St. Patrick's Day Information and Important Etiquette

Ok, so St. Patrick’s Day is only around the corner and we are getting excited in our household. We love St. Patrick’s Day; when my wife was growing up she spent every St. Patrick’s Day at an Irish Céilidh doing her Irish dancing routine with the rest of her dance troup. Then, as time went on we would always end up at an Irish Céilidh somewhere! 

Now we live in the U.S. we are still on the look out for fun things to do, and we have discovered a few things for this year such as:-

• March 15, 2014: The 3rd Annual Irish Celtic Festival takes place at Central Park in Lakewood Ranch. With entertainment stages, the Lucky Dog Parade, traditional food, a pot 'o gold scavenger hut and more, from 11:00 am - 4:00 pm. This year there will be a 5k run on the morning of the event. Sign up your dog for the parade. Central Park amenity center off Lakewood Ranch Boulevard.

• March 16, 2014: The 9th Annual Irish Rover St. Patrick’s Day Festival is from 11:00 am - 6:00 pm (rain or shine) featuring Irish entertainment all day long. There will be beer and drinks and Fish and Chips, Corned Beef and Cabbage and more. Family fun for all. Admission: $7 adults, kids 12 & under are free. Free parking. Twin Lakes Park, 6700 Clark Rd, Sarasota. (East of I-75 on Clark Rd).

• March 17, 2014: The Shamrock Pub hosts its 6th annual St. Patrick's Day Block Party. The pub opens at noon, music starts at 2:00 pm. Irish beer, music, bagpipers and food. Limerick Contest Finals, The Beer Geek, Face Painting, Irish Dance Academy of Sarasota and more. No cover charge. Under the tent. 2257 Ringling Blvd, Sarasota. Proceeds from the event benefit the Sarasota Family YMCA Youth Shelter.

Also, don’t forget Main Street in Lakewood Ranch.

Oh, and just a little thing to remember on this year’s St. Patrick’s Day, and every other one to come

• It's 'Paddy' NOT 'Patty'. EVER

• 'Saint Patrick's Day'? GRAND

• 'Paddy's Day'? SURE, DEAD-ON

• 'St. Pat's'? AYE, IF YE MUST

• 'St. Patty'? NO, NEVER!

Why is 'Patty' just so wrong?

• 'Paddy' is derived from the Irish, Pádraig, hence those mysterious, emerald double-Ds.

• 'Patty' is the diminutive of Patricia, or a burger, and just not something you call a fella.

• There is not a sinner in Ireland that would refer to a Patrick as 'Patty'. It’s as simple as that.

Now let’s all have some fun.

Average 30-Year Mortgage Rate Moves Up To 4.28%

The average U.S. rate on a 30-year fixed mortgage edged up this week to 4.28 percent from 4.23 percent but remains near historically low levels after declining during the five previous weeks.

Mortgage buyer Freddie Mac said Thursday that the average for the 15-year loan was unchanged at 3.33 percent.

Mortgage rates have risen about a full percentage point since hitting record lows roughly a year ago. The increase was driven by speculation that the Federal Reserve would reduce its $85 billion a month in bond purchases. Deeming the economy to be gaining strength, the Fed proceeded last month with planned reductions of its bond purchases, which have helped keep long-term interest rates low.

Recent economic data have pointed to a likely pause in the housing market’s recovery. Real estate data provider CoreLogic reported last week that U.S. home prices slipped from November to December. And the year-over-year increase slowed, likely a result of weaker sales at the end of last year.

The number of Americans who have signed contracts to buy homes has plummeted to its lowest level in more than two years.

Most economists expect home sales and prices to keep rising this year, but at a slower pace. They forecast that both will likely rise around 5 percent, down from double-digit gains in 2013.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage was unchanged at 0.7 point. The fee for a 15-year loan also remained at 0.7 point.

The average rate on a one-year adjustable-rate mortgage rose to 2.55 percent from 2.51 percent. The average fee declined to 0.4 point from 0.5 point.

The average rate on a five-year adjustable mortgage fell to 3.05 percent from 3.08 percent. The fee held at 0.5 point.

Copyright © 2014 The Associated Press

What Are The Must-Haves For Today's Young Homebuyers?

Millennials, those born between 1980 and 2000, are the second-biggest segment of home buyers, behind Generation X (those born between 1965 and 1979), according to a 2013 National Association of REALTORS® study about generational housing trends.

