The 2010 “Rich States, Poor States” study presents state economic outlook rankings based on public policies that have a proven impact on growth, revealing which states have the best chance of experiencing economic recovery, and which need to re-examine their policies before they can expect to see improvement.

Utah, Colorado, Arizona and South Dakota ranked 1-4 in the study. The bottom five states include California, Illinois, New Jersey, Vermont and New York.

Although the Sunshine State has been devastated by an unemployment rate topping 10 percent for most of the past year and a half, its economic outlook actually improved since the study’s inaugural edition in 2008, moving from 16th that year to 11th in 2009.

Florida scored highest for its top marginal personal income tax rate, state minimum wage and its right-to-work status. Low scores included tax burden (No. 45) and tort litigation treatment/judicial impartiality (No. 42).

“Our research shows that states with responsible spending and competitive tax rates enjoy the best economic outlook,” said study co-author Jonathan Williams, director of ALEC’s tax and fiscal policy task force. “States do not enact changes in a vacuum - every time they increase the cost of doing business in their state, their state brand immediately loses value.”

The full report can be downloaded at www.alec.org.

In addition, while March’s statewide existing-home median price of $137,000 was down 3 percent from $141,300 a year ago, it was 4.3 percent higher than February’s statewide existing-home median price.

Florida Realtors also reported a 63 percent increase in statewide sales of existing condos in March compared to the previous year’s sales figure, with 7,148 units sold compared to 4,387 in March 2009.

March’s statewide existing-condo median price of $96,900 was down 11 percent compared to the year-ago figure of $108,500, but it was 5.1 percent higher than February’s statewide existing-condo median price.

In metro Orlando, 2,489 existing home sales took place in March, a 36 percent increase over 1,828 in March 2009.

The median price for homes in March 2010 was $132,200 in the metro area, a 12.7 percent decrease from $151,500 in the year-ago period.

More than 12 percent of homebuyers today plan to purchase a home as an investment, compared to less than half, only 5.6 percent, just seven months ago, according to a recent Move.com Homeownership Survey.

The survey of 1,004 consumers, conducted from October 16 to 18 this year, found:

• Foreclosure buyers are confident they will profit from discounted purchase prices, as well as healthy appreciation rates over the next five years.
• Most foreclosure buyers, 58.2 percent, expect to pay 20 percent or less than market price for a foreclosure, while 38.5 percent expect a 25 percent or greater discount.
• Expectations are high — 73 percent expect their properties to appreciate ten percent or more in five years, 28 percent expect their purchases to appreciate 20 percent or more.

Not all buyers will make the ‘right’ decisions when purchasing however, and may folk still seem to overestimate their ability to get a loan in today’s market.

For more info on Orlando foreclosures, call 407-290-3408.

Call the Orlando Real Estate Pros for more info or to view current deals on 407-290-3408.

The issue here is important to consumers because the new paperwork provides numerous protections the old forms did not. Most importantly, they make it extremely difficult for loan officers to “low ball” the estimated fees and charges on the mortgage and then later hit homebuyers with surprise increases at closing.

Before, if the estimated fees from the lender were $2,000 but the total on the settlement sheet came to $3,000, the homebuyer would have to come up with the difference. That was abusive.

Under the new rules, starting January 1, the lender or broker will be subject to what are known as “tolerance” limits. Any charges over the limits will have to be eaten by the lender or broker - and there will be zero tolerance for increases on certain fees.

Other types of charges, such as for title insurance and settlement services, generally won’t be allowed to come in more than 10 percent above the upfront estimate.

All consumers making loan applications on or after January 1 must receive the new forms at application and at closing.

This is all good news for the consumer.

However, given the 30 to 45 days - or longer - it takes to close escrow - especially on some distressed properties - you can’t wait until Nov. 30 to buy a home. In fact, if you’re not under contract in the next week or so, chances are, you will miss the deadline.

