Ringling Museum in Sarasota Gets No. 2 Spot in Best Florida Attraction

The John and Mable Ringling Museum of Art, located in Sarasota, Florida gets the number 2 spot in Best Florida Attraction as chosen by readers of USA TODAY and 10Best.

The museum was established in 1927 as the legacy of Mable and John Ringling for the people of Florida, and is well-loved by locals and visitors alike.

It has the designation of being the official state art museum for Florida, and contains many European paintings as well as contemporary art and antiquities. The museum has a collection of more than 10,000 objects that include a variety of paintings, sculpture, drawings, prints, photographs, and decorative arts from around the world. 

Make it a destination of yours when you come to Sarasota, Florida.

Source: 10Best.com

Sarasota, Florida is No. 2 Moving Destination in America

Sarasota, Florida combined with Tampa is the second most popular moving destination in the U.S., according to data from truck rental firm Penske.

Mortgage Applications on the Rise

Mortgage applications rose last week after dipping to a 13-year low in late 2013, according to data from the Mortgage Bankers Association (MBA).

The data for these applications includes refinancing and home purchases, and went up by 4.7% by the second week in January. Although this is a seasonally adjusted figure, the underlying data suggests that demand for refinancing is increasing and applications for home purchases dropped slightly.

Hopefully this will not be a trend as applications for home purchases is a leading indicator of future home buying activity. With the Federal Reserve tapering its bond buying program this year and mortgage rates falling in January, we are hoping that this will lead to home buying activity picking up again to achieve another strong year for the housing rebound.

Source: The Wall Street Journal (Jan 22, 2014)

Popi's Place on the Ranch Opens in Lakewood Ranch, Florida

The Ameres family are opening their eighth restaurant in the Bradenton-Sarasota area of Florida during the week of Jan 27, 2013. Popi's Place On The Ranch will continue the tradition of serving homemade “country classics” such as omelets, deli sandwiches and meatloaf. Famous for their comfort food and large portions, Popi's newest addition is located next to the Walmart in Ranch Lake Plaza, at the I-75 and SR70 intersection.

There is an Ameres family member at every Popi’s Place restaurant — all eight of them — in the kitchen at 4 a.m. making homemade biscuits. Andy Ameres and his wife, Kalli, will run Popi’s Place on the Ranch. Kalli Ameres fashioned the location like a ranch.

“Every location has its own character, but the principles in each are the same,” Andy Ameres said. “The recipes are consistent; we have a broad menu with filling portions. It’s hard to do this — to make things fresh to order and family-oriented. Our customers are understanding when we make mistakes because they know what we put into it.”

Andy Ameres said he expects to hire 30 to 40 people to staff the Lakewood Ranch location, including culinary students from Manatee Technical Institute.

“We still know how to stay small,” Andy Ameres said. “Any time we open a new restaurant, we’re excited to be a part of that neighborhood, and Lakewood Ranch is no different.”

Source: East County Observer, (Jan 22, 2014)

U.S. Homebuilding Has Best Year Since 2007

U.S. home construction slowed in December but ended 2013 with the best showing since the housing bubble burst.

The Commerce Department said Friday that builders broke ground last month at a seasonally annual rate of 999,000. That’s 9.8 percent lower than November’s pace of 1.12 million, which was the fastest in five years.

For the year, builders started 923,000 homes and apartments, up 18.3 percent from 2012. It was the fourth straight annual gain and the strongest since 2007, when 1.36 million homes were started.

The housing market has been recovering steadily over the past year, helping to boost economic growth and create jobs. But a rise in mortgage rates from record lows reached a year ago has started to weigh on those gains.

For December, construction of single-family homes, which make up roughly two-thirds of homebuilding, fell 7 percent to an annual rate of 667,000. Construction of apartments, which can be more volatile, dropped 14.9 percent to a 332,000 rate.

Applications for building permits, considered a good sign of future activity, fell 3 percent in December to a rate of 986,000. Single-family permits fell 4.8 percent. Permits for apartments were unchanged.

