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There is nothing either good or bad, but thinking makes it so.
~William Shakespeare
Featured In This Issue
Special Days and Events
Local Real Estate Market Update with Sales Graphs - Inventory Decreases
Florida Condo Sales Increase / National Home Prices Increase
Home is Still Where the Heart Is
10 Tips for Hiring a Contractor
One month FHA Insurance Cost Reduction
Create an outdoor patio fit for a magazine
Cooking Corner
Special Days and Events
September 6th – Labor Day
September 12th – Grandparents Day
September 23rd – First Day of Autumn
The birth flower for September is the Forget Me Not. The birth stone for September is the Sapphire.
2010 Local Real Estate Update
Good news for Inventory of available homes for sale in the greater Vero Beach area, Indian River County that went down by 7% this month, which is an encouraging sign. There is approximately an 18 month supply of homes for sale at this time. The number of total sales was up over the previous month, so we are slowly gaining ground from the 18 month supply now down from a 2 year supply high mark in 2008.
Median prices are up a couple % over last month and about the same as August of 2009—pretty much the same as the average for the last 18 months. 61 sales (37%) of the homes that sold were in foreclosure or bank owned. This is down over the previous month. Also, only 34% of the homes sold in August were financed; the balance were cash sales. This would indicate that there are still investors buying property and/or buyers who had sold their previous home.
August was a very good month for Vero Beach Island Home Sales with approximately 35% more sales than July but about the same as August 2009. And there were some whoppers that sold. There were 7 single family homes sold for over $1,200,000, and the rest sold for less than $500,000. The top sale was on the ocean in Ocean Pearl at $5,300,000. There were 2 water front sales in the Moorings for $2.4 and $1.2 million and a nice oceanfront home in Anglers Cove for $3,000,000. The least expensive sale on the island was on Frangipani Drive at the north end of the island off Highway 512 for $160,000.
Vero Beach Island Condo Sales numbers dropped substantially from the previous month but were about the same as August for the last couple of years. Sale prices ranged from around $200,000 in Silver Palm Villas and Riverwalk to 2 in the Gables that sold for around $500,000. There was also a sale in Southwinds at $490,000.
Can't complain this month! Both sales and median prices of houses sold countywide were up a little up over the previous month from 132 to 136 home sales and about equal to August 2009. On the mainland, where most of the sales were located, there were fewer very low priced and very high priced houses sold. 37% of the houses sold were under $100,000 and less than 2% were over $500,000. The lowest priced sales were again in the north and south areas of the county. The highest sale was a canal front home in Riverpoint for $710,000.
Condo sales on the mainland consisted of 17 units that sold for under $100,000 and only four sales over $100,000. At the low end there were sales at The Pines of Vero and the manufactured homes at Villas of Indian River under $15,000. The mainland high sales were at Sebastian Village Condos for $214,000 and The Inlet at Sebastian for $150,000.
North Hutchinson Island: Six condos, 1 canal front house and 1 townhouse sold in August. Condo sales ranged from $160,000 for a 1st floor unit in Bryn Mawr to $550,000 for the top floor in Altamira and $504,925 for the 2nd floor in Altamira. The house in Queens Cove, which was on a 50 ft waterfront lot, sold for $307,000 as a short sale. A 1 bedroom town home in the Galleons sold for $57,500.
Year to date there have been 64 sales on N Hutchinson Island compared to 52 for the same period last year. That is an increase of 23%! Bargains are available, and sales prices are often substantially lower than the list price. The Altamira top floor unit sold for 25% under the list price and was only on the market for a little less than 3 months.
Inventory in the MLS is up a little but does not include approximately 80 units for sale in a new oceanfront condo subdivision. The prices in this new development continue to drag down prices for all re-sales as well.
FAR: Florida’s existing condo sales rise in July but prices fall
ORLANDO, Fla., Aug. 24, 2010 – Sales of existing condominiums in Florida rose 11 percent in July, with a total of 5,557 condos sold statewide compared to 4,991 units sold in July 2009, according to the latest housing data released by Florida Realtors®.
