let's do the numbers
30-year fixed-rate mortgage: 6.42%, up from 6.34% the previous week.
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 Call to action: Property tax reform
Legislators return to Tallahassee this week for a special session to address a shortfall in the state budget. Yet an issue of critical importance to all property owners hangs in the balance. Last week, a circuit judge in Tallahassee removed a proposed constitutional amendment from the Jan. 29 ballot that would have reformed Save Our Homes and resulted in tax relief for thousands of property owners. Chief Circuit Judge Charles A. Francis ruled the ballot language was misleading and inaccurate. The state has appealed the ruling, making it possible for the amendment to be placed back onto the ballot. But legislators could also ensure the amendment make it onto the Jan. 29 ballot by approving new ballot language during the special session.
FAR urges all members to contact their state representatives today and ask them to take all actions necessary to ensure that a property tax relief amendment will be on the Jan. 29 ballot.
Do the math
How much would you save under the proposed “super exemption” property tax option? To accurately determine the value/cost of a new super exemption compared to keeping Save Our Homes, you must first make a few assumptions: On average, how much will real estate values rise each year in your area? How much will local incomes rise each year? FAR has created a calculator that empowers you to make your own assumptions and even change them to see how different numbers affect the results. The first calculator allows you to compare your current property taxes to super exemption numbers. The second calculator allows you to compare both tax plans to a new homestead home purchased in 2008. Both can be found under “What’s New” on the home page of floridarealtors.org.
 It’s the law
Two new laws approved during the regular session of the Florida Legislature took effect yesterday. SB 1824 tightens lending rules and imposes stiff penalties for mortgage fraud violations. Among the provisions of the new law:
- Borrowers must be told how much a lender pays a mortgage broker, and it must be in writing.
- Good Faith Estimates must disclose all possible fees from every party involved in the mortgage—including the lender, mortgage broker, title company and other third parties. The Good Faith Estimate must be signed and dated by the borrower.
- If loan terms change, the borrower must be notified no later than three business days before closing. The mortgage broker must be able to prove that the notice was provided and that the borrower accepted the new terms.
The other new law, HB 111, amends the definition of “primary title services” and “related title services,” and codifies a civil court case that permits a portion of a title insurance premium to be rebated. Title agents are no longer allowed to charge a separate fee for a title examination and are no longer required to charge a minimum of their actual cost for the title search and closing. The legislation also requires an out-of-state title agent to fulfill the same licensure and continuing education requirements as a Florida-based title agent.
 Ocala is No. 1
For the third consecutive year, Florida metropolitan areas scored high on the Milken Institute/Greenstreet Partners 2007 Best Performing Cities Index, taking three of the top six spots—including this year’s top-ranked metro area, Ocala. The index ranks U.S. metros based on their ability to create and sustain jobs. It includes both long-term (five years) and short-term (one year) measurements of employment and salary growth. Researchers attribute Ocala’s strong showing to job growth averaging 5.8% over the past two years and a robust housing market. The Orlando-Kissimmee MSA ranked No. 5, followed by Naples-Marco Island at No. 6.
Market watch
- Existing single-family homes sales in Florida fell 26% in August compared to a year ago and the median home price slid 6% to $231,900, according to the latest housing figures from FAR. Realtors reported 11,279 single-family transactions last month, activity similar to the August 2001 and 2002 sales period—before the peak of the housing boom—than the August 2006 time frame, when 15,252 homes sold. Realtors also reported 3,380 condo sales, a 25% drop from August 2006. The statewide median sales price for condos is $196,800, down 3% from a year ago.
- Florida’s consumer confidence inched up one point to 79 in September, reports the University of Florida’s Bureau of Economic and Business Research. The slight rise in consumer confidence was due to increases in three of the five components that make up the index—expectations about U.S. economic conditions over the next five years; expectations about U.S. economic conditions over the next year; and perceptions of personal finances now compared to a year ago.
- Miami-based homebuilder Lennar announced last week it would lay off 35% of its workforce following a third quarter net loss of $513.9 million, or $3.25 a share, compared with year-earlier net income of $206.7 million, or $1.30 a share. President and Chief Executive Officer Stuart Miller said the No. 2 U.S. homebuilder expected “continued reductions” next quarter. “Heavy discounting by builders, and now the existing home market, has continued to drive pricing downward,” Miller said in a conference call with analysts. “Consumer confidence in housing has remained low, while the mortgage market has continued to redefine itself, creating higher cancellation rates."
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