Mortgage rates remain low by historical standards. The average rate on a 30-year mortgage fell to 4.41 percent this week. That’s down from a peak of 4.6 percent in August.

U.S. homebuilders remain generally upbeat ahead of the spring homebuying season, which starts next month.

The National Association of Home Builders/Wells Fargo builder sentiment index slipped to 56 in January, down slightly from a 57 reading in December. Readings above 50 indicate more builders view sales conditions as good rather than poor. Even with the small dip, the overall index remains in positive territory and is nine points higher than it was a year ago.

Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the homebuilders association.

Copyright © 2014 The Associated Press

Four Key Indicators for a Full Housing Recovery

In order to have a fully recovered housing market and economic recovery, economists say that there are four positive indicators:

1. A healthy job market with low stable unemployment;

2. Mortgage delinquencies that have returned to historical averages;

3. Home prices consistent with an affordable mortgage payment–to–income ratio; and

4. Home sales that are in the range of historical norms.

So, is the housing market getting closer to being fully recovered? Click here to find out.

Relief From Hikes in Flood Insurance Rates?

Congress may delay flood insurance hikes for thousands of homes along the Gulf Coast and other areas that are facing steep premium increases, The Wall Street Journal reports. A $1.012 trillion spending bill to fund the government includes a measure that would temporarily continue flood-insurance subsidies for some properties located in flood zones.

The 2012 Biggert-Waters law sets out to gradually phase out flood insurance subsidies. The subsidies are being phased out due to the national flood insurance program being $24 billion in debt. That means home owners who have long received discounts to pay for flood insurance are now being faced with large increases — anywhere from a few thousand dollars to tens of thousands of dollars extra a year. Home owners affected say the increases will hurt their home values and make their homes more difficult to sell.

The provision included in the spending bill would prevent FEMA from updating “grandfathered” rates when new flood maps are issued for nine months. It would not apply to increases triggered by a property’s sale that FEMA implemented last October.

Steve Brown, president of the National Association of REALTORS®, says the bill “does not go far enough to support the millions who are impacted by the exponential price increases.”

Sen. Mary Landrieu, D-La., is pressing for separate broader flood-insurance legislation in the Senate that would delay price increases for more home owners nationwide for up to four years.

Source: “Congress May Delay Flood Insurance Rate Increases,” The Wall Street Journal (Jan. 14, 2014)

Short Sale Myths

Several myths persist about short sales. Tracy Mooney, senior vice president at Freddie Mac, dispels some of the following common myths on the mortgage giant’s blog, including: 

Myth 1: “A short sale is not an option for me because I’m current on my mortgage payments.”

Freddie Mac Fact: Even if home owners are current on their mortgage payments, they may still qualify for a short sale. They must meet general eligibility requirements, the home must be their primary residence, and their debt-to-income ratio must be more than 55 percent.

Myth 2: “I will be responsible for the entire amount owed on the mortgage.”

Freddie Mac Fact: Home owners won’t necessarily be responsible for the entire amount owed on the mortgage under the Freddie Mac Standard Short Sale program. Borrowers who complete a short sale in good faith and are in compliance with all laws and Freddie Mac policies will not be pursued by Freddie Mac for the entire amount owed under the mortgage. However, home owners who have the financial means may be asked to make a one-time payment or sign a new promissory note for a portion of the unpaid balance after the short sale closes.

Myth 3: “I can’t get a short sale on an investment property or second home.”

Freddie Mac Fact: Investment properties and second homes are eligible for a Freddie Mac short sale. However, borrowers must meet eligibility requirements.

Myth 4: “A short sale will affect my eligibility for a new mortgage.”

Freddie Mac Fact: Home owners who go through a short sale may be eligible for a new mortgage sooner if the short sale was caused from financial difficulties due to income loss, medical emergencies, or other extenuating circumstances beyond their control. Former home owners in those circumstances may be eligible for a new Freddie Mac mortgage once they’ve established acceptable credit for at least 24 months after completing the short sale. Former home owners who underwent a short sale due to “personal financial mismanagement,” however, will need to re-establish acceptable credit for at least 48 months to become eligible for a mortgage backed by Freddie Mac. You should start speaking to a lender about a new mortgage two years after your short sale closed.

