Obama’s housing proposal (WiseCat News)

President Barack Obama proposed a new program during his State of the Union address, this past Tuesday, to allow homeowners with privately held mortgages to refinance at lower interest rates.


The program would cover both loans issued by government-controlled mortgage giants Fannie Mae and Freddie Mac and private mortgage lenders. However, since Congress would have to approve these loan modifications, it is a difficult hurdle.

“There’s never been a better time to build, especially since the construction industry was one of the hardest-hit when the housing bubble burst,” Obama said. “Of course, construction workers weren’t the only ones hurt. So were millions of innocent Americans who’ve seen their home values decline. And while government can’t fix the problem on its own, responsible homeowners shouldn’t have to sit and wait for the housing market to hit bottom to get some relief.”

Under the plan, any homeowner  that  is current on his or her mortgage could take advantage of historically low lending rates. Mortgage rates have been below 4 percent for months.

A small fee on large banks would pay for the program, senior administration officials said.

Administration officials offered few details but estimated savings at $3,000 a year for average borrowers. It’s likely that millions of homeowners would be eligible, but they would have to seek out refinancing options under the program with their lender. Other government programs allow lenders to seek out potential applicants.

Further details of the program will likely be released in legislation in the next few days, officials said.

The new program would expand the Obama administration’s Home Affordable Refinance Program, which allows borrowers with Fannie and Freddie-backed loans to refinance at lower rates. Few people have signed up for that program. Many “underwater” borrowers – those who owe more than their homes are worth – couldn’t qualify.

About 1 in 4 Americans with a mortgage – about 11 million – are underwater, according to CoreLogic, a real estate data firm. Roughly 1 million homeowners have refinanced through the refinancing program. Government officials had estimated it would help 4 million to 5 million homeowners.

About half of all U.S. mortgages – about 30 million home loans – are owned by non-government lenders.

A task force on mortgage misdeeds

President Obama also announced the creation of a task force aimed at investigating the shoddy mortgage-lending practices that contributed to the financial collapse of 2008 and the housing crisis that continues to weigh on the economy.

Obama said he has asked Attorney General Eric H. Holder Jr. to create a special unit of state attorneys general and federal prosecutors to probe deeper into questionable lending practices and the way in which risky loans were packaged and sold to investors.

“This new unit will hold accountable those who broke the law, speed assistance to homeowners and help turn the page on an era of recklessness that hurt so many Americans,” Obama said in his State of the Union speech.

The creation of the task force comes as the administration and a coalition of state attorneys general are pushing to finalize a long-awaited multibillion-dollar settlement with the nation’s largest banks over their flawed and fraudulent foreclosure practices.

The deal has drawn criticism from liberal and consumer groups as well as attorneys general from New York, Delaware and other states, who have insisted that more extensive investigations are warranted and that any settlement should not grant banks too broad a liability from future legal action.

If you have a Miami Beach, Coral Gables, Pinecrest, Golden Beach, Aventura, Surfside, The Roads, FIsher Island or any other home in South Florida and you are unable to modify your loan, now will be the best time to contac the WiseCat at 917-442-0033 so that they can assist in listing and selling your property.

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CELEBRITY REAL ESTATE FOR SALE

The rapper called Drake (he currently holds the spot for #1 rap album in America) has just put two of his Marquis units on the market. The units are side-by-side, they are on the 49 floor, with 20-foot  ceilings and both have an awesome waterfront views.  They can be combined to a single apartment to create a magnificent unit of 5,475 sqft of living space. The asking price for these two units is $2.5 million. 

If you are interested in property in South Florida, contact the WiseCat at 917-442-0033.  Get Wise, Get WiseCat.

www.WiseCatRealtors.com

 

Housing Crisis to End in 2012

Housing Crisis to End in 2012 as the Banks move to Loosening Credit Standards

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

All analyst are convinced this is the time to buy, because prices are going up as the year progresses.  If you are in the market for Real Estate property, contact the WiseCat at 917-442-0033. 