Eleven of Florida’s metropolitan statistical areas (MSAs) reported higher existing condo sales in July, according to Florida Realtors. The statewide existing condo median sales price last month was $87,200; in July 2009 it was $108,500 for a 20 percent decrease. The national median existing condo price was $181,300 in June, according to the National Association of Realtors® (NAR).
Meanwhile, in the year-to-year comparison for existing home sales, a total of 13,589 single-family existing homes sold statewide last month compared to 15,762 homes sold in July 2009 for a decrease of 14 percent. Florida’s median existing-home sales price in July was $138,000; a year earlier, it was $147,600 for a decrease of 7 percent. The median is the midpoint; half the homes sold for more, half for less.
“The homebuyer tax credit expiration added a double dip to what has already been a harrowing ride in the Florida housing market,” said Dr. Sean Snaith, director for the University of Central Florida’s Institute for Economic Competitiveness. “As we move past this second dip, which is evident in the July data, the continued recovery of the state’s housing market will be contingent upon the improvement of the fundamental underpinnings of the housing sector.
“A healthy housing market depends upon a healthy Florida economy, and in particular, an improving labor market,” Snaith added. “Job growth and a declining unemployment rate will help sales continue to grow while at the same time reducing the number of foreclosures in Florida.”
2010 Florida Realtors President Wendell Davis, a broker with Watson Realty Corp. in Jacksonville, noted that the Gulf oil spill, along with uncertainty over its impact, has affected the state’s housing market.
“Along with many local businesses in the Florida Panhandle and in other Gulf Coast states, real estate has experienced significant economic harm following the Deepwater Horizon drilling rig explosion and oil spill,” Davis said. “The announcement that a special allocation from the BP Oil Spill Fund is now available to help the claims of real estate professionals’ – Realtors and licensees – over loss of income or sales due to the Gulf oil spill is a positive action that will help bolster the state’s fragile economy recovery.”
The national median sales price for existing single-family homes in June 2010 was $184,200, up 1.3 percent from a year earlier, according to NAR. In Massachusetts, the statewide median resales price was $331,150 in June; in California, it was $311,950; in Maryland, it was $265,268; and in New York, it was $220,750.
More jobs continue to be key to the housing sector’s recovery, according to NAR’s latest industry outlook. “There could be a couple of additional months of slow home-sales activity before picking up later in the year, provided the job market continues to improve,” said NAR Chief Economist Lawrence Yun.
The interest rate for a 30-year fixed-rate mortgage averaged 4.56 percent in July, down from the 5.22 percent averaged in July 2009, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written. © 2010 Florida Realtors®
Home is Still Where the Heart Is by Michelle Wardlaw
An overwhelming number of homeowners are happy with their decision to purchase their home, despite a challenging housing market. According to a survey conducted by Bankrate.com, 90 percent of respondents said they had no regrets about buying their current home.
In addition, the survey revealed one positive outcome related to the current housing market – homeowners are far more knowledgeable about mortgages. Only 8 percent of homeowners didn’t know whether they have a fixed-rate or adjustable-rate loan, compared to 26 percent two years ago.
Among the small percentage who did express regret in their home purchase, one-third said they are disappointed they are unable to sell and move on and one-fifth said they couldn’t afford the mortgage payments.
The survey underscores the value homeowners place on their houses, both financially and socially. Reprinted from REALTOR® Magazine July 2010 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2010. All rights reserved.
10 tips for hiring a home remodeling contractor
YORK, Pa., – Sept. 3, 2010 – An uptick in homeowners are opting to remodel to increase a potential sales price or just upgrade their living space. According to StateofLife.com, remodelers should keep the following in mind:
Tip No. 1: Does your contractor have proof of insurance?
Ask the contractor to have his insurance company mail or fax a copy of his current contractor insurance card to you. If the contractor can’t do this – stay away. Why? If there is an accident at your home, you are then liable. This also applies to any sub-contractor or employee that the contractor may use – those individuals should have active insurance cards faxed or mailed to you as well.
Tip No. 2: Check References and see photos:
Ask for at least three references with two for the same type of project you’re planning – and call the references. Additionally, ask the contractor to provide photos of previous work, especially for the same type of project. If he produces lawn and garden photos and you’re planning a bathroom remodel, you may want to check with another contractor.
