Rates Below 5% for Ninth Week Straight

Freddie Mac reports a slight rise this week in the 30-year fixed mortgage rate to 4.86 percent from 4.84 percent in the previous week.

Rates have been below 5 percent for nine weeks in a row. Last year at this time, the average 30-year rate was 6.01 percent.

The 15-year fixed mortgage rate climbed to 4.52 percent from 4.51 percent. Meanwhile, the five-year adjustable mortgage rate slipped to 4.82 percent from 4.9 percent; and the one-year ARM fell to 4.71 percent from 4.78 percent.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Source: Freddie Mac

Makeovers of condominiums along Vanderbilt Beach inspire sales

Sales of condominium property throughout the area spiked in the past quarter compared to first quarter 2008 activity, according to statistics released by the Naples Area Board of Realtors (NABOR). Along Vanderbilt Beach, part of the good news is the result of a proactive effort to spruce up buildings and residences up and down Gulf Shore Drive.

Vanderbilt Beach, a 1.3-mile stretch of land between the Ritz-Carlton, Naples and Delnor-Wiggins Pass State Park, contains prime beachfront real estate, much of it in high-rise towers. Upscale dining in the immediate vicinity includes Baleen at La Playa Beach & Golf Resort and the Turtle Club. The neighborhood even holds vestiges of Old Florida with Buzz’s Lighthouse Restaurant and Lighthouse Inn on Vanderbilt Lagoon.

A perfect example of the what is happening in many of Southwest Florida’s more mature high-rise condominium communities is found at Vanderbilt Gulfside Condominium, where exterior common areas as well as residences are sporting sophisticated new looks.

Flexible living space and innovative storage solutions are high on the priority list for those wanting to turn dated vacation condos into year-round residences. In one condominium, the transformation of a two-bedroom layout resulted in two additional remodel contracts for K2 Design Group, a single-source architectural, interior design and construction management firm.

Sitting on 8.8 acres, the 1980s-era high-rise property — 72 residences in each of two towers — is in the midst of an exterior facelift. Parking structures, entry gate and porte-cochère have been replaced. Landscaping has been enhanced and is receiving increased attention with a new irrigation system. Attractive pavers replaced asphalt along the winding driveway and Italian stone was installed around the pool and walkway. In addition to fresh paint, exterior balconies, railings and screens are being upgraded. Source: naplesnews.com

Great Deals Out There on Vacation Homes

Buyers are beginning to understand that prices have dropped up to 50 percent in some vacation home markets, but lenders are in short supply, practitioners said this week at the 2009 REALTORS® Midyear Legislative Meetings in Washington, D.C.

“I’ve had banks pull out right before the closing, because they are constantly reevaluating how many and what type of mortgages to give out,” said Anne Blatz, ABRM, CRB, a branch executive with Kinlin Grover GMAC Real Estate in Brewster, Mass.

When foreign currency was stronger against the U.S. dollar, many Canadians were interested in purchasing in Arizona and California. However, banks were hesitant to qualify them for loans.

Practitioners have had to come up with some very creative deals to get the job done, such as owner-financing or property trades. In some resort regions, foreign nationals are accounting for up to ten percent of all buyers and more have become interested just as inventory levels decrease in some regions.

For buyers who are on the fence, real estate pros said you should help customers understand that deals exist. “You have to be specific about numbers,” said Timothy Kinzler, CIPS, e-Pro®, sales associate with Coldwell Banker in Delray Beach, Fla. “Some don’t realize that you can get a beachfront condo for just $100,000.”

Through Facebook, Kinzler posts messages about properties he has closed on which has lead to more calls. Recently, he sold a $97,000 beachfront condo to a man from Hoboken, N.J. who will use it as a get-away. A few years ago, this type of property started at $250,000. Source: Realtor.org

Homes May Be Undervalued Today

After dropping for two years, home prices appear to be bottoming out, and any further declines would be an overcorrection, NAR Chief Economist Lawrence Yun told thousands of practitioners at the REALTORS® Midyear Legislative Meetings in Washington, D.C., on Thursday.

The median national home price today is about $169,000, down almost 14 percent from a year ago and an estimated 30 percent from its peak. Today’s prices are justified by the fundamentals of the economy and may even represent an undervaluation, Yun said.

Lender Policies Hinder Recovery

Distressed sales, which today comprise about 50 percent of transactions nationwide, are creating market distortions in otherwise stable neighborhoods. “We’re only capturing transaction prices,” he said, and those prices might be 20 percent to 25 percent below actual values. For that reason, it’s possible that widely cited projections that a third or more of homeowners are underwater might be off the mark, he said.

The consequences of these missed projections could be huge. Lenders, shying away from refinancing mortgages of troubled owners, exacerbate the downward spiral of homeowners’ financial position and that, by extension, hurts the broader economy.

