NEW BILLS ARE UNDER CONSIDERATION NEXT WEEK IN TALLAHASSEE RELATING TO REAL ESTATE PROBLEMS

With Florida having hundreds of thousands of foreclosures, millions of underwater mortgages and four years of depreciating values, lawmakers meeting next week in Tallahassee are considering new real estate laws.  They generally affect help for condo associations, property tax reform or changes to the foreclosure process.

The Distressed Condo Relief Act passed last year gave condo associations the authority to collect rent directly from tenants of delinquent owners until delinquencies are paid up, and to bar non-paying condo owners from using common amenities like pools and clubhouses.  The bill also provides protections for condo associations that file foreclosure against delinquent unit owners, ensuring that they are not held liable for that owner’s past due assessments when they take title.

A bill being considered this year would give condo associations the power to restrict cable television service and internet access from owners of delinquent condos.  It was pointed out that the reason many homeowners are in default is lack of jobs; this could mean less access to job opportunities.

 Another Bill will change a portion of the Save Our Homes Law by eliminating the Recapture Rule.  If voters approve, a home’s property value assessment would not be increased during years when the home’s market value decreases.  More than 300,000 homes were affected by rising property taxes while property values fell 13% in 2010. However with governments struggling with budget cuts, less property revenue means MORE cuts.  

 A bill is being considered to potentially lower property taxes for new and 2^nd homeowners, and the annual cap on increases for non-homesteaded properties would be reduced from 10% down to 3%.  An additional homestead exemption would be given to first-time homebuyers, worth 50% of the property value.

A bill is up for consideration to provide banks and mortgage lenders the option of conducting foreclosure on commercial properties outside the courtroom rather than going to court to repossess delinquent properties, allowing lenders to reclaim a property through a trustee foreclosure which is usually faster than a judicial foreclosure.  According to the Miami Herald, about 100,000 foreclosed residential homes are stymied within the processes right now.

There will be an attempt to direct funds for affordable housing away from new housing to instead renovate vacant abandoned properties and tenants will be given 90 days notice to move out of repossessed foreclosed homes.

Nevertheless it is apparent that current problems will not be solved quickly, and that there are pros and cons with every change.

UPDATES ON THE HOME FRONT - PRICES DOWN, SALES UP

Realtytrac reports that 26% of all home sales are foreclosures, nationally and Bank repossessions level off, down slightly from 2009 but up from 2008.

Case-Schiller reports that during the 6 months ending December 31, home prices fell nearly 6%. 

National Association of Realtors reports that sales of existing homes rose for the third straight month.

In 2010, Nevada,  Arizona, California and Florida had the highest percentage of foreclosures, in that order.

Cash buyers are offering very low bids, especially for distressed homes being sold at deep discounts, pulling the median price down.

According to Zillow, nearly 30% of mortgage borrowers are underwater on loans and very vulnerable to foreclosure.

THE GOOD NEWS

According to the National Association of Realtors:

·        Existing home sales increased 2.7% nationally

·        This is the first time in 7 months that sales activity was higher than a year earlier

·        Chief Economist Lawrence Yun says

o   Home sales uptrend is consistent with improvements in the economy and jobs

o   Consumer confidence is boosting

o   Affordability conditions are a big factor

o   Tight credit has resulted in high levels of all-cash purchases primarily for distressed homes sold at deep discounts – which pulls the median price downward but traditional homes in good condition have held their value

o   Investor activity is another factor re purchasing undervalued homes

·        In January, first time buyers bought 29% of homes sold

·        Investors bought 23% of purchases in January

·        Housing inventory is at a 7.6 month supply, lowest level since 12/2009

·        Existing-home sales increased 3.6% in the South

NAR is America’s largest real estate trade association, representing 1.1MM members involved in all aspects of the residential and commercial real estate industries.

GOOD NEWS AND BAD NEWS ON THE HOME FRONT

Zillow reported that south Florida home values are down 15.4% year-over-year in 4Q2010.  Home Value Index fell to $139,100 from $160,000 at end of 2009.

 Housing bargain sales wins prevail with big losses for many sellers.  This IS THE BEST TIME EVER to buy in Florida.

Foreclosures in Florida fell 54% according to Realty Trac year-over-year in January 2011.  Foreclosure filings last month were 21,671 in Florida, one for every 409 housing units in the state which is 15.4% lower from December 2010.

