Archive for the 'Pensacola Real Estate News' Category
Invaluable New Consumer Real Estate WebSite
March 24th, 2010 Categories: Home Improvement, Pensacola Real Estate News
The National Association of Realtors® (NAR) launched HouseLogic, a new consumer real estate website designed to help consumers with all aspects of homeownership. According to NAR, “HouseLogic was created to help homeowners make smart decisions and take responsible actions to maintain, protect and increase the value of their homes.”
Houselogic is a free website. It is designed to help consumers make smart, informed home improvement investment decisions. It provides timely articles and news that helps homeowners plan and organize their home projects. It also provides home improvement advice and how-to’s along with information about taxes, home finances and insurance.
Here’s a sampling of articles I saw on my first visit to this real estate site:
7 Tips for Saving Energy in the Laundry Room
7 Tips for Saving Energy with Home Lighting
Start a Neighborhood Watch
Stop Drivers From Speeding in Your Neighborhood
7 Smart Strategies for Kitchen Remodeling
Smart Options: Kitchen Flooring
Green Kitchen Remodeling
Deduct Private Mortgage Insurance
Bathroom Addition: Return on Investment
Inspecting and Maintaining Your Roof
And these were just from a quick browse of the home page. You can see that there are a variety of real estate and home ownership topics covered. Each article has links to related articles. There is a wealth of information on this site and I highly recommend consumers take a look at it and learn more about what they can do to protect and enhance the value of their real estate.
Click Houselogic to visit the site.
Related Articles On Pensacola Real Estate News:
Home Improvements: Which Ones Really Pay Off
How You Can Save Big Money On Home Improvements
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Impact From the HomeBuyer Tax Credit
March 2nd, 2010 Categories: First Time Home Buyers, Pensacola Real Estate News
How much impact has the extension of the home buyer tax credit had on Pensacola Real Estate sales?
The answer is elusive. There are many factors involved that make it hard to determine what impact the tax credit has had on local real estate sales. One report released on March 1st, 2010 indicated that the extension of the tax credit has had very little impact on real estate sales on a national level.
Congress extended the first time homebuyer tax credit of $8000 through June 2010. In addition, they added a tax credit of $6500 for existing homeowners who decide to purchase another home (it must be their primary residence).
The report I read through the Florida Association of Realtors indicated that so far, people are staying put. The results of the report are based on nationwide real estate sales and interviews with real estate agents around the country.
Why isn’t the homebuyer tax credit working as expected?
High Unemployment Rate
The unemployment rate is still near 10 percent and consumer confidence is falling. During periods of high unemployment and low consumer confidence, buyers tend to wait it out, not run out and buy a home.
Many Homeowners are Upside Down
While many homeowners would love to sell right now, their mortgage is higher than the value of their home. They are stuck where they are.
Harsh Winter Weather
Since we have had an unusually cold winter, many would-be buyers are not out house shopping. Even Pensacola has been unseasonably cold this winter.
Tax Credit Just Not Big Enough
It appears the tax credit is just not enough to entice buyers out into the real estate market. When people’s confidence is low, they are more likely to play it safe and stay put, even if they have the ability to move. And the amount of the tax credits is not even enough to cover moving and closing costs if selling an existing home to purchase a new one is even an option.
I checked the Pensacola Real Estate Market sales for February 2010 (full report coming soon) and was pleasantly surprised to find that Pensacola Real Estate sales are on par to match or exceed last year’s February home sales. February already has 259 home sales, which is 50 more than January of this year (see January Pensacola Real Estate Market Report).
As of this writing, February is over and we’re into March. However, there are still real estate agents who have not entered their sold listings from February into the Pensacola MLS. To get the most accurate real estate market data, I usually have to wait a week to 10 days after the end of the month to check the local market statistics. (Personal pet peeve, which I won’t get on a soapbox about at this time).
