LATEST HOUSING MARKET NEWS

·        Palm Beach - There were 517 sales of houses and condos for $1MM+ in the first 9 months of 2010, up 13% from the same period in 2009 – buyers are driving hard bargains and sellers are selling!

·        October statewide year-to-date existing home sales in Florida were u p 7% and condo sales up 33%

·        NAR Chief Economist Lawrence Yun said what is slowing down the housing market recovery includes:

o   Recent foreclosure moratorium

o   Tight credit

o   Appraisals coming below a negotiated price

·        Yun also said the good news is:

o   Low mortgage interest rates

o   Favorable affordability conditions

o   Pentup demand by buyers may soon be unleashed

·        Economists forecast 1 million new jobs in Florida over the next 7 years

·        Foreclosure Shadow inventory (not yet on the market) poses a threat to market values going up

·        Proposed limits on mortgage interest tax deductions are slowing sales

·        Should some of the savings from earmarked money being canceled be put in the form of a new tax credit to help home buyers?

REMOVE MORTGAGE INTEREST DEDUCTION?

NAR Chief Economist and GURU

Lawrence Yun, said,

According to the

WALL STREET JOURNAL,

that removing the mortgage

interest deduction completely

could cause home prices to

fall by about 15%,

should it be wiped away

entirely.

“”That is,” he said, “an ugly 

scenario, particularly given 

housing’s fragile state.”

While the chances of the 

deduction going away 

are slim, he painted

a grim picture of

what could happen.

“Housing is critical 

to the economy,”

he said in an interview.

“In my view, 

[losing the deduction]

that will surely put us in a

broader economic 

recession.”

THE BAD NEWS... MAYBE THE GOOD NEWS WILL SOON COME OUR WAY

ZILLOW REPORTS ALMOST HALF OF ALL 

SEPTEMBER SALES IN SOUTH FLORIDA 

SOLD FOR A LOSS.

 The tri-county area has a 42% rate of underwater mortgages for single family homes.  Home values have fallen since the 2006 peak by 53% with price levels what they were in July 2002.  In October foreclosures increased with one in every 155 Florida housing units receiving a foreclosure filing, 2^nd   behind California and 17% of all US foreclosures.

BOCA RATON CITY COMMISSION VOTES AGAINST ANNEXING 10 COMMUNITIE

When the City Council members realized the city would get less money than expected by annexing St. Andrews Country Club, Newport Bay, Fieldbrook. Boniello Acres, the old Royal Polo fields, La Lac, Boca Grove Plantation, Mediterrania, the Boca Golf & Tennis Club and Costco, they voted not to proceed at this time. 

An updated analysis showed, due to the decline in the taxable value of those properties, the city would now receive $6.3MM under the current tax rate, and it would cost the city $3.6MM to provide police and fire services, modify and operate traffic signals, put up new signs and install landscaping in the medians.  4,300 residents would have been added, each getting a slight tax cut, $211 for single family homes and $275 for multifamily homes.

The newly elected Governor Rick Scott campaigned on reducing property taxes, so that amount of income could decrease from the currently anticipated $2.7MM the city is projected to collect. The county currently provides water and sewer service for these areas but it was not clear whether the city would then have to be the provider.

One council member urged not completely ruling out annexation, pointing out that in 2003 and 2004 city annexations included Town Center Mall and surrounding neighborhoods including the Via Verde, Waterside at Boca Trail and Marina del Mar neighborhoods, which property tax income helped the city through the recession, so no doubt this matter will come up again.

IF THE ART MARKET EMERGES FROM A SLUMP THANKS TO INTERNATIONAL BUYERS… CAN THE HOUSING MARKET BE NEXT?

Bullish bids for important works of Impressionist and Modern art came in this past week from Russia, China, Hong Kong, Taiwan, Quatar, Abu Dhabi and Singapore as well as other corners of the world.  The money comes from fortunes made in oil, gas, gold and other commodities.  Sotheby’s sold $227MM worth of impressionist and modern art last week.  Between $800MM and $1BB of art has sold or is planned for sale last week and this week by Sotheby’s and Christie’s, both prominent auction houses.   

The last major auction was in May 2008 before the financial crisis stemmed the tide, when the art market was down 30% according to Mei Moses All Art index which tracks publicly sold art.  2009 was described as “rocky” in the art market.  In the first half of 2010 returns were up 13%.