Contributing to the problem is the lack of reasonably priced financing for higher-cost homes at a time when declining prices, low rates, and the home buyer tax credit are helping the entry-level market.

Indeed, while housing overall is at a 9.5 month supply, down from double digits not that long ago, homes above $729,750—the threshold for jumbo loans—face a 40-month supply.

Key Test

By summer, all of the incentives that have been put into place by the government will have had several months to work, Yun said. If sales start picking up significantly, then prices should stabilize and trigger a broader economic recovery.

If sales don’t show a significant response, then the federal government might have to look at another big injection of funds into the economy, something no one has an appetite for.

Yun’s forecast reflects the brighter scenario: “My projection is home sales will be 10 to 20 percent higher the second half of this year than last year and we will come out of this recession in 2010,” he said. Source: Realtor.org

Five new retailers coming soon to Mercato

Five more retail stores — Bobby Chan, Byte Shop Style, Mercato Jewelers, Pandora and Spectacles — have signed to establish locations at Mercato, the main street-style lifestyle center under development on U.S. 41 north of Vanderbilt Beach Road.

Construction is proceeding on all five shops, and openings are anticipated in late summer or early fall.

Bobby Chan offers golf and resort apparel for men and women. The company’s merchandise includes brand recognition such as PGA tour sponsorships and is carried in approximately 3,500 golf shops, resorts and lifestyle stores nationwide. The company also has stores in West Palm Beach and Phoenix. The 4,000-square-foot Mercato location will be the first Bobby Chan store in Southwest Florida.

Byte Shop Style is a locally owned computer company. Established in Naples in 1986, it offers a full range of IT services and solutions, including computer parts, repair, service, training, networking and Web design and hosting. This 2,100-square-foot location, the second in the area, will also offer a wide assortment of high-end consumer electronics.

Mercato Jewelers is a local familyowned and operated jewelry store that sells custom designed jewelry as well as Rolex watches, gold, diamonds and fashion accessories. Jewelry repair is also offered. Mercato Jewelers will occupy nearly 1,000 square feet.

Pandora is a locally owned franchise retailer offering an assortment of fashion accessories including jewelry and interchangeable designer charms. The shop will occupy approximately 700 square feet at Mercato.

Spectacles is a family-owned optical center being established by Tipton LeMay, who has had two optical stores in Collier County since 1972. Spectacles in Mercato will occupy 1,000 square feet and will offer eye exams as well as a showroom displaying more than 2,000 eyeglass frames. Source: Floridaweekly.com

The Capri: where Mediterranean meets Californian in Treviso Bay

The Capri, a grand villa by R&D Companies in the Italia neighborhood at Treviso Bay is described as “Mediterranean style with a decidedly Californian edge.” Faith Fix of Freestyle Interiors outfitted the three-bedroom, 3½- bath model.

Saltillo Mexican tiles with Talavera inserts pave the way throughout the living areas of the Capri, starting in the foyer, where a 16-foot barrel ceiling has pecky cypress beams. In the great room, two built-ins have an adobe look with a series of niches showcasing Moroccanflavored accessories and a recess for an armoire that serves as an entertainment center. An office off the great room includes a tall built-in with panels that hide a plasma television.

The cherry-stained kitchen cabinetry has glass doors reminiscent of a country kitchen. A generous farm sink with an oversized faucet adds to that feel, while a Talevera tile backsplash continues the theme of the home.

The Capri takes full advantage of the Treviso Bay lifestyle that blurs the line between indoor and outdoor living. The screened outdoor living area has brick pavers in a herringbone pattern, and the pool and spa feature translucent turquoise tiles. A separate gazebo serves as an outdoor kitchen and includes a built-in grill mounted in stone, wood and stucco. A seating area furnished in vibrant blue, lime and tangerine colors is tucked off to one side of the outdoor area.

The entrance to Treviso Bay is one mile east of St. Andrews Boulevard on U.S. 41. The community has an array of residences designed and built by a collection of preferred builders. In addition to R&D Companies, those builders include Taylor Morrison, McGarvey Custom Homes, Gulfshore Homes and Harwick Homes. Prices range from the $700,000s to more than $4.5 million. Source: FloridaWeekly.com

April existing home sales more than double last year

There were more than twice as many homes sold in Lee County in April compared to April last year, according to a report by the Realtor Association of Greater Fort Myers and the Beach Inc. Last month, 1,406 existing singlefamily homes sold, compared to 684 in April 2008. Pending sales improved 60.2 percent year to year, with 2,368 single-family homes pending versus 1,478 a year ago. As of the end of April, Lee County has exceeded sales for all of 2007.