Tax Credit Qualification
To qualify for the $6,500 credit, buyers must have owned and lived in the same home for five consecutive years out of the past eight. They must sign a contract by April 30 and close before June 30. The home’s purchase price can’t exceed $800,000, and it must be used as a main residence. The income limit for single taxpayers is $125,000; for a married couple, it’s $225,000.
The same rules above apply to first-time homebuyers, except that the tax credit is $8000 and the buyer must not have owned a home for the previous 3 years.
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Federal Flood Insurance Program Dried Up
March 1st, 2010 Categories: Insurance, Pensacola Real Estate News
Thanks to Congressional inaction (so what’s new), the federal flood insurance program has dried up. Congress failed to extend the National Flood Insurance Program, so it expired Monday (March 1, 2010).
The National Flood Insurance Program is essentially the only place anyone can buy flood insurance. Almost every local insurance agent across the country uses the program to cover homeowners during a flood. The program is normally renewed every year by Congress, but now right now the flood insurance program is tied up in the Senate as part of the same legislation that is being opposed by Republican Senator Jim Bunning of Kentucky.
Fortunately for the Pensacola area, this is not the season we really worry about flooding. Once this issue gets worked out in the Senate, it is likely the flood insurance program will be back in effect. Fortunately for home buyers, this little Senate glitch is not likely to delay many real estate closings, and if so, only for a few days.
UPDATE – March 4, 2010: The U.S. Senate had reauthorized the National Flood Insurance Program after a legislative stalemate halted new policies and renewals on Sunday. The Senate approved stopgap legislation late Tuesday night that extended funding for a host of programs, including jobless benefits and the flood insurance program.
Pensacola Real Estate News Related Articles:
Just Because You Are Not In A Flood Zone Doesn’t Mean You Don’t Need Flood Insurance
How To Determine The Cost Of Flood Insurance
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Unusual Real Estate Foreclosures In The News
February 25th, 2010 Categories: Foreclosures, Pensacola Real Estate News
Real estate foreclosure is a grim reality of this current real estate market. In the Pensacola Real Estate market, on February 25, 2010, there were 213 foreclosure properties and 564 short sales listed as Pensacola Homes For Sale. The total number of homes and condos listed in the Pensacola real estate market was just over 4400. This means approximately 17% of the Pensacola homes for sale are either foreclosures or short sales.
Foreclosure properties are already owned by the bank. Short sales are still owned by the homeowner, but are destined for foreclosure if they cannot be sold at a price lower than the amount owed to the bank. See the article Short Sales – Is It Really Worth It?
A couple of interesting real estate foreclosure stories have surfaced this week that I thought were worth noting. Fortunately, no one got so frustrated that they flew a plane into a bank building, as in the case of the Joe Stack who piloted his plane into the Austin Texas IRS building.
However, a man in Ohio bulldozed his home in retaliation of a bank’s plans to foreclose on his home. Apparently, Terry Hoskins only owed $160,000 on the home, which was valued close to $350,000. He was already in hot water with the IRS in relation to his businesses. Then the bank refused to stop foreclosure proceedings even though he indicated that he had a buyer who would pay off the balance of the mortgage. As the story goes, the bank wanted to foreclose so they could resell the home for more than the balance owed and actually profit from the deal. There is always more to a story than you read in the news, so I’m not sure of all the details. Either way, the home is now a mound covered by snow. 
Terry has now become somewhat of a hero to those who resent how banks have been so generously treated by the government with bailout money while still giving out large bonuses to employees. Ronnie Ray Jenkins even wrote a song called the Ballad of Terry Hoskins. Check out the video below. Here are some teaser lyrics:
There were no bailouts for Terry
There were no bonuses to spend
So he grabbed the keys to his dozer
It was the beginning of the end
Thanks for the great song Ronnie!
In an unrelated story, Bank Of America foreclosed on a home that was owned by a couple who had paid cash for it. Yes, they owned the home outright.
