Newsletter: February 2009 Newsletter
A slow recovery in homes sale sited
Data released last week by the Florida Association of Realtors shows home sales up for the fourth straight month in December, but still down four percent overall in 2008. Records show a total of 124, 215 homes sold in 2008, compared to 129, 855 that were sold in 2007. The most notable portion of the tracking data shows home sales up 27 percent in December, increasing nearly 30 percent between November and December. Condo sales also increased 12 percent in December, though decreased 10 percent overall in 2008. The data also shows a decrease in home value with the average home sale in December 2008 coming in at $130,000, down from $192,600 just one year ago. Looking at sales across all of 2008, the median price fell from $234,300 in 2007 to $187,800 last year. The good news for Floridians is that homes are selling. The bad news is that homes are selling for less.
2008 Residential Statistics
The chart below gives you sales in each consecutive quarter for 2008. The “bottom” is in site and if you are considering buying a home now is the time to buy.
Moderate-income taxpayers should consider earned-income tax credit
Many moderate-income Floridians will qualify for the IRS’ Earned Income Tax Credit (EITC) for the first time in 2008, including some Realtors who worked through a slow year. Florida Chief Financial Officer Alex Sink has actively promoted the EITC recently, along with awareness of free tax preparation sites. She estimates that millions of low- to moderate-income workers in Florida may be eligible to receive this additional tax credit, as well as free help preparing their tax returns.
The IRS estimates that 20 to 25 percent of eligible taxpayers fail to claim the credit, which could put as much as $4,824 into the pockets of a family with two children, send as much as $2,917 to a family with one child, or provide $438 for a worker with no children. The EITC is the federal government’s largest program benefiting lower earning workers. “Especially in these difficult economic times, the extra dollars eligible taxpayers can receive through the EITC can make their lives a little easier,” says Sink. She notes that some individuals and families may qualify for the credit for the first time because of unemployment or other changes in their financial, marital or parental status during the past year.
Taxpayers with the earnings of or below $38,646 ($41,646 if married filing jointly) for families with two or more children; $33,995 ($36,995 married filing jointly) for families with one child; or $12,880 ($15,880 married filing jointly) if there are no children, should check to see if they qualify. The EITC is a valuable but complex tax break. Free help is available to determine eligibility and assist eligible Floridians with tax preparation at volunteer tax assistance sites or at a local IRS Taxpayer Assistance Center.
The locations and hours of operations of free tax preparation sites statewide are available online (PDF format) at: http://www.MyFloridaCFO.com/docs/2009FLSitesCty.pdf
© 2009 FLORIDA ASSOCIATION OF REALTORS®
State Farm Florida Q&As on their pull out
State Farm’s decision to no longer insure property in Florida shuffles the insurance deck and raises many questions. A few won’t be answered until the court system has time to analyze differences of opinion. Others will face scrutiny by the Florida Legislature when it meets for its regular session March 3. With those caveats, here’s the latest information:
Q. I’m a State Farm Florida property insurance customer. What do I do now?
A. Florida has, by law, 90 days to respond to State Farm’s request to pull out. If the state approves the State Farm pullout, State Farm must still offer policies for 180 days. Assuming the state takes the full 90 days, current policyholders will still be covered by State Farm until October.
However, it doesn’t hurt to start shopping for a new policy now. More than a dozen new property insurance companies have entered the Florida market in the past few years, and property owners have options. Specific options will depend on where you live. Some homeowners will probably opt for Citizens Property Insurance, the state-run insurer of last resort; for a few owners, Citizens might be their only choice.
In addition, each insurer has its own rules. Some may not insure a house with a roof over 15 years old; others might not insure a house at all if it’s over 75 years old. With so many variables, many property owners have already started looking for a State Farm replacement.
You can check an insurer’s financial rating through companies such as the TheStreet.com or Fitch Ratings, or ask your agent to provide the rating. If you have problems, help is available through the Florida Market Assistance Plan at www.fmap.org or by calling 800.524.9023.
Q. Are smaller insurers as good as State Farm?
A. Florida has standards that must be met before approving new insurance companies. None of the newer ones, however, have been tested post-hurricane thanks to the state’s recent quiet hurricane seasons. However, the state has a backup program to help homeowners should an insurer fail, giving property owners some peace of mind if opting for one of these smaller companies.
Q. What type of insurance is affected?
A. State Farm Florida plans to drop the following types of policies statewide: homeowners, renters, condominium unit owners, personal liability, boats, personal watercraft, personal articles, and business property and liability policies. State Farm Mutual Automobile Insurance Company (State Farm Mutual) and its affiliated companies want to continue providing the following: automobile insurance, life insurance, health insurance and other financial products and services.
Q. Will State Farm contact me?
A. State Farm Florida must give current customers ample warning if their policy is being cancelled. If you have questions, the company suggests you call your agent to, toll free, to 800-381-3963. The Web site is: www.statefarm.com/florida.
Q. When will I lose my coverage?
A. The entire process could take about two years, though State Farm has said it will drop its riskiest property insurance policies and all of its boat policies on their anniversary renewal dates during the first year.
Q. Why is this happening?
A. According to State Farm Florida, it would be insolvent by 2011 under the current system since state regulators will not approve rate hikes. The company was recently turned down for a rate hike that averaged 47 percent. According to State Farm Florida, it pays out $1.21 in claims for every dollar it takes in.