The median price of existing single family homes was just $80,000 — down from $180,000 in April 2008 — and continues to be affected by the abundance of REO or bank-owned properties in the market — in April, REOs represented 65.9 percent of all single-family homes sold in Lee County. However, many of these properties are selling for more than the list price. There appear to be two prevailing reasons for this: many of today’s buyers are qualifying for FHA and VA loans, allowing for closing cost assistance and there is more competition for these homes as multiple offers are being submitted on bank-owned properties.

“This is causing buyers to make their highest and best offer when they find the home they want,” said Suzanne Sherer, association president. “As listings shrink and sales prices move above the listing price, this indicates that our market is starting its recovery. This should be very welcome news to sellers out there. Priced-right homes are selling quickly.”

Also of significance is the drop in the number of single-family homes listed on the MLS. At the end of April, there were 8,665 active listings of existing single-family residential properties compared to 12,324 a year ago, a decline of 29.7 percent. Source: Floridaweekly.com

Make Over Condos sell well in North Naples

Along Vanderbilt Beach, condominiums have been selling after a proactive effort by Bonita Springs-based K2 Design Group to spruce up buildings and residences up and down Gulfshore Drive.

Vanderbilt Beach, a 1.3 mile stretch of land between a Ritz-Carlton Hotel and Delnor-Wiggins State Park, has prime beachfront real estate, much of it in high-rise towers. Upscale dining in the immediate vicinity include Baleen at La Playa Beach & Golf Resort and the Turtle Club. The intimate neighborhood even holds vestiges of Old Florida with Buzz’s Lighthouse Restaurant and Lighthouse Inn on Vanderbilt Lagoon.

The demographic most attracted to Vanderbilt Beach comprises of empty nesters in the 50-year age range, Vesci said. Whereas the traditional buyer has been a second-home buyer, high technology and the virtual office have paved the way for longer stays.

A perfect example of the what is happening in many of Southwest Florida’s more mature high-rise condominium communities is found at Vanderbilt Gulfside Condominium, where exterior common areas as well as residences are sporting sophisticated new looks.

Flexible living space and innovative storage solutions are high on the priority list for those wanting to turn dated vacation condos into year-round residences. In one condominium, the successful transformation of a two-bedroom layout resulted in two additional remodel contracts for K2 Design Group, a single-source architectural, interior design and construction management firm.

“The owners wanted better use of their home,” said Jenny Carter, president and principal designer of K2 Design Group.

As in the case of many homes, one of the bedrooms was rarely used. Opening that one room changes the dynamic of the entire home with increased functionality and stylish looks. To accomplish that, K2 Design Group expanded the air conditioning onto the lanai at one end of a great room and created an attractive work space, a beautiful setting to catch up on e-mail. In the same area, sliding acoustical panel doors allow the space to convert — with finger-tip ease — to a guest suite for the occasional visitor.

In the kitchen, which was opened to living areas, glass-walled cabinetry showcases the homeowner’s handcrafted blown glass collection while concealing electrical and plumbing.

“This is a dramatic change,” Carter said. “By eliminating the wall that had previously housed the electrical panel, we gained a view. Glass in the curio cabinets also allows the Gulf view to be seen from the entry.”

Throughout the home, ceilings were opened and ductwork was moved. The foyer was opened. In addition to a much-improved interior, the facelift opened the residence and changed the focus from walls to beautiful views.

Several touches incorporate existing features. A wave ceiling treatment adds interest and creates the illusion of depth without having to raise the ceiling. Paneling kitchen appliances with wood skins matching cabinetry lends an integrated look. Recovered living room furniture blends with the renewed interior.

“High-rise makeovers take a bit of ingenuity, and K2 Design Group has completed many,” Carter said. “We won new contracts when residents in the same building saw everything that we did and appreciated that we could completely open a two-bedroom unit. Clever adjustments enable condominium residents to enjoy their homes so much more.”

When they were built in the 1980s, these beachfront residences were not about high ceilings. The entire ceiling was lowered to the depth of the duct work.

“We have the technology and skills today to open high-rise spaces and the impression is dramatic,” Carter said. “Homebuyers do not always have the vision to imagine what’s possible. For sellers, these makeovers create interest.”

Celebrating a 15-year anniversary, K2 Design Group has completed upscale residential and commercial projects in Southwest Florida — from Marco Island to North Fort Myers — and throughout the United States. Internationally, the company has completed work in the Bahamas, Canada, England, Germany, Ireland and Panama.

Sitting on 8.8 acres, the 80s-era high-rise property — 72 residences in each of two towers — is in the midst of an exterior facelift. Parking structures, entry gate and porte-cochère have been replaced. Lush landscaping has been enhanced and is receiving increased attention with a new irrigation system. Attractive pavers replaced asphalt along the winding driveway and Italian stone was installed around the pool and walkway. In addition to fresh paint, exterior balconies, railings and screens are being upgraded.

