Interest Rates Push Higher

Mortgage bond prices fell pushing rates higher last week. Bonds rallied nicely following the Federal Reserve meeting in which they decided to leave rates unchanged. Their statement left out any reference to "additional firming" which was a change from past meetings. However, a spike in oil prices last Thursday changed market sentiment and sent bonds lower and rates higher.

For the week, interest rates on government and conventional loans rose by about 1/8 of a discount point.

The new home sales data will set the tone for trading next week. Consumer confidence, durable goods orders, gross domestic product, income, outlays, and consumer sentiment data will also be important.

30 Year Fixed Conforming: 6.125%
30 Year Fixed Jumbo: 6.250%
5 Year Interest Only: 6.000%
Choice Pay (neg am) 5 Yr: 4.000%

Jo Beth Nicoll, Joe Jayne, Jake Johnson
HomeBanc Mortgage Corp
593.3142

FL House of Reps proposes No Property Tax Plan

The Florida House of Representatives has proposed a bold plan to transform the way we pay for government services.

The plan will:
Eliminate Property Taxes for Homesteads
Lower Non-Homestead Property Tax
Limit Government
Protect Taxpayers
Provide funds for government

For more details, click FL House of Reps proposes No Property Tax Plan

UF: Residential Development May Have Bottomed Out

Survey of Emerging Market Conditions, Q1 2007 Findings

Executive Summary & Conclusions
The most important finding from the January round of our Survey of Emerging Market Conditions is that residential development may have bottomed out. Given the scale of the residential development market, this would be good news for all real estate markets and for Florida in general. Meanwhile, most other real estate markets are stable, if not improving, giving a sense that almost all is nearly well in the land. An exception may be condominium markets and apartments for condo conversion that continue to struggle, though they, too, are perceived to be improved.

In brief, leading observations include the following:
- Residential absorption rates are expected to stabilize for both single family development and condo development.
- Residential prices are expected to lag inflation, but fewer respondents look for actual declines than previously did.
- Investment in single family residential development is no longer regarded as clearly a poor prospect, though condo development, while improving, has further to go.
- All types of rental property except hospitality are viewed more favorably as investment opportunities than they were in the previous survey, and generally are viewed as positive opportunities.
- The outlook for respondents' own business, which has declined steadily in the last year, remained stable relative to the previous quarter.

For more detail visit their website:
http://www.cba.ufl.edu/fire/realestate/cres/findings.asp

Has The Naples Market Hit Bottom?

Since the mid 2005, the Naples Florida real estate market has been in a steady decline in terms of number of transactions and buyers have been hesitant to purchase waiting to find the market bottom. So are we there yet?


Let's look at the most recent graph of Pending Sales to get a best guess of where we are today:





























While the number of pending sales is still below the previous year's numbers, we have certainly moved strongly above the trend line for the first time in 2 years. This should be an indication that we are leveling off or near a bottom.

I don't think we can call a bottom until it passes!

We'll know we missed it when this year's numbers exceed the prior year and if a buyer was to wait for that indication then they would have missed the bottom.

Naples Property Improvement Continues

The Naples Property market continues to show positive signs of improvement, after it's second month of 2007.

Pending sales for Feb 07 shows 492 which is an increasing on the Jan 07 number of 448 and 287 recorded in the previous month of Dec 06. (Pendings are a good indication of the market and likely closed sales to come.)

The trend of "new listings" on the market is also an important consideration to understand the balance in supply and demand in the market. Increased numbers of listings will likely result in over supply, a sluggish market and pressure for price reductions in a Buyers market.

Reduction in the number of new listings, together with increased "pendings" and "Sold", means a likely reduction on inventory and reduced pressure on Sellers for price reductions as the market comes in balance for both Sellers and Buyers.

Feb 07 shows 1,734 new listings compared to 2,300 in Feb of 2006, although this is still more than the amount going pending, it is still 566 less than the same month last year at the same time that the median single family sold price for Feb 07 was $465,000 compared to $450,000 in Feb 06.

Rome wasn't built in a day and the Naples property market will not bounce back in a day either but continued improvement toward a balanced market is good for both Buyers and Sellers, along with the economy.

If you need any help or advise on any Naples or Bonita Springs real estate needs, call
Steve Barker
ABR, GRI, CIPS
(239) 293- 4327
email sbarker@amerivestrealty.com
Web site www.sebarker.com

Meridian Village Now Available

Napco Companies has named Amerivest Realty in Naples as its sales agency for Meridian Village, the company’s new gated condominium community on Airport-Pulling Road South, south of the Naples Municipal Airport.

Meridian Village will consist of 105 condominiums ranging from 1,277 to 1,954 total square feet and 21 affordable housing units. Planned amenities include a clubhouse, billiards room, fitness center, pool and spa, business center and nature preserve. Realtors Todd Gridley and Paul Kallenberg will lead the sales efforts, which are scheduled to begin in mid-February.