The couple filed a lawsuit on January 20 that alleges Bank of America seized the house, removed the belongings, and changed the locks on the their home. The bank had an incorrect address on foreclosure documents. The house it meant to seize was across the street and about 10 doors down. But the couple and a Realtor employed by Bank of America were unable to convince the bank that it had the wrong house. The couple are seeking unspecified damages from Bank of America, including negligence, trespassing, emotional distress, defamation, libel, and a tarnished reputation.
When the media made an inquiry to the bank regarding this situation, here is the email response they received. ”We have reached out to the Cardosos’ representatives and hope to have the opportunity to work with them to properly assess and address their allegations”. “We are reviewing the allegations in the lawsuit, the actual events that led to them and the causes of those events, and will consider any hardship that resulted.”
Talk about legal speak. After the travesty perpetrated by the bank, you would think they could show a little more compassion and understanding when dealing with these sensitive situations. With the money they have, I would think they could hire some PR people that could do a much better job of publicly addressing this embarrasing mistake.
These are pretty extreme stories, but foreclosures are so common today that these types of situations do not come as a big surprise to me. Look for me to publish an article shortly detailing some important things you need to know about foreclosure.
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A Pensacola Real Estate News Perspective on Gerrymandering
February 24th, 2010 Categories: Pensacola Real Estate News
I love to write about Pensacola real estate. I also love to share great information, whether real estate related or not. In this post, I’m delighted to share an article written by local writer and photographer Bill Stockland. You can see some of his great photography at his website http://www.pensacola110.com.
Gerrymandering
By Bill Stockland
MOVING TO A NEW CONGRESSIONAL DISTRICT?
I’m sure that in the long history of real estate transactions, there have been people who have selected or rejected a property because of its political district. However, it’s a fact that your property could be in one district today, and an entirely different one next year.
There are 435 United States Congressional Districts spread across the 50 states. The 2000 Census set our population at 281,000,000. With a little simple math, we can figure that each district should contain approximately 647,000 people. Each state is guaranteed at least one US Congressional District. Apportionment of districts is done by the House of Representatives. It becomes tricky when you consider some states have less than 647,000 people but still get a seat in the House of Representatives. In addition, no state has a population that is divisible exactly by 647,000. Congress must then apportion the available seats among the states in as equitable fashion as possible.
I imagine you can see what’s coming. While the apportionment can be done with a computer, redrawing the resulting districts can become a nightmare as states lose and gain representatives. The state legislatures (Read: The party in power.) are responsible for redrawing the districts within their borders. Ah yes, partisan politics rears its ugly head in this process, and has from the beginning. Parties in power tend to use the power to redistrict to further their political advantage through a process called Gerrymandering.
States gain and lose population continually and the main role of the Census is to track this as an aid to apportionment of representatives in the US Congress. When I was receiving my Political Science degree, Florida had 12 representatives, Today, we have 25. During the same period, New York has shrunk from 41 representatives to 29. California has grown from 38 to 53 representatives. Ohio has lost 6 representatives while Texas has gained 9. Alaska, Wyoming, North Dakota and Vermont still have fewer than 647,000 people each, but their representation remains at the minimum number of 1. They have 1 statewide district each.
The largest congressional district (In land area) is the First (and only) Congressional District in Alaska. It contains over 663,000 square miles.
The smallest congressional district is New York’s Fifteenth Congressional District. It contains over 647,000 people, however it is about 10 square miles in size.
Pensacola is in Florida’s First Congressional District.
GERRYMANDERING
In 1812, Governor Elbridge Gerry of Massachusetts led the redrawing of his Congressional districts in such a wild and unfair way; a newspaper political cartoonist described the districts as GERRYMANDERS because they represented salamanders in shape.
Since then, the major parties have taken turns redrawing districts to increase their political position.
For the sake of discussion, let’s imagine a new state has entered the union. The 2010 Census will reveal it has 5,200,000 people and is thus entitled to 8 representatives. It is shaped almost square and is equally split between Republicans (Red) and Democrats (Blue).