Real estate professionals told ABC News recently of some “must have” features that tend to be in high demand among young buyers. Some of those “must haves” include:

1. Updated kitchen and bath: “The primary reason young buyers seek updated kitchens and baths is because they have limited budgets,” says Jack Curtis, a real estate professional in Dublin, Ohio. “Most of their savings will go toward the down payment and furnishings. Kitchens and bathrooms are also the most expensive parts of a home to update, and young home owners cannot afford to sink a lot of money into those areas.”
2. Big kitchen with an open floor plan: “The kitchen has become the hangout room along with the family room,” says Lou Cardillo of The Lou Cardillo Team in Yorktwon Heights, N.Y. “An open space that can easily transition from kitchen to TV room is high on the list of the perfect home for young buyers. In essence, the kitchen is the new living room.”
3. Home office: "As technology continues to make us more mobile, young buyers have more options than ever to work from home, depending on their job," says Paige Elliot, a real estate professional with Dave Perry-Miller & Associates in Dallas. "Having a dedicated space is important because it will help keep them focused and concentrated on work while they are at home on a Skype call, planning a presentation, setting up their workday or simply paying bills."
4. Location: “My young buyers look for properties that are in proximity to public transportation and that have a good walking score,” says Allison Nichols, a real estate professional with Related Realty in Chicago.
5. Technology: A home’s appeal can be increased if it has a strong mobile carrier’s signal or its list of Internet service provider options, says Cardillo. “Internet and cell service matters a lot to this generation, and they’re going to ask, so yu need to have answers,” Cardillo says.

Source: “Top 10 Must-Haves to Sell to Young Homebuyers,” ABC News (Feb. 10, 2014)

Florida Housing Market Strengthened in 2013

Florida’s housing market wrapped up 2013 with more closed sales, higher pending sales, higher median prices and a reduced inventory of homes for sale compared to the year before, according to the latest housing data released by Florida Realtors®.

“Throughout 2013, the state’s housing market has demonstrated it’s in a solid recovery and gaining strength,” 2014 Florida Realtors® President Sherri Meadows, CEO and team leader, Keller Williams, with market centers in Gainesville, Ocala and the Villages. “The positive fundamentals of Florida’s housing sector continue into 2014. However, factors remain that could slow an even stronger economic recovery, such as limited inventories of for-sale homes in many areas, overly-restrictive mortgage credit, rising interest rates, and concerns about the cost and availability of property and flood insurance.”

Read more at Florida Realtors®

How To Buy Again After a Short Sale

Potential homebuyers with a previous short sale in their history should pay careful attention to their credit report. If they plan to apply for a mortgage soon, they should make sure the earlier short sale information was reported accurately.

In some cases, a short sale erroneously appears on their credit report as a foreclosure – a blemish that could haunt them much longer and prevent them from obtaining a new mortgage because it’s a red flag to a lender.

Typically, when lenders report on a short sale in a credit report, they’ll say, “settled for less than full balance.” That’s a key indicator for a buyer’s new mortgage lender looks for because it shows that the previous property was a short sale, not a foreclosure, according to Credit.com. Lenders have the responsibility to report accurately to the credit bureaus.

Credit.com says some other credit report codes will also hamper a borrowers’ ability to qualify for a mortgage any time soon: Chapter 5, 8, or 9 – which are often synonymous with a foreclosure.

A short sale borrower is eligible for conventional loan financing 24 months after a short sale at 80 percent loan-to-value or lower. If it’s a foreclosure, however, they may have to wait up to seven years to qualify for a conventional loan, or four years if they can prove it was a one-time economic hardship situation that caused the foreclosure.

Borrowers who have the short sale inaccurately noted in their credit report will need to contact the creditor and likely supply a final settlement statement showing the previous property was a short sale, and a copy of the grant deed transferring the property from them to the buyer.

Source: “Credit Report Error Sinks Short-Sellers Bids for a Mortgage,” Credit.com (Feb. 6, 2014)

Canadians Urged 'Now Is The Time to Buy' in Florida

The epic beach party might not be over yet, but the economic tides are starting to inch a little closer for aspiring Canadian snowbirds.

A pair of concurrent trends over the last year have chipped away at the historic buying power Canadians enjoyed in the American Sunbelt since the financial crisis: a 10 percent decline in the loonie coupled with a roughly 10 percent rise in U.S. housing prices.

Each percentage point washes away a piece of the bargain.