 What to make of this?  An interesting 9-acre man-made island between Aventura and Sunny Isles Beach is on the market for $49.5MM reports  Condo Vultures.  In the 1950’s the DOT created the island as part of a massive dredging effort.  Assessed value?  $3MM or $7.90 per sq ft according to the Miami-Dade County Property Appraisers Office.   Sounds like an interesting deal… so let’s wait and see who (if anyone) buys this island!

 Mortgage interest rates are going up… rate topped 5% for the first time since last April.  Rates, however, are still historically low according to Florida Realtors organization, and there is actually a $100 a month jump on a $200,000 loan since the lowest rate in November.   Rates follow the 10-year Treasury note yields, heading up with inflation fears.   Many buyers are paying cash.

WANT TO SEE THE NEWEST DECORATOR MODELS?

WANT TO SEE THE NEWEST DECORATOR MODELS?

Model Tour: 1200 Hillsboro Mile, Before & After – 2/8/2011 at 2 pm

Join the Robb & Stucky Design Team of Rene Evans, ASID and Richard Ramus at 1200 Hillsboro Mile for a private tour of their beautiful model. This is an opportunity to see the “before” unfurnished unit and the “after” decorated model–and the transformation is amazing. This event is offsite. The model is located about 1 mile south of Hillsboro on the west side of A1A. Reservations are required so please call early to reserve your space and to receive directions. No cameras, please.

Model Tour: Villas By The Sea, Before & After – 2/16/2011 at 2 pm

Have you ever wondered how a designer finds inspiration and then transforms it into a design concept? Join Robb & Stucky Design Associate Ron Acosta on-site at Villas by the Sea. Ron will start the tour in an unfurnished unit, then continue to the completed model for comparison. He will share his design process, and the secret that inspired the special look of this incredible Oceanside model project. Meet first at the Sales office for Villas by the Sea, located off A1A just north of Commercial Blvd in Lauderdale by the Sea. Reservations are required so please call early to reserve your space and to receive directions. No cameras, please.

Please call (561) 862-5597 to reserve; reservations are limited!

RECENT STUDY SHOWS WALKABILITY ADDS VALUE TO A PROPERTY

Ceo’S FOR Cities, a national consortium of civic and business leaders, did a 2009 study and found that homes where you can walk to the supermarket and other stores, schools and parks will be valued at $4,000 to $34,000 more than those with less walkability where you have to drive to get to amenities.  The bigger, more urban the city, such as Miami, the higher value walkability adds.  Nearby public transportation also boosts value.

The study covered 94,000 real estate sales of comparable homes in 15 major markets. 

You can use Walkscore to rate the walkability of your home or a home you are considering purchasing. 

HAVE A GREAT TIME IN DELRAY BEACH

A PEEK AT DELRAY BEACH

Delray Beach is the type of coastal town that has it all: unobstructed beaches, shops, the restaurants and definitely, the entertainment.  A little bit for everyone to enjoy.  Delray does a great job with its festivals and fairs.  They close a main street and fill it to capacity with vendors, musicians and artists in a blink of an eye.  When is all over done with, it comes down just as fast as it went up. 

Come on downtown on Thursday, January 27^th for Art & Jazz On The Avenue.  Once a month, during the season, and on a Thursday from 6-10 pm, live musical entertainment is presented, On the Avenue.  Open house specials, and gallery exhibitions are will be browsed at the very least.  Even though it is On the Avenue, it will also extend to the SW 5th Avenue Plaza. 

Highlights will include:

