Thursday, December 25, 2014

NBA’s Stephen Jackson Puts San Antonio Home Up for Rent

Back in February, NBA free agent swingman Stephen Jackson put his San Antonio, TX, home up for sale for $3 million. He’s since slashed the price twice, and the home’s now sits at the list price of $2.7 million.

However, Jackson still hasn’t found any takers, and the house just went up for rent for $12,500 per month; Kimberly Howell is the listing agent.

The monthly rent does get you a lot of house: the traditional, Colonial-style home is over 10,000 square feet on two-plus acres of land. There are seven bedrooms, 8.5 bathrooms and an 11-car garage.

Entering the house, you’re greeted by a dramatic double marble staircase—and while it’s tempting to go upstairs, you won’t want to miss the first floor’s shared spaces: The living room has large single-hung windows and a fireplace. Also, the family room is a spacious 34 feet by 30 feet with support columns that add flair to the room and recessed lighting.

The kitchen, with its big island and modern appliances, sits next the the family room, although there is a wall with an entryway that separates the two rooms.

The master bedroom has access to the outside, a sitting room, walk-in closets and a fireplace as well. The master bathroom has a huge shower and a whirlpool tub with a chandelier over it, to give it a little dramatic touch. This space also leads to a gym, which makes it easy to access for your morning workouts.

Other rooms include a study, a theater, a formal dining room and four “other” rooms that you can use based on your imagination or need. Outside, you’ll find a pool in the backyard with a large patio for gatherings. There’s also a separate cabana for getting ready for a swim.

The house is located in The Dominion, a gated community. Residents must pay homeowners association fees, which include access to The Dominion Country Club.

Jackson’s career in the NBA started in 2000 with the New Jersey Nets. He played for eight teams and won an NBA championship with the San Antonio Spurs in 2003. During his career, he has averaged 15.1 points, 3.9 rebounds and 3.1 assists per game. Jackson last played for Los Angeles Clippers in 2014.


Source: Realtor.com 

Wednesday, December 24, 2014

How the 2014 Housing Market Will Shape 2015

The real estate market has shown a build-up of housing momentum this year – “fueled by significant improvements in economic fundamentals, low mortgage rates, and compressed inventory” – that will likely translate into larger gains in 2015, according to realtor.com®’s newly released 2014 Housing Review.

"Many of the gains that we recently predicted in the realtor.com® 2015 Housing Forecast are built on housing growth established in 2014,” says Jonathan Smoke, realtor.com®’s chief economist. “Overall, this year's housing market showed steady advances over 2013 with significant improvement in key housing metrics, despite some remaining challenges. Increases in job creation and gross domestic product (GDP) have had a significant impact on consumer confidence and home buyer demand. Paired with historically low interest rates, these factors kept properties moving quickly with median time on market at approximately 90 days. Unfortunately, the low number of homes for sale and stringent lending standards prevented a normal number of first time home buyers from closing on their first home in 2014."   

Here are some of the trends realtor.com® notes from 2014 that will help drive a stronger 2015:

An improving economy: “After an especially harsh winter earlier in the year, the economy picked up steam and produced a banner year for new jobs,” realtor.com® notes in its report. “The GDP this year was higher, and is still trending higher, resulting in stronger consumer confidence.”

Low mortgage rates: Despite the end of the Federal Reserve’s quantitative easing this year, mortgage rates continued to decline and helped to lower borrowing costs of home buyers. In recent weeks, the 30-year fixed-rate mortgage has been below 4 percent.

Returns to normal price appreciation: “After two years of abnormally high levels of home price appreciation in 2012 and 2013, price increases moderated throughout 2014,” realtor.com® notes. “We are now experiencing increases in home prices consistent with long-term historical performance.”

Distressed sales decline: Foreclosures and short sales fell throughout the year. Foreclosures are projected to be down 30 percent year-over-year at the close of 2014.

Investor activity lessens: Coinciding with the drop in distressed sales and higher home prices, large-scale investor purchase activity in the single-family market decreased. Less competition from investors may offer more room for traditional first-time buyers to squeeze into the market.
However, the realtor.com® report notes several factors that continue to plague the housing recovery and prevent it from being stronger, including:

Tight credit standards: “Despite historically low rates, many households were prevented from capitalizing on mortgage access because of overlays lenders added to qualification standards in order to limit put-back risk,” realtor.com® notes. “A tight spread between approved and declined FICO scores shut out nearly half of the potential population this year. As a result, mortgage credit availability did not improve in 2014.”

Tight inventories of for-sale homes: Inventories did rise this year, but supply failed to outpace demand. The monthly supply of new homes and existing homes continued to fall beneath normal levels, and the age of inventory was down year- over-year.

Fewer first-time buyers: The share of first-time buyers dropped to the lowest level in nearly 30 years, according to the National Association of REALTORS®. "But the first-time buyer share is showing signs of modest improvement by the year-end," says Lawrence Yun, NAR’s chief economist. Federal policy actions, such as revised regulations for lenders and new low down-payment programs introduced in December, are believed to have a positive impact in increasing first-time home buyer share in 2015.

Record levels of renters: The home ownership rate continued to fall this year as the number of renters increased. Rent increases have become an inflationary concern this year, and the pace of rental increases does not appear to be slowing down.

Sluggish new-home building: Single-family new-home starts barely budged in 2014 compared to 2013. New home sales remain far from normal levels. They are typically near 16 percent and instead remain around 9 percent. Still, new home prices rose substantially again this year, revealing that higher priced product is limiting the demand.


Source: Realtor.com 

Monday, December 22, 2014

Behind the Sale: How Minecraft Creator Beat Out Jay-Z

The story of how the man who created Minecraft aced out Jay-Z and Beyoncé for an ultra-luxe Beverly Hills, CA, mansion makes for great headlines and easy jokes about a nerd vanquishing the glitterati.