Along Vanderbilt Beach, many bought their homes more than 20 years ago for well under $200,000. In addition, many were bought as vacation homes. While the real estate appreciated considerably, the common thinking was that there was no need to spend money to fix what was not broken, especially when cosmetic improvements would be costly.

“Potential buyers have certain expectations about the amenities,” she said. “First impressions count. No matter how nice a condominium is, a buyer considering the purchase of a condominium might not even come to look if they hear that the building’s common areas are not scheduled for some kind of improvement.”

At Vanderbilt Gulfside Condominiums, sellers, homeowners and real estate agents alike are pleased with a fresh exterior and stylish interiors, said Pat Gibbs, manager.

“Our residents are thrilled that the exterior is brand new and in keeping with the upscale nature of the neighborhood,” she said. “And Realtors love it when they can show a property like this following a makeover. It generates excitement.”(source: newspress, 5-6-09)

Three furnished model homes sell at Mediterra Valued at more than $8.5 million

Fully furnished model homes continue to sell at Mediterra, the 1,697-acre North Naples community created by Bonita Bay Group.

Buyers closed on three model homes between early December and mid-March. The homes — two custom single-family estates and a luxury coach home — sold for a combined $8,525,000, said Kelli Eastman, director of sales for Bonita Bay Group.

“People are realizing there’s tremendous value in the Southwest Florida real estate market right now,” Ms. Eastman said. “They’re moving forward and buying now because they’re afraid they’ll miss out.”

Industry reports show that prices in Southwest Florida have adjusted during the past 12 months and national experts who once targeted Naples as one of the most over-inflated markets in the country are now saying the city is undervalued. Entry-level pricing at Mediterra begins in the $700,000s for coach homes, $800,000s for villas and $300,000 for single-family homesites. Custom homes, priced from $1.5 million to more than $7 million, are also available.

Limited-time incentives offered by Bonita Bay Group also enticed buyers, Ms. Eastman said. “Buyers who signed a contract by the end of April received club membership benefits toward golf and HOA master association fees,” she said. “It really added to the value of buying now.”

The award-wining Club at Mediterra offers two Tom Fazio-designed championship golf courses, a 25,000-square-foot clubhouse, named best clubhouse twice by the Collier Building Industry Association, and the Sports Club with five Har-Tru tennis courts, an outdoor pool, three spa rooms and fitness center. The private Mediterra Beach Club on the Gulf of Mexico features an elevated swimming pool, expansive sundeck, and indoor and al fresco dining overlooking 200 feet of shoreline.

The most recent round of model home sales continue the momentum recorded last year in Mediterra, when seven furnished models, totaling nearly $21.5 million, sold during the first three quarters of 2008.

The three recent sales included: The Pavia, a four-bedroom, 5 ½-bath singlefamily model built by Harwick Homes; The Newport Companies’ four-bedroom, five-and-one-half-bath single-family Corte Bella; and the Bella Verde, a threebedroom, three-bath luxury coach home built by Taylor Morrison with nearly 2,875 square feet of living space. Source: Floridaweekly.com

Fed Hopes 5-Year TALF Loans Will Help Real-Estate Market

The Federal Reserve is preparing to announce new terms on one of its lending programs that officials hope will help revive the commercial-real-estate market, according to people familiar with the matter.

The program is the Term Asset-Backed Securities Loan Facility, or TALF, in which investors are given low-cost loans from the Fed and in turn use the money to buy securities backed by consumer debt. The loans in this program are three-year loans and so far have been aimed at car debt, credit-card debt and other consumer loans. The Fed is preparing to announce new loans with five-year terms to better match the needs of investors in commercial-mortgage-backed securities, an effort to boost that sector.

Officials have been reluctant to make such long-term loans, for fear five-year commitments could hamper the central bank’s ability to withdraw money from the financial system down the road. They have been looking to design the expansion so the loans are less appealing in later years.

An announcement with the new terms could come as early as Friday, though, as with many of the Fed’s rescue programs, discussions are often subject to last-minute changes that could alter those plans.

The $700 billion CMBS market has rallied in the past month on hopes TALF would be used to restart the market. Yields on triple-A CMBS bonds have fallen to about 10% from 12%, according to Trepp, which tracks commercial-property debt markets.

Bringing down the yields on existing debt is critical to spark new lending because, as long as investors can buy top-rated CMBS that yield as much as junk bonds, it would be unprofitable for banks to make new loans. That is because they would have to offer higher yields to attract investors, wiping out their profits.

Policy makers believe it is critical to get credit flowing to the $6.5 trillion real-estate industry because a massive amount of commercial-real-estate debt is coming due. Source: wsj.com