THERE IS MUCH VALUE

THERE IS MUCH VALUE 

IN RECENT QUOTES 

FROM WARREN BUFFETT

Tagged in the annual shareholder letter that came out last month, Buffett cited the industry-leading 2010 performance of one of his company’s holdings, which sells and finances manufactured homes.  He said, ‘HOME OWNERSHIP MAKES SENSE FOR MOST AMERICANS, PARTICULARLY AT TODAY’S LOWER PRICES AND BARGAIN INTEREST RATES.”  

He also said that the purchase of his home was the 3^rd best investment he ever made.  What were numbers 1 and 2?  “WEDDING RINGS.”

He cautioned not to wait too long to buy while prices are low, as market prices “WILL MOVE HIGHER, PERHAPS SUBSTANTIALLY SO, WELL BEFORE EITHER SENTIMENT OR THE ECONOMY TURNS UP.”

EL CID

HISTORIC HOMES TOUR

APRIL 3, 2-5 P.M.

 Here’s your chance to see thirteen homes in the grand West Palm Beach historic neighborhood of El Cid, an area of 285 homes of which 185 are listed as historic.  

 

The 1925 house and gardens at the Ann Norton Sculpture Gardens, 253 Barcelona Road, West Palm Beach, listed on the National register of Historic places, is included and after the tour, come and enjoy the wine, hors d’oeuvres and live music there.  This is also where the tour begins.

 Homes will be examples of Mediterranean Revival and Mission Revival, built in the 1920’s, many of them renovated, some taken down to the studs and with redone foundations.  Others are mostly “original”.  West Palm Beach has 14 historic districts.

Parking is available at Unity of the Palm Beaches, 1957 S.Flagler Drive, West Palm Beach.  Trolley is available.

Advance admission is $55; $65 the day of the tour.  For information call 954-270-6081.

CENSUS: FLORIDA HAD 7^TH CONSECUTIVE

DECADE OF DOUBLE-DIGIT POPULATION GROWTH

Florida remains one of the top places to move to in the United States.  The US population grew by 9.7%, and Sunshine State residents grew by 17.6 percent with a 2.8MM increase in residents between 2000 and 2010.

This growth swelled despite a high rate of unemployment and a housing slump.  While 1.7MM new residential units were built over the past decade, the number of vacant properties climbed nearly 63% during the same time frame, according to the New York Times.

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.