It’s also pretty easy to list off the amazing amenities packed into the 23,000-square-foot SoCal home—the candy wall, the 16-car garage and the Toto Neorest toilets in every one of the 15 bathrooms—but we wondered how difficult it was to keep the complex transaction quiet until closing.

We spoke with Sally Forster Jones, president of Aaroe International Luxury Properties, who was one of two brokers to represent Markus “Notch” Persson in his successful purchase. Jones worked together with Katia De Los Reyes on the buyer’s side of this $70 million transaction.

“The people who knew about the transaction were kept to a total minimum,” Jones said. “We were able to keep the purchase very hush-hush, and that in itself requires a lot of work. It’s pretty close to a miracle that there were no leaks prior to the announcement.”

Beyond keeping the prying eyes of the press at bay, there was a lot of work taking place behind the scenes to ensure the purchase went off without a hitch.

“It was intense, to say the least,” Jones said. “There was lots of coordination, lots of moving parts. Everyone pitched in and worked together. There were no conflicts—which makes it a very special transaction.”

Jones drew on plenty of expertise and experience in high-profile sales, having worked on the sale of the multi-multi-million dollar Spelling Manor in Beverly Hills.

She said it also helped to have plenty of previous experience with the brokers who worked for the dazzling spec home’s seller, Bruce Makowsky.

Branden Williams and Ben Bacal represented the seller, and Jones told us, “We know each other and there’s a credibility factor that truly makes a smooth transaction possible.”

“We all worked well together,” she added. “The property is a great property, the buyer was a great buyer—it was just a very smooth transaction from start to finish. The buyer saw the property and came back to view it one more time. From there, we made an offer, went into escrow and closed in six days.”

We also asked Jones about high net-worth buyers (such as Persson) coming into Southern California to look for properties to add to their real estate portfolio.

“Right now, we’re seeing a lot of international interest in the L.A. area,” the agent said. “We’re dealing with buyers coming in from China, Russia and Europe. They’re all looking for high-end luxury properties.”

And what do these buyers from around the world look for in a home?

“The international buyer is very impressed with views,” Jones told us. “The grander the view, the greater the demand. It’s exponential when you have views such as the ones offered by this home. Everyone wants to live the indoor-outdoor lifestyle L.A. offers.”

Because Jones has walked through so many high-end properties, we had to ask what she thought when she first saw the place that Persson is now calling home.

“It’s a very sophisticated and sexy house,” she said. “The quality inside and outside are above and beyond. It’s extremely well-crafted and has so many unique features. The views are breathtaking. I can sum it up in four simple words: view, volume, openness and quality.”


Source: Realtor.com By: Erik Gunther 

Matt Damon Sells in Miami Beach

Actor Matt Damon has sold his roughly 12,700-square-foot Mediterranean-style home in Miami Beach to mortgage company CEO Patrick Markert, according to public records and listing agents Jill Eber and Jill Hertzberg. It was listed for $18.999 million, down from $20 million in 2013.

The 1-acre property includes a main home, a guesthouse and a pool house with a summer kitchen and terrace, for a total of seven bedrooms, 9½ bathrooms and 170 feet of water frontage. The home is located on North Bay Road, an exclusive stretch overlooking Biscayne Bay.

Mr. Damon bought the property in 2005, the agents said. Public records show that he bought the two-parcel property for $14.5 million. Mr. Damon, who is set to star in the Ridley Scott sci-fi film “The Martian,” couldn’t be reached for comment.

The sale was fortuitous, the agents said. They were also representing the buyer, Mr. Markert, who had just closed on the $27.5 million sale of three adjacent units in South Beach’s Continuum high-rise condo building. The units, located on the 36th floor of the 42-story south tower, include a media room, wine cellar and several terraces. The buyer of the condo units was represented by Zuzia Borucka of Florida Realty of Miami.

“It was a puzzle to put these two sales together,” said Ms. Eber. Mr. Markert, chief executive officer of Atlanta-based AmeriSave Mortgage, was looking to move to a single-family home to raise his family, the agents said. He couldn’t be reached for comment.


Sales in the Miami Beach single-family luxury market have nearly doubled since last year, Ms. Hertzberg said. So far 14 homes priced between $10 million and $20 million have sold this year, compared with eight last year. Ms. Eber and Ms. Hertzberg, of the Jills team with Coldwell Banker Previews International, had the listings.

Former NBA Guard Chris Duhon Lowers Price on FL Home

Point guard Chris Duhon is done with the NBA after a career that didn’t match the success of his college days at Duke University, and earlier this year, he returned to the college ranks to join the men’s basketball staff at Marshall University as an assistant coach.

Duhon is spending the bulk of his time on the university’s West Virginia campus and on the recruiting trail, so he put his Florida home up for sale in July. Listed by Andrey Bustamante, the price has been reduced from $2.25 million to $1,999,990 now.

Located in Sanford, the house is just minutes away from the southwestern shore of Lake Markham—and downtown Orlando is just 21 miles south on U.S. Interstate 4. The home has five bedrooms, five bathrooms and three half baths overall.

The Spanish/Mediterranean-style residence is large, measuring a total of 8,111 square feet on an acre of land. Some features of the property include crown molding, a radiant barrier, a medical alarm and an in-wall pest system.

When you enter the home, you’ll find a sitting room with a sky-high ceiling and a room of picture windows that offer a view of the pool. The arced hallways throughout the house are a nice touch, and the spiral staircase with ornate metalwork is very artistic.

The kitchen has two islands, so there’s plenty of workspace on the granite countertops. The walk-in pantry, modern appliances and the large refrigerator give a chef everything needed to make great meals.