Tip No. 3: Does your contractor take debit or credit cards?
Besides your ability to earn a few points, bonus miles or cash back, credit card acceptance is a good sign that a contractor is financially savvy and has a bank behind his business. Even many small, one-man shops take cards if they have a good relationship with their business bank or credit union.
Tip No. 4: Manners and appearance
If the contractor drove his vehicle to your home to give you an estimate, take a look at the way he keeps the equipment and vehicle. Are things clean? Neatly arranged? The way a contractor treats his tools is a direct connection to how he’ll treat your home. During the initial meeting, does the contractor present himself in a professional way? Do you feel comfortable around him or his employees? They will be working in your home.
Tip No. 5: Clean up policy
If your improvement is a multi-day project, will the contractor clean up at the end of every day or will he leave the dust, wood chips and other mess lying there for day No. 2?
Tip No. 6: Will the contractor put it in writing?
Is your contractor willing to put both his bid and the scope of work in writing? If not – walk away immediately. Many homeowners have been duped by contractors who verbally say what’s included, but, in the middle of the job, require extra money to finish, effectively holding the owner hostage with an uncompleted home project.
Tip No. 7: Availability
Can the contractor get the job done in your timeline rather than his timeline? On the flip side, if you can’t find a good contractor that’s willing to commit to your timeline, your expectations may be too high and you may need to adjust your timeline.
Tip No. 8: The use of subcontractors
Does your contractor do everything himself or will he subcontract work? For example, if remodeling a bathroom, you may need a plumber, electrician and carpenter. It’s okay if the contractor subcontracts work out to these specific trades – it shows he wants the work done right – and it’s standard practice for the contractor to mark up the services to earn a profit. To save money, owners can subcontract the work themselves, but managing a total project brings its own challenges.
Tip No. 9: Quoting and billing procedure
Ask the contractor about his quoting procedure. Will it contain general information, or will it be specific? For example, most contractors will charge a fuel surcharge, material up-charges, waste removal, labor, etc. Some will show you these exact costs in a line item invoice, but others roll it up into one big bill. How much detail do you want? Clarify that with your contractor upfront. Also: What is the payment or billing policy? If money is required upfront, go back to No. 1 and No. 2 above to make sure you have the contractor’s references checked and have a copy of his contractor’s insurance.
Tip No. 10: Did your contractor get the permits?
Ask your contractor to take care of the permits. Although permits cost money, the inspection process also protects you from poor workmanship and makes sure everything is being built to code. © 2010 Florida Realtors®
FHA Gives Home Buyers One-Month Window
September 1, 2010--The Federal Housing Administration (FHA) is giving homeowners and buyers until October 4 to lock in a low monthly insurance premium, according to Gibran Nicholas, chairman of the CMPS Institute, an organization that trains and certifies mortgage bankers. “After October 4, the monthly insurance premiums on FHA loans will increase by over 63%.”
What does this mean for home buyers?
A home buyer purchasing a $200,000 home using a $193,000 FHA mortgage before October 4 would pay an insurance premium of $88.46 per month. If the same home buyer waits until after October 4, the insurance premium would jump to $148.01.
“In this example, the home buyer would lose $59.55 per month, or $7,146 over a 10-year timeframe,” Nicholas said. “Although the upfront mortgage insurance premium is going down after October 4, the real impact to the home buyer is actually a net increase in their out of pocket costs because the monthly premium is going up by 63%. Remember, sellers can pay the upfront premium or it can be financed into the loan amount, so homebuyers rarely pay the upfront premium out of pocket. On the other hand, the increase in the monthly premiums will be paid right out of the home buyer’s pocket with their mortgage payment each month.”
Ironically, home buyers who plan to be in the mortgage for less than three years and decide to pay the upfront fee themselves (instead of having the seller pay it for them), may actually save money by waiting until after October 4 to apply for an FHA loan.
“Home buyers with a short term time horizon may actually benefit from this change because the upfront premium will be reduced to 1% from 2.25%,” Nicholas said. This change will impact over 30% of the home buyers in today’s market who use FHA-insured financing. Home buyers considering an FHA loan should find and contact a mortgage professional in their area to discuss their options and what this means for their situation.
