3, 2008

Destin Florida Real Estate Market Trends

Bankruptcy Up 27 Percent vs. Year Ago

Daily Real Estate News April 3, 2008

Bankruptcy Up 27 Percent vs. Year Ago

U.S. consumer bankruptcy filings rose 27 percent from the same month a year ago, the American Bankruptcy Institute reported Wednesday.In March, consumer bankruptcy filings totaled 86,165. That marked a steady increase from 76,120 filings in February and 66,050 recorded in January, the non-partisan bankruptcy research group said.Currently, legislation in the U.S. Senate would help struggling homeowners refinance their mortgage, but it would not allow federal bankruptcy judges cut the interest rate and other terms for borrowers unable to pay their mortgages. Republicans and the banking industry oppose that provision, backed by Sen. Richard Durbin, an Illinois Democrat.Source: Reuters News (04/02/2008)

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