There are still deals to be had, as sunbelt housing prices haven’t fully recovered from the 2008 crash – but Canadians should be aware that they’re entering a much more competitive market.

To illustrate that point, one longtime real-estate agent points at a Boca Raton highrise.

“If you ask me about that apartment (and say), ‘I’d like a two-bedroom,’ what you’re asking for might be sold,” says Sandy Yacker, motioning toward a random building as she drives up Florida’s coastal highway.

“I’d have to show you another building. We don’t have any inventory. The inventory was plentiful two years ago – now there might not be any in that building.”

Yacker’s seen a lot in her 74 years, nearly all of it spent in Florida and much of it spent working as a real estate agent.

She remembers seeing the elegant clothes along Miami’s South Beach, in a distant era when women wore gowns and men wore suits instead of today’s dental-floss fashions along Ocean Drive. She believes that was Harry Truman’s presidential motorcade she saw as a girl once, rolling by on Flagler Street.

But she’s never seen anything like 2008.

In her own condo complex, one-bedroom villas that had gone for US$280,000 were suddenly being panic-sold at $110,000 by frail seniors who had to sell in a hurry, because they needed to move into specialized homes.

She says those units are now going for about $170,000, after a bounce last year. The latest trend might mean lesser deals for bargain-hunting foreigners, but what a relief for homeowners pounded by the crisis.

“It was a shock to your pocketbook,” she says of 2008.

“It’s no question… It was disturbing if you were trying to sell if, God forbid, an emergency came up – if a person got sick and couldn’t stay in their home,” Yacker said.

“But it’s started to rise in price.”

The shift is confirmed in numbers from the U.S. National Association of Realtors for 2013. They say U.S. sales activity increased by 9.1 percent, for their best year since 2006. The median home price shot up 11.5 percent, the biggest increase since 2005.

Meanwhile, though, U.S. home purchases by foreigners edged backward in 2012-13.

International-purchase numbers for the last calendar year aren’t out yet, but through March 2013 the total was $68.2 billion – still high, historically, but much lower than the $82.5 billion from 2011-12.

Canadians are the biggest international buyers of those U.S. homes, comprising one-quarter of foreign purchases. And Florida is their No. 1 choice – with 39 percent of Canadian purchases occurring there. That’s followed by 24 percent in Arizona, and single digits in California, Hawaii, Texas and other states.

One economist predicted an impact from the currency fluctuation, albeit a limited one.

Statistics crunched by the TD Bank for The Canadian Press suggest a 10 percent decline in the loonie likely means 250,000 less visitors per year to Florida, and a decrease in spending of about 0.7 percent of the state’s GDP (or somewhere between $250 million and $400 million).

But there’s a notable asterisk: Canadian visits to Florida have been growing so rapidly in recent years that even a dip would likely just mean that the growth continues, only slower.

This is after years in which Canadian visits to Florida increased 12 percent in 2010, followed by 6 percent, 6 percent and 3 percent in 2013. For this year, TD projects an increase in Canadian visits to the Sunshine State of two percent.

“I think the longer-term period of rapid growth – at least for the next few years – is probably behind us. I think we will see a pause in that trend,” said Derek Burleton, the vice-president and deputy chief economist of the TD Bank Financial Group.

“I’d say growth (is) pausing, but I don’t think we’re going to see the level of Canadian spending and involvement in the real-estate market go back to where it was five or 10 years ago (before the crash).”

He said the currency fluctuation will be felt far more in the northern U.S., in areas that have come to benefit from Canadian cross-border shoppers.

As for the Sunbelt, he said, the economics become a secondary factor. People are drawn there for reasons other than cost-savings and, with baby boomers retiring, he predicted Canadians will keep visiting and snapping up property to be close to the beach and the sunshine.

Bob Slack, a retired school principal from Ontario who has a home near Lakeland, Fla., concurred with that assessment.

Slack bought a home in Florida 16 years ago and has witnessed economic shifts before. He said people might spend a little less on a house, a little less on meals in restaurants, and a little less time on the golf course.

But they’ll mostly keep coming.

“There are many ways snowbirds cope with a fluctuating dollar,” Slack said. “People just adapt.”

Copyright © 2014 The Canadian Press, Alexander Panetta

Home Sales and Prices Are Up, But Caution Remains

Existing-home sales and prices are up, but government officials caution the economy is still fragile in the Obama Administration’s January 2014 Housing Scorecard, an overall look at the nation’s housing market.

