LAST WEEKS ECONOMIC NEWS

According to the Federal Reserve, consumer credit debt rose in April by $954.8 million. Economists had forecast that consumer debt would fall by $1 billion in April. Consumer credit debt fell in March by $5.44 billion.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending June 4 declined 12.2%. Refinancing applications fell 14.3%. Purchase volume decreased 5.7%.

Wholesalers increased their inventories by 0.4% in April, following an upwardly revised 0.7% rise in March. Sales at the wholesale level rose 0.7% in April, marking the 13th straight monthly gain.

The trade deficit increased 0.6% to $40.3 billion in April. It was the highest level since December 2008 and follows a $40 billion gap in March.

Retail sales fell 1.2% in May, after gaining 0.6% in April. Economists had anticipated retail sales to rise 0.4% in May. The decline — the largest since a 2.2% drop in September — was led by a 9.3% drop in building materials.

The Reuters/University of Michigan consumer sentiment index for June's preliminary reading rose to 75.5, the highest since January 2008. The index hit a 30-year low of 55.3 in November 2008.

Total business inventories rose 0.4% in April, following an upwardly revised 0.7% increase in March. Total business sales rose 0.6% in April.

Initial claims for unemployment benefits fell by 3,000 to 456,000 for the week ending June 5. Continuing claims for the week ending May 29 fell by 255,000 to 4.46 million, the lowest level since December 2008.

Upcoming on the economic calendar are reports on the housing market index on June 15, housing starts on June 16 and the index of leading economic indicators on June 17.

Sellers Cut Fewer Listing Prices as Home Price Declines Slow

Good morning. And what an incredible day in Sunny South Florida,I came across this article that talks about in detail on how the current listed inventory its moving faster than anticipated. and with out drastic price reduction.

Let's also take into account that the past two months have been the coldest in the past decade .

This will lead to a great recovery in our Real Estate Industry . Don't loose your opportunity make sure tour Office and Broker can help you and Support you www.RWSF.con




Sellers Cut Fewer Listing Prices as Home Price Declines Slow

SHORT SALE HELP

Great article describing the governments new solution to dealing with short sales.

Its my believe that this expedite the process , so now we have to go get this listing



'Cash for Keys' Deals Helping Homeowners Escape Debt
HOUSING, REAL ESTATE, FORECLOSURE, LOAN, CASH FOR KEYS, MORTGAGE, REFINANCE
Reuters | 12 Mar 2010 | 01:02 PM ET
Jon Daurio, chief executive officer of mortgage investor Kondaur Capital, recently offered a $4,000 check to Barry Culver for the deed to his Bryan, Ohio house.


With the exchange, and a pay-off to a second-lien holder, Culver was freed of $120,000 in crushing mortgage debt on the house, said Daurio, who had bought the right to cut the deal when he purchased the mortgage months earlier. The house, after repairs, is now on the market for $47,500.

"It got me out of a bind," said Culver, a former Kmart employee who has since relocated near his in-laws in Tennessee where job prospects are better. "I got a little cash out of it and was able to pay off other stuff I owed."

Such 'cash-for-keys' offers are common for Orange, California-based Kondaur, one of the largest players in the business of buying and resolving distressed loans for profit. The business is growing more popular, with volumes of loans for sale at their highest since the founding of Kondaur in July 2007, said Daurio, a veteran of the subprime lending industry.

At DebtX, a Boston-based loan exchange, the number of bidders on pools of loans is up 25 percent since last quarter.

Deals Are Increasing

Owners of bad loans are increasingly making deals with borrowers to avoid a foreclosure, which tends to reduce returns for investors and place a black mark on the homeowner's credit.


Lawmakers and regulators are becoming more accepting of these solutions even though they mean the borrower loses the home. The trend comes after more than two years of loan modification programs and foreclosure moratoriums that have produced mixed results, with many homeowners ineligible or defaulting again.

Where a modification isn't feasible, the U.S. Treasury in April will begin paying borrowers who agree to a deed-in-lieu of foreclosure or short sale, where a home is sold for less than outstanding debt. Unlike most modifications, those actions erase excess debt and reset home values, solving the problem of underwater loans that are a top cause of defaults.

U.S. modification efforts to date have been "tragic" in delaying housing and economic recovery, Daurio said. "All you are doing is delaying depreciation of the houses," Daurio said. "You are not preventing it by keeping people in a house that they can't afford."