The federal tax credit for 2009 is only for first-time home buyers - people who’ve had no ownership interest in a home in the three years prior to the purchase. Single and head of household tax payers can earn no more than $75,000. There’s a $150,000 ceiling for married couples filing a joint return.

A tax credit is a big deal because, unlike a tax deduction which reduces your taxable income, a tax credit reduces the taxes you owe, dollar-for-dollar.

This home buyer tax credit can also net you a rebate if the credit is more than the taxes you owe. The rebate is the difference. If you owe no taxes, your rebate can be a maximum $8,000.

So far, 1.4 million people have used the credit, including 160,000 in California, the Internal Revenue Service said Friday.

For an Orlando real estate tax credit home purchase, contact us here at the Orlando Real Estate Pros ASAP: 407-290-3408.

The “Pending Home Sales Index”, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7. Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said.
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Lawrence Yun, chief economist for the National Association of Realtors, pointed to two key factors that are pushing up market activity - The near record affordability of house purchases caused by moderate prices and low mortgage rates. Plus, the eight thousand dollar federal tax credit for first time buyers.

Meanwhile, there is more evidence that prices are turning around in growing numbers of markets around the U.S. Freddie Mac’s most recent home price index, released last week, showed national prices up by an average 2.7 percent. Orlando real estate is seeing markedly increased sales activity over a year ago, although mostly in the condo market.

There was more good news on the mortgage front with average rates on thirty year fixed rate loans declining to just below 5.2 percent last week, according to the Mortgage Bankers Association. Fifteen year rates averaged 4.6 for the week.

Looking at the larger economic picture, the Mortgage Bankers Association’s top forecaster, Orawin Velz, continues to predict that the recession will be over shortly - or already is over. She cited rising consumer expenditures - up two percent in the third quarter compared with a minus one percent in the second quarter. Plus manufacturing output is up, and new layoffs declined last week.

Who knew?

“So anyway, this is the kitchen - beautiful isn’t it - and in the living room you will notice the, um, the dead body on the floor?”

Many of you telephone us, having seen something you like the look of online, and ask us to just meet you there at the property for a viewing. We’ve never met you, you’ve never been to our office - you’re not even a client.

Some buyers are surprised when we want to “pre-qualify” them before meeting them at an empty house or putting them our cars; that is, make sure they are ready, willing and able to purchase a home before they we show them homes.

This period is also an opportunity for the buyer to decide if they would like the Realtor in question to represent their home buying interests, while the Realtor also has an opportunity to decide whether or not the buyer is likely to be um, an axe weilding psychopath? You see, meeting random strangers who want to go see houses isn’t really part of a Realtor’s job description, although many agents are willing to take the risk in the hope of finding a client. But in reality, a buyer should become a client first, get pre-qualified for a loan second, and look for houses last of all. But I digress.

Back to the story: the dead man on the living room floor is 45 year old Ricardo Contreras, a California agent that had gone missing the week before. In this case, the victim was actually male - which only goes to prove that equal opportunity is alive and well in the murder business. 

And which is why an agent might respectfully ask to meet with you at the office before showing you homes. They’re not being awkward, they just don’t know you from Adam. Chances are that you’re not a homicidal maniac but you might not have a penny to your name, which is far, far worse. Personally, I don’t mind being found dead on my own living room tile, but on a dirty carpet in a foreclosed home? Mamamia… the indignity of it all!

Original news post

Association members sold 2,131 homes last month in the Orlando metropolitan area, and the sales growth has finally helped bring down area inventory supply to single digits.

Nearly 46 percent of the homes were either bank-owned or distressed property sales. Homes in the Orlando area spent an average of 104 days on the market before being sold in June, and the average home sold for 93.8 percent of its listing price - which may surprise many.

About 184 single-family homes sold in the $200,000-$250,000 range, while 10 homes sold for $1 million or more.

Along with stronger sales, 7,230 homes were awaiting closings, more than double the 3,329 that were pending at this time last year.

Duplex, townhome and villa resales also jumped nearly 32.8 percent, from 131 in June 2008 to 174 last month.