The report showed progress among several key indicators. “In 2013, home sales had their strongest performance in several years; foreclosure starts were at their lowest annual level since 2005; and home owners’ equity is up $3.4 trillion since the beginning of 2012,” according to the report.

“With foreclosures down, home sales up, and equity continuing to grow, the housing market continues to make slow, but steadily-improving progress,” says Kurt Usowski, HUD deputy assistant secretary for economic affairs.

The report also highlights the status of the administration’s Making Home Affordable program each month, a program aimed at helping home owners avoid foreclosure. To date, more than 1.9 million home owner assistance actions have taken place through the Making Home Affordable program, including more than 1.3 million permanent loan modifications through the Home Affordable Modification Program (HAMP). Also, the report shows the Federal Housing Administration offered 2.1 million loss mitigation and early delinquency interventions through December.

Source: U.S. Department of Housing and Urban Development

Men & Women Dig on Digs Differently

©1995-2014 NATIONAL ASSOCIATION OF REALTORS® and realtor.com® 

Questions for Unmarried Homeowners to Consider

More couples are purchasing homes together before they marry, and some do not intend to marry at all. Unwed twosomes need to determine how to hold the title: whether the home will transfer to the surviving partner if the other dies, as joint tenants with the right of survivorship; or whether a percentage of ownership will pass to the beneficiary named in the will through a tenants-in-common arrangement.

They also need to consider whether both or just one partner will sign the promissory note. If both sign it, they both could be pursued by the bank in the event of foreclosure; but if only one partner signs it because he or she has a job, better credit, and contributes more to the down payment and mortgage, then he or she will be on the hook alone — regardless of how they hold the title.

Taxes must be discussed as well, mainly with regard to whether the partners will divide the mortgage interest and property tax write-offs equally if the payments are not equally divided between the two of them. They also must consider what would happen if they break up after the home purchase.

"I try to remind them that this is 100 percent business," says Nanci Lieneck of Weichert Realtors in Ridgewood, N.J. "They are joint owners. Married or not, they will own a property, and you have to think of that in a business perspective."

Source: "Crucial Questions for Unmarried Home Buyers," NorthJersey.com (Feb. 9, 2014)

Getting a Mortgage is Getting Easier

More Americans say it’s easier for them to get a mortgage, according to Fannie Mae’s January 2014 National Housing Survey. Fifty-two percent of the more than 1,000 consumers surveyed say they believe it would be easy for them to get a mortgage — an all-time high for the survey and the first time it's passed the 50 percent mark. Meanwhile, 45 percent of consumers say they believe it would be difficult to get a mortgage.

Though consumers’ expectations for home-price gains within the next 12 months are softening, the impression that mortgage credit is more available should help propel the housing recovery, according to Fannie Mae’s report.

“A majority of consumers now believe that it is getting easier to get a mortgage,” says Doug Duncan, Fannie Mae’s chief economist. “The gradual upward trend in this indicator during the last few months bodes well for the housing recovery and may be contributing to this month’s increase in consumers’ intention to buy rather than rent their next home. The dip in overall home-price expectations, though notable, is consistent with our view of moderating home-price gains this year from a robust pace last year, while positive trends in perceptions about the economy and personal finances over the next year support our view of stronger growth in the broader economy.”

Source: Fannie Mae

Single-Family Growth to Fuel Housing in 2014

Led by a resurgence in single-family production, housing will continue its climb toward higher ground in 2014, but builders are still confronting several challenges, according to economists speaking at the National Association of Home Builders (NAHB) International Builders’ Show (IBS) in Las Vegas.

“My single-family forecast for 2014 is pretty aggressive – 822,000 starts, which is likely 200,000 more than 2013,” said NAHB Chief Economist David Crowe. “There are five key points to the turnaround. Consumers are back, pent-up demand is emerging, there is a growing need for new construction, distressed sales are diminishing and builders see it.”

Consumer confidence has returned to pre-recession levels and household balance sheets are on the mend. Year-over-year household formations are on the rise and now averaging 620,000 compared to just 500,000 during the housing downturn. At the height of the housing boom, the U.S. was producing 1.4 million additional households each year.

Meanwhile, new-home sales are averaging just 8.7 percent of total home sales – barely half the historical average of 16.1 percent.

In the midst of the Great Recession, the cumulative lost number of existing home sales between 2007 and 2011 totaled more than 4 million, Crowe said. Moreover, the percentage of mortgages seriously delinquent has fallen and the decline has been larger in markets that had the highest rates.

