let's do the numbers
30-year fixed-rate mortgage: 6.40% up from 6.37% the previous week.
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 Special session: Take 2
The Florida Legislature’s special session on the budget ended Friday and, after a 10-minute break, the special session on property taxes began. Legislative leaders expect to negotiate a property tax reform deal, possibly by the middle of this week, though the current session officially runs through Oct. 29. Gov. Crist outlined his goals for property tax reform first, followed by the Florida House and Senate. A handful of proposals are unique to either the House, Senate or governor, while the three agree already on some proposals (though the dollar figures may differ). Things change quickly, however. Some initiatives strongly favored by FAR, such as a change from the current “highest and best use” standard for taxing commercial properties, are also being addressed. FAR has created a downloadable PDF chart that compares the three plans in an easy-to-read, side-by-side format. It can be found on the home page of floridarealtors.org under “What’s New.”
Message from FAR President Nancy Riley
“This morning I arrived in Tallahassee to testify before Senate and House committees on the proposed property tax legislation. In both committees I stressed the importance of comprehensive and fair tax relief for all property owners in Florida. Please help me get this simple message across by contacting your legislators.”
Call-To-Action: Click the link below to log in and send your message: http://votervoice.net/target.aspx?id=flar:18783329
 A “Better” competitor?
Realogy Corp. announced last week a long-term agreement to license the Better Homes and Gardens® Real Estate brand from Meredith Corp. and build a new international residential real estate franchise company. Currently, Realogy operates CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group, ERA, Sotheby’s International Realty, NRT Incorporated, Cartus and Title Resource Group. The licensing agreement is for a 50-year term, with a renewal option for another 50 years. Meredith will receive ongoing license fees based upon the royalties that Realogy earns from franchising the brand. Meredith sold an earlier version of the business in 1998 but retained ownership of the Better Homes and Gardens Real Estate brand name.
Market watch
Improving conditions in the mortgage market bode well for the housing sector in 2008, according to NAR’s latest outlook, including a widening availability of credit at historically favorable mortgage rates and jumbo mortgage rates that have improved since August. NAR’s latest predictions include:
Existing-home sales: 5.78 million in 2007, rising to 6.12 million next year, in contrast with 6.48 million in 2006.
Existing-home prices: Down 1.3 percent to a median of $219,000 in 2007 before rising 1.3 percent next year to $221,800.
New-home sales: 804,000 this year and 752,000 in 2008, down from 1.05 million in 2006.
New-home prices: Down 2.1 percent to $241,400 this year, and then increasing 1.0 percent in 2008 to $243,900.
Housing starts: 1.37 million in 2007 and 1.24 million next year, down from 1.80 million in 2006.
30-year FRM: Average 6.4 percent for the next two quarters and edging up to the 6.6 percent range in the second half of 2008.
Foreclosures down
It’s good news – sort of. According to RealtyTrac, foreclosure activities (defaults, notice of foreclosure sales and REO properties) dropped 8 percent nationwide in September. And Florida, though second only to Nevada in the number of foreclosure actions, saw a 2 percent drop since August. The downward trend is good news, but compared to year-ago numbers, many homeowners continue to face challenges in paying the mortgage. Nationwide, the number increased 99 percent in one year – since September 2006. Florida reported 33,354 foreclosure filings for the month, up 158 percent from September 2006. “U.S. foreclosure activity experienced a fairly broad-based retreat in September,” says James J. Saccacio, chief executive officer of RealtyTrac, who says the drop could be just a lull; or it could be caused by investors jumping into the market and buying foreclosures because they believe the price is now right.
 DOJ makes its case online
The real estate business is competitive – too competitive some brokers say. But the U.S. Department of Justice (DOJ) unveiled a new Web site to “help consumers and policymakers understand the benefits of increased competition.” Among other things, the site discusses commissions and legal barriers that the DOJ says inhibit competition. The DOJ Web site includes maps identifying states with real estate laws that, according to DOJ, can inhibit competition; a calculator to help consumers tally their potential savings when brokers pursuing new business models compete for their business; and links to additional government resources. The address: http://www.usdoj.gov/atr/public/real_estate/index.htm.
Home plate
As of Sept. 30, Floridians purchased 1,141 of FAR-backed “Homeownership for All” license plates, topping the state’s requirement for minimum sales to keep the specialty plate active. FAR was instrumental in the creation of the license plate, which costs $27 in addition to the state’s fees that include a $2 processing fee for the Department of Motor Vehicles. The money generated by the license plate goes to help workforce housing programs in Florida. More license plate info: floridarealtors.org under “Quick Links.”
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