05/01/2013 Florida Realtors News

Daily Briefing: Wednesday, May 1, 2013 TODAY'S TOP STORIES Florida’s consumer confidence keeps rising GAINESVILLE, Fla. – May 1, 2013 – Floridians’ consumer confidence rose three points to 79 in April – the second consecutive monthly increase, according to a new University of Florida (UF) survey. “Many economists … expected confidence to erode in April as the effects of the federal budget cuts known as sequestration along with the expiration of the payroll tax began to unfold,” says Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research. “So far, this has had virtually no impact on consumer confidence among Floridians.” Four of the five components used to determine Florida consumer confidence level increased and one remained unchanged in April. Respondents’ overall opinion that their personal finances are better than a year ago increased five points to 70, while their expectations they will be better off financially a year from now increased six points to 78. Meanwhile, their trust in the U.S. economy rose three points to 80. They also were optimistic about national economic conditions over the next five years – that assessment rose one point to 77. Left unchanged from March was whether now is a good time to buy big-ticket items such as cars and appliances. The response stayed at 90. Not all Floridians, however, are optimistic. Confidence among Floridians making $30,000 a year or less dropped six points to 61, but it rose four points to 85 for those earning more than $30,000. Age could affect views, too. The overall confidence level of Floridians younger than 60 increased 10 points to 87, but it fell three points to 72 for those 60 and older. “This difference may have to do with the unveiling of the Obama administration budget proposal that signaled a willingness to negotiate on aspects of Social Security and Medicare,” McCarty says. “Optimism, however, among those aged 60 and under is more likely fueled by economic improvements here in Florida.” For example, Florida’s unemployment rate continues to drop, coming in at 7.5 percent for March, which is slightly less than the 7.6 percent national figure. Leisure and hospitality showed the biggest job growth of all Florida’s employment sectors. The construction industry also reports slow but positive growth. Florida’s housing prices also continue to rise, with the median price now at $160,000 – the highest median price since October 2008, though it’s still 38 percent lower than the peak value of $257,800 from June 2006. In addition, mortgage rates continue to hover around historic lows. Meanwhile, the stock market is still near record highs, bolstering retirement accounts for many Floridians, and gas prices have continued a steady slide. Despite the encouraging trends, many economists still expect the effects of sequestration to be felt throughout the country, including Florida, but it may take months for the effects to be fully realized. Until then, “Floridians are increasingly optimistic,” McCarty says. Conducted April 13-25, 2013, the UF study reflects the responses of 407 individuals, representing a demographic cross-section of Florida. The index used by UF researchers is benchmarked to 1966, which means a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2; the highest is 150. © 2013 Florida Realtors® Is the quick house flip making a comeback? NEW YORK – May 1, 2013 – More Americans are again on the hunt to snag a home at a bargain price, fix it up, and then try to resell it for a quick profit. These home flippers mostly vanished during the housing downturn, but flipping is starting to return thanks to slowly rising home values. RealtyTrac says flipping increased for the second year in row, rising a slight 0.33 percent in 2012 from 12 percent in 2011. The company defines flipping as buying and selling a property within six months. According to RealtyTrac, the average gross profit in a flip was $37,375 in 2012; and some of the best places to flip homes in 2012 were Orlando, Fla.; Richmond, Va.; Tucson, Ariz.; and Charlotte, N.C. For example, Orlando home flips were purchased for $100,397, on average, and then sold for $174,895 – earning a gross profit, on average, of nearly $75,000. Flippers are more cautious this time around, however. They tend to come in with an all-cash deal, and many also hold onto properties longer than they once did. On average, the flipping time from purchase to resale stands at about 106 days today, according to RealtyTrac. “That seems to be the sweet spot for a profitable deal,” says Daren Blomquist, vice president at RealtyTrac. “Back in the housing bubble, many flippers were solely relying on price appreciation, sitting back and selling for big profits within a month or two.” Source: “The New Rules of House Flipping,” Reuters (April 18, 2013) © Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688 New health form cut to three pages WASHINGTON – May 1, 2013 – After months of jokes about the new form for the health insurance marketplaces being longer than the 2010 health care law, the government has released a new three-page form, down from 21 pages. A second form, for families, has been reduced by two-thirds, the Department of Health and Human Services says. “Consumers will have a simple, easy-to-understand way to apply for health coverage later this year,” sys Centers for Medicare acting Administrator Marilyn Tavenner. “The application for individuals is now three pages, making it easier to use and significantly shorter than industry standards.” Beginning Oct. 1, consumers will be able to buy insurance online through websites that allow them to compare prices and benefits of several plans. They also will be able to apply for subsidies that will be applied directly toward the cost of those plans. People who make less than four times the federal poverty