In a sign that builders are well aware of the trend now under way, the NAHB/Wells Fargo Housing Market Index (HMI), which measures builder sentiment in the single-family housing market, has been above the 50 mark for the past eight months. Any reading above 50 means that more builders view sales conditions as good than poor.

However, Crowe cautioned that builders still face several headwinds, including rising building material prices, persistently tight mortgage credit conditions, difficulties in obtaining accurate appraisals and limited availability in labor and developed lots.

Moreover, gridlock and uncertainty in Washington threaten to harm consumer confidence and future housing demand.

Read more at Florida Realtors®

Green Builders Survived Recession, Will Fare Well Into The Future

Homebuilders that bet on green features could be saving their business and establishing a competitive advantage for the future. More builders with energy-efficient and green home construction experience remained in business during the Great Recession than those builders who did not have any knowledge or experience with green housing.

In 2013, green homes comprised 23 percent of overall residential construction. It is expected to rise to one-third of the market by 2016, according to the newly released Green Home Builders and Remodelers Study by McGraw Hill Construction.

More communities have adopted green principles into building codes, ordinances, and regulations, which is helping to spur their adoption. Also, more products are becoming affordable, which helps more home owners incorporate them.

About half of builders and remodelers in 2013 said it’s easier to market green homes, up from 40 percent in 2008. What’s more, 68 percent of builders say their customers will pay more for green. Twenty-three percent say their customers are willing to pay more than a 5 percent premium for a home with green features.

"Green experience was a significant part of what kept builders in business during the recession, and now those same firms are embracing the competitive advantage they earned by deepening their delivery of energy-efficient and green homes," says Harvey M. Bernstein, VP of Industry Insights and Alliances, McGraw Hill Construction. " We also see firms reentering the market that are using traditional home building practices versus green practices because that's what they know. However, the broader availability of green building products and practices, a more educated consumer and an increase in activity at the regulatory level will also encourage this group of builders to learn green practices over time."



Source: “Builders With ‘Green Experience’ Fared Better During Recession,” Mortgage News Daily (Feb. 4, 2014)

When Will Home Prices Return to Peak Levels?

Though home prices are projected to grow at a 3 percent to 5 percent appreciation rate, economists at Clear Capital say there should be no worries about a housing bubble brewing any time soon.

In fact, according to Clear Capital’s Home Data Index, if home appreciation continues at its current pace, prices may not return to peak levels until 2021.

The National Association of Realtors reported in its December existing-home sales report that home prices rose 11.5 percent in 2013 compared to 2012. That marked the strongest gain since 2005, when median prices for existing homes rose 12.4 percent.

Following the double-digit growth in home prices last year, however, Clear Capital economists predict that national home prices will now fall into line with inflation and follow more historical rates of growth.

“Double-digit gains over the last year, while similar to rates of growth in the run-up to the bubble, are off a much lower price floor,” says Alex Villacorta, vice president of research and analytics at Clear Capital.

However, Villacorta did note that Phoenix and Las Vegas are showing signs of overheating and should be watched closely. Both markets saw yearly gains around 30 percent, but home prices have since been cooling. Home prices in Las Vegas remain 20.8 percent below 2000 levels when adjusted for inflation, but prices in Phoenix are about 1.9 percent above 2000 levels, according to Clear Capital.

Home prices at the metro level, when adjusted for inflation, reveal 46 out of 50 metro markets have home price levels that are at pre-2003 levels. Twenty-five of 50 markets are reporting prices below 2000 levels.

“With the majority of metro markets still so far below peak prices, it’s time for conversations surrounding price trends to shift away from the 2006 peak as the point of reference, and back to current trends and forecasts,” says Villacorta. “While there are certainly investors and homeowners holding real estate assets that will be underwater for seven years or more, the current housing market is positioned to behave very similar, or even below, historical norms, given the current economic climate.”

Source: “Home Prices Won’t Return to Peak Levels Until When?” HousingWire (Feb. 3, 2014)

© Copyright 2014 INFORMATION, INC. Bethesda, MD

McNeal Elementary School Winter Carnival

McNeal Elementary School hosted their latest winter carnival on January 25th, 2014. It was a huge success again thanks to all the volunteers and teachers that helped out. We had a bounce house, wacky hair, face painting, sand digging and goldfishes to win, all three of my children won a goldfish each, so we had three new pets! 

