Students Get Surprise at Lakewood Ranch Prom Night 2014

Our daughter Anne-Marie (front-right) is a junior in Lakewood Ranch high school and went to her first prom on Friday night. She was very excited about this, and we spent lots of time ‘getting ready’ for this prom. We went to get photos and then the group went for dinner to one of our favorite restaurants in Sarasota; Clasico on Main Street.

An amazing couple made a very special night even more special for the group. There are some very kind people living here in Sarasota and we are very grateful, as one of the student's parents, for their gift. Thank you.

Read below the comment that was posted on Clasico’s facebook page:-

Special Story; Last evening at Clasico Sarasota two guests were dining next to this table of young lovely prom guests you see in this photo....when I stopped to check on the table to make sure the couple was having a perfect experience....the gentlemen motioned me to his side and asked me to put the entire tab for the young prom group on his tab....he simply explained "he and his wife love young people and wanted to treat the young well dressed and well mannered group." 

He also requested to remain anonymous - the kind genuine look on this man's face moved me - but not as much as I was moved by the response of the young prom group when I informed them of the gesture. The wait staff all smiled and no words could describe the feeling of the moment.

They were so surprised and grateful, two of the seven quests were in tears and wanted desperately to thank this kind husband and wife couple, this in turn moved me to tears and I had to go outside for fresh air....What a special night, special experience, special people and special place.

Sometimes it truly does not feel like work. :)

Florida in Top Four for 2014 Home Price Appreciation

Despite a weak quarter in existing-home and new-home sales, Wall Street analysts say they still expect home prices to increase by 7 percent this year.

"We continue to expect home-price appreciation to moderate from the torrid pace of mid-2012 to 2013, supported by improving employment and growth prospects," according to analysts from Morgan Stanley. Analysts from Barclays echoed that, saying they are keeping their projection for home prices unchanged at 7 percent.

Barclays analysts are most upbeat about home-price appreciation in four "sand states": Arizona (projection of 8.2 percent), California (9.4 percent), Florida (8.3 percent), and Nevada (11 percent).

Morgan Stanley acknowledged the sluggish spring start to the home-selling season.

"In our view, the rationale for the weakness comes from a combination of three factors: severe winter weather; a transition away from investors reliant on distressed and cash purchases to mortgage credit-dependent buyers; and affordability challenges for first-time homebuyers," says Morgan Stanley's analysts, adding that nearly 20 percent of home owners remain underwater on their mortgage, which prevents many from moving.

Nevertheless, Morgan Stanley analysts say they're still upbeat about the prospects for an ongoing housing recovery.

Source: "Wall Street Home Price Appreciation Still Expected to Hit 7 percent," HousingWire (April 28, 2014)

Foreclosures drop 37% year-on-year

In March, about 720,000 homes were in some stage of foreclosure, a 37 percent year-over-year decrease, according to CoreLogic’s March 2014 National Foreclosure Report.

“The inventory of homes in foreclosure and serious delinquency status are back to 2008 levels, yet remain elevated from a historical perspective,” says Mark Fleming, chief economist for CoreLogic. “While getting healthier, the housing market is a long way from being fully recovered. By way of comparison, distressed stock inventories are more than three times higher than the levels of the early 2000s, before the most-recent housing boom and subsequent financial crisis.”

Thirty-seven states posted declines of more than 30 percent in year-over-year foreclosure inventory. Arizona, California, and Utah saw declines of more than 50 percent, according to CoreLogic’s report.

Meanwhile, the following five states had the highest foreclosure inventory as a percentage of all homes with a mortgage:

• New Jersey: 6%

• Florida: 5.8%

• New York: 4.6%

• Maine: 3.2%

• Hawaii: 3.1%

“The pathway to a full recovery in housing is proving to be a very long one, but lower distressed stock levels are one clear indicator that we continue to make slow-but-steady progress,” says Anand Nallathambi, president and CEO of CoreLogic. “Most states have made good progress clearing their foreclosure inventories, but states that have a longer judicial foreclosure process, such as Florida, New Jersey, and New York, continue to struggle with elevated distressed stock inventories.”

Completed foreclosures — the total number of homes actually lost to foreclosure — totaled 48,000 nationally in March, a 10 percent year-over-year decrease, according to CoreLogic. Every state, except for Wyoming and the District of Columbia, saw double-digit year-over-year decreases in completed foreclosures, CoreLogic reports.