Get Wise, Get WiseCat.

For everything Real Estate, ALWAYS trust The WiseCat.

www.WiseCatRealtors.com

Housing market is turning the corner

Housing statistics and the duration of the downturn to date indicate 2012 may be the year the housing market begins to turn the corner.

Housing is an industry with long business cycles. Regional housing recessions have typically taken anywhere from three to five years to find their bottom, and analyst know that the national housing recession has behaved similarly in that it has bounced along a bottom for the past two years.

Housing affordability is rising dramatically due to a combination of home price deflation and rock-bottom mortgage rates. In fact, after adjusting for inflation, this has been a “lost decade” for housing as prices are the same as at the beginning of the millennium.

The time is right in 2012 for prices to begin growing again.  Housing affordability will put a floor under any further significant declines.

If you are in the market to acquire Real Estate, contact The WiseCat at 917-442-0033.  Get Wise, Get WiseCat.

www.WiseCatRealtors.com

POSITIVE HOUSING OUTLOOK AHEAD

Optimism is building that the housing industry is nearing a bottom – finally.


Home sales and homebuilding are forecast to rise this year after sliding steeply the past five years in housing’s worst downturn since the Great Depression.

Recovery is expected to be slow, and home prices are widely expected to fall this year. But investors are betting on the start of an upturn, bidding up home builder stocks and causing them to outperform the broader stock market.

Chief executives are more positive. JPMorgan Chase’s Jamie Dimon said last week that housing is near its bottom but could stay there a year. Stuart Miller, CEO of home builder Lennar, said the market has started to stabilize because of low prices and record-low interest rates.

Market researcher RBC Capital Markets has also turned from a “bearish” view on housing to saying that 2012 “will mark a step in the right direction.”

Many economists expect home prices to fall more this year because of foreclosures and other properties sold at very low prices.

As foreclosures pick up this year, “prices will drop,” says Stan Humphries, Zillow chief economist. He says home prices won’t bottom until later in 2012 or next year.

On average, prices have fallen by about a third since 2006.

“This year will feel a lot better to builders, investors and real estate agents than to consumers,” says Jed Kolko, economist for real estate website Trulia.

Housing’s outlook is brightening with signs of a better economy. Last month, U.S. employers added 200,000 jobs, and the unemployment rate fell to 8.5 percent, lowest in nearly three years.

While an economic shock could derail progress, “there’s now more evidence of improvement in the economy, and housing will follow the economy,” says David Crowe, chief economist at the National Association of Home Builders. More improvement is expected for:

Sales. Existing home sales will rise 12 percent this year after a 2 percent increase last year, and new home sales, coming off a horrid year, will jump 74 percent this year, Moody’s Analytics predicts.

November’s existing home sales hit their highest mark in 10 months, and new home sales were the year’s second best, IHS Global Insight says.

Construction. Single-family housing starts will rise 37 percent this year, Moody’s predicts, after falling 9 percent last year.

Home builder stocks are on a run. The S&P 1500 homebuilding index is up 38 percent since mid-October, vs. 7 percent for the S&P 500.

If you are considering puchasing Real Estate in Florida, contact The WiseCat at 917-442-0033, and visit our website for real time searches from the MLS at www.WiseCatRealtors.com

For eveything Real Estate, trust The WiseCat.

www.WiseCatRealtors.com

It's ALWAYS sunnier in Florida

Florida real estate brokers may be the cheeriest in the South.

The latest Beige Book report from the Federal Reserve once again has the Sunshine State avoiding the general gloom hitting the housing industry throughout the Atlanta district, which spans the Southeast. While brokers in the region said November and December brought “soft” home sales, Florida said sales actually “rebounded” after a brief soft patch. The reason: international buyers and cash deals.

Florida’s housing shout-out came in a relatively upbeat Beige Book, which the Fed issues about every six weeks as an anecdotal report card on the nation’s economic health. Most districts reported somewhere between “modest” and “moderate” growth, suggesting the recovery is holding steady.

