GENERAL INDICATIONS OF A FORTHCOMING ROBUST HOUSING MARKET

• Home prices could jump almost 10% in 2013 (J.P. Morgan)

• S&P/Case-Shiller home price index shows biggest year-over-year increase since spike caused by expired tax credit

• Existing home sales for November rose 5.9% over October, 14.5% higher than in November 2011 (National Association of Realtors)

• 2012 Housing starts are 23% higher than 2011 and 2013 predicted to usher in a 21% gain over 2012 (National Association of Home Builders).

• Inventories are low and demand is rising – 22% below last year’s levels of traditional listings and distress properties (National Association of Home Builders)

• Positive consistent reports are out on housing starts, permits, prices, new-home sales and builder confidence in recent months indicating a gradual but steady housing recovery is underway across most of the nation (National Association of Home Builders)

• Existing home sales are at the highest level since November 2009

• Foreclosures and short sales accounted for about 22% of November sales, down from 24% in October and 29% in November 2011

• Builder confidence has posted gains for 8 consecutive months and is now at 47; the NAHB/Wells Fargo Housing Market Index has not been above 50 since April 2006

• Rental market has greatly enlarged due to demand and more than 31% of today’s renters plan to buy a home in the next two years, a 9-point increase from 22% in January 2011 (Trulia’s American Dream survey)

MONEYRATE.COM RANKS TEN BEST STATES FOR RETIREMENT

10. Texas (tie) — warm weather and solid economy

10. California (tie) — good weather and high life expectancy

9. South Dakota — low crime rate and high life expectancy

7. New Mexico (tie) — good weather

7. Florida (tie) — good weather

6. Colorado — high life expectancy

5. Virginia — good economy

4. Arizona — good weather and high life expectancy

3. Utah  — good economy

2. Idaho — low crime rate and good economy

1. Hawaii — great weather and high life expectancy

ATTENTION ALL BOAT OWNERS!

PICTURE THIS:  You pull your boat up to the soon-to-be-built Waterfront Promenade at the Bridge Hotel in Boca Raton, and dine in the popular WaterColors Restaurant.  There will be a 270 ft wraparound seawall and dock; construction beings this week.  

 

This is the initial phase of the Bridge Hotel’s major “reinvention” redevelopment plan.  Next there will be new hospitality and dining concepts introduced, further expansion of waterfront amenities and guestrooms, restaurants and public spaces will be undergoing extensive renovations.  Goal is to position the property as a luxury boutique hotel with four-star status. 

 

During construction, WaterColors new menu will be served in Carmen’s which boasts sweeping penthouse-level panoramic views of Lake Boca, Intracoastal and Atlantic Ocean.  Every guestroom at The Bridge Hotel has panoramic water views.  Location is 999 East Camino Real at A1A’s south end of the bridge.

A DILEMMA TO BE DECIDED ABOUT EXPANDING FLORIDA MEDICAID

NEWS YOU SHOULD KNOW:
Here is a link to an article that explains the dilemma and highlights three studies about it... and asks if Florida can really count on this government funding in light of our national deficit:
 
http://www.healthnewsflorida.org/top_story/read/could_medicaid_expansion_pay_off

UPDATE ON FORECLOSURES

Zillow analysts state that foreclosure home buyers in Palm Beach, Broward and Miami Dade counties could only expect a 2.9% savings in September compared to available homes NOT sold at a distressed price.  Discounts are shrinking on distressed properties.

Zillow further states that same time last year the discount was 6.8%, and in August 2008, the peak foreclosure month in South Florida: 22.7%.  If investors can’t purchase a property they can fix up and sell at a profit, they have no incentive to buy.  For buyers who want to buy, rent the property out and sell later at a profit, it is harder and harder to find a property that meets the profit criteria.

Home buyers getting a mortgage may find the distressed properties don’t appraise to the list price.

RE MORTGAGE DEBT, STUDENT LOANS, CREDIT CARD IRS FORGIVENES... OR NOT

Topic Summary: Five years ago, at the start of the housing crisis,

Congress passed a law called the Mortgage Forgiveness Debt Relief Act.  The MFDRA would prevent homeowners from paying tax on the amount of any debt forgiveness.  