There was lots of food to be had and our stall selling pizza for our 3rd Grade (Mrs Holland and Mrs Matazinski)  class. We were very lucky to have our pizza donated by our local and very delicious pizza shop Jet's Pizza that has just opened on SR70. They kindly agreed to donate lots of pizza to the class to help us raise more money. The pizza was very good and went down well with everyone. I’m sure Jet's will have some new customers now, I know they have with us and our friends. It was all down to the wonderful classroom Mom Mrs. Sabrina Ashley who asked Jet's if they would consider donating to us, so a huge thank you to her, without who our classroom would not have made as much money.

It really is an amazing friendly school, as is the whole of Lakewood Ranch, everyone is so friendly and always willing to help others.

Valentine's Day in Lakewood Ranch - Free For Sweethearts!

Valentines day will soon be upon us. What have you got planned for that special person in your life?

While the U.S. is known for its diverse food culture, analysis by OpenTable has revealed that romance is a popular dining trend in cities across America. In order to provide a ranking of cities where romantic dining is inherently part of the culture, the OpenTable Most Romantic Cities Index was calculated using three variables: the percentage of restaurants rated "romantic" according to OpenTable diner reviews; the percentage of tables seated for two; and the percentage of people who dined out for Valentine's Day last year.

Although no Florida cities made the upper end of the list, Floridians don’t need to be on a top ten to know that we have the most amazing restaurants and especially here in Sarasota and the Gulf Coast. We don’t have to travel too far from Lakewood Ranch to see some. Main Street in Lakewood Ranch has lovely restaurants where you can go and have a romantic dinner with your loved one, and this Valentine's Day it has an extra special romantic feature. You can sweep your Valentine off their feet with a romantic horse drawn carriage. If you go to Lakewood Ranch Main Street on February 14th between 5-9pm you can do this for every sweetheart for free! 

Sounds great!

Senate Passes Four-Year Flood Insurance Delays

The U.S. Senate passed a four-year delay in flood insurance premium hikes last week as attention now turns to the GOP-controlled House, where prospects appear rockier.

By a vote of 67-32, Senators approved a halt to most of the biggest increases for four years, during which time a federal agency would be required to study the affordability of policies and review accuracy of new flood maps.

Stories of premiums shooting from $4,000 to more than $40,000 in one stroke have raised alarms that they will kill real estate sales and damage a recovering economy. It’s an especially big deal in Florida, which has two of every five policies issued by the federal program.

Delays would “grant homeowners and businesses some relief from the huge, gargantuan – sometimes tenfold – increases in flood insurance premiums,” said Florida Democratic Sen. Bill Nelson.

The state’s Republican senator, Marco Rubio, also voted yes. “The current increases have paralyzed the real estate sector in much of Florida,” Rubio said. “We should first pass a suspension of the scheduled rate increases and then begin work on a long-term solution to this issue along the lines of this proposal.”

The National Flood Insurance Program (NFIP), created in 1968, covers 5.6 million policyholders. Approximately four out of five homeowners pay full rates now, but much of the controversy is about the 20 percent of policies that are losing subsidized rates as part of a plan to help the program get out of $24 billion in debt.

In addition, many homeowners could be forced by lenders to buy flood insurance for the first time as federal officials redraw maps. Many communities are appealing early versions of the maps and say they don’t belong in high-risk zones.

Florida’s governor, Rick Scott, last week stopped in Palm Beach to say Washington needs to take action to stop unfair increases. He praised Senate passage Thursday and said, “I encourage their colleagues in the House to also support this common-sense measure.”

Backers of a four-year delay say they have 180 House co-sponsors from both parties, but opponents say the real agenda is to kill rate increases needed to get the program out of debt. Those fighting delays have been encouraged by remarks from House Speaker John Boehner, R-Ohio, that the House will not take up a four-year delay but might consider more modest changes.

The R Street Institute in Washington, D.C., said it was “disappointed” by what it called a Senate vote to gut reforms but expressed optimism that House leadership will take a “more responsible” approach. The group also pointed to a White House Office of Management and Budget statement raising concerns that the delay would “further erode the financial position of the NFIP, which is already $24 billion in debt.”

The Florida Association of Counties praised Nelson and Rubio and called for “long-term solutions that can bring solvency to the NFIP without unduly burdening homeowners, businesses and taxpayers.”

Congress last month agreed in a budget bill to delay by almost a year premium increases for homeowners who would have seen them under new flood maps.