More than 11 million properties with mortgages are "underwater," according to First American CoreLogic. Efforts to expand use of principal forgiveness haven't caught on.

Delaying the Inevitable

Foreclosures have been stalled on more than 1 million bad loans since the U.S. Home Affordable Modification Program was announced a year ago, resulting in higher costs and losses to investors, according Moody's Investors Service.

This is delaying an inevitable clearing of the housing market that is needed for a lasting rebound, analysts said. A pent-up "shadow inventory" from failed modification efforts could destabilize the market in 2010, they worry.


"You are preventing the orderly transfer of a home from those that can't afford it to those that can afford it," said Rod Dubitsky, a global structured finance specialist at Pacific Investment Management Co. in Newport Beach, California.

The ability to customize loan workouts and earn potentially huge profits are enticing investors to the market, where loans are commonly sold at 40 cents to 60 cents per dollar of principal. Discounts give investors more room to work with borrowers than banks working to mitigate their loss, said Kingsley Greenland, chief executive officer at DebtX.

Investors generally look for a quick workout since it costs them to carry the loan or the property, said Jeff Freud, founder of LoanMarket.net, in Irvine, California.

Distressed whole loans are just a slice of the total mortgage market, however. Many loans are tied up in securities, and banks now with adequate reserves are arranging deed-in-lieu and short sale agreements themselves.

Mountains of cash chasing a limited field of loans has buoyed prices, but that is reducing opportunity for funds, said Louis Lucido, a principal at Los Angeles-based DoubleLine. But that could change if the Federal Deposit Insurance Co. more rapidly unwinds the assets of its failed banks, he said.


New entrants to the market tend to be small investors, who hold less than 100 loans at any one time, analysts said.

Among a pool of loans acquired by Dean Engle, a real estate investor in San Francisco who teaches others how to get a start in the business, was a foreclosed home in Greenwood, Missouri.

It was still occupied by the former owner, who had no money to find a new place to live.

Engle told Ellen Brewood, a local agent to offer the former owner $5,000 to move out, and avoid a lengthy eviction. The house was vacated within five days. After 15 days on the market, it had offers above the $139,000 asking price.

"He wouldn't believe it, that investors wanted to pay him," Brewood said of the former owner.

Mortgage rates dropped slightly this week,

Mortgage rates dropped slightly this week,

Good morning to all. As you probably know there are 49 days left until the expiration of the Home Buyers Credit, but today's great news on the continuing dropping of mortgage rates , will give us an extra reason to get out there and take advantage of this great Real Estate Recovery we are living .

E.Vega www.rwsf.com

Mortgage rates dropped slightly this week, with the 30-year fixed-rate mortgage averaging 4.95% in Freddie Mac's weekly survey of mortgage rates.

The mortgage averaged 4.97% last week and 5.03% a year ago.

The results come as recovery in the U.S. housing market has weakened in recent months. Demand for new and used homes, after strengthening earlier last year, has dropped because of cold weather and continuing high levels of joblessness.

New-home sales unexpectedly hit a record low in January, while existing-home sales also slumped. The National Association of Realtors' index for pending sales of previously owned homes, an indicator of sales to come, fell as well.

The 15-year fixed-rate mortgage averaged 4.32% for the week ending March 11, down from 4.33% last week and 4.64% a year ago. Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.05%, down from 4.11% last week and 4.99% a year ago. And 1-year Treasury-indexed ARMs averaged 4.22%, down from 4.27% last week and 4.80% a year ago.

"During a light week of mixed economic reports, mortgage rates eased somewhat," said Frank Nothaft, Freddie Mac vice president and chief economist. "Pending existing home sales fell 7.6% in January, well below the market consensus of a 1% gain."

Ernesto Vega P.A

Ernesto Vega P.A

Housing Market for 2010 the best its on its way

Housing Market for 2010 the best its on its way back




The USA Housing markets have faired quite well regardless of the economic turmoil of recent years. All this markets share something in common: modestly appreciating home prices, a high affordability rating,great economic activity, tourism and a low foreclosure rate.I know its sound like we are describing South Florida

RealtyTrac, estimates that 4.5 million foreclosure filings are expected in 2010, up from 2.8 million in 2009. But this inventory its being pick up by investors and will not affect prices as much as the past wave of foreclosures.

