News: Real Estate News
Property Tax Update
One of the key provisions in our relief package allows homeowners to transfer their Save Our Homes tax benefit to a new home. This policy, called portability, will spark Florida’s economy with only a minimal impact on local government. When one family downsizes into a smaller home that better meets their needs, thanks to portability, another family can afford to move into that home. This policy eliminates the “lock-in effect,” which has prevented homeowners – often seniors or empty nesters – from moving into smaller homes as their needs or lifestyles changed. Portability gives Floridians the freedom to choose where to live and what sort of home to buy based on the needs of their families, not on a failed tax policy.
The amendment also doubles the homestead exemption, providing an additional $25,000 exemption for the value of homestead property above $50,000 (excluding school taxes). This will allow the tax benefit to keep pace with the increased price of housing; more than 94% of Florida homeowners will enjoy tax relief under the increased exemption. Once approved by the voters, this benefit will provide relief on your next tax bill.
The proposed constitutional amendment creates a new exemption from taxes on tangible personal property (TPP) of $25,000 and eliminates the need for businesses to file a return if they have less than $25,000 in tangible personal property. This change will exempt over 1 million Floridians from this tax, out of a total of 1.2 million who currently pay it. Many Floridians actually spent more money complying with related paperwork than they owed in TPP taxes. This proposed amendment will cut away that red tape.
Small business owners, second home owners, renters, and others will benefit from the fourth component of the Legislature’s tax relief plan, which places a 10% cap on assessments of non-homestead properties. Most non-homestead property owners have experienced “sticker shock” when looking at their tax bills in recent years. This cap provides predictability for all properties in Florida; no longer will property owners have to fear unexpected, large assessment spikes.
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Citizens to offer commercial multi-peril
Citizens completed two parts of a three-part plan by June: It assumed the policyholders of the PCJUA, and then it began to sell its temporary wind-only policy for businesses that are not located in the high-risk or “wind pool” area. The third part of the plan was to develop a comprehensive program that offers multi-peril property coverage for businesses throughout the state.
The new multi-peril product provides up to $2.5 million in coverage for damage from wind, fire and other perils traditionally included in a commercial property insurance policy. FOIR has approved the policy forms and rates for Citizens to proceed with its program no later than Jan. 1, 2008.
As Citizens begins selling its new commercial multi-peril policy statewide, FOIR also ordered it to stop selling its wind-only policies – business it had assumed from the PCJUA – in areas of the state outside the high-risk coastal areas. Citizens still offers wind-only coverage in the coastal “wind pool” area.
FOIR’s order (http://www.floir.com/pdf/Citizens92481-07-FO.pdf ) also approved a 15 percent rate increase for commercial wind-only policies. Effective Jan. 1, the increase will bring the cost of Citizens’ wind coverage closer to the cost of the wind portion of the coverage offered by private insurers in the rest of the state.
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Understanding the Florida Property Tax Amendment
This video, created by the Florida Association of Realtors®, outlines and explains the reasons why a "Yes" vote in January is important to homeowners in Florida. Please take a few minutes to watch the video and we hope this will help you understand the issues better. To view the video, please follow this link or click the image to the right.
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Courtesy of The Florida Association of Realtors® - © 2007
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Vote 'Yes on 1':
Florida Association of Realtors and Gov. Crist launch group supporting property tax amendment Standing shoulder-to-shoulder with Gov. Charlie Crist, Florida Association of Realtors® (FAR) President Nancy Riley joined forces with other supporters Monday to launch a bi-partisan group, “Yes on 1 – Save our Homes NOW,” urging Floridians to vote for the largest tax cut in the state’s history on Jan. 29, 2008.
"Floridians have been suffering long enough, and the people of this great state now have the opportunity to lower their taxes by voting 'Yes on 1' on Jan. 29," said Gov. Crist.
FAR President Riley added, "Passage of this amendment is critical to the future of Florida. It will provide first-time homebuyers a large tax exemption. It will begin to equalize property taxes among neighbors, and it will allow the people who are the foundation of our neighborhoods - teachers, nurses, police officers and emergency first responders – to afford to live in the communities they serve."
The announcement came during a media conference Monday afternoon at the home of Veronica Greco, a Tampa resident who supports Amendment 1 and understands how important passage of the amendment is to Florida residents who need relief from high property taxes. Greco wants to sell her home of 15 years and downsize to a condo, but feels trapped due to the "lock-in" effects of the state's Save Our Homes amendment.
"This is an opportunity for homebuyers, future homebuyers and those like Mrs. Greco, who has this home for sale, but she's locked in because she can't find a buyer who can afford the taxes on this home," said State Sen. Mike Fasano, R-New Port Richey. Passage of the constitutional amendment will
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A Taxing Effect
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August Housing Market Update
Florida’s median sales price for existing single-family homes last month was $237,500; a year ago, it was $250,400 for a 5 percent decrease. The median is the midpoint; half the homes sold for more, half for less. In July 2002, the statewide median sales price for single-family homes was $141,700, for an increase of 67.6 percent over the five-year-period, according to FAR records.
In June 2007, the national median sales price for existing single-family homes was $230,300, up 0.1 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $594,260 in June; in Massachusetts, it was $364,000; in Maryland, it was $325,427; and in New York, it was $250,000.
NAR’s latest market outlook calls for existing home sales to gain momentum by the end of the year, with broader improvement in sales activity in 2008. “Existing-home sales should be relatively stable over the next few months, holding in a modest range, with some pent-up demand growing from buyers who’ve been on the sidelines,” says NAR Senior Economist Lawrence Yun. While noting that sales could be temporarily affected by recent mortgage industry disruptions, Yun added that the “fundamental momentum clearly suggests stabilizing price trends in many local markets.”
©2007 FLORIDA ASSOCIATION OF REALTORS
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New Home Owner Survey
GAINESVILLE, Fla. – Aug. 9, 2007 – Floridians are optimistic about housing prices despite the gloom pervading much of the real estate industry, a new University of Florida survey finds.
Only 5 percent of 287 Florida homeowners said they think their house values will fall during the next five years, according to the survey, which was conducted in July by UF’s Bureau of Economic and Business Research.
Eighty-two percent expected the value of their houses to rise, and 13 percent said they would remain the same. The median respondent expected a gain of 18 percent, or a little more than 3 percent a year.
UF economists said they were not surprised by the results.
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