Juicy Estates: Mortgage Blog

Archive for October, 2009

HVCC May Be History!

The HVCC has been an unmitigated disaster since it’s implementation on May 1st.  Any real estate professional who is active in their market can tell you of the horror stories that HVCC has created, the dreams of home ownership it has destroyed and the high price to the economy, the housing market and the consumer.

But hope springs eternal and it appears that some of the elected officials on Capital Hill are starting to realize that HVCC was just one big mistake.  The House Financial Services Committee has just passed an amendment to the Consumer Financial Protection Agency Act to sunset the HVCC.

An amendment offered by Rep. Gary Miller (R-Ca) would place an 18 month moratorium on HVCC giving legislators an opportunity to create a workable set of standards to oversee the appraisal industry.

“I have repeatedly expressed concern that the HVCC has potential to increase costs to consumers, significantly hinder a consumer’s ability to obtain legitimate and reliable appraisals, and adversely impact small business professionals who work in the very neighborhoods where these consumers are looking to purchase homes,” said Congressman Miller. “In fact, since the implementation of the HVCC on May 1, there are numerous examples of higher costs for appraisals, poor service, the inability to use one appraisal for more than one lender, questionable quality of appraisals, and the inability to make corrections to inaccurate information on an appraisal report.”

A moratorium would mean that lenders could start ordering appraisals through the more seasoned appraisers who work local markets and would no longer be required to use management companies that deliver inferior quality reports completed by the less experienced and the out of area.

The elimination of HVCC would give a significant boost to the housing market at a critical time when the $8,000 first time home buyer tax credit is about to expire and the end of the Fed’s program to purchase mortgage backed securities is on the horizon.

Renowned Gourmet Chef Stella Sellian-Burgess Prepares Lunch for Deering Bay Progressive Brokers Open

Why get wet and drive all over town to see brokers opens when four luxury townhomes  in Deering Bay will be open for a progressive brokers open today October 21st from 12:00 to 2:00.  Please join us for lunch and a preview of some exceptional properties.

It is a short but beautiful drive down Old Cutler Road that will take you to a different world. Deering Bay Yacht and Country Club sits on over 220 acres of land populated by indigenous fauna, golf courses, luxury homes and condominiums as well as a world class marina.

I assure you it will be time well spent given the caliber of the properties, the expected turn out and the delicious lunch being prepared by renowned Chef Stella Burgess.

The addresses and Mapquest links are below….see you there!

13646 Deering Bay Drive (SW 60 Ave) – Listed for $1,149,000 by Joe Olozaga & Chris Monge 305-613-3121 ~ click here for map

13626 Deering Bay Drive (SW 60 Ave) – Listed for $1,249,000 by Geri Brodie 786-853-4374 ~ click here for map

13630 Deering Bay Drive (SW 60 Ave) – Listed for $1,200,000 by Elizabeth Montero 786-385-9638 ~ click here for map

13632 Deering Bay Drive (SW 60 Ave) – Listed for $999,000 by Valarie Byrne 305-960-2413 ~ click here for map

Advantageous financing is available for these luxury townhomes with as little as 20% down and interest rates in the low 5% range.

Pinecrest Homes For Sale ~ Inventory Drops

As illustrated by the very telling graph below the Pinecrest market (33156 zip code) has made a major turn around.  This market is poised to be one of the first luxury home areas in South Florida to experience a “bounce” off the bottom as inventories shrink and buyer traffic increases.

Additionally the charts for homes for sale in Coral Gables, South Miami and Miami Beach look very similar.  The perfect storm of disappearing inventory, increased buyer traffic and low interest rates is upon us.  The South Florida luxury home market has and will always be resilient so the smart money is buying now.

$8000 First Time Home Buyer Tax Credit Extended

The House of Representatives has voted to extend the FTHB Tax Credit to those most deserving, our military personnel.   HR3590 will allow eligible military personnel to apply for the credit for up to one year past it’s current deadline of November 3oth.

It is only logical that the Senate will follow the Houses lead and pass this same legislation and we can only hope that our elected officials realize the importance of extending the tax credit deadline for all home buyers into the new year.

The availability of this tax credit has had a positive impact on the South Florida real estate market and the recent development of County funded programs that allow for the tax credit to be used towards down payment further enhance the effectiveness of the legislation.

Good News For Luxury Real Estate and Jumbo Loans

The national media, typically slow to pick up on anything related to real estate that is positive has noticed that the national average for jumbo 30 year fixed rate mortgages has dropped below 6% for the first time since 2005.  As mentioned in the Business Week article of October 12th jumbo loan (loan amounts over $417,000) rates have continued to fall.

The Business Week article also mentions that some luxury home buyers have run into difficulty with appraisals.  In most cases in the South Florida market issues with properties not appraising are due to the fact that the appraisal is ordered through an appraisal management company and an out of area appraiser is given the assignment.  Under current market conditions it is imperative that the appraiser on any assignment have an intimate knowledge of the market in which the subject property is located.

Oh and the good news……..we are HVCC compliant but we don’t order our appraisals through a management company.  We use local seasoned appraisers with years of experience appraising Luxury homes in the South Florida market.