In March, 10 percent of existing-home sales were foreclosures, according to the National Association of REALTORS®. Foreclosures sold for an average discount of 18 percent below market value in March.

Source: CoreLogic

Options for Low Down-Payment Loans

About 60 percent of first-time home buyers make a down payment of 6 percent or less for a home, according to the March REALTORS® Confidence Index.

But with rising insurance premiums for loans insured by the Federal Housing Administration, traditionally a popular first-time buyer option, more first-timers are having to look elsewhere for financing their home purchase, The New York Times reports. First-time buyers are looking to special programs through banks, state and local down payment assistance programs, and their own families for assistance in purchasing a home.

More lenders are offering low down payment programs. For example, T.D. Bank offers the Right Step mortgage, which features a minimum down payment of 3 percent (down from 5 percent), and a maximum debt-to-income ratio of 41 percent. Private mortgage insurance is not required with the loan for applicants who are making down payments of less than 20 percent. Instead, the lender requires all applicants to go through a housing education class.

“We’re enhancing this program to provide financing to more eligible borrowers, but we don’t feel as if we’re easing the credit guidelines,” says Malcolm Hollensteiner, T.D.’s director of retail lending. “Our goal is to increase the pool of creditworthy borrowers.”

Down payment assistance programs are being offered through state and local housing agencies. For example, in Long Island, the Community Development Corp. has teamed with the Housing Development Fund to provide a SmartMove program, offering first-time buyers down payment assistance via a second mortgage. Qualified borrowers can put down as little as 1 percent and cover up to 20 percent of their purchase price through a second mortgage, which then eliminates the need for private mortgage insurance. The 20-year loan has a low rate of 3 percent.

Families are also stepping in to help more first-timers buy. For example, National Family Mortgage in Waltham, Mass., sets up intra-family financing at low interest rates, The New York Times reports. The loans meet IRS requirements for a loan, as opposed to a taxable gift.

Source: “Low-Down-Payment Loans,” The New York Times (May 1, 2014) and “60 Percent of First-Time Buyers Put Down 6% or Less,” National Association of REALTORS®’ Economists’ Outlook Blog (May 1, 2014)

First-Time Buyers Are on Their Way Back

First-time home buyers have been a sluggish segment of the housing market in recent years, but Barclays equity researcher Stephen Kim is betting on their return. Kim recently released a report, “The Return of the First-Time Buyer,” which outlines three reasons why he believes first-timers will soon be back. In fact, he’s betting that entry-level buying will be a key theme in homebuilding industry this year.

Kim says that job growth is reaching an important threshold for improved household formation. “The cumulative number of jobs created over the past several years has now reached the point where each new job will drive greater household growth,” Kim writes.

Also, Kim points to the loosening of credit, with more lenders showing willingness to lend to borrowers in the 600-700 FICO range.

Kim also notes that buying a home is still about 20 percent cheaper than renting, and the affordability of housing will be an attraction for first-timers to enter sooner rather than later before mortgage rates and home prices rise more.

But Kim says there’s one big hurdle first-time buyers will continue to face: Student loan debt.

Source: “Barclays: 3 Reasons the First-Time Homebuyer Will Return,” HousingWire (May 1, 2014)

Americans Ready to Spend on Real Estate Again

Americans’ outlook on the economy is improving and they’re ready to make more purchases, especially regarding real estate, according to the latest PulteGroup Home Index Survey. Sixty-seven percent of the 1,004 adults surveyed say they plan to purchase a home in the future; 32 percent of which are looking to buy within the next two years.

The survey found that the most engaged consumer segments are millennials and move-up buyers. Eighty-five percent of millennials and 71 percent of move-up buyers say they intend to purchase a home in the future, according to the index. Fifty percent of those aged 55 and older said they’re looking to purchase a home in the future.

Overall, the two main drivers to buying are the need for more space and the view that owning a home is a smart financial investment, according to the survey.

Seventy percent of home shoppers say they intend to spend more—or as much—money on their next home, not only to increase the size of the home but also to upgrade the finishes. Sixty-four percent say they prefer to spend more on a home that’s move-in ready, rather than spend less and then renovate a home.

"For the first time in years, Americans have a growing sense of optimism that the housing market is improving, and that these positive changes may be sustainable," says Margaret Gramann, senior vice president of sales for PulteGroup, Inc. "This favorable outlook is giving them the confidence to pursue more meaningful, big-picture life opportunities they may have otherwise put on hold."

Source: PulteGroup Inc.