According to Forbes, Pittsburgh, Pennsylvania, has the best housing market in the country for a host of reasons: the second lowest foreclosure rate, a housing affordability rate of 85%, home prices anticipated to increase 2.67% in 2010, and a diversified and comparatively robust economy. This stable economy is largely due to Pittsburgh transforming itself, over several decades, from a center of manufacturing to one of education and health care.

As you can the turn around its all over the country .

GREAT NEWS AFFORDABILITY UP 40% IN SOUTH FLORIDA

Well hello to all, i wanted to share some of the last numbers ,that will give you a realistic picture of our current market.
R real estate prices in South Florida have fallen from their peak five years ago, with more than two-thirds of the 41,000 condo units and town homes for resale listed below $250,000, due to the lack of financing and problems with HOA

Of the 27,000 homes for sale in Miami-Dade, Broward and Palm Beach counties, 40 percent have an asking price below $250,000.this does present a great opportunities for buyers due to the great affordability factor

Broward County has the largest inventory of residential properties (13,655) avalible for resale below $250,000. Condos and townhouses account for 73 percent of Broward's overall inventory priced below $250,000, while single-family houses account for the remaining 27 percent, according to the report.

Miami-Dade County isn’t far behind, with 13,185 residential properties priced below $250,000. Condos and townhouses account for 72 percent, or 9,437 units, of the residential resale inventory available at prices below $250,000.

In Palm Beach County, there are 11,176 residences for resale below $250,000. Condos and townhouses represent 72 percent, or 7,996 units, of the available inventory priced under $250,000.

Nearly 80 percent of the 20,000 residences currently under contract in South Florida are priced below $250,000, according to the report.

In Broward, some 82 percent of the pending contracts are on properties listed for resale at a price below $250,000. In Miami-Dade, 78 percent of the contracts are on properties priced under $250,000. In Palm Beach, 74 percent of the contracts are on resales listed below $250,000, according to the report.

As you can see form all that its taking place that the economy its making that BIG turn.
The great factor for us is Pending Sales which to a small Correction moving forward from 8% to 7.6% .
This number was severely affected by the weather in the northeast. so we can expect a raises over 8% in February .

Another factor in last weeks numbers was the increase in costumer spending , this was the BIG surprise 0.5% .
This show that the consumer feels better about there job security and about their future and are feeling more comfortable spending.

Below its the entire break down of news .
Have a GREAT WEEK

Consumer spending rose 0.5% to $52.4 billion in January, slightly more than economists had anticipated. Personal income increased 0.1% to $11.4 billion.

The Institute for Supply Management reported that the monthly index of manufacturing activity was 56.5 in February after reaching 58.4 in January. Nevertheless, it was the seventh straight month of expansion. A reading above 50 signals expansion.

The Commerce Department reported that total construction spending fell 0.6% in January after falling 1.2% in December. Economists had expected a decrease of 0.7%.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending February 26 rose 14.6% to 629.9. Purchase volume increased 9% to 214.5. Refinancing applications jumped 17.2% to 3,054.3.

The monthly index of non-manufacturing activity rose to 53 in February from 50.5 in January. A reading above 50 signals expansion. Economists had anticipated a reading of 51. The reading was the highest since October 2007.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, fell 7.6% in January after a revised 0.8% increase in December.

The Labor Department reported productivity rose at an annual rate of 6.9% in the fourth quarter. Labor costs fell at an annual rate of 5.9%.

Factory orders rose 1.7% in January, slightly below the 1.8% increase economists had anticipated. It was the fifth straight gain and follows a 1% increase in December.

The unemployment rate held at 9.7% in February. Employers cut 36,000 jobs in February, far fewer than expected. The four-week average for continuing jobless claims fell 134,000 to 4.5 million.

Upcoming on the economic calendar are reports on wholesale trade on March 10, international trade on March 11 and retail sales on March 12

Condos Reverse Foreclosures Hardly a Solution

As you can see from the article below , some condo projects are taking what to me its a drastic approach to the non paying unit owners and forcing an early foreclosure of there units the condo boards then rents the units until the bank forecloses to try to recuperate the HOA fees that there missing .
The problem its that them this complicates ad delays the original foreclosure process , taking the value of this unit and the entire project down .

Also this its opening the door to unscrupulous condo managers that will evict owners to profit from rents and delay for as long as possible the banks foreclosure there fore killing the units value.