This provision is set to expire, as designed, on Dec. 31st.  If allowed to expire through Congressional inaction, homeowners who will get underwater workouts may be liable for paying taxes on the amount of forgiven dept. Also, a growing number of homeowners who will conduct a "short sale" in 2013 may also be liable for paying taxes. As an example almost 30% of all recent sales in California were "short sales" and in Nevada about 25% of all sales were "short."

The IRS Does Not See It The Same Way!

It would appear that homeowners who got in trouble over the last few years because of money problems probably couldn't handle the mortgage situation they were in and a "life line" (work out) was offered and excepted. Next year, homeowners who do a work out, will have a surprise tax event that may cause more long term negative pressure with what's owed to the IRS and the states. To see what is exactly covered and other tips, the IRS offers this resource HERE.

How does the tax provision work? Without the tax measure, a homeowner who owes $400,000 on his mortgage and sells his house for $300,000 would owe income taxes on the difference of $100,000, the amount that's forgiven. The $100,000 would be considered regular income by the Internal Revenue Service and in many states. The reason being, many state tax income sources the same way as the IRS.  This could take away some of the incentive for homeowners to seek a short sale.

What Would It Cost To Renew?  Renewing the provision for two years, as President Obama proposed earlier this year, would cost the Treasury Dept. $2.7 billion, according to the Congressional Budget Office.

Timeline: There will be a lot of activity in Congress after the election and overall, the spirit of "giving" is not something that is trendy in Washington these days. There has been bi-partisan support for the extension, it's just a matter of getting focus in Congress. 

This article is from my HOME ACTIONS newsletter.  It has many articles of use to homeowners.  If you would like to subscribe, email marilynfjacobs@gmail.com.

 

Things to Do at Daggerwing

Nature Center in November

Daggerwing Nature Center is operated by the Palm Beach County Parks and Recreation Department and is located in South County Regional Park at 11200 Park Access Road, off Cain Boulevard between Glades Road and Yamato Road, in western Boca Raton.

The following activities are planned at Daggerwing Nature Center during November.

 ANIMAL FEEDINGS
Daily at 3:15-3:30 pm
Families, all ages, free (reservations not required)
3:15 pm is feeding time. Listen to a short talk about a specific animal and then watch while they are fed.
Wednesday – alligator; Thursday – snake; Friday – skunk; Saturday – alligator

 MOMMY, MOTHER NATURE and ME: Turtles
Friday, Nov. 2, 10:30-11:15 am
Ages 2-5, $4 per child (reservations required)
Introduce your little ones to Mother Nature. Learn all about turtles through books, activities, nature walks, and crafts. During this class, get up-close and personal with several different types of live turtles.

 AMPHIBIANS
Saturday, Nov. 3, 1-1:45 pm
Families and all ages, $3 per person (reservations required)
Come and meet some live green tree and pig frogs. Find out why frogs are as important to the environment as an indicator species, and what we can do to help their wild populations.

 FALL CRAFTS
Saturday, Nov. 10, 10:30-11:15 am
Ages 5-10, $4 per child (reservations not required)
Make some festive, fun, fall crafts that will make great decorations for Thanksgiving.

MOMMY, MOTHER NATURE and ME: Turkeys
Friday, Nov. 16, 10:30-11:15 am
Ages 2-5, $4 per child (reservations required)
Introduce your little ones to Mother Nature. Learn all about turkeys through books, activities, nature walks, and crafts, just in time for Thanksgiving.

ECO EXPLORERS: Dip-Netting
Wednesday, Nov. 21, 2-3 pm
Ages 8-12, $4 per child (reservations required)

Come to Daggerwing and find out what is living in our ponds. We will go “dip-netting” and look at our findings using magnifying glasses and microscopes. Wear water shoes or shoes that can get wet/dirty.

 All programs are by reservation only, unless otherwise stated. Call (561) 629-8760 or visit the nature center to make program reservations. Fees (if applicable) are due the day of the program by cash or check only.  All participants are required to sign a program participation form for every program. If you are more than 5 minutes late to a program you have made a reservation for, your spot will be given to a person on the waiting list.