The master bathroom is luxurious, with dual vanities, a spa and a walk-in shower in a large sunny space. Other rooms include a family room, a game room with a wet bar, a formal dining room, a theater, an office and a basement.

The backyard is huge and well manicured, with plenty of space to toss around a football. The in-ground pool is heated, and there’s also a safety fence to protect the kids.


Duhon played for 10 seasons in the NBA; he was a second-round pick by the Chicago Bulls in 2004. He also played for the New York Knicks, the Orlando Magic and the Los Angeles Lakers. In college, Duhon guided the Duke Blue Devils to a national championship in 2001.

Friday, December 19, 2014

Buyers Rush Luxury Market in November

Naples, Fla. (December 19, 2014) - Sellers in the luxury market can expect a very good buyer turnout in the coming months according to a consensus among Naples' top brokers after they analyzed the November 2014 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Their prediction was based on several factors including overall pending sales activity, which rose 11 percent for homes priced over $1 million; overall closed sales activity, which increased 17 percent for homes priced over $1 million; and that the majority of homes sold in the $2 million and above category were cash sales.

"Pending and closed sales activity in all price categories above $300,000 was up over the past 12-month period ending in November," said Tom Bringardner, Jr., President/CEO of Premier Commercial.

"Activity in the high end market is remarkable coming into season," said Steve Barker, Advising Broker for Equity Realty. "The report indicated that a greater number of homes in the $2 million and above price category were sold [21] as compared to what sold in the same month last year [14]. This is a good sign for sellers in our market because people who have the resources to pay cash for million dollar homes are smart and careful investors. They are not going to make a poor investment decision, which speaks volumes for the value of our market."  

The November 2014 report showed heightened activity in several areas of the luxury market including a 40 percent increase in overall closed sales for single family homes priced $2 million and above from 202 in the 12-months ending November 2013 to 282 in the 12-months ending November 2014; an 11 percent increase in closed sales for condominiums priced $1 million - $2 million from 234 in the 12-months ending November 2013 to 260 in the 12-months ending November 2014; and a 35 percent increase in single family median home prices in the Naples Beach area from $739,000 in the 12-months ending November 2013 to $1,000,000 in the 12-months ending November 2014.

"Median price in the Naples Beach area single family home market can not continue to increase at the current rate indefinitely," said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm of Carroll & Carroll, Inc., who added that, despite aggressive activity in new construction, the report indicated that inventory in the resale market continued to decline.

The NABOR® November 2014 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® November 2014 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

- Overall pending sales decreased 2 percent from 840 in November 2013 to 825 in November 2014.
- Pending sales for single family homes in the $300,000-$500,000 price category increased 32 percent from 99 in November 2013 to 131 in November 2014.
- Pending sales for single family homes in the $2 million and above category increased 24 percent from 25 in November 2013 to 31 in November 2014.
- Overall closed sales decreased 2 percent from 9,878 in the 12-months ending November 2013 to 9,635 in the 12-months ending November 2014.
- Median closed price increased 12 percent from $236,000 in the 12-months ending November 2013 to $265,000 in the 12-months ending November 2014.
- Median closed price for single family homes in the $2 million and above price category increased 50 percent month over month from $2,600,000 in November 2013 to $3,900,000 in November 2014.
- Overall inventory decreased 10 percent from 4,584 homes in November 2013 compared to 4,136 homes in November 2014.
- Average days on market for November is at 79. 

According to Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, the market's median closed price has gone up 62 percent in the last four years from when it was $169,000 in November 2010 to $272,000 in November 2014. And inventory is down 63 percent from one of its highest points of 11,116 in November 2008 to 4,136 homes in November 2014.

"Traditionally, the soft part of the year for real estate is September, October and parts of November," said NABOR President Mike Hughes, Vice President and General Manager of Downing-Frye Realty. "But this year, the soft wasn't soft; it was strong."


Despite a double-digit drop in overall inventory, the Naples area real estate market continued to see positive growth in various price points, categories, home styles and neighborhoods for both pending and closed sales activity in November. With luxury homes at a premium, homeowners that decide to sell in Naples now may begin to encounter more cash offers. Navigating the complexity of these real estate transactions can be made easier with guidance from a Naples REALTOR®. 

UCF forecast: Fla. ‘economic miracle’ in 2015

ORLANDO, Fla. – Dec. 19, 2014 – A quarterly report released by the University of Central Florida (UCF) suggests that the recession was far worse on Florida than it realizes, but the rebound in 2015 will "surely put a twinkle in Kris Kringle's eye."

The report under Dr. Sean Snaith suggests that the recession in Florida started earlier than it did for the rest of the U.S., and it lasted longer, though no source tracks state economic data. According to UCF analysts, the Florida recession lasted 32 months longer than the rest of the U.S. – a total downturn of 50 months – before starting a tepid rebound in 2012.

In 2012 and 2013, the Florida economy grew by 2.2 percent, but UCF says growth has now accelerated. It predicts total growth of 2.6 percent in 2014, followed by 2.7 percent in 2015, 2.8 percent in 2016 and 3.0 percent in 2017.

While the projected growth pales in comparison to 2005's 6.7 percent, UCF says that's okay. Current projections are "based more on improvements in the fundamental drivers of the state's economy and a more sustainable fiscal situation in state and local government."

Florida housing

The report notes a strong improvement in Florida since the housing crisis, with median home prices rising from $122,200 to $177,000. However, "it will take many more years to recover all the wealth that was lost when the housing market collapsed and housing prices plummeted from their median price high of $257,800."

The price increase has also helped many homeowners who are no longer underwater, giving them "financial breathing room."