I can not say i see a easy solution but this to me its no


BY RACHAEL LEE COLEMAN
rcoleman@MiamiHerald.com
Revenue-starved condominium and homeowners associations struggling to keep the taps running and the lawns mowed have found a novel way to squeeze money from units that don't pay what they owe.

It's called a reverse foreclosure, a tool that can force banks to pay association maintenance fees when unit owners don't.

It's a way for associations to halt the decline that begins when one owner quits paying maintenance fees, followed by another, then another, forcing a reduction in general maintenance, driving down property values even more, and leaving a community riddled with vacancies and vandalism.

Also, it's a way for associations to stick it to banks -- who they are convinced have been sticking it to them since the real estate meltdown began.

Banks, for their part, deny any dishonorable intent and say they are just protecting their interests, as any prudent business would do.

Here's how a reverse foreclosure works: When a home or condominium owner stops paying the mortgage, the bank files a notice of foreclosure to safeguard its stake. After that, some banks deliberately delay the process of taking back the property.

They take their time because, if it's like most South Florida properties, the delinquent unit is worth less than the outstanding mortgage. In the lingo of the trade, such units are ``upside-down.''

Banks are in no rush to have upside-down properties on their books.

Delaying foreclosure can be a nightmare for homeowner and condo associations. When people stop paying the mortgage, they invariably stop paying their maintenance fees. As long as a foreclosure is in limbo -- and the process can take years if a bank wants to slow things down, associations say -- unpaid maintenance fees pile up.

Under a reverse foreclosure, the association files its own foreclosure notice and takes title, which is its right after the homeowner stops paying maintenance fees. The association can't sell because of the bank's lien. But it can renounce its claim on the property in court and ask the judge to give the title back to the bank.

Then the bank has to pay the fees.

It's a hardball tactic, but condo and homeowner associations say they have been forced to resort to it because the Legislature, beholden to lenders and their lobbyists, refuses to make the banks take over the units and cover the unpaid bills.

Although reverse foreclosure is a new concept, it could become very popular very quickly. In a recent survey, 60 percent of Florida condo and homeowner associations reported that half of their units were two months behind in paying maintenance fees.

When unpaid fees become an epidemic, associations sometimes have to charge ``special assessments'' to owners in good standing to make up for lost revenue and cover the cost of utilities, upkeep and insurance.

Special assessments cause fierce neighbor-vs.-neighbor resentment, and can trigger a domino effect -- even more units sliding into default.

``These legal strategies are a direct response to the fact that the laws haven't changed,'' said Ben Solomon, an attorney with Association Law Group. In January, he engineered the state's first reverse foreclosure, on behalf of Keys Gate, a master-planned community in Homestead.

Although a reverse foreclosure sticks a bank with a property it doesn't want, Florida law gives the lender a break on the outstanding bill. Under existing statutes, banks cannot be forced to pay more than 12 months of past-due homeowner association fees or 1 percent of the overall mortgage amount, whichever is less. In the case of condos, the cap is six months

State Wide Open House

Open houses will be held across Florida as we Realtors try to sustain housing recovery with statewide event,Realtors in Broward and Miami Dade County and across Florida plan to showcase thousands of homes during a statewide open house in April.

The April 10-11 event, dubbed the Florida Open House Weekend, is the first coordinated statewide open house in Florida history.

“It’s a home shopper’s dream,” said Wendell Davis, Florida Realtors’ president. “For the serious buyer, the opportunity to tour dozens of homes in one weekend is a real time-saver.”

This weekend was chosen because home buyers must sign a purchase contract before April 30, and close by June 30, to qualify for federal tax credits of up to $8,000, before it expires .

We all know that the percentage who used the Internet in their home search has soared from 37 percent in 2000 to 90 percent last year, but open houses gives buyers the opportunity to visit the area and actually step into a house for the first time with out any pressure.
So lest all participated in this great event , I know we will be holding as many home open as possible


For more information follow the link below

http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=231888

Looking For Condo Solutions

After what has been an unbelievable real estate market for over the past 3 years, we are now dealing with all the left over problems of not enough planing for the future growth, so we have to run to the GOVERNMENT to try make right some of this worngs in this CONDO HANGOVER.

For example one of the 2 bills being introduce into the legislature its bill — H.B. 329,this bill its being sponsored separately by Rep. Julio Robaina, R- Miami, and also bill S.B. 1196, sponsored by Senator Mike Fasano, R-New Port Richey — this two bills are going to try to pressure delinquent owners into paying or making life tougher for the delinquent condo owners , including taking away pool and clubhouse rights and siphoning rent checks (THE LAST ONE BEING THE BEST SOLUTION ). H.B. 329 is for condo associations only, while S.B. 1196 is for both condo and homeowner associations.

