Lakewood Ranch, FL Blog

I write a market news update each month and in my last couple of entries I mentioned that I expected prices to level out this year.  To be sure, there have been (and still are) good deals for almost every buyer but this activity has also heated up the market as courageous buyers have snapped up the lowest priced properties.  This activity is statewide and has not escaped the attention of Hoffman Development Group, the developer who took over the Miramar Condominium project in Lakewood Ranch.

Yesterday, HDG announced that they were raising prices on their remaining inventory of Miramar townhouses and single level condos.  Charlie Brasington, President and CEO of HDG, said he is "now certain that the market is turning and prospects realize the time to buy is now.  Everywhere I go, I’m seeing sales at pretty darn good prices, pretty good pace." 

HDG has had overwhelming success in selling Miramar at aggressively low prices, and Brasington concluded the market could support higher prices.

Here's the thing:  nothing happens unto itself.  If HDG sees it is possible to raise prices and keep sales going, other companies will follow suit.  Once new product prices rise, resales are likely to follow. 

The Federal Reserve decided yesterday to pump a trillion dollars into the economy, including $300 billion into government bonds and $750 billion into mortgage backed securities.  These moves could result in 4% mortgage rates as early as today.  That is an incredible rate and many analysts are suggesting that this move may actually turn the housing decline around.

Expect banks to be swamped by mortgage applications.  There is a website:

http://www.makinghomeaffordable.gov where you can determine your eligibility for government help.

There hasn't been much good news in the housing market lately but for first time homebuyers and those who have not owned a principal residence in the past three years, the government is now providing a $8000 tax credit for purchases made in 2009.  It is easy to get, doesn't need to be repaid, and is a true tax credit.  For example, if you would normally owe $9000 in income tax for 2009, you'd pay $1000.  If you'd owe $5000 in tax, you'd get a check back for $3000!  There are some rules, of course, but it appears to be a pretty good deal with not alot of strings attached.

For complete information go to: http://www.federalhousingtaxcredit.com/2009/home2.html

It looks like the pro-property tax special interest groups will have their way this year.  The court has ruled that the language used in the Amendment 5 effort to reduce property taxes in Florida was too confusing!  Apparenty, some judge decided that you may be smart enough to find your way to the polls but you aren't smart enough to decide for yourself whether your property tax should be lowered.  Oh well...maybe next year.

In the meantime, good luck to all those people trying to sell their homes, avoid foreclosures, move to the state on a retirement income, buy their first home, or buy a dream second home while property taxes remain astronomically high and completely inconsistent from one property to another.