But that is not enough and does not help property owners already slammed, said Rep. Maxine Waters, D-Calif. She called the Senate vote a “huge step” but said “the thousands of families reeling from flood insurance hikes will see no assistance unless the House of Representatives brings this measure up for a vote.”

Copyright © 2014 The Palm Beach Post (West Palm Beach, Fla.) Distributed by MCT Information Services.

3-D Printer Builds a House in a Day!

A University of Southern California professor has built a colossal 3-D printer that is capable of building a house in 24 hours. Known as Contour Crafting, the technology could completely overhaul the construction industry in the future. Professor Behrokh Khoshnevis, the researcher behind the technology, has programmed a giant robot to spew out concrete and build a home based on a set computer pattern. The system can lay down cement by gliding along rails. Humans would take over for finishing touches, such as hanging doors and installing windows.

Researchers say the technology has the potential to reduce the total cost of buying a new home as well as make it possible to quickly build emergency and replacement housing following a major weather disaster.

The technology is currently being tested. The research is being funded by NASA and the Cal-Earth Institute, aimed at investigating the construction of modern civil structures as well as construction on the moon.

Source: “Researchers Are Making a 3D Printer That Can Build a House in 24 Hours,” Business Insider (Jan. 9, 2014) and “The 3D Printer That Can Build a House in 24 Hours,” MSN (November 2013)

Are Real Estate Investment Trusts (REITs) Coming Back?

Real estate investment trusts are not normally viewed as a type of investment to buy when interest rates might rise.

Despite rising rates that dinged the performance of this asset class in late spring, and a widely held belief the Federal Reserve will raise short-term interest rates sooner rather than later, REITs may be worth a look, said Jon Beadell, a Mequon money manager.

“They offer a good yield and, because they did so poorly last year, there may be a little less risk in these compared to the average equity out there,” said Beadell, research analyst and portfolio manager at A.D. Beadell Investment Counsel Inc. in Mequon.

REITs, which own income-producing properties and pass the majority of their income through to investors in the form of healthy dividend payments, eked out average returns of just 2.5 percent in 2013, as measured by the MSCI U.S. REIT Index. The Standard & Poor’s 500 index had a total return of 32.4 percent, creating the widest gap between the performance of real estate stocks and the broader market since 1998.

Some worry that REITs will always perform badly when interest rates are rising, but they generated a 12.6 percent annual return during six rising rate cycles since 1979, according to a report published in April by REIT specialist Cohen and Steers.

Yields on 10-year Treasury notes, which were about 1.8 percent in early 2013, now are around 2.8 percent. Many expect the Federal Reserve to raise rates, although perhaps not until at least 2015.

“If economic growth continues to sputter, rates don’t rise and inflation remains subdued, then people will value the income and defensive nature of the REITs,” Beadell said. And if the economy takes off, REITs will continue to deliver healthy yields, he added.

Vanguard REIT Index ETF (VNQ, $66.28) is an option for investors looking for broad exposure to REITs, Beadell said. This fund seeks to provide a high-income level and moderate capital appreciation by tracking the performance of an index of publicly traded equity REITs.

Realty Income Corp. (O, $39.54), Escondido, Calif., specializes in so-called triple net leases, where the tenant is responsible for taxes, maintenance and insurance, along with rent. The company historically had mostly retail tenants, but has expanded to industrial, distribution and other nonretail tenants, Beadell said. Major tenants include Federal Express, Walgreen, Family Dollar and LA Fitness.

Realty Income has had an average occupancy rate of about 98 percent since 1970, Beadell said.

With exposure to more economically sensitive tenants, Realty Income should be able to raise rents if the economy performs well, he said. The company has grown its dividend at an annual rate of about 6.2 percent over the last decade, and has a 5.7 percent dividend yield, he said.

Realty Income shares have a 52-week trading range of $36.58 to $55.48.

Health Care REIT Inc. (HCN, $55.92), Toledo, Ohio, focuses on senior housing and skilled nursing facilities, hospitals, medical offices and life science buildings, mostly in the U.S.

Health Care REIT is well positioned to benefit from the aging of baby boomers, Beadell said. Sixty percent of its properties are senior housing, with half of those in triple net leases. The company operates the remainder, and that is its fastest-growing segment, he said.

Health Care REIT has increased its dividend at an annual rate of 2.5 percent over the last decade and has a 5.5 percent dividend yield, Beadell said.

The Health Care REIT shares are trading in a 52-week range of $52.43 to $80.07.