This two bills seek to amend the law to allow so condo associations to collect rent directly from a tenant when the unit owner is also a landlord and is behind by 90 days or more in fees and assessments to the association, including possibly costs for attorneys and collections, yes that mean Condo associations wont have to wait more than 90 days to claim the rent from the uncooperative landlord's .

This two bills also would allow the association to prevent owners and their tenants, whether they pay rent or not, from using common elements, such as the pools, clubhouses and other recreational facilities, if the owner is delinquent in the payment of assessments.

Finally, these bills would deny owners the right to vote on association matters if they are delinquent. Currently, Florida law allows all owners, despite payment records, to vote in condo elections and serve on boards as directors.

But Bill H.B. 329 goes further than the senate bill by also granting associations the authority to additionally deny the delinquent owners and tenants the right to occupy the unit.So the Tenants and or Owners will be evict after 90 days of non payment of dues

Although this bills are only being introduce at the moment we all know that something needs to be done to save the values of the condo communities

Glut of Condos in Sunny Isles

As it stand we are still real ling from the condo hang over from a few years ago , gut to ad insult to injury , the new lending regulations plus the fact the 70% of buyers were in it to flip and have walk away form their deposit we have been left with this HUGE 24% inventory of the 6,300 new condo units built Sunny Isles Beach.

``The Sunny Isles Beach had a total of 23000 unit build in a period of seven yeas.
And now its going Through a similar situation as Downtown Miami , with the difference that this area is a second home market to foreign national from all over the world .

SOUTH FLORIDA KEEPS SHOWING A FAST RECOVERY

Miami area home sales remained at a 3 year high in December as sales of existing condos, whose prices drop from 2006 high keep momentum. The median price paid for all new and resale houses and condos combined didn't budge from November and declined from a year earlier by the lowest amount - 22.5% - since late 2008, a real estate information service reported.

In December, 8,259 new and resale houses and condos closed escrow in the metro area encompassing Miami-Dade, Palm Beach and Broward counties. That was up 19.1% from November and up 41.3% from 5,846 in December 2008, according to MDA DataQuick. The San Diego firm tracks real estate trends nationally via public property records.


In the month of December sales increase from November for the season, though the 19.1 gain was below the average November-to-December increase of 29.6% since 1997.

December marked the 10 consecutive month in which the region's overall sales rose on a year-over-year basis. Existing (not new) single-family detached house and condo sales have risen year-over-year for 13 consecutive months, while new-home sales in December fell below the year-ago level for the 42nd time in the last 43 months.

The strong condo sales, And the December sales of all homes priced $50,000 to $150,000 shot up 98.5% from December 2008. The $50,000 - $150,000 sales represented 47.5% of total home sales in December, up from 33.9% in December 2008 and 15.2% in December 2007.

Sales also picked up in December at the opposite end of the price spectrum: The number of homes sold for $1 million or more rose to 243 in December, up 51% from 161 in November and up 28.6% from 189 in December 2008. The figures are based on an analysis of public property records, where there was a purchase price or purchase loan amount of $1 million or more. During all of 2009, sales of $1 million-plus homes totaled 2,061, down 32.3% from a 2008 total of 3,044. The peak month for $1 million-plus home sales was in June 2005, when 583 sold, and the peak year was 2005, when 5,452 homes sold for $1 million or more.

The median price paid for all new and resale houses and condos sold in December was $155,000, the same as in November but down 22.5% from $200,000 in December 2008. It was the smallest year-over-year decline for the overall median sale price since the median fell 22.2%, to $210,000, in November 2008.
December's median was 46.6% below the peak $290,000 median in June 2007. The Miami area's median price has fallen on a year-over-year basis for 27 consecutive months.

The median price paid for resale condos in December held steady at $105,000 - the same as in November but down 23.7% from a year ago and down 54.8% from the peak $219,000 resale condo median in July 2006. The resale condo median hit a cycle low of $99,000 in September 2009.

The median paid for resale single-family detached houses rose slightly in December to $188,000, up 1.7% from 184,800 in November but down 14.5% from a year ago and down 44.1% from a June 2007 peak of $340,000.

