Jun 18 2009
Median prced homes are dropping and making Orlando a record high of 192% in the affordability index as of March 2009. This statistic is loring employers to relocate or expand their operations in the Orlando area. A 99% affordability index means that buyers earning the state reported median income are 1 percent short of the income necessary to purchase a median-priced home.
Jun 16 2009
According to a report from the Census Bureau, the nation’s builders production in May is up 17.2%. Building permits have also seen an increase of 4%. This is a sure sign that the real estate market and the economy general is starting to recover.
The outlook for home sales has been slowing improving largely due to the implementation of the first-time home buyer tax credit, gains in housing affordability and lower interest rates.
If you are interested in new home construction or getting more information on the first-time home buyer credit, contact Karen Arbutine and Associates today at 888.727.7778.
Jun 09 2009
OVERVIEW: Due to a shortage of US manufactured drywall between 2004 and 2007, many builders were forced to buy drywall imported from China. The “Chinese drywall” has been linked to seeping sulfide gases that can corrode electrical wiring and components of air-conditioning and other household appliances. Some residents have been forced to move from their homes, and a few builders in Florida have begun gutting homes and replacing the drywall.
The potential scope of the problem is huge. In Florida alone, an estimated 36,000 homes are believed to contain Chinese-made drywall. It is estimated that between 60,000 and 100,000 homes nationwide may contain this tainted drywall.
The Florida Department of Health (DOH) has received numerous complaints about drywall that has polluted homes with a “rotten-egg” smell. The agency is currently identifying and assessing potential human health hazards related to the phenomenon of rapid and recurring corrosion of metals inside homes. Florida Gov. Charlie Crist has also sent requests to the US. Environmental Protection Agency (EPA) and Centers for Disease Control and Prevention (CDC) asking for help with problems attributed to tainted Chinese drywall. Governor Crist is specifically asking that the federal agencies help Florida develop chemical testing strategies for homes that are experiencing severe copper corrosion.
LEGISLATIVE INITIATIVES: U.S. Senators. Bill Nelson (D-EL) and Mary Landrieu (D-LA) have filed two bills relating to this issue. S.RES.91 is an effort to press the Consumer Product Safety Commission (CPSC) for a recall of Chinese-made drywall, based in part on findings by a Florida home builder and state officials who have confirmed the presence of sulfide gases in homes built with the drywall. S.739, the Drywall Safety Act, would require the CPSC to work with federal testing labs and the EPA to determine the level of hazard posed by certain chemicals and as yet unidentified organic compounds in the drywall. In addition, the legislation calls on the commission to issue an interim ban on imports until it can create federal drywall safety standards so consumers are protected in the future.
Nelson and Landrieu say they’re pressing the CPSC for a recall in the hope of jump-starting a process for helping affected homeowners with the costs of repairs or replacement. Under their legislation, manufacturers would be responsible for these costs.
US. Rep. Robert Wexler (D-FL) sent a letter to Governor Crist requesting the Governor declare a state of emergency over the problem. A spokesperson for Governor Crist has stated that he is not clear what practical effect a state of emergency declaration would have at this time.
LEAGAL CONSIDERATIONS: Several federal class action lawsuits have been filed, including claims against US homebuilder Lennar, Banner Supply Company, Chinese drywall manufacturer Knauf Plasterboard Tianjin and the foreign company that distributed that company’s drywall within the United States, Rothchilt International Ltd. Attorneys who filed one of the lawsuits say they estimate homes in 13 states are believed to have defective Chinese drywall. They anticipate that when the Consumer Products Safety Commission completes its investigation, this could be potentially one of the largest product liability cases related to home construction in US. history.
MORE ON CHINESE DRYWALL:
Chinese Drywall Poses Potential Risks to American Homeowners, Apartment Dwellers - FOX NEWS
Chinese Drywall- ChinesDrywall.com
May 27 2009
Orlando FL was recently ranked #4 - most popular cities to live by the Pew Research Center Publication for 2009.
The national survey by Pew Research Center’s Social & Demographic Trends project finds that nearly half (46%) of the public would rather live in a different type of community from the one they’re living in now — a sentiment that is most prevalent among city dwellers. When asked about specific metropolitan areas where they would like to live, respondents ranked Denver, San Diego, Seattle and Orlando at the top of a list of 30 cities, and Detroit, Cleveland and Cincinnati at the bottom.
If you are considering a move to the Orlando FL area, contact Karen Arbutine & Associates today at 888.727.7778 for a no obligation consultation.
May 12 2009
ORRA released just released its Market Pulse publication which shows the current market trend for Central Florida through the month of April. As the inventory of homes is shrinking to a 2 year supply. There is a current inventory of 20,194 homes on the market, 1,741 of those have closed in the past month. Of all the homes that have closed 55% of the sales were bank owned properties or short sales. It is encouraging though that homes are selling. The stats also show that the average number of days that a home sit on the market is decreasing. This is all great news.
Apr 06 2009
Congratulations to Karen Arbutine with RE/MAX Central Realty for achieving the #4 spot among the Top Performing Residential Teams in the RE/MAX Florida Region for the month of December 2008.
Her contribution to RE/MAX International’s record-breaking success is recognized and admired throughout the RE/MAX Florida Region. Her outstanding achievement serves as a powerful model of professionalism for each and every Sales Associate on the RE/MAX team.
Mar 25 2009
In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers.
Time is of the essence for buyers who want to take advantage of this opportunity. Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible.