Q. How can State Farm still insure autos?
A. In 2007, the Florida Legislature passed a law that requires an insurance company to sell homeowners policies in Florida providing it writes homeowners policies in other states and also writes auto insurance policies in Florida. However, State Farm plans to move all its auto insurance policies into State Farm Mutual Automobile Insurance Company, which does not offer property insurance in any other state.
Q. What is FAR doing about this?
A. Property insurance and its costs continue to be a top legislative issue for the Florida Association of Realtors, with leaders and staff working to keep it affordable and available. A number of initiatives have been suggested so far, such as a new law to limit the amount of policies a single insurer can cancel in any given year. In addition, laws that have allowed State Farm to offer multi-peril coverage that include the state’s insurer of last resort will be re-examined. As the strongest lobbyist in Florida, FAR will be at the table as the Florida Legislature examines its options.
Q. Where do I go with more questions?
A. The Florida Department of Financial Services offers a consumer helpline for those seeking more help. Visit http://www.fldfs.com or call the Consumer Helpline at 877-MY-FL-CFO.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
New Development proposed for Palm Beach Gardens
Plans have been submitted by the owners of the campground at the northwest corner of Alternate A1A and Hood Road in Palm Beach Gardens for a possible new development. The West Palm Beach-based Live Oak Land Hood Road LLC, show a 46,000-square-foot Publix with a pharmacy on the 10-acre parcel. The parcel is beside the Evergrene community which has mixed emotions concerning the project. With and additional two retail stores, each about 8,000 square feet and fronting Hood Road, the city's planning and zoning board Jan. 13 unanimously recommended approval. First reading of the plan by the City Council is Feb. 19. A second reading is required for final approval.
The property is zoned agricultural-residential and is in unincorporated Palm Beach County. To approve the plan, the council must first approve the owner's request for the land to be annexed into the city. The council must then approve a comprehensive plan amendment to designate the property as commercial to allow the retail development.
The big question for residences of Evergrene is the questions about the increased traffic and the access/entry location off of Hood Road. Please feel free to attend the first reading on February 19 to express your feelings on the development.
Fun Stuff
ArtiGras Celebrates 24th year at Abacoa Town Center in Jupiter Florida
ArtiGras Fine Arts Festival has grown from a small, local art show to a nationally recognized fine arts festival attracting more than 150,000 art lovers and collectors. ArtiGras will be held President’s Day Weekend, February 14th - 16th, 2009 at Abacoa Town Center in Jupiter, Florida. The location is easy to find, the festival is on Central Boulevard in Jupiter, Florida, just North of Donald Ross Road and East of I-95.
Produced by the Northern Palm Beach County Chamber of Commerce, ArtiGras was recently named one of the top 50 fine art festivals in the country and features 300 juried artists along with artist demonstrations, Youth Art Competition, ArtiKids children’s interactive activity area, Private Art Preview, Celebrity Art Auction, entertainment and more. Approximately 150,000 people are anticipated over a three-day period.
Festival Hours:
Saturday, February 14th, 2009: Gates open to the public 10:00AM - 6:00PM
Sunday, February 15th, 2009: Gates open to the public 10:00AM - 6:00PM
Monday, February 16th, 2009 Gates open to the public 10:00AM - 5:00PM
Admission: $6 -- Advance Tickets $10 -- At the gate Children 12 and under free.
Roger Dean Stadium, Jupiter Spring Training and Florida State League Seasons
February 25 – September 6, 2009 - Roger Dean Stadium is the only stadium in the country to host four teams: two Spring Training (Florida Marlins and St. Louis Cardinals) and two Minor League (Jupiter Hammerheads and Palm Beach Cardinals - Class A). Come watch these teams in action as they make Roger Dean Stadium their home - a great time for all ages!
Nations Cup, Wellington, Palm Beach International Equestrian Center
February 27, 2009 - The Federation Equestre International Nations Cup Series is the oldest and most prestigious team show jumping competition in the world. Like the Olympics and the World Equestrian Championships, it is a competition where official national teams compete against each other.
Delray Beach International Tennis Championship, Delray Beach Tennis Center
February 21 – March 1, 2009 - The local, national and international spotlight shines on Delray Beach for one special week...the Delray Beach International Tennis Championships (ITC) (ATP World Tour event), returns to the Delray Beach Stadium & Tennis Center bringing tennis' brightest stars to our own backyard. Also, enjoy entertainment, food, exhibit booths, and more.
Welcome back Barb Fox
One World Realty, Inc. welcomes back Barb Fox full time after leaving her position as Sales Associate in the Marina Grande Sales Office. Previous to her position as Sales Associate, she had been a Top Producer with One World Realty for over 8 years.
Barb says”, although, we are in a Recession, Now is a great time to cash in on all the good deals out there. New Developments have drastically reduced their prices; older homes are at near rock-bottom prices and just in our area alone- there are over 900 Short Sales from $30,000 to $3,000,000.
Barb has been a Multi-Million Dollar producer for over 15 years and has listed and sold Residential, Commercial and Income Properties. She is most familiar with all the Waterfront Properties in the area-being a Boater and Fisherman herself.
Anyone interested in Marina Grande- contact the Resident Expert. Not only was Barb one of the first owners to move in- she is also the Social Director and her job is to make sure all residents HAVE FUN!
Contact Barb today if you want to work with a very knowledgeable Broker with a great reputation and extremely patient while making sure to address all your Real Estate needs.
www.BarbaraAnneFox.com ; BarbaraAnneFox@gmail.com 561-758-5509