Another price gauge analysts watch, the median paid per square foot for resale single-family detached houses, held steady in December at $109, the same as in November but down 11.4% from $123 in December 2008. It was the lowest year-over-year decline for any month since November 2007. The December 2009 median paid per square foot stood 48.3% below the region's $211 peak in summer 2006. The measure has fallen year-over-year for 39 straight months.

The only form of fiancing available for first time home buyers is government-insured FHA loans - accounted for 42.5% of all home purchase loans in December, down from 48.5% in November but up from 35% a year ago and 5.4% two years ago.

The use of adjustable-rate mortgages ("ARMs") to buy homes was steady in December at 5.7% of all purchase loans, the same as in November but up from a decade low of 4.4% in May 2009. However, December's purchase ARM level was down from 6.9% a year earlier. Miami's monthly average for ARM use over the past decade is 49.7% of purchase loans. In December, the median ARM purchase loan amount was $280,000.


The rest of the transactions were either cash or flippers taking advantage of the market

Drastic inventory increase

The number of U.S. homes listed for sale rose dramatically in January compared to December after 18 consecutive months of decline, according to data released on Thursday by NAR.
Part of this is seller trying to capitalize in the $8,0000.00 before it runs out
It may also be banks starting to put their ghost foreclosed inventory of properties up for sale
The total number of single-family homes and condos listed for sale increased in January from December by 2.9 percent, bringing the total number of active listings in the 27 major U.S. metropolitan markets to 567,265,.

This mean that there are an additional 15,0000 homes for sale in this markets since January .

Increased supply could negatively impact the hard-hit U.S. housing market, which remains highly vulnerable to setbacks.


This new over supply could hurt the balance between supply and demand. Stabilization of the housing market is seen as key to an economic recovery .

The number of home listings year-over-year, however, was down 22.33 percent, with 163,000 fewer homes on the market, it said.

California Takes Action Against Real Estate Agents

A record number of real estate licenses were revoked in 2009 by the California State Department of Real Estate, the state department that issues licenses to real estate professionals.

The DRE also accepted another record number of license surrenders from licensees facing disciplinary action.


All together , over 775 yes 775 licensees had their license revoked or simply turn them in their licenses .


Over the past two years, the State averaged 446 license revocations and 59 license surrenders. In 2009, license revocations jumped over 50%, to 672, while license surrenders jumped nearly 80 percent to 105.


The downturn in the real estate market is a big reason disciplinary actions are up.

In 2009, the state of California initiated over 2,000 investigations involving loan modification complaints, which represents 25 percent of all cases set-up.


The DRE issued over 180 “Desist and Refrain” orders to nearly 348 different respondents performing loan modification services, ordering them to stop or change their business practices, it says. Of those, approximately 60 percent were not licensed and ordered to cease licensed activity -- which included offering loan modification services.


In addition, nearly 100 real estate licensees have been accused of violating the real estate law in connection with loan modification complaints. Many of the completed cases have been referred to law enforcement agencies for criminal prosecution

Pending home rise in Miami & Broward

Great News Pending sales rose in Miami-Dade and Broward counties during January compared to December, according to data released Tuesday by Southeast Florida Multiple Listing Service.

In Miami-Dade, pending sales of single-family homes increased 0.81 percent to 3,741. Sales of condominiums rose 3.5 percent to 4,647.

In Broward, pending sales of condominiums rose 9.4 percent to 4,137. Pending sales of single-family homes rose 6.2 percent to 3,310.

All accross the country , NAR said Tuesday that pending sales its seasonally adjusted index of sales agreements rose 1 percent from November to December to a reading of 96.6. That was a little lower than the 97.1 level analysts expected, according to Thomson Reuters.

The index has risen for nine out of the past 10 months as buyers scrambled to take advantage of an $8,000 first-time home buyer tax credit before its scheduled expiration Nov. 30.

Congress extended the tax credit to April 30 and added a $6,500 credit for current homeowners.
So what we are expirencing is the bulk of first time home buyers taking advangte of this.

ICON Brickell cuts prices by 51%

This past week prices at the ICON Brickell condo monumental project in downtown Miami have been drastically slashed to as little as $261 a square foot, a 51% discount on the average closed sales price in the complex to date, according to a new report from CondoVultures.com.

Prices vary in each of the three towers due to the location floor and the view in the 1,793-unit yes 1,793 UNIT complex.

The ICON Brickell project represents 8% of the nearly 22,250 condo units built in downtown Miami since 2003, the website reported.