South Florida received two mentions, both tied to the region’s strong tourism rebound. Describing encouraging dispatches from tourism businesses throughout the Southeast, Fed authors wrote “South Florida in particular experienced greater travel activity from Canadians and South Americans.”

In a more discouraging passage, the Fed said most Atlanta district business “contacts” said extra hiring in the winter was mostly “temporary and seasonal.”

“However,” the report continued, “there were some scattered reports among healthcare and hospitality contacts in South Florida that hiring was occurring as a result of increased demand or expansion.”

Indeed, healthcare and hospitality companies have accounted for almost 60 percent of the 28,000 jobs added in Broward and Miami-Dade counties in 2011.

Florida’s relative optimism on the sales front has been a recurring theme in the Beige reports this year.

There is some reason to celebrate. Since 2008, only Nevada has seen home sales grow faster, according to the National Association of Realtors. In 2008, the real estate bubble was rapidly deflating. Since then, sales are up 47 percent in Florida. That’s far ahead of most states, but well behind Nevada, where sales are up 62 percent.

If you want a piece of the Florida sunshine, call The WiseCat at 917-442-0033 and feel free to visit our website at www.WiseCatRealtors.com

For everything Real Estate, trust The WiseCat.

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FORECLOSURES SLOWING DOWN DRAMATICALLY

The U.S. foreclosure rate at it's lowest since the pre-recession.  About 1.9 million homes entered the foreclosure process in 2011, the lowest level since 2007 when the recession began.

This is proof that the housing market is getting better.

2011’s foreclosure activity was 34 percent lower than 2010 and the lowest since 2007. The Great Recession began in December 2007 and ended in June 2009.  In 2011, Nevada, Arizona and California were among those with the most foreclosures. Other states among those with the highest foreclosure rates for the year were Georgia, Michigan, Florida, Illinois, Colorado and Idaho.

December’s U.S. foreclosure filings on 205,024 homes were the lowest monthly total since November 2007. The figure was also 20 percent below the prior-year period’s results.

For everything Real Estate, trust The WiseCat.

www.WiseCatRealtors.com

8 ways to tick off your real-estate agent

A great article from MSN Real Estate follows.

Being a thorn in your agent's side could undermine your house hunt. If you want a friendly relationship with your agent, here's what you shouldn't do.

Your real-estate agent may stand to make a nice commission off you, but that's no reason to take him for granted. After all, the agent is working for you ­— as in, on your behalf. If inspired, he can think creatively and act quickly — for you. He can negotiate wisely and fiercely — for you.

Or not. Your choice.

Yes, agents are professionals. Yes, they should do the best job, regardless. But remember: We're all human. For best results, treat kindly.

So what should house hunters avoid doing to keep agents from clenching their clipboards in frustration? We asked a few, and put together a list of "don'ts."

1. Please don't turn into an all-knowing insta-expert just because you have an Internet connection.
This is the most common complaint we heard.

These days, buyers can see everything online, and everything can look pretty good online. But those online listings can leave a lot out, including whether the home is still for sale.

"To the extreme, I've had multiple clients who will email me list after list of [multiple listing service] numbers, saying, 'We'd like to see 50 homes,' and only three of them are available and I've already sent those listings to them," says Kristen Gil, a manager with Intero Real Estate in Reno, Nev. "It prevents me from being out there finding them the right home because I'm checking every MLS number known to man.  There's nothing wrong with looking, agents say. But try to understand how your agent's job works. She has access to the same MLS listings, but with updated and additional information that has been filtered to weed out your duds.

Agent after agent told us of spending hours looking up MLS numbers provided by clients only to have those same buyers abandon each and every one after being let in on key details. It's a time waster.

The advice from agents: Go ahead and look online, but don't bombard your agent. Instead, put that effort into hiring someone you trust, then be comfortable relinquishing some control to the expert you've hired.  No one likes to be told how to do her work.