Rising house prices are lifting more mortgage holders in the state above the surface of the water for the first time in several years, providing some financial breathing room, though thousands of Floridians remain deeply underwater in their mortgages. Despite this progress and as noted above, RealtyTrac estimates that 28% of mortgaged homes in Florida are deeply underwater.

UCF also notes the drop in Florida's all-cash sales, from 44.3 percent in October 2013 to 39.9 percent in October this year. The big question for 2015: "Will traditional buyers pick the slack?"

The report predicts that Florida's Nominal Gross State Product approaches the $1 trillion mark and will break it by 2018 and $963 billion in 2017 – $163 billion more than in 2013 and $242 billion more than in 2009.


"As we have gained some historical perspective and examined the revised data on the recession and subsequent recovery in Florida, the economic turnaround is looking more like a miracle," the report concludes.

Wednesday, December 17, 2014

Reality show focuses on Naples real estate agents

NAPLES, Fla. – Dec. 17, 2014 – Trying to ignore the cameras focused on them from the balcony, they sipped chardonnay in plastic cups, schmoozed and whispered behind each other's backs.

Then the handpicked cast of six high-powered Naples real estate agents mingled with a crowd of about 300 local housing industry bigwigs, potential buyers and curious looky-loos at an open-house party at a $23 million home for sale in Port Royal.

It was all part of a pilot for a new reality real estate show, the brainchild of ITZ studio founder Chuck Ardezzone, called Million Dollar Listing Naples: Billionaire's Coast.

Ardezzone said the show is the first in a series that he expects will begin in Naples and eventually creep up the coast to Ft. Myers Beach, Sanibel Island and possibly Venice.

"We're not doing the lower-priced million-dollar homes," he said. "We're focusing on the upper echelons."

Because of its high concentration of wealthy seasonal and permanent residents, Naples was picked as the spot to create the "sizzle reel" that Ardezzone will try to sell to BRAVO or HGTV.

He's also gathering sponsors, with an eye to airing the show on a local station starting in early February. But he hasn't cut a deal yet.

Although television commercials are his bread-and-butter – he's produced more than 600 regionally at his 4,000-square-foot studio in Naples – Ardezzone has been busy creating more than 20 reality-show sizzle reels that he regularly pitches to television networks.

He's been successful selling four shows, the most notable being "Tobacco Wars," which was picked up by country network CMT.

Most recently, he produced "Paradise Coast Wives," based on the usual model of catfights among pampered wealthy women. It has aired locally but has yet to be picked up nationally.

Million Dollar Listing will be something different, he vowed, adding it will feature successful luxury real estate agents like Diana Frey and Chris Resop, a former professional baseball player.

"We don't want a trashy show," he said.

But no reality show is complete without drama. So will that include backstabbing arguments among agents competing for luxury listings?

Ardezzone, who's looking to residential brokerages for backing, says no – "unless it happens organically."

Instead, he expects to find the necessary tension in the give-and-take that happens when ego-driven wealthy sellers and buyers bicker, and brokers scramble to keep their big-ticket deals from falling apart.

Cast-member Jordan Delaney, an agent who specializes in luxury golf-course communities, agreed with that approach.

"There's enough that goes wrong during a day in real estate – you don't need to create more drama," he said.

Another cast member, Amanda Erwin, concurred, adding she recently saw a million-dollar deal fall through simply because the seller and buyer decided they didn't like one another.

"It's not always about the money," she said.

While there were no on-camera brawls at last week's four-hour pilot-show party, which was entertained by a guitarist and a ponytailed artist painting landscapes, some visitors still indulged in some off-camera griping.

Decked out in an ascot and red blazer, cast member Cliff Donenfeld griped about the commission for the buyer's agent, which he said was lower than normal for a luxury listing and could signal a seller who's really not serious about selling. "It's a red flag," he said.

Others complained about the potato chip and pizza spread, which listing agent Jackie May, a luxury agent for more than four decades, defended as being more fun than the usual shrimp-and-snow crab fare.

"It shows off the home's wood-fired pizza oven," she said, as she handed guests their swag: flashing Christmas ties and glow-stick necklaces.

While most guests gushed over the 9,000-square-foot mansion, complete with an elevator, bejeweled powder-room sink, and $400,000 worth of curlicue custom-made ironwork curving up the staircase, a few found fault.

"The master suite needs to be bigger in a house of this size," said retired Naples real estate agent Barbara Walsh. "And it needs more closet space."

Her boyfriend, oldies crooner Barry Newman, liked the house but wasn't too fond of the surrounding neighborhood.

"I don't like Port Royal," he said. "There's no place to park."

Copyright © 2014 the Naples Daily News (Naples, Fla.), June Fletcher. Distributed by Tribune Content Agency, LLC.


Tuesday, December 16, 2014

Americans Are 40% Poorer Today

The net worth of American families has plunged 40 percent since 2007, right before the financial crisis struck, dipping to an average of $81,400 per household, according to a new report from the Pew Research Center. That's down from $135,700 in 2007. Pew measures net worth as the difference between the values of a household's assets, including homes, investments, and liabilities.

"The Great Recession, fueled by the crises in the housing and financial markets, was universally hard on the net worth of American families," the report says.

The average weekly wage has mostly stayed stagnant in recent years: $853 last month compared to $833 in November 2013, according to the Bureau of Labor Statistics.

The drop in net worth is particularly acute along racial lines. The gap between blacks and whites has reached its highest point since 1989, with the wealth of white households 13 times greater than that of black households in 2013, according to Pew research. The median net worth of white households was $141,900 in 2013, dropping 26 percent since 2007; for Hispanic households, net worth in that time fell by 42 percent to $13,700, and for African-American households, it dropped 43 percent to $11,000.