To date, there have been nearly 150 closed sales in the complex at an average price of $538 a square foot, most in the 713-unit tower one, but none in tower three.

But this new price has brought new attention to the project

Mortgages fall back

This past week the average rate on a 30-year fixed mortgage fell to 4.99%, down from 5.06% from a week earlier, national mortgage company Freddie Mac said last Thursday.

It's the 3rd straight weekly decline. The drop comes after rates fall in the bond market this week as concerns about the economy have increased and demand for the safety of government debt, which is closely tied to mortgage rates.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often in line with long-term Treasury bonds.

Rates for 30-year loans had dropped to a record low of 4.71% in early December, pushed down by an aggressive government campaign to reduce consumers' borrowing costs.

The Federal Reserve is pumping and extra $1.25 trillion into mortgage-backed securities to try to bring down mortgage rates, but that money is set to run out next spring. The goal of the program is to make home buying more affordable and prop up the housing market.

While it's possible that the program could be extended, analysts believe the Fed is reluctant to do so.

The rate on 15-year fixed-rate mortgages fell to 4.4%, down from 4.45% from last week, according to Freddie Mac.

Rates on five-year, adjustable-rate mortgages averaged 4.27%, down from 4.32% a week earlier. Rates on one-year, adjustable-rate mortgages dropped to 4.32% from 4.39%.Making this a very attractive pruduct

The rates do not include add-on fees known as points. One point is equal to 1% of the total loan amount.

Will changes to mortgage mod program help

The Treasury is introducing new rules to its mortgage modification program.

Do you think it'll make any difference?

Starting June 1, Banks will have to document borrowers’ financial situations from the time they start the modification process. Also, borrowers won't have to submit W-2 forms, but they will have to hand over two pay stubs and an electronic form giving the government access to their tax returns and proof of income.

As it is now, many borrowers get trial loan modifications based on simply stating their incomes. Not surprisingly, those trial mods usually don’t lead to permanent adjustments because the borrowers can’t prove they have the incomes they said they had and 6 to 9 months latter they are back to step one.

The Treasury said it's trying to make it as easy as possible for people. Many borrowers are fed up with the government program, blaming the lenders for seemingly endless delays and for never ending paper work.

.

The Miami-Fort Lauderdale metropolitan area ranked among the top 10 U.S. metro areas with the highest foreclosure rates in 2009, according to a newly released report by RealtyTrac, the Irvine, Calif.-based online marketplace for foreclosures.

The report found there were 172,894 properties with foreclosure filings in the local metro area, or one in every 14 homes. The rate was up 43.5 percent from 2008 and up nearly 200 percent from 2007.

Florida accounted for eight of the top 20 metro foreclosure rates. Only California, with nine, had more.

“While it was expected that cities from states with the highest levels of foreclosure activity would top the charts, there is evidence that we’re entering a new wave of foreclosures, driven more by unemployment and economic hardship than what we’ve seen over the past few years,” RealtyTrac CEO James J. Saccacio in a news release.

Nationwide, there were 2.8 million foreclosure filings in 2009, or one out of every 45 housing units. That was up 21.2 percent from 2008 and 119.6 percent from 2007.

The Las Vegas market led the nation’s metro areas, with more than 12 percent of its housing units receiving a foreclosure notice last year. That’s more than five times the national average.

Across Florida, the Cape Coral-Fort Myers market posted the second-highest metro area foreclosure rate in the nation, with 11.87 percent. Orlando-Kissimmee ranked seventh, with 8.17 percent. Port St. Lucie ranked ninth, with 7.58 percent of its housing units in foreclosure.

Among other Florida metro areas in the top 100:


Miami-Fort Lauderdale-Pompano Beach, No. 10, at 7.16 percent
Naples, No. 13, at 6.38 percent
Deltona-Daytona Beach-Ormond Beach, No. 16, at 5.32 percent
Sarasota-Brandenton-Venice, No 17, at 5.26 percent
Lakeland, No. 18, at 5.19 percent
Palm Bay-Melbourne-Titusville, No. 21, at 4.78 percent
Tampa-St. Petersburg-Clearwater, No. 22, at 4.77 percent
Jacksonville, No. 26, at 4.53 percent
Pensacola-Ferry Pass-Brent, No. 44, at 2.85 percent
Gainesville, No. 68, at 2.08 percent
Tallahassee, No. 82, at 1.72 percent