If you are a first-time home buyer and would like to get pre-qualified contact Karen Arbutine and Associates today at 888.727.7778 to get started.
Mar 08 2009
As of April 1st 2009 Fannie Mae and Freddie Mac will be increasing their fees making it harder for those wishing to purchase a home. The following is an article written by Kenneth R. Harney on the drastic changes coming.
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Fannie Mae, Freddie Mac crank up the charges
It may not be what home buyers, sellers and refinancers want to hear, but they need to know: Fannie Mae and Freddie Mac are ratcheting up their mandatory fees and toughening credit score and down-payment rules as of April 1.
Most major lenders already are pricing in these higher fees, effectively raising costs to borrowers immediately and reducing the impact of housing stimulus efforts from Congress and the Obama administration.
Under Fannie’s and Freddie’s new guidelines, even applicants who assumed that their FICO credit scores would get them favorable rates will be charged more unless they can come up with down payments of 30 percent or more. For example, a buyer with a 699 FICO score who brings a sizable down payment of about 25 percent to the table will be hit with a 1.5 percent “delivery” fee at closing under the new guidelines.
A buyer with a FICO score between 700 and 720 will pay an extra three-quarters of a point. Even someone with a 739 FICO - once considered a platinum guarantee of the best rates available - will get dinged with a quarter-point add-on.
Condominium buyers who cannot come up with a 25 percent down payment will be hit with a three-quarter point add-on penalty, no matter how high their credit score - simply because they are not purchasing a traditional detached, stand-alone house.
Buyers of duplexes, where one unit is owner-occupied and the other is rented, will be charged a flat 1 percent add-on from Fannie, even if they have FICOs above 800 and make 50 percent down payments. Refinancers who take cash out at settlement also will be forced to pay extra - as much as three points if they have low credit scores and modest equity stakes.
Both Fannie Mae and Freddie Mac say they are tacking on these extra fees to counter higher risks and losses associated with certain loan products, buyer equity stakes and credit scores. Declining home values in many parts of the country are intensifying losses for both companies when loans go to foreclosure.
Although they were quasi-private enterprises until September, Fannie and Freddie now are operating under federal control and are bleeding billions of dollars of red ink. Freddie spokesman Brad German said that some of the loan categories and credit risk combinations targeted in the latest round of fees “default at four to eight times” the rate of other mortgages in the company’s portfolio. “We have to manage these risks appropriately,” he added, and that means pricing them based on the probability of higher losses.
However, real estate agents, mortgage bankers and brokers are incensed at the new round of fee increases, calling them counterproductive in an environment in which housing needs help, not new impediments. They have begun lobbying Congress and the two companies’ federal overseers to scrap the latest add-ons.
Charles McMillan, president of the National Association of Realtors, complained in a letter to the Federal Housing Finance Agency, the regulator of Fannie and Freddie, that the individual fee increases weren’t justified, and that in combination they could seriously deter home purchases.
“They’re shooting themselves in the foot,” said Steve Stamets, a mortgage loan officer in Rockville. With substantial down payments of 20 percent and more, Stamets said, “they don’t need to be that tough,” even if home prices decline slightly more before the cycle ends.
“When consumers with 720 credit scores are being adjusted, there is something seriously wrong with the system,” said Harry H. Dinham, a Dallas mortgage company owner and former president of the National Association of Mortgage Brokers.
As recently as two years ago, FICO scores in the upper 600s were enough to qualify any applicant for prime financing. Now scores of 720 to 740 are the bare minimum if you’re going to escape add-on fees - and still not good enough if you choose to buy a condo or a duplex.
Where is all this headed? Without congressional intervention or new marching orders from the companies’ regulator, the add-on fees are here to stay.
But there’s an alternative available for just about anyone who wants to avoid the fees: Federal Housing Administration mortgages, where down payments go as low as 3.5 percent and credit scores are not an issue for most applicants.
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Mar 07 2009
Orlando Business Journal Recognizes Karen Arbutine’s Record-Breaking Deal
Residential and commercial real estate in Central Florida slowed considerably in 2008, as the effects of the credit crunch and sour economy trickled down to developers, contractors and those wishing to buy or sell real estate. Through these tough times Karen Arbutine with RE/MAX Central Realty was able to pull through and succeed.
In 2008, Karen Arbutine sold the most expensive home in Seminole County. This high profile transaction was touted as the best deal for the buyer, a professional athlete who Karen Arbutine represented.
In the February 2009 issue of the Orlando Business Journal, Karen Arbutine’s deal was named as the “Best Single-Family Residential Deal: Dwight Howard”.
The article went on to say that, “Orlando Magic center Dwight Howard broke the record for the largest single-family home buy in Seminole County with his October purchase.”
“Howard bought the 11,000-square-foot home dubbed Chateau d’Usse, for $7.8 million - the highest home sale in the area this year. The home was the largest one featured in the 2008 Street of Dreams luxury home show in Lake Club.”
If you are looking to buy or sell real estate in the tough market contact Karen Arbutine & Associates at 888.727.7778 for a free consultation.
Jan 07 2009
Home renovations are holding their value more than home prices today. The slow housing market encourages home owners to stay put and redesign/renovate their home and make it more livable for them. The improvements will help sell and make it more applealing to future buyers. Without the improvements, buyers will negotiate and chip away at the sales price by pointing out imperfections of the home.
It is still smart to invest in your home especially in older more established neighborhoods by refurbishing a kitchen, master bedroom or bathroom you will recoupe your money.