level – or about $92,000 for a family of four – will be eligible for help. Insurance through the health marketplaces will be available Jan. 1 because of the Affordable Care Act. The move is a “victory for consumers,” said Anne Filipic, president of Enroll America, a coalition of 42 insurers, health care providers and affordable care advocates working to educate consumers to sign up for exchanges. The three-page form is for single adults with no dependents who do not have health insurance and would like help paying for it. A second, 12-page, six-step form has been released for everybody else who needs coverage and wants to see if they’re eligible for subsidies, though many of those pages include graphics, white space and large lettering. A third form will be available for those who want coverage but need no financial assistance. Copyright © USA TODAY 2013 Buyers try their luck at housing lotteries SUNRISE, Fla. – May 1, 2013 – Where buyer demand is high, some builders are holding lotteries to determine who gets to purchase homes in their developments. For example, O’Brien Homes has been holding monthly housing lotteries in Sunnyvale, Calif., for its development Fusion, a 228-unit development. The builder decided to start having lotteries after potential buyers had camped out for the openings of other new condos in the area. Each month, O’Brien Homes has attracted around 50 eager, pre-qualified buyers – who already have their downpayments secured – to enter the lottery. Only about 10 or so sites are available to lottery participants each month. Participating buyers receive a bingo ball, and then wait for the builder to pick a ball from the tumbler. If their number comes up, they have a chance to purchase a home that month. To appease disappointed losers, O’Brien gives returning buyers an extra bingo ball to increase their chance of winning. For some buyers, the lottery system has proven frustrating, as they return month after month trying to snag a chance for one of the homes, says Susie Frimel, a spokeswoman for O’Brien Homes. Also, the price of a new home rises practically every time. Two-, three-, and four-bedroom homes ranged from $420,000 to $620,000 when the lotteries first began, but they now range from $555,000 to $815,000. Other builders are reportedly trying the lottery system too, such as Shea Homes in Livermore, Calif., GL Homes in Florida, and Camberley Homes in northern Virginia. “(Our) homes are at a price that we are willing to accept and not force customers to potentially get into a bidding war,” said Marcie DePlaza, GL Homes division president, explaining to CNNMoney the company’s decision to hold a lottery recently to sell off 11 of its model homes in Delray Beach, Fla. “So for us, the lottery is the fairest way to determine the priority in which customers will be able to purchase our model homes.” Source: “Builders hold lotteries for eager new homebuyers,” CNNMoney (April 30, 2013) © Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688 Feds issue new fair housing construction guidelines WASHINGTON – May 1, 2013 – New guidance released today by the U.S. Department of Housing and Urban Development (HUD) and the Department of Justice (DOJ) reinforces the Fair Housing Act requirement that multifamily housing be accessible to persons with disabilities. The Fair Housing Act also requires that multifamily housing built for first occupancy after March 1991 contain accessible features for persons with disabilities, as part of its protection against discrimination in housing based on disability, race, color, national origin, religion, sex and familial status. HUD and DOJ say the new guidance should help designers, developers and builders understand and meet their obligation to assist persons with disabilities regarding the “design and construction” requirements of the federal Fair Housing Act. “Everyone involved in designing and building multifamily housing must ensure that the required accessible features are present so that people with disabilities can use and enjoy their homes,” says Eric Halperin, senior counsel and special counsel for fair lending in the Justice Department’s Civil Rights Division. HUD and DOJ share responsibility for enforcing the federal Fair Housing Act. HUD investigates individual discrimination complaints or, on its own initiative, files discrimination complaints. The Attorney General may commence a civil action in federal court if there is reasonable cause to believe someone is engaged in a pattern of discrimination or that a group of persons has been denied rights protected by the Act. Under the Act, housing built for first occupancy after March 1991 must include: • Public and common areas readily usable by persons with disabilities • Doors that allow passage into and within all premises of covered dwellings sufficiently wide to allow wheelchairs • An accessible route into and through a dwelling unit • Light switches, electrical outlets, thermostats and other environmental controls in accessible locations • Reinforcements in bathroom walls to allow the later installation of grab bars • Kitchens and bathrooms that an individual using a wheelchair can use The new DOJ-HUD construction guidelines are posted online in PDF format. People who believe they’ve experienced housing discrimination may file a complaint by contacting HUD at (800) 669-9777 (voice) or (800) 927-9275 (TTY). Housing discrimination complaints may also be filed online. Individuals may contact DOJ at (800) 896-7743 or by email at fairhousing@usdoj.gov. © 2013 Florida Realtors® AROUND FLORIDA Tampa: Booming apartment market means higher rents Central Florida: Hedge fund buys thousands of homes Lee County: Homes suffering from Chinese drywall on rise Lake, Sumter counties: Habitat builds homes, fulfills dreams Fisher Island: Historic Vanderbilt mansion gets a new life