If non-partisan politicians draw the boundaries, they could come up with a plan that would favor Reds in 3 districts, Blues in 3 districts and would leave 2 districts as toss-ups.
The fair district arrangement might look like this:
This appears fair and eliminates the task of making each district competitive. It also maintains some geographic unity. Granted, only Wyoming is close to being square in shape but the principle is reasonable.
Now look what happens if we allow Red to draw the districts:
Here is an exploded view.
As you can see, Red has only 50 % of the population but that party now has a solid majority in 6 of the 8 districts! Note the strange and impractical shapes.
Of course, Blues will eventually come back to power and the districts will look like this:
An exploded view:
As you can see, Blue now has the strong majority in 6 of the 8 districts. Just as with Red’s plan, half of the population now has little or no voice in legislative activity because they will be in the minority in what has become largely a partisan exercise by each party in control.
The concept of Gerrymandering districts is now used in both state and local levels of government today. Both political parties practice it when they have the opportunity.
Other articles from Bill Stockland on Pensacola Real Estate News:
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How the Pensacola Real Estate Mortgage Market Has Changed
February 17th, 2010 Categories: Credit And Financing, Pensacola Real Estate News
In this article, I will take a look at the changes in mortgages used to purchase Pensacola real estate over the past several years.
In looking at the table above, it is pretty clear that the use of conventional mortgages for real estate purchases is declining in favor of FHA and Veteran’s Administration (VA) mortgages. It is no surprise that conventional mortgages are not as popular as they were only 2 years ago. The standard for a conventional mortgage is a 20% down payment. In previous years, many conventional mortgages were being issued with 10% down or no money down at all. Often the mortgage would require 20% down, and the borrower would borrow the 20% down payment in the form of a 2nd mortgage.
Notice in the table that the use of FHA mortgages have more than doubled in the past 2 years. VA loans have tripled! I believe that the increase in VA loans is unique to markets where there is a strong military presence, such as the Pensacola real estate market. Without our local military bases, the Pensacola area would be an economic disaster area. Thank goodness for our local veterans and active duty military who are buying Pensacola homes for sale and staying in Pensacola.
Most of the Pensacola military personnel who work out of the Pensacola Naval Air station choose to live in Southwest Pensacola, in subdivisions such as South Bay, Coral Creek, and Emerald Shores. These beautiful neighborhoods provide fast easy access to Pensacola NAS and Corry Field.
Data for the table was provided by the Pensacola Association of Realtors, and is deemed reliable, but not guaranteed.
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Pensacola Real Estate News Report On Toxic Chinese Drywall
February 15th, 2010 Categories: Home Inspections, Pensacola Real Estate News
News about potentially toxic Chinese drywall started being reported in early 2009. What effect the defective drywall will have on the Pensacola real estate market is still unknown, as we don’t know how many Pensacola homes for sale may be affected by Chinese drywall. It was initially reported that the problem was isolated to a few homes in Miami, Florida. However, as the story developed, it appeared to be a much larger problem that could affect homeowners all across Florida and the Gulf Coast.
According to America’s Watchdog Homeowner Consumer Center, “the potentially toxic Chinese dry wall was used all over the entire state of Florida, in Georgia, in the Carolinas and in all Gulf Coast states. We are particularly worried about New Orleans, because we lost so many houses there during and after Katrina. At the time I lived in New Orleans and I know how hard it was to get sheet rock, so we are 100% certain it’s in New Orleans on a large scale.”
Note to all consumers throughout the nation: “The Homeowners Consumer Center is convinced the potentially toxic Chinese dry wall is not limited to the US Southeast, or the Gulf states. If you have a home that was built or remodeled in 2005 to 2008 that has a strong sulphur smell, or a rotten egg type smell please contact the Homeowners Consumer Center at 866-714-6466.”
What are the signs your house might have the potentially toxic imported Chinese dry wall?
First the house was built or remodeled between 2005 and 2008
The house has a strong or noticeable smell of sulphur or rotten eggs.