The Pew report partially attributes the wealth gap among the races to the fact that white households are more likely to own stocks directly or indirectly through retirement accounts. Financial assets such as stocks have recovered value more quickly than housing since the recession ended, according to Pew.

However, the housing picture has improved and may help lift many household's finances. Fewer borrowers are underwater, which means they no longer owe more on their mortgage than their home is worth. Eight percent of borrowers, or 4 million, were underwater in October compared to the peak of 35 percent, or 18 million homes, in February 2011, according to data from Black Knight Financial Services, which tracks mortgage performance.


Source: “Wealth Inequality has Widened Along Racial, Ethnic Lines Since End of Great Recession,” Pew Research Center (Dec. 12, 2014) and “Americans Are 40% Poorer Than Before the Recession,” MarketWatch (Dec. 13, 2014)

Fla. institutional investors could turn 29% profit

MIAMI – Dec. 16, 2014 – During the down real estate market, institutional investors – funds that purchased 10 or more single-family homes per year – bought 33,651 Florida property, according to a study by RealtyTrac.

With little profit in quickly flipping those homes, these investors used a different business model: They rented the homes, many times to people who had a foreclosure, with an eye toward selling the properties once home values rose.

The key real estate question now is: When will they sell?

RealtyTrac's study suggests that some institutional investors could consider selling soon given the profit by doing so. In Florida, for example, these investors own 33,651 homes, and their profit (selling price today compared to purchase cost) would average 29 percent.

However, that profit varies by city. Florida has 18 cities with 100 or more homes owned by institutional investors, according to RealtyTrac. Of those, the highest profit an investor would make if he sold today is 46 percent in the Fort Walton Beach-Crestview-Destin area; the lowest profit would be 10 percent in Cape Coral-Fort Myers.

So far, however, RealtyTrac data suggests that few large institutional investors in the single-family rental market have sold many homes. However, price appreciation has presented an opportunity – and created a motivation – to sell and realize a solid return on investment.

RealtyTrac analyzed more than 200,000 purchases made by institutional investors from January 2012 through August 2014. The markets where these investors would have the biggest motivation to "cash out" based on potential returns from gained equity include Chicago, Palm Bay-Melbourne-Titusville, Orlando, Columbus, Ohio, Indianapolis, Atlanta, Jacksonville and Charlotte.

"With the pop in prices last year and normal historical price increases this year, investors are testing the market with their inventory," says Mike Pappas, CEO and president of Keyes Company, which covers the South Florida market.

Florida cities by number of institutional investors and potential current profit

- Miami-Fort Lauderdale-Pompano Beach: 12,952 properties, 31% return today
- Tampa-St. Petersburg-Clearwater: 5,410 properties, 33% return today
- Orlando-Kissimmee: 4,149 properties, 24% return today
- Jacksonville: 2,633 properties, 35% return today
- Cape Coral-Fort Myers: 1,673 properties, 10% return today
- Lakeland: 1,264 properties, 28% return today
- Sarasota-Bradenton-Venice: 1,259 properties, 33% return today
- Port St. Lucie: 782 properties, 25% return today
- Deltona-Daytona Beach-Ormond Beach: 686 properties, 24% return today
- Naples-Marco Island: 547 properties, 41% return today
- Palm Bay-Melbourne-Titusville: 439 properties, 17% return today
- Punta Gorda: 261 properties, 28% return today
- Ocala: 248 properties, 29% return today
- Fort Walton Beach-Crestview-Destin: 200 properties, 46% return today
- Pensacola-Ferry Pass-Brent: 195 properties, 22% return today
- Tallahassee: 194 properties, 14% return today
- Panama City-Lynn Haven: 146 properties, 21% return today
- Palm Coast: 101 properties, 25% return today


Monday, December 15, 2014

65+ adults are real estate’s most loyal age group

NEW YORK – Dec. 15, 2014 – Americans age 65 and over are holding onto homeownership instead of downsizing into rentals or moving to senior centers, Bloomberg Businessweek reports.

Indeed, the largest jump in buyers this year was among people between the ages of 65 and 74. This age segment increased to 13 percent of all buyers from 10 percent a year earlier, according to National Association of Realtors® data.

"They want to remain as homeowners now because it represents stability, so they don't have to deal with generating fluctuating payments for rent," says Chris Mayer, a real estate professor at Columbia University Business School in New York.

Even during the housing crisis, the homeownership rate for Americans 65 and over stayed around 80 percent when it dropped for every other age group, according to Census Bureau data. Since then, Americans under 35 have seen the largest decline in homeownership, falling to 36 percent from 48 percent, Census data shows.

In 1982, the homeownership rate for every age group was higher than it was in 2013 – except for those 65 and over.

"This group has been a ballast for the market," says Chris Herbert, acting managing director at Harvard's Joint Center for Housing Studies. "If not for them, we would have seen a much lower homeownership rate overall, more homes on the market and more weakness."

Seniors usually have less mortgage debt than younger homeowners, greater wealth than they had four years ago, and longer lifespans than previous generations. For those aged 65 to 74, their median net worth rose 5 percent to $232,100, which is the largest gain for any age group from 2010 to 2013, according to the Federal Reserve's Survey of Consumer Finances.

"They have a quadruple bonus: They benefited from real estate, the best in equity and bond returns, plus higher GDP per capita growth well before the crisis during the 1980s and 1990s," says Amlan Roy, head of global demographics and pension research for Credit Suisse Group AG's investment bank in London. "It's unlikely to repeat."

While older Americans are staying in real estate, they're carrying more mortgage debt than previous generations, according to the Consumer Financial Protection Bureau. In 2010, about 40 percent of those over 65 were still making house payments, compared to more than 70 percent of those 50 to 64, according to a report earlier this year by the Joint Center for Housing Studies.