2. Please don't eat up your agent's time with unresolved personal arguments.
Let's just say that even a minor dispute, if unresolved, can throw a major wrench in the works.

It happens all the time, agents say: A couple provides a detailed list of wants and needs, but in reality they still disagree on some seemingly small matters. The problem is that once the tour of homes begins, tiny disagreements morph into giant hurdles.

 

Such was the case with the husband bent on finding a house with a living room ample enough to display his 6-foot replica of a game fish. The wife, it turned out, felt otherwise. "Every house that we looked at had to have a wall that would fit this fish. And the wife had no intention of letting that in the house," Gil says. "There was yelling and screaming in the car about whether the fish would go in the house."

Needless to say, this did not make for effective house-hunting: "Everything that she loved wouldn't fit the fish, and vice versa," she says.

Gil's response: She let them air it out for the day, then sat them down for a serious discussion about where compromises could be made. In the end, she found a house with a "man cave" for the husband and his fish. And she placated him with a large yard and a view.

How to avoid this: Write up a detailed list and take a few open-house test runs to tease out any lingering disagreements. Real-estate agents accept their role as pseudo marriage counselor, but wouldn't you rather reserve their time for finding you a nice house?

3. Please don't accuse the agent of sabotage.
On one level, it's natural to be suspicious of someone who will profit off your purchase. Won't the agent be eager to make a sale regardless of problems? But let's pause right here. Why would you continue to work with someone you don't trust?

A little understanding about the agent's job can help. First, know that real-estate agents are not clairvoyant. They have the seller's disclosures, but have no way of knowing what's hiding behind the walls or underground.

Katya Dennis, an agent with David Lyng Real Estate in northern California, says buyers will say, angrily, "Oh, you didn't tell me that this house had a problem." She tells them, "We didn't know until the inspection came in."

Some buyers will mistake legal or technical problems for subterfuge. "They don't realize that this industry is so varied, you can't 100% predict what's going to happen," Dennis says. "Then the first-time homebuyer gets frustrated with their Realtor. They get offended ... they stop communicating, which is a very bad mistake."

The upshot: Trust your agent, or find another whom you are willing to trust.

4. Please don't mistake the agent for your parent.
Real-estate agents often find themselves in the role of counselor. After all, buying a house is a big and scary move. Just don't take it too far.

"One couple I had, they're like, 'We don't know what we're going to do. Are we going to continue in college or get a job? What do you think?'" Dennis recalls. "Well," she told them, "I can't advise you on your life choices. I can only advise you on whether this property is right for your current situation."

Her ultimate response: Maybe they should rent.

"Of course as a Realtor, my interest is in making a sale, but I'm not going to put them in that situation," she says. "My integrity is more precious to me than making this commission check."

In the end, treating an agent like a parent makes for tension and confusion. Figure out what you want first, then let your agent find it.

5.  Please don't turn your nose up curbside and refuse to view the inside.
Every time you walk through a property, a good agent is paying close attention. He's learning what turns you on and what turns you off. It further narrows the scope from the mass of listings.

Scott Hack, with Finish Line Realty in Louisville, Ky., once filled a day with home-viewing appointments only to have the couple refuse to go inside eight of the 10 houses. It was either the neighborhoods or the lawns or maybe even the rain. Whatever the case, they stayed in the car.

"If they're not happy, that's fine. But the other side of the coin is that most of the homes were occupied by sellers, who had cleaned up the home and left for a few hours," he says.

As a courtesy to the sellers and listing agents, Hack went through the homes anyway. He says he wasn't offended by his clients, but he lost invaluable feedback from them: Which hardwood floors, which kitchen plans, which nooks or rooms would really ignite a reaction?

"Just little things you can pick up, that would have been nice," he says.

The lesson: Never turn down time touring a home with your agent.