Source: “Short Sales: Dispelling the Myths,” Freddie Mac (Jan. 13, 2014)

VA Loans at Record Levels in 2013

The Department of Veterans Affairs announced that the number of loans it guaranteed reached a record high in 2013.

The VA guaranteed nearly 630,000 mortgage loans in 2013 and the average loan was around $225,000. The VA’s total loan volume has soared by 372 percent since 2007, according to Chris Birk, the executive editor at Veterans United Home Loans.

The New York Times reports that one reason for the increase is historically low interest rates, which have driven a high demand for refinancing loans. The paper notes that about half of last year’s VA loans were for the purpose of refinancing. However, that business did drop off a bit toward the end of last year as interest rates increased.

An overall tight lending environment is also making VA loans more attractive to service members.

“It’s become so much more difficult for military personnel and veterans to qualify for conventional financing,” Birk says. “This is the only path to homeownership for many.”

VA loans do not require a downpayment for first-time home buyers, and about 90 percent of all VA-guaranteed loans for home purchases are made without any money down. The loans also do not require private mortgage insurance.

Source: “A Big Year for V.A. Loans,” The New York Times (Jan. 9, 2014)

New Construction Permits in Sarasota up by 41%

Building permits for new construction building permits in Sarasota County were up in 2013 compared to 2012. This is a clear sign that the housing market and construction industry are bouncing back. However, some people are concerned that this growth comes with a price.

Building permits in Sarasota County were up 41% with almost 900 new homes. Although this is good for the local economy there are those who are worried about the impacts, particularly the risk of traffic gridlock and taxes going up to accommodate growth.

Source: Building permit numbers up, so are concerns, WWSB ABC 7 (January 8, 2014)

Housing Recovery on ‘Firm Footing’ According to Fannie Mae

Year-over-year gains in Americans’ attitudes toward homeownership show that the housing recovery continues to move forward on firm footing, despite a drop in housing sentiment during the fall, according to Fannie Mae’s December National Housing Survey results.

Almost half (49 percent) of consumers surveyed believe home prices will go up over the next 12 months, compared to 43 percent in December 2012; and they expect home prices to rise 3.2 percent, compared to 2.6 percent last year.

Those who say it’s a good time to sell a home rose significantly to 33 percent from 21 percent in December 2012. And, despite higher mortgage rates, consumers are more optimistic about their access to mortgage credit than they were a year ago and half (50 percent) say it would be easy to get a home mortgage today compared to 45 percent last year.

“The marked improvement in housing market sentiment over the course of 2013 bore out our view going into the year that the housing recovery was on a firm footing,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “Year-over-year gains in home price expectations and attitudes about the current selling environment were particularly notable” and “consumer attitudes about the ease of getting a mortgage today are at their highest level in the survey’s three-and-a-half-year history.”

Read more at Florida Realtors®

Florida and Ohio Still Offering Big Discounts on Foreclosures

The National Association of REALTORS® recently reported that foreclosures nationwide sold for an average discount of 17 percent below market value in November. But in some places, the discounts may be even deeper, especially in Ohio and Florida.

A new study from RealtyTrac shows that Ohio has six cities in the top 12 places offering some of the largest discounts on foreclosed homes. Florida has two cities in the top 12.

According to the RealtyTrac study, the following cities offer some of the biggest discounts on foreclosures:

1. Fort Myers, Fla.: 65% average discount on foreclosures
2. Columbus, Ohio: 63%
3. Cleveland, Ohio: 63%
4. Fresno, Calif.: 62%
5. Pittsburgh, Pa.: 60%
6. Atlanta, Ga.: 57%
7. Canton, Ohio: 56%
8. Cincinnati, Ohio: 55%
9. Akron, Ohio: 55%
10. Memphis, Tenn.: 54%
11. Vero Beach, Fla.: 51%
12. Dayton, Ohio: 51%
13. Richmond, Va.: 49%

Source: RealtyTrac

New Homes are Costing More to Build

Single-family home construction costs are at the highest levels since 1998, according to a new report by the National Association of Home Builders. Costs were significantly higher in 2013 when compared to 2011 average construction costs—$246,453 in 2013 versus $184,125 in 2011. 