The biggest risk with both REITs is that they have had to alter their business models – Realty Income by expanding beyond retail and Health Care REIT by operating some of its senior housing properties, Beadell said. Both REITs have potential to provide an annual total return of 8 percent to 10 percent, he said.

Copyright © 2014 the Milwaukee Journal Sentinel, Distributed by MCT Information Services.

Floridians More Confident About Economy

Consumer confidence among Floridians as measured by an index rose one point in January to 78, according to a new University of Florida (UF) survey. The lowest index possible is a 2; the highest is 150.

“With a budget deal to fund the government through 2015 and little tolerance for a showdown in Congress over raising the debt ceiling, the budget uncertainties that have affected consumer sentiment over the last several years are at least temporarily on hold,” says Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research.

“Florida seniors are particularly more optimistic as much of the wrangling over the budget had the potential to impact them negatively,” he adds.

According to the survey, respondents’ overall view that they are better off financially now than a year ago fell one point to 68. However, their expectations of being more prosperous this time next year remained unchanged at 78.

Meanwhile, survey takers’ confidence in the U.S. economy for the coming year rose three points to 76, and it shot up nine points to 83 when they were asked to consider the nation’s economic health for the next five years.

Their perceptions about whether it’s a good time to buy big-ticket items, such as a car, fell six points to 85.

Read more at Florida Realtors®

D.R. Horton to Raise Prices Again

D.R. Horton, the largest U.S. home builder, announced that strong sales will allow the company to raise prices before the spring home-selling season.

The homebuilder announced a 4 percent increase in sales contracts in the first fiscal quarter ending Dec. 31, and a net income of $123.2 million -- its highest since 2006.

"In January, and especially in this last week, our sales have been better than expected," says Donald Tomnitz, D.R. Horton's chief executive. "I feel that we're right on the cusp of a strong spring-selling season."

In November, the builder had said that if sales signaled a slow start to the spring selling season it would try promotions such as free upgrades and assistance with closing to spur sales. But D.R. Horton says that sales are strong enough that it will mostly forgo incentives and raise home prices in some markets.

The average price of D.R. Horton homes under contract last quarter was $275,600, up 10 percent from last year.

The National Association of Home Builders predicts that new-home sales will increase 40 percent in 2014 over 2013. But any steep rise in mortgage rates and aggressive price increases from builders could derail that, housing analysts and economists warn.

The fact that D.R. Horton has “struck an optimistic chord gives us incremental confidence that the spring-selling season is off to a good start,” says Robert C. Wetenhall Jr., managing director of equity research at RBC Capital Markets.

Source: “D.R. Horton Says Strong Sales Allow It To Raise Prices,” The Wall Street Journal (Jan. 28, 2014)

Luxury Market is Back!

Home buyers are once again becoming attracted to luxury home features as affluent buyers stream back into the market. In July 2013, sales of homes costing more than $1 million rose 46.6 percent from the previous July.

Recent studies have shown that the housing market is being driven by the move-up buyer, who have strong incomes, secure jobs, and their stock portfolio is doing well — they are able to buy whatever they want. And they are buying larger houses.”

In 2007, the median size of new homes built for sale peaked at 2,295 square feet. That number fell to 2,159 square feet in 2009. But in 2012, new-home size increased to a new peak of 2,384 square feet, according to the National Association of Home Builders. What’s more, about 41 percent of new homes had four or more bedrooms, up from 34 percent in 2009.

Homes with the largest kitchens and most expansive master suites are the top sellers, but affluent buyers are lured to established suburban communities that are near job centers and have good schools.

Source: “In Housing, Big Is Back (Not Counting the Extras),” The New York Times (Jan. 25, 2014)

Home Searches in Warm-Weather Markets Surge

The polar vortex that is causing record-breaking low temperatures to what seems to be most of the U.S. is persuading house hunters to look for homes in warmer climates.

According to Trulia.com, with every 10-degree drop below 41 degrees Fahrenheit, web-based home searches in metros with warmer climates increased by 4.4%, and searches for homes in warm vacation destinations increased 5.5%. The highest increase in searches were in the South and West.

Vacation areas — defined as where vacation homes account for 25 percent of the housing stock — got the biggest boost in traffic as temperatures plunged. The vacation areas with the biggest increases in home-search traffic were along Florida’s coast, the study found.

Source: “Cold Spell Heats Up House Searches in Warm-Weather Markets,” The Wall Street Journal (Jan. 27, 2014)