• Florida Panthers’ Partymobile --- interactive games and the launch of the team’s new video game --- at the Delray Beach Magazine booth in the 300 block of East Atlantic Avenue.
• Palm Beach Makos and Cheerleaders in the 400 block of East Atlantic Avenue.
• Exhilarating skateboard course designed and constructed by Stoner Skateboards in the 600 block of East Atlantic Avenue;
• Sports clinics led by Atlantic High School sports leaders on the Great Lawn by Old School Square.
• City of Delray Beach Parks & Recreation sponsored dance and fitness demonstrations and performances led by the Delray Divas, Diamonds and Pearls and Delray Rocks and Cheerleaders Dance, also on the Great Lawn by Old School Square.
• Yankee great Roy White, the Roger Dean Stadium inflatable hitting bay and the Allianz golf hitting bay – all in Worthing Park.
• Representatives of the International Tennis Championships and the US Tennis Association in the 200 and 400 blocks of East Atlantic Avenue.
• Cycling on Your Mark in the 300 block of East Atlantic Avenue.
• Miss Geico 50-foot racing boat with jet turbine engine will be on display in the 500 block of East Atlantic Avenue and sports car along NE 1^st Avenue.
• Roaming Drew Tucker Stomp Band
• The Heavy Pets, a production of 102 Degrees, will be performing on the Old School Square Entertainment Pavilion with Stampede as the opening act. The concert will benefit Delray Beach’s Caring Kitchen through donations collected by volunteers. An after-party hosted by the new Pineapple Groove will start just after the concert.  
• Jim Kolvacik Trio in the 100 block of East Atlantic Avenue
• Groove Merchant and Atlantic High School Jazz Band on SE 4^th Avenue.
• Jazz Stream in the 400 block of East Atlantic Avenue.
• Al Johnson in the 500 block of East Atlantic Avenue.
• Visitors to the Vista BMW tent will be invited to register for a chance to win a new BMW 135i. Details will be available on site.
• Representatives of the Boca Artists Guild in the 100 East Atlantic block.
• Avalon Gallery at 425 E Atlantic Ave.
• Blue Coast Art Exhibit at 110 E Atlantic Ave.
• Blue Gallery at 600 E Atlantic Ave.
• Cacace Fine Art Studio & Gallery at 135 E Atlantic Ave.
• DeBilzan Gallery at 38 E Atlantic Ave.
• Delray Art & Framing at 321 E Atlantic Ave.
• Ford Fine Art at 235 NE 4^th Ave. #101
• Forms Gallery at 415 E Atlantic Ave.
• Kevro’s Gallery, Media Studio & Art Bar at 166 SE 2^nd Ave.
• Ora Sorensen Gallery at 445 E Atlantic Ave.

 Art & Jazz will extend to the SW 5^th Ave Plaza with entertainment from:

• Beacon Center first- and second-grade classes, creative dance team and Village Academy praise dancers.
• Creative dance team, Step Club and Drum Line of the Family Resource Center.

FREE ADMISSION!

4th ANNUAL DOWNTOWN DELRAY BEACH ART SHOW

January 15th & 16th, 2011

Located on Atlantic Ave starting at US1 East over the Intracoastal Waterway all the way to A1A on the Atlantic Ocean. 

Browse, walk, observe and buy... enjoy the day in this fabulous "All American Town."  Stop in one of the eateries for some glorious food.  Mingle, people-watch, and talk to the artisans.

Lovely way to spend the day.


SEE VIDEO

DELRAY MARKETPLACE COULD BREAK GROUND THIS SPRING

Soon a 300,000 sq ft project that has been discussed for three years will be going up in West Delray Beach at the corner of West Atlantic Avenue and Lyons Road between the Florida Turnpike and 441.  Lyons is being extended from Boynton Beach Boulevard south to Atlantic Avenue, which will be widened.  The location provides easy access from Boca Raton, Delray Beach and Boynton Beach.  The neighborhood includes high-end gated communities, golf/country clubs and resorts and high wuality new home construction.

Among the new tenants are a restaurant by Burt Rapoport, Chicos (women’s clothes) a movie theater with 12 screens, Publix and a Max’s Grille, partly owned by Rapoport with a successful and popular eatery in Mizner Park.  16 bowling lanes are planned.  A Sony Digital Lounge is planned.  Other tenants being approached include Orange Leaf Frozen Yoghurt, already with locations in Delray Beach and Mizner Park, and Devon Seafood restaurant.

NEW MAJOR ARTS HUB COMING TO DELRAY BEACH

Long known as a walkable trendy downtown area with emphasis on the creative works of a large variety of artists, now planning for a February 2011 opening, the 5500 sq ft Arts Garage is being built on the grounds of the Old School Square 531-space parking garage  at 180 NE 1st Street.  An artists community already long exists in Delray Beach, e.g. musicians who perform along Pineapple Grove Way, marketing and public relations computer savvy students who help the artists, actors who are performing in local productions and painters who work on their canvases.

 In 2006, the Creative City Collaborative resulted from a $50,000 study detailing the importance of the arts as an economic engine and agent of revitalization, and is just awakening from dormancy.  It is a nonprofit organization whose executive director and staff and the finishing of the interior space are funded by the Community Redevelopment Agency.   Live and musical performances, foreign and documentary films, classes and workshops are being planned.  There will be musical theatre classes for children. A schedule of events and classes will be announced soon.