The home has experienced repeated air conditioning coil issues or corrosion
The home’s occupants have experienced upper respiratory issues, nose bleeds, or other medical issues.
Young children or senior citizens may be the first to show signs of exposure to a home with the imported Chinese dry wall.
Lawsuits are currently in process in South Florida over the drywall issue. I will report on developments in these lawsuits here on Pensacola Real Estate News.
The good news is that we have home inspectors in the Pensacola area that have been trained on how to look for evidence of Chinese drywall. A home inspector I spoke to told me that there are many signs that will give away the presence of the drywall. He had been to Chinese drywall detection seminars and felt confident he could determine if a home had the bad drywall installed.
For more information on Chinese drywall and updated news reports, visit http://helpchinesedrywall.com/
Even if there is no concern about Chinese drywall, every buyer should have a home inspection, no exceptions. You never know what the inspector might find. ( See Redneck Ingenuity Makes Home Inspections a Must )
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2009 In Pensacola Real Estate
February 7th, 2010 Categories: Pensacola Real Estate News
What happened in Pensacola real estate in 2009? Here are summaries of some of the bigger stories in real estate for 2009, especially those that had an effect on the local market.The obvious big story is the economic slow down, which is affecting real estate all over the country, not just in Pensacola. That story is covered extensively in the media, so I’ll skip writing about that. It’s not much fun to write about anyway and we all know it is bad.
The Strengthening Real Estate Market
According to the Florida Realtors sales reports, residential home sales have increased statewide in 2009. We have also seen an increase in Pensacola homes for sale, especially in the latter part of 2009. That is good news.I will continue to publish updates throughout the coming year on the Pensacola real estate market because the future performance of our market is not clear right now. With the extension of the home buyer tax credit, the Pensacola real estate market should remain strong at least through April of 2010. However, we are also looking at the possibility of many new foreclosures as more adjustable-rate mortgages readjust in 2010. We might also be looking at mortgage rate increases in the near future.
Credit Issues
Real estate agents I’ve spoken to the past year are all lamenting the same problem. They have clients who want to buy homes, and there are plenty of well-priced homes on the market, but the banks are being real tight about lending out the money. The supply of mortgage money and the strict underwriting rules have prevented many seemingly qualified home buyers from obtaining a mortgage. I believe the stricter lending rules were the biggest factor holding back the growth of the local real estate market.Don’t even waste your time trying for a conventional loan unless you have 20% cash for a downpayment. These stricter guidelines resulted in a resurgence in applications for FHA loans, which require only a 3.5% downpayment. Additionally, Pensacola is blessed with many military and ex-military citizens who are eligible for VA loans. That at least kept the market afloat, along with a few other factors as discussed in a previous Pensacola Real Estate News article. According to the Florida Association of Realtors, banks are beginning to loosen up some loan restrictions and money is starting to flow, but only for residential loans, and not to the extent needed to really infuse life into the real estate market.
State Farm Decides To Stay In Florida
Insurance has been another intriguing story of 2009, especially as it applies to State Farm. I personally have insurance with State Farm, and they have been very good to me. I was very happy with the way they handled damage after hurricane Ivan back in 2004, although I heard from others who were not so happy in their dealings with State Farm. I did feel a bit betrayed when I found out they were leaving the Florida market because Florida insurance regulators refused to allow State Farm a ridiculous rate hike of 47%. State Farm already cancelled policies of all home owners who lived within a mile of the water, which means they effectively left Gulf Breeze.
However, State Farm also needed the approval of regulators to leave the state, and this caused conflict on how best to handle the exit. Finally, on Dec. 16, 2009, the Florida Department of Insurance announced an agreement: State Farm would stay. It could drop no more than 125,000 policies and raise rates only 14.8 percent. Wow, only 14.8%. Sounds like State Farm customer came out real winners on this deal. I guess it is better than getting dumped and having no choice but to pay for insurance through Citizens Insurance. I’ll monitor the insurance situation and report on anything of interest that develops.