Framing and trusses account for the largest share of construction costs, and a rise in the cost of lumber is most likely to blame, the NAHB report notes. The cost of softwood lumber rose 40 percent between April 2011 and April 2013, according to the Bureau of Labor Statistics’ Producer Price Index.

“Although lot sizes are shrinking, both the cost and size of the home are on the rise,” Heather Taylor of NAHB’s Economics and Housing Policy group notes in the report. The average home in 2013 was built on 14,359 square feet (or about at third of an acre) of land, the report notes. The average home boasted 2,607 square feet of finished area.

NAHB broke down the cost of construction on new single-family homes into the following eight major stages of construction:

• Interior finishes account for 29.3% of construction costs 
• Framing: 19.1% 
• Exterior finishes: 14.4% 
• Major system rough-ins: 13.4% 
• Foundations: 9.5% 
• Site work: 6.8% 
• Final steps: 6.6% 
• Other costs: 0.9% 

Source: “Cost of Constructing a Home,” National Association of Home Builders (Jan. 2, 2014)

Will New FHFA Chief Loosen Credit Standards?

Mel Watt was sworn in last week as the head of the Federal Housing Finance Agency, and many in the mortgage industry believe that Watts’ confirmation signals a new shift in U.S. housing policy with greater access to credit, Reuters reports.

"Today's housing finance system is one of the keys to our economic recovery," Watt says. “[I hope] to develop a strong foundation for moving this system forward for the benefit of all Americans at this critical point in our nation's history."

As the new FHFA head, Watt will oversee mortgage giants Fannie Mae and Freddie Mac, which back about 60 percent of U.S. home loans. Watt has already announced that he plans to delay several Fannie Mae and Freddie Mac fee hikes. In December, FHFA Acting Director Edward J. DeMarco announced Fannie Mae and Freddie Mac would charge more to lenders who guarantee loans for borrowers with mid-range or lower credit scores, as well as those who didn’t meet certain down payment guidelines. Watt says he wants to delay those fee hikes until he has more time to review the reasoning behind them.

Those in the mortgage industry also are hopeful that Watt will expand federal programs that allow underwater borrowers with loans backed by Fannie Mae and Freddie Mac to lower their interest rates.

Source: “New Finance Agency Chief Mel Watt Might Loosen Credit,” Reuters (Jan. 6, 2014)

'Boomerang Buyers' Return to Market

According to a poll of 140,000 LoanSafe.org members, boomerang buyers – who were ousted from the housing market due to foreclosures or short sales, spent years renting to rebuild their credit, and have saved enough to buy again – are now expected to help turn the real estate market around.

These buyers could flock to the market at the same time that investors and retirees pull back, as new government programs aim to help consumers with bankruptcies or loan defaults become homeowners again, sooner than they would have otherwise.

Jon Maddux, LoanSafe.org co-founder, says boomerang buyers in markets across the nation are showing interest in getting back into homeownership, with almost 80 percent of poll respondents who lost homes during the crisis interested in buying again.

Moreover, 41 percent of respondents interested in re-entering homeownership have higher incomes than during their first purchase; 63 percent have lower debt obligations; 46 percent plan to purchase in a lower price range; and 50 percent expect to make at least a 10 percent down payment.

Source: "Boomerang Buyers Could Be Key to Real Estate Market in 2014" Sarasota Herald-Tribune (12/30/13)

Mortgage Rates Move Higher Going Into 2014

Fixed mortgage rates continued an upward climb this week, with the 30-year fixed-rate mortgage starting the year more than a full percentage point higher than last year at this time, Freddie Mac reports in its weekly mortgage survey.