6. Please don't refuse to believe the agent might know something.
Put yourself in this agent's shoes: The buyer, an aging woman, has said she wants to move to a small, maintenance-free property close to work. But she keeps demanding to see large, rural properties just like the one she's selling. She wants to accommodate her cats.

 

This was a client of Janice Leis, a broker in Pennsylvania, Florida and New Jersey. And cases like this put her in a bind. "My business is based on referrals," she says. "If I'm not honest with someone, they're going to tell somebody later how miserable they are."

This phenomenon is common, agents say. Clients will lay out their wishes, then fall in love with a house they've found that meets none of them but has a wicked cool kitchen and patio.

A good agent steers buyers away. A good buyer listens.

"All my other clients will laugh and say, 'Oh, you're right. Get me out of here. You're 300% correct. I wasn't thinking about this,'" Leis says.

And the cat lover? "She's still looking, and she's going to be a professional looker. You have people who are controlling to a point where they become detrimental to themselves."

Best course: Be specific in your needs, then trust your agent to fulfill them.

7.  Please don't think you can get a better deal — a much, much, much, better deal.
Christian Cardamone, a broker with Coldwell Banker Sea Coast Realty, spent months showing a Chicago woman small beachfront homes only to have her lowball each property by $50,000 to $70,000.

The woman could buy in cash, and she liked several of the homes. With one, the seller dropped to within $10,000 of her offer. Yet, she still refused.

"She still would have been getting a great deal on it at that price, but she decided she was going to end on her terms or she wasn't going to do it," Cardamone says. "She assumed that she was entitled to get this deal because of all the doom and gloom she sees on the news  It annoyed the agent: "She felt that she knew more about this (North Carolina coastal) market from Chicago than I did, who's been practicing real estate here for eight years," he says.

Her hard-headed frugality ultimately hurt her. "She missed out on what she wanted," Cardamone says.

The moral: Don't be a cheapskate.

8. Please don't two-time your agent.
Real-estate agents don't get a dime until they make a sale. They put in the hours, spend weekends and evenings showing homes, all in exchange for that one-day-it-will-come commission check.

There's nothing wrong with doing a test-run with a few agents to find one you like. In fact, the pros recommend it. Taking an afternoon of time with each of them is akin to conducting an interview. Nor is there anything wrong with firing an inadequate agent.

But asking several to show homes at once isn't only unethical, it's also impractical. First of all, the real pros won't accept you as a client. Second, it's more effective for you to work with one agent, who can note your preferences and organize listings.

What some first-time buyers may not know, agents say, is that every agent is able to view and show any listing. A buyer needn't contact the seller's agent. The buyer's agent will do that.

Last lesson: You'll get your best work from someone who knows he's getting paid.

Published by Karen Aho of MSN Real Estate

Real Estate prices continue to soar (WiseCat News)

The figures do not lie.  Real Estate prices in Florida continue to rise every single month.  The median sales price for condominiums in Miami rose 18 percent in November, the fourth consecutive year-over-year increase, according to a report by the Miami Association of Realtors. The median sales price for condos was $125,000 in November. Miami's housing inventory continued its steep decline last month, with sales of single-family homes jumping 11 percent and condo sales increasing 2 percent compared to the same period in 2010. It is a fact, residential real estate sales have consistently risen in Miami-Dade since August 2008.  Now, after the relatively rapid absorption of excess housing inventory, we are seeing property prices follow the same pattern. 

If you are in the market for Real Estate, don't wait, contact The WiseCat today at 917-442-0033.

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MAM will now be called the Jorge M. Perez Art Museum of Miami-Dade

Related Group CEO Jorge Perez gave $20 million in much-needed financing to the Miami Art Museum, in addition to $15 million worth of art.  With this contribution, he secure the renaming of the museum, which will now be known as the Jorge M. Perez Art Museum of Miami-Dade County.  This has drawn much criticism. Critics point out that it was taxpayers who voted to fund a $100 million expansion of the museum in 2005, and who will be continually called upon to support future maintenance of the cultural institution.

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