Source: "Older Americans a Pillar of Housing Market With High Ownership Rate," Bloomberg Businessweek (Dec. 8, 2014)

NYT: Blame Banks, Not Borrowers

In an editorial this Sunday, The New York Times blasted those who warn of a new foreclosure crisis stemming from the recent loosening of credit standards for cash-strapped borrowers. The editorial board said that the oft-cited misconception that many who lost their homes in the foreclosure crisis were not ready to be homeowners in the first place is harmful to low-income people and the housing market in general.

"The notion that borrowers brought foreclosure on themselves ignores evidence to the contrary," the board wrote. "The notion that low- and moderate-income borrowers cannot sustain homeownership is further undermined by evidence showing that the key to success is not a hefty down payment or even perfect credit, but rather carefully underwritten, 30-year fixed-rate loans that can be paid off in stable monthly increments."

The paper instead blamed predatory lending and rampant unemployment for the foreclosure waves, and credited inadequate foreclosure relief programs with failing to stem the tide. It urged lawmakers to center reforms on banks, rather than borrowers: "For politicians and regulators, the lesson of the housing bust is that curbing financial recklessness, predation and discrimination will create the conditions for sound homeownership. The lesson is not to deny lower- and moderate-income families the tools they need to become successful homeowners."

The editorial also praised home ownership as a way out of financial instability: "Homeownership also proved to be a buffer against financial loss in the downturn. Researchers found that the net worth of owners in the program rose substantially from 2005 to 2012, while comparable renters suffered substantial declines."

Finally, the Times slammed those who caution that the new federal programs to make homeownership more accessible to cash-strapped borrowers could cause another financial crisis, insisting that "the programs incorporate the proven elements of success, including clear lending standards, fixed-rate loans with private mortgage insurance and counseling for borrowers to ensure that they understand their obligations."


Source: "A Home of One's Own," The New York Times (Dec. 13, 2014)

Sunday, December 14, 2014

All-Stars: The Best Athletes’ Home of 2014

While we’ll never achieve the on-field greatness of professional athletes, we can always take a look at how they kick back when they’re off the field.

A peek at the real estate machinations of athletes gives a bit of a window onto what that player is like when they’re truly at home.

With that in mind, we took a look back at the hundreds of professional athlete homes we’ve featured over the past year. It was hard to narrow the field to only 10, but we battled through adversity and came out with our favorite pro homes of 2014. Game on!

Chris Bosh, NBA — Pacific Palisades, CA:

Speaking of folks who can dunk, Miami Heat center Chris Bosh listed this gorgeous Pacific Palisades pad in July. After deciding to stick with the Heat during a summer of wild free agency speculation, Bosh also decided to re-calibrate his real estate holdings.

The two-time NBA champ has yet to find a buyer for the SoCal spread, and had to slice the original asking price of $14.5 million down to $12.5 million in early December.

Phil Mickelson, PGA — Rancho Santa Fe, CA:

After a winless 2014 on the PGA Tour, golfer Phil Mickelson would probably like to put this year in his rear-view mirror. He’s also hoping to leave the past behind with the sale of his fabulous Rancho Santa Fe, CA, spread.

The spacious 9,100-square-foot home hit the market with a list price of $5.99 million in early November. It’s now listed as sold, making it the popular golfer’s sole major victory this year.



Dwight Howard, NBA — Longwood, FL:

One of our most popular athlete homes this year was the ostentatious Florida mansion of NBA All-Star Dwight Howard. Purchased in 2008 for $7.8 million by the then-Orlando Magic center, the 11,025-square-foot Chateau D’Usse went on the market in February for $4.9 million.


That loss-leader price point still wasn’t enough to entice a buyer to pony up for the Gothic-inspired mansion. The Houston Rockets center finally unloaded the Chateau for a huge loss when he closed on a final sale price of $3.4 million in July.


Friday, December 12, 2014

Owners and appraisers are almost on the same page

NEW YORK – Dec. 12, 2014 – The discrepancy between appraisers' and homeowners' opinions of home values is narrowing. In November, appraisers valued homes 1.56 percent higher than homeowners, according to Quicken Loans' Home Price Perception Index.

"Mortgage financing often hinges on whether the appraised value coincides with the home values agreed upon by the home buyer and seller in the case of a home purchase, and the homeowner's estimated value in the case of a refinance," says Quicken Loans Chief Economist Bob Walters. He called it "reassuring to see the gap between appraiser opinions and homeowner opinions" draw closer.

"If we had to choose a side of the fence, it makes for a much smoother mortgage process if appraisers are valuing homes above homeowners' estimates like we're seeing, as compared to the opposite," Walters adds.

In three-quarters of the metro areas Quicken Loans analyzed, appraiser opinions were higher than homeowners' estimates, though the difference varies widely among those metro areas. For example, in San Jose, Calif., appraisers valued homes 6 percent higher than homeowners on average, while in San Francisco, appraisers valued homes 4.35 percent higher. In Dallas, it was 4.22 percent.

On the other end of the spectrum, in Kansas City, Mo., appraisers' opinions were found to be 2.53 percent lower than homeowners' estimates.

On a national scale, real estate professionals reported fewer appraisal issues as the cause of derailed deals. Realtors® blamed appraisals for only 2 percent of failures to close a deal, according to the November Realtors® Confidence Index survey.

Instead, the top closing challenges cited by Realtors were difficulty obtaining credit and a lack of affordable homes. About 15 percent of Realtors cited clients who could not obtain financing, while about 13 percent say the buyer and seller couldn't agree on the price.


Eight percent reported that the buyer lost out in a multiple-offer situation.

Thursday, December 11, 2014

FHA’s 90-day flipping ban returns Jan. 1

WASHINGTON – Dec. 11, 2014 – The Federal Housing Administration's (FHA) Office of Single Family Housing announced that a rule on property flipping will again be effective starting Jan. 1, 2015.