"Mortgage rates edged up to begin the year on signs of a stronger economic recovery,” says Frank Nothaft, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages for mortgage rates for the week ending Jan. 2:

• 30-year fixed-rate mortgages: averaged 4.53 percent, with an average 0.8 point, up from last week’s 4.48 percent average. Last year at this time, 30-year rates averaged 3.34 percent. 
• 15-year fixed-rate mortgages: averaged 3.55 percent, with an average 0.7 point, rising from last week’s 3.52 percent average. A year ago, 15-year rates averaged 2.64 percent. 
• 5-year hybrid adjustable rate mortgages: averaged 3.05 percent, with an average 0.4 point, rising from last week’s 3 percent average. Last year at this time, 5-year ARMs averaged 2.71 percent. 
• 1-year ARMs: averaged 2.56 percent, with an average 0.5 point, holding the same average as last week. A year ago, 1-year ARMs averaged 2.57 percent. 

Source: Freddie Mac

Florida's Population to Surpass New York State in 2014

Sometime this year, Florida will surpass New York in population, becoming the nation's third-most populous state, and sun-seeking seniors are not driving the growth.

Although Florida has the nation's largest share of residents over age 65, seniors are not propelling the recent growth from migration. They account for less than 10 percent of new residents in the last several years. Instead, more than half of the new arrivals are between 25 and 64, according to an AP analysis of data from the U.S. Census' American Community Survey. Almost two-fifths of them were under age 25.

Once Florida passes New York, only California and Texas will have more residents.

"Florida is kind of an icon of the 21st century in terms of the shifting population and the growing role Latin America is playing in transforming the country," said James Johnson, a business professor at the University of North Carolina. "I think it's going to be for the 21st century what California or New York was for the 20th century."

Like the United States, Florida is a haven for migrants and people making fresh starts, and the state's 29 electoral votes are the nation's most coveted given Florida is the nation's largest swing state.

Source: Florida Population on Verge of Surpassing New York State's, Associated Press (Jan 3, 2014)

Does Janet Yellen Hold the Strength of the 2014 Housing Market in Her Hands?

Janet Yellen who takes over as chairman of the Federal Reserve if the Senate confirms her in a vote scheduled for next week, will hold significant sway over the direction of the U.S. housing market in 2014. 

Following last year’s jump in prices that rivaled gains during the housing boom, Yellen will guide the winding down of the Fed’s bond-buying program that influenced mortgage rates for five years.

If Yellen tapers too quickly, investors could panic, causing mortgage rates to surge. If the new chairwoman goes too slowly, low rates coupled with an improving economy will cause the housing market to overheat.

Home prices probably will rise about 5.3 percent in 2014, half the pace of 2013, according to the Realtors association. Sales of existing homes will total 5.1 million in 2014, matching last year, the trade group predicts. Whether any of the housing forecasts are accurate depends on what Janet Yellen does, and no one really knows what that will be.

Source: Homebuyers Missing Housing Rebound Depend on Yellen, Bloomberg (Jan 2, 2014)

Equity Returns to U.S. Homeowners

Home prices surged 11.3 percent this year compared to 2012, the latest housing data by the National Association of REALTORS® shows. A rise in home prices has pulled more home owners out from underwater with the return of equity this year, NAR notes.

On NAR’s Economists’ Outlook blog, researchers explain that a borrower who bought a median-priced home in 2004 and held it for nine years – the average tenure in a home – would now have $28,114 in equity (includes combined price appreciation and paying down mortgage principle).

A home owner who purchased a median priced home in 2012 would have more than $23,000 in equity, according to NAR research.

Home owners who purchased in 2006 and 2007 – during the peak of the market – have faced the biggest falls in home prices, but NAR researchers note they are “nearly in positive equity” territory. A home owner who bought a home in 2006, for example, and owned through 2012 would have been underwater by about $28,200. However, by this year, that downfall has lessened to $4,700.

Home owners who bought since 2007 are mostly in positive equity, according to NAR research.

A study released last week by CoreLogic showed that more home owners were regaining equity. About 13 percent of all homes with a mortgage remain in negative equity by the end of the third quarter, compared to 14.7 percent who stood in negative equity at the end of the second quarter.

Source: “Housing Equity 2013,” National Association of REALTORS® Economists’ Outlook Blog (Dec. 20, 2013)