Create an outdoor patio fit for a magazine
(ARA) – As the weather gets nicer, there's nothing better than expanding your living space to the great outdoors. Luckily, it's easy and affordable to create a comfortable and chic outdoor room that's perfectly put together. Use these quick tips and inspiring ideas to transform your deck, porch or patio into one you'll be proud to show off.
Planning perfection
Simply putting furniture on a deck or patio doesn't create an inviting outdoor living area. Instead, be sure to look at the bigger picture. Start by viewing your patio as an extension of your home. As you would an interior room, be sure to incorporate a theme and color scheme into your new design.
Whether you have a lot ... or only a little room on your patio, arrange the furniture so that it is inviting for you and your guests to socialize. And, no need to buy new furniture to make your outdoor space look new. Instead, apply a fresh coat of stain or spray paint to your existing wood or metal furniture for a stylish and updated look.
Manufacturers, such as Krylon offer spray products, such as its Exterior Semi-Transparent Spray Stain and Outdoor Spaces spray paint to make it quick and easy to make over your patio. Both are available in the latest colors to complement any color scheme you choose. Best of all, they dry quickly, and provide superior protection against the outdoor elements.
Once your furniture is finished, use your revamped pieces as a focal point, along with some significant accessories. Layer color, textures and heights to give the space a pulled-together appearance. Incorporate colorful placemats and an interesting centerpiece on your table to set it apart. Place coordinating water-resistant pillows on a bench or chairs to bring the comfort of indoor living outside.
And don't forget about under your feet; by adding an outdoor area rug or mat, you'll have a cohesive and stylish space.
Plants please
One of the greatest parts of having an outdoor living area is being able to include natural elements. Just like the indoors, nothing cheers up a room like strategically placed fresh flowers. To keep your space functional and clutter-free, look for pots and planters that work with the overall layout of your space. If you have a balcony or long railing, try using flower boxes that can affix to them. Or, if you have the space for oversized pots and unique stands, simply place a few flowers in key spots to create a space that will make your neighbors green with envy.
In addition to flowers, fresh herbs can be a fragrant, beautiful and useful addition to your patio - especially if you enjoy cooking. They are extremely easy to grow and care for, so add a few decorative herb pots to spice up the look of your patio - and your summer dishes.
Extraordinary extras
Next, get cozy in your outdoor space by adding an outdoor fireplace or a fire pit. You can snuggle with that someone special, roast marshmallows with friends or curl up with a good book on a cool night. Or, if you love to lounge, install a hammock to enjoy those lazy summer days. Finally, don't forget about lighting. Stringing lights or lighting candles can make your patio seem magical at night and help create a great atmosphere when entertaining.
When updating your outdoor living space, remember to decorate like you would the indoors, for a pulled-together, chic outdoor space. And soon, by using a few of these ideas, you'll create a picture-perfect patio in no time.
For more information about any Krylon products, visit www.krylon.com. Courtesy of ARA Content
Cooking Corner
EASY Not Your Mama's Banana Pudding
Courtesy FoodNetwork.com/Paula Deen
 Ingredients:
2 bags Pepperidge Farm Chessmen cookies
6 to 8 bananas, sliced
2 cups milk
1 (5-ounce) box instant French vanilla pudding
1 (8-ounce) package cream cheese, softened
1 (14-ounce) can sweetened condensed milk
1 (12-ounce) container frozen whipped topping thawed, or equal amount sweetened whipped cream
Directions:
Line the bottom of a 13 by 9 by 2-inch dish with 1 bag of cookies and layer bananas on top.
In a bowl, combine the milk and pudding mix and blend well using a handheld electric mixer. Using another bowl, combine the cream cheese and condensed milk together and mix until smooth. Fold the whipped topping into the cream cheese mixture. Add the cream cheese mixture to the pudding mixture and stir until well blended. Pour the mixture over the cookies and bananas and cover with the remaining cookies. Refrigerate until ready to serve. Photograph courtesy of FoodNetwork.com
Hope You've Enjoyed September's Newsletter.
Please call or send an e-mail if you have any questions about buying, selling, or investing in real estate.
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