I previously reported on my dislike of the tactics of Allstate. I still cringe when I see their commercials. Check out my article Allstate to Pay Fine
Chinese Drywall Disaster
Yet another disaster caused by the Chinese manufacturing process has hit Florida hard. They’ve threatened the health of our children with lead paint based toys, killed our pets with tainted dog food, and now they are ruining our homes and our health with bad drywall. We are paying a big price for getting cheap products from overseas. I’d like to see America start producing quality products again, but with our Walmart mentality, look for more defective products coming your way (end of rant).
From 2005-2007, the U.S. imported defective drywall from China. It smelled bad, corroded metal, and caused health
problems. It has not yet been determined how many homes had this defective drywall installed, but the numbers will likely be in the tens of thousands. Lawsuits are also in process right now over this disaster. I feel for the poor families who thought they were purchasing a quality-built new home only to find out they had purchased a home that had to be gutted just to be habitable.
Unfortunately, there wasn’t a lot of good news for real estate in 2009. Let’s hope 2010 is brighter. Check back at Pensacola Real Estate News for continuing updates.
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The Up Side Of the Pensacola Economy
February 5th, 2010 Categories: Pensacola Real Estate News
Baptist Health Care has recently secured financing for the construction of several more operating rooms and support facilities at its main location. These new additions will bring construction jobs, and eventually new clinical and support jobs, numbering more than a hundred, and possibly several hundred more before the expansion is complete. That kind of employment growth should have a measurable impact on the Pensacola Historic District neighborhoods of North Hill, which is just east of Baptist Hospital and East Hill.
The concentration of good paying jobs in those areas has already been fueling a steady increase in the number of downtown Pensacola entertainment locations and restaurants. The Will Call sports grill, Hopjacks Pizza, The Ragtime Grill, Blazzues Jazz and Blues Bar and others have opened in the last couple of years. They have been a welcome addition to New York Nicks, Intermissions, the Fish House restaurant, Atlas Oyster Bar, Hub Stacey’s and, the largest and oldest nightlife complex in downtown Pensacola, Seville Quarter (pictured above). The downtown area, that was normally quiet, and mostly uninhabited after dark only a few years ago, now has steady business late into the evening most nights of the week, and entertainment and food for almost any taste.
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Pensacola Is Cold
January 6th, 2010 Categories: Pensacola Pictures, Pensacola Real Estate News
I was hardly prepared for this weather. On New Year’s Eve I was enjoying beautiful warm weather and sunshine out on Pensacola Beach. To me, it signaled a great start to a new year, weatherwise at least.
But then Pensacola (and much of the country) got hit with intensely cold temperatures. Now I’m not suggesting that these temperatures are unusual for Pensacola this time of year, but it is unusual for it to be this cold for this long.
Weather Underground (my favorite weather site) is showing water temperatures in the mid 40’s. I’m assuming these temperatures are being taken in the bay somewhere, since I know the Gulf is not that cold. Check out this site if you haven’t been there before. You can get radar, forecasts, individual weather station data for stations throughout the area, marine forecasts, tides, astronomy, area photographs and so much more. This site is to weather info what the MLS is to real estate.
The freezing temperatures have made for some beautiful sights. Here are a couple of pictures I took of the fountain at Asbury Place Assisted Living Facility in West Pensacola. The Pensacola News Journal is actually going to publish a picture of this fountain on Thursday, but remember, you saw it here first! (Like I’m sure you care).
The picture above was taken a dusk on Tuesday. And then when Wednesday morning came, look at the difference (below).
While the temps are subfreezing, the Pensacola Real Estate Market seems to be heating up. I’m seeing a large increase in properties being listed in the Pensacola MLS, as many sellers tend to start listing after the holiday season. And home prices are better than they have been in many years.
Look for more detailed market reports in future posts here on Pensacola Real Estate News. For now, I’m going to kick back and stay warm.
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