FHA issued a temporary rule waiver after the recession, but that will soon expire. According to FHA, the rule prohibits the use of FHA financing to buy single-family properties that will be resold within 90 days.

The waiver still applies to any sales contracts executed before 11:59 p.m., Dec. 31, 2014. FHA considers a sales contract "executed" when all parties have signed the contract, and the contract is enforceable under state law.

FHA says it will not extend the waiver beyond Dec. 31.

Section 203.37a(c) lists sales transactions that are exempt from the no-flipping rule. They include:

- Department of Housing and Urban Development (HUD) sales by of real estate-owned (REO) properties under HUD's regulations in 24 CFR part 291
- Sales by other federal agencies of REO properties
- Sales of properties by nonprofit organizations approved to purchase and resell HUD REO properties
- Sales by state- and federally-chartered financial institutions and government sponsored enterprises (GSEs, such as Fannie Mae and Freddie Mac)

- Announced HUD sales of properties in areas the President has declared federal disaster areas

Wednesday, December 10, 2014

Mansion With World’s Most Famous Closet Lists for $12M

Theresa Roemer made national headlines this past summer and not for her work as an entrepreneur or as an advocate for fitness and nutrition.

It was her Texas home that grabbed everyone’s attention—specifically, her “female man-cave” closet that spans 3,000 square feet over three floors. Some people loved it, while others were astonished.

Apparently, Roemer thinks it’s time for a change, or maybe she just needs a house with a bigger closet. She’s put her The Woodands, TX, home on the market, and she’s asking for $12 million. Beth Wolff REALTORS® is the listing brokerage.

The infamous closet makes you feel as if you’re browsing through your own personal Beverly Hills boutique: There are hundreds of shelves, and the lighting is positioned to properly showcase your wardrobe and accessories.

A vanity is located on the second floor so you can do your hair and makeup as you prep, and there’s also a champagne bar for relaxation before your big night on the town. The first floor has cabinets with glass doors; this is where Roemer kept her jewelry and handbags.

Of course, the house isn’t all about the most famous closet: The house totals 17,315 square feet, and every inch is done in grand style.

It starts with the entryway, with tower water fountains outside, a commercial-grade window wall, a Swarovski Crystal chandelier and a elegant staircase. The living room has another window wall and a 20-foot high ceiling—it’s a room flooded with light in the daytime.

The family room has a fancy wet bar, so your guest can enjoy a cocktail or two. Across from the family room is a huge kitchen made for the homeowners, with two islands, high-end appliances and cushion-cut Carrera Italian marble backsplash and accent walls.

There’s actually a second kitchen, made for caterers when it’s time to party—conveniently out of plain sight but still an attractive space. There’s no shortage of storage, either, and the staff will love the appliances (including a double dishwasher and a washer and dryer).

The master suite has a sun area with a view of the grounds, while the master bathroom has a spacious Italian marble shower with dual shower heads and additional water jets. There are also his-and-her vanities and toilets with bidets, plus a stand-alone tub. The master bathroom has its own entrance to the aforementioned “most famous closet” as well.

Other rooms include a second-floor family room with full bar, a second-floor living room that overlooks a Jack Nicklaus Signature Golf Course (part of the Club at Carlton Woods), a guest suite, a theater, a study and an extra room that can be used as a shared space or a gym.

Outside, the house has a lap-sized pool with several fountains, a kitchen with a grill and a covered veranda.


Roemer started her fortune in fitness, opening a chain of fitness facilities and venturing into fitness fashion. Her work with the American Heart Association is just part of her many philanthropic efforts.

Will 3% down payments boost millennial homeownership?

WEST PALM BEACH, Fla. – Dec. 10, 2014 – Millennials and Americans who survived the Great Recession by siphoning from savings accounts are the targets of a new program that allows first-time homebuyers to get a loan with as little as 3 percent down.

The Federal Housing Finance Agency announced the mortgage guideline change Monday, hoping the rock-bottom downpayments will boost homeownership rates, which dropped during the housing bust.

Federal officials called the new mortgage product a "significant milestone" in a call with reporters, but acknowledged they are not sure how many people will be impacted by the change – or which lenders will participate.

Some South Florida mortgage brokers said the new guidelines could be of particular benefit in the Sunshine State where residents still recovering from the financial crisis may have jobs, but little reserve money to put down for a mortgage.

"There is a whole wave of buyers who have wiped out their savings to survive the bust," said Kimber White, membership chairman for the Florida Association of Mortgage Professionals and president of its Broward County chapter. "These are good, qualified people who just don't have the cash after coming out of one of worst recessions in our history."

The new guidelines affect loans backed by Fannie Mae and Freddie Mac. The two government-sponsored entities don't make loans, but buy up qualified home mortgages from lenders, bundle them with a guarantee against default and sell them to investors worldwide.

Fannie Mae considers a first-time homebuyer someone who has not owned a home in the past three years. Freddie Mac's definition for first-time homebuyer is someone who has never owned a home.

There is concern that allowing just 3 percent down will lead to more defaults as borrowers have less to lose by walking away from payments.

Both Bank of America and JPMorgan Chase said Monday they are still considering whether they will participate.

"It was just announced today and, like everyone else, we want to look at the details, evaluate it and determine what is involved," said Bank of America spokesman Terry Francisco.

The 3 percent down loans are geared for low to moderate-income buyers, but require borrowers to undergo similar financial scrutiny as in current loan programs, including documented and verified income levels. Only fixed-interest rate, conventional mortgages are considered, and borrowers must get private mortgage insurance.

