Fed’s Latest Move Could Bode Well for Home Buyers

The Federal Reserve announced Thursday that, in an effort to re-ignite economic recovery, it was taking aim at mortgage rates — a move that will likely take rates even lower from their current record lows.

The Federal Reserve announced it will purchase $40 billion of mortgage-backed securities that will help boost the recovery in the housing market. What’s more, the central bank said that it will continue with the purchase program until the economy shows greater improvement, particularly with unemployment.

Americans keep feeling better about housing.

WASHINGTON – Sept. 11, 2012 – Consumer sentiment regarding the housing market continues its modestly positive trend, according to Fannie Mae’s August 2012 National Housing Survey.

Americans maintained a cautious but improving outlook on the housing market and homeownership. In August, more people said it’s a good time to sell, and more expect housing prices to rise over the next year.

However, Fannie Mae says stalling household financial expectations and declining economic optimism likely mean the housing market recovery rate will remain tempered.

“Consumer attitudes toward the housing market remain modestly positive, despite signs of increased concern over the direction of the economy,” says Doug Duncan, senior vice president and chief economist of Fannie Mae.

Housing Progresses, But Has it Recovered?

DAILY REAL ESTATE NEWS | TUESDAY, SEPTEMBER 11, 2012
Home prices have posted some of their strongest gains this year in nearly six years. But while prices have likely hit bottom, the public shouldn’t confuse that with a full recovery. A lot more still has to happen to get to that point, analysts say.

For one, inventories of homes for-sale need to reach more normal levels. The number of homes for sale are at an eight-year lows, The Wall Street Journal reports. Prices are rising in many areas but it’s because “there are more buyers chasing fewer homes and fewer distressed homes, such as foreclosures,” The Wall Street Journal reports.

Also, millions of home owners are underwater, owing more on their mortgage than their home is currently worth, which is preventing them from trading up and moving to a new home.

Downtown Cape Coral Facelift

A major rewrite of the land use and development regulations in south Cape Coral approved by City Council on Monday could help the downtown area create a sense of place similar to Key West or Fifth Avenue in Naples, according to those behind the effort.

“You go to Key West not because there’s a beach there, but because it’s Key West,” said Cape Coral Community Redevelopment Agency executive director John Jacobsen. “That’s the kind of thing we want to develop, not just strip malls.”

The new codes encourage development that will make the 284 acres of the downtown CRA district affected by the changes more pedestrian-friendly, Jacobsen said.

“We’re looking for buildings that are brought closer to the sidewalk, buildings that are more downtown in character, that create walkability, pedestrian traffic, bicycle traffic, all those things that make you want to be in a place,” he said.

Another Sign That Home Prices Have Hit Bottom

Economists are increasingly confident that home prices have bottomed out. 

For the last three years, home prices have usually risen in the spring and summer to only then lose all of those increases—plus more—in the fall and winter months. However, economists expect this year to be different and do not foresee such a big drop to occur to home prices in the colder months ahead, The Wall Street Journal reports. 

While the fall months likely will bring out some sort of decrease in recent home price increases, “we have a much better supply and demand dynamic” than in previous years, Mark Fleming, CoreLogic’s chief economist, told The Wall Street Journal.

Home prices have posted some of their largest year-over-year jumps compared to the last six years. According to CoreLogic, home prices have risen 9.6 percent from February, which was the month prices reached their lowest levels since the housing slowdown. Economists say it’s unlikely that, given recent indicators, home prices will reverse course steeply and fall 9.6 percent or even more in the coming months. Home prices haven’t dropped by that type of percentage since the economy was in a recession.

TropicBreeze Realty

The Wall Street Journal (Sept. 4, 2012)

Florida Military Museum ribbon-cutting

After three years, the Invest in America’s Veterans Foundation took a giant leap forward, opening the new headquarters, military museum and multipurpose vets center. The formal opening of the Southwest Florida Military Museum

More than 200 people showed for the opening ceremony and ribbon-cutting, The museum is showcasing the WWII, Korean, Vietnam and Gulf War eras, future plans call for a culinary school, ballroom and movie theater. 

Full Article

Obama Promises to Protect MID for the Middle Class

DAILY REAL ESTATE NEWS | FRIDAY, SEPTEMBER 07, 2012
President Barack Obama in his speech last night to accept the Democratic nomination for president said he will protect the mortgage interest deduction for middle-class families.

“I refuse to ask middle-class families to give up their deductions for owning a home … just to pay for another millionaire’s tax cut,” he said.

The president’s speech focused heavily on preserving the financial health of middle-class households, and he said that any deficit reduction and tax increases that he would seek in a second term would not affect households earning up to $250,000.