 The Collaborative was created by the City Commission to foster the arts, and will occupy this city-owned building.  Bays will be created for workshops, exhibit space and a performing arts stage.  It is being planned as an “open place with open doors.” This will be a pilot project for a warehouse owned by CRA on NE 3^rd Street which the Collaborative plans to turn into an arts incubator. 

 Artists who would like to participate are encouraged to contact the Collaborative.  Email garage@delraybeacharts.org for further information.

THE LITTLE RED SCHOOLHOUSE in PALM BEACH

Pioneer Day at the Little Red Schoolhouse in Palm Beach is tentatively scheduled for Tuesday, January 15, 2011 from 1-3 pm.  Check with the Preservation Foundation at  561-832-0731. It is now home to a program of Palm Beach’s living history taking children back in time for a mini-day in a one-room school of the 1890’s, home to The Preservation Foundation of Palm Beach.

The Little Red Schoolhouse is in Phipps Ocean Park in Palm Beach, 2185 South Ocean Drive in Palm Beach.  Refurbished in 1960 by the Gardeners Society of Palm Beach and the Town of Palm Beach, it remained unused until 1990 when it became part of the pioneer education program.  Education in America’s one-room schoolhouses stressed discipline, moral values and “the 3 R’s.”  Visiting students today participate in a spelling bee, trace Spencerian script and recite from Tom Sawyer, Little Women, The Ancient Mariner and McGuffey’s Readers.  Period artifacts are also part of the pioneer educational experience.

Starting with seven students in 1886, there were 35 students by the 1880’s.  The schoolhouse was located about a mile north of the Royal Poinciana Bridge on Lake Trail in Palm Beach.  Children arrived by boat, bicycle or on foot from Lake Worth families and were all taught together in one room.  The school ceased operation in 1901 and became a tool shed on the John S. Phipps property, falling into decline and deterioration in future years.  

Preserving past educational history and its artifacts is so important to the school children of today.  There are interesting positive lessons to learn from the past.

DECEMBER 26 & 27, 2010 HEAD TO 4TH ANNUAL DELRAY BEACH HOLIDAY ART & CRAFT FAIR

Delray Beach will hold the next Art & Craft Fair in Pineapple Grove, north on NE 2^nd off Atlantic Avenue, from 10 am to 5 pm.   More than 100 booths will be featured.   Items to browse and purchase will include some of the finest arts and crafts in the US e.g. life sized sculptures, paintings, handmade jewelry, pottery and some very unique treasures.  Don’t miss the adjacent crafters market place with handmade body products, beautiful candles, wood plant holders and an expansive green market.

Show is now closed in jewelry category and only wait list applications will be accepted for this category.

Exhibitor parking is at City Hall on NW 1^st Avenue.  Both size is 10’x10’ but a double space may be available too.  For show fees email info@artfestival.com

DESPITE FORECLOSURES, COOL WEATHER, RAMPANT UNEMPLOYMENT - NOW SEE THE GOOD NEWS!

NOTE THAT OUR PART OF FLORIDA

RANKS HIGH IN LIFE EXPECTANCY!

NEW APPRAISAL GUIDELINES FROM FEDERAL RESERVE

A joint version of property appraisal guidelines was released 12-6-2010 by the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the National Credit Union Administration.  It is expected that this will be the final version.

Appraisal independence is cited, with lenders exchanging information with appraisers, but not being able to “directly or indirectly coerce, influence, or otherwise encourage an appraiser or a person who performs an evaluation to misstate or misrepresent the value of the property.”  Lenders cannot tell appraiser of any expected or qualifying estimate of value, nor mention a minimum value requirement for approval or condition of the valuation being ordered.  Lenders can’t tie compensation to appraiser to loan approval, nor blacklist an appraiser if valuations do not meet expected thresholds.

BPOs (broker price opinions) do NOT comply with minimum appraisal standards.

ADDITIONS COMING TO BOCA RATON 

REGIONAL HOSPITAL

BRRH has received a $10M donation from business woman Christine E. Lynn and is developing the Christine E. Lynn Womens Health & Wellness Institute with this donation.  Another donation will enable renovation and updating of the orthopedic rooms beginning in early 2011.

Some revenue slid IN 1Q 2010 because the hospital started a discount program for uninsured patients who now get 50% off gross charges at the hospital.  With uninsured patients paying smaller bills, there was less bad debt on the hospital’s books.  The loss was less than the same quarter last year which was $4.1M.

Typically, 3Q is the slowest part of the year for admissions as more patients are seen when the snowbirds are in the area in the winter months.