Freddie Mac is requiring all borrowers to participate in housing counseling, while Fannie Mae doesn't require counseling for all loans.

A mortgage can already be obtained with 5 percent down, but White said the difference between three and five percent can be the difference of whether a person can buy a home. On a $200,000 home, five percent down would be $10,000. Three percent down is $6,000.

"The number one hurdle to increasing homeownership is the downpayment," said Skip McDonough, president of Jupiter-based Family Mortgage. "If you tried to accumulate a downpayment during the past few years, and you're not getting any raises, it's very difficult."

Florida's rate of homeownership fell to 66 percent last year, after reaching a high of 72.4 percent in 2005 and 2006.

Nationally, homeownership was at 65 percent last year, down from 69.9 percent in 2005.


"I think this will bring people back into the market," White said about the 3 percent downpayment.

3 Florida cities poised for baby boomers sales

WASHINGTON – Dec. 10, 2014 – Metro areas with a lower cost of living and sunny weather should see an increasing number of baby boomer homebuyers, according to new research by the National Association of Realtors® (NAR). It identified the top 10 U.S. cities based on baby boomer attraction, and three Florida cities – Fort Myers, Orlando and Sarasota – made the list.

To calculate future boomer demand, NAR analyzed population trends, housing affordability and local economic conditions in metropolitan statistical areas across the U.S. Boise, Idaho and Raleigh, North Carolina were identified as top standouts for baby boomers for their solid job growth, share of self-employed workers and affordable home prices.

"A broadly improving economy and rebounding home prices are giving baby boomers the opportunity to sell and move to support their retirement lifestyle," says Lawrence Yun, NAR chief economist.

NAR's research reviewed 100 metro areas that have lower state taxes, solid job market conditions and strong migration patterns. Cost of living, housing affordability and inventory availability were also considered.

In addition to the three Florida cities, the top 10 for baby boomer demand includes Albuquerque, New Mexico; Boise, Idaho; Denver; Greenville, South Carolina; Phoenix; Raleigh, North Carolina; and Tucson, Arizona.


NAR cited five other markets that also have a "strong potential for attracting baby boomer homebuyers." Those include one Florida metro, Tampa, along with Chattanooga, Tennessee; Dallas; McAllen, Texas; and Riverside, California.

At $195M, This Is the Most Expensive Home in America

With a price tag of $195M, the Palazzo di Amore does not skimp on luxury.

This Beverly Hills, CA, estate sits on almost 25 acres, and it features 12 bedrooms, 16 full bathrooms and a 27-car garage—all this is guaranteed to leave even Bruce Wayne awed.

In fact, the word “mansion” doesn’t quite do it justice; even the word “palace” comes up a bit short.

Guard house? Check. Opulent theater? Yup. Tennis courts, pool, spa, discotheque, bowling alley and vineyard that produces hundreds of cases of wine each year? Oh, indeed.

The home hit the market on November 6 and is currently the most expensive home in the country. The Palazzo di Amore is owned by real estate mogul Jeff Greene, who rents it for approximately $475,000 per month, according to CNN Money.

Greene purchased the home for $35 million back in 2007 and married his wife Mei Sze Chan there that same year. Fun fact: Mike Tyson served as best man, according to the Wall Street Journal.

Since he bought the house seven years ago, he’s invested in $25 million worth of upgrades, the Los Angeles Times reports.


After all, to make money in America, you have to spend money. As a Harvard Business School graduate, Greene knows this very well.

Tuesday, December 9, 2014

More people think it’s a good time to buy

WASHINGTON, DC – Dec. 9, 2014 – While the real estate market continues to improve slowly, Fannie Mae's November 2014 National Housing Survey finds some subtle shifts in consumers' attitudes.

Overall, buyers seems to be more optimistic about whether or not it's time to jump into the market; however, fewer homeowners think it's a good time to sell.

According to the survey, consumers' personal financial outlook has increased fairly steadily during the year, lending support to the ongoing housing market recovery. In addition, the share of respondents who expect mortgage rates to go up in the next 12 months decreased again to 45 percent. The overall trend seems to be empowering buyers.

However, the share who believe it's a good time to buy and sell a home moved further apart. Sixty-eight percent of consumers now say it's a good time buy, a 3 percentage point increase; but only 39 percent say it's a good time to sell – a 5 percentage point drop.

"November's National Housing Survey results support the 2014 trend of gradual, but often sporadic and unspectacular, improvement across a range of indicators measuring consumer attitudes toward housing – mirroring the uneven recovery in housing activity this year," says Doug Duncan, senior vice president and chief economist at Fannie Mae.

Still, Duncan says potential buyers have a more optimistic outlook.

"More encouraging is the steady upward trend this year in consumers' assessment of their personal finances, with 46 percent of Americans – near the survey's high – expecting their personal financial situation to improve over the next 12 months," Duncan adds. "We expect consumer attitudes toward housing to improve … However, a sustained improvement … that could support a robust housing recovery … will require meaningful gains in household income."

Homeownership and renting

- The average 12-month home price change expectation fell to 2.6%
- 44% of respondents expect home prices to go up over the next 12 months, while 6% expect them to go down
- Fewer Americans (45%, a drop of 3 points) expect mortgage rates to go up in the next 12 months
- 53% of respondents expect home rental prices to go up in the next 12 months – a 4 point increase
- The share who think it would be difficult to get a home mortgage today decreased by 3 percentage points
- The share who would buy a home if they moved fell to 62 percent, while the share who would rent increased to 31 percent

The economy and household finances

- 36% say the economy is on the right track, a 4-percentage points drop
- 46%, an increase, expect their personal financial situation to get better over the next 12 months
- 25% say their household income is significantly higher today than it was 12 months ago

- 36% say their household expenses are significantly higher than they were 12 months ago