Recent “big time” art sales that set records included:

MATISSE: Monumental bigger-than-lifesize bronze sculpture of a woman’s back set a new record at Christies for this artist by selling for almost $49MM ($48,802,500).   Sale estimates were between $25-$30MM and a global bidding wear sent the price up. The piece, “Nu de dos, 4 etate (Back IV)” measures 74.5”.  This work was conceived by Matisse around 1930, but cast in 1978, 24 years after his death.  The piece is No.oo in a collection of 12, the first three versions conceived in 1909, 1913 and 1916-17 are at the Museum of Modern Art. Matisse’s "Danseuse dans le fauteuil, sol en damier," sold for $20.8MM.  Photo is from Christie’s Images Ltd.

MODIGLIANI: A life-sized painting sold at Sotheby’s for $69MM, and Modigliani’s circa 1917 seductive canvas, titled “Nu assis sur un divan (La Belle Romaine),” ["Nude Sitting on a Divan (The Beautiful Roman Woman),"] catapulted beyond a pre-sale estimate of about $40MM.  It sold back in 1999 at Sotheby’s for $16.7MM, which was a record at the time.  His previous record was $52.6, sold earlier this year in Paris.  

GRIS: “Violon et guitare” a cubist oil painting on canvas done in September 1913, sold for $28.64MM after estimates for $18-25MM.  It was sold by Marilyn Arison, wife of late billionaire Ted Arison and sold to benefit the nonprofit YoungArts.  In 1998 they paid $9.9MM for this work of art.  Gris regarded this Cubist still life as his ultimate masterpiece, according to Christie’s.

MONET’s: “Le Bassin aux Nympheas,” part of his iconic water lilies series, sold for $25.7MM.  Its format is awkwardly elongated.  Most of his coveted water lily paintings are in museums and some consider them, painted during the last 20 years of his life, his ultimate achievement.

ROTHCO: abstract painting, off the market for 40 years, could sell this week at Sotheby’s, estimate is between $20-$30MM.  PICASSO: “Man with a Flag” sold for $5.3MM. LEGER: His “Femme sur fond rouge, femme assise”, the stylized figure of a woman seated cross-legged, in black and white on a red background sold for $6.35MM. SEURAT: A black Conte crayon study of a woman standing is seen from the back with a feeling of time suspended and profound mystery as the shadowy figure seems about to enter an invisible world brought $4.3MM. GIACOMETTI: “His “Femme de Venise V,” a craggy, jagged elongated fiture case in 1958 in an edition of 6 brought in $10MM.

This week, Christies hopes to get $240MM from sales of works by Warhol, Lichtenstein, Koons, Richter and Rothco.

Both Christie’s and Sotheby’s had predicted a surge in demand ahead of this year’s autumn auctions, with the art market emerging from a slump triggered by the global financial crisis.

The jewelry market has surged ahead as well. The Bulgari Blue Diamond, designed in the 1970’s as a gift from a European collector to his wife on the birth of their first son, was bought for about $1MM at in 1972. It features two triangular-shaped diamonds, one colorless at 9.87 carats, the other a “fancy vivid” blue diamond is 10.95 carats.  The blue diamond is one in about 10 in existence with a color pure enough to qualify as “fancy vivid.” This is the largest blue diamond to have sold at auction. Photo credit: Reuters/CHRISTIE’S IMAGES LTD. 2010/Handout/.

OBAMA ADMINISTRATION RELEASES OCTOBER HOUSING SCORECARD

The latest housing figures show continued 

signs of stabilization in house prices and 

high home affordability due in part to 

record low interest rates. 

The housing scorecard is a comprehensive 

 report on the nation's housing market.

BOCA RATON INFORMATION

BOCA RATON POPULATION

BOCA RATON MEDIAN AGE (2006)

for more information

BOCA RATON CITY REPORT

ACTIVE LISTINGS ARE NOT UNDER CONTRACT; PENDING LISTINGS ARE UNDER CONTRACT BUT NOT YET CLOSED

EXISTING SALES ARE HEADING ON UP

September showed an increase in home sales, causing NAR chief economist Lawrence Yun to say, “A housing recovery is taking place, but will be choppy at times depending on the duration and impact of a foreclosure moratorium.  But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions.” 

Let’s keep our fingers crossed that this path upwards will continue.

Interest rates have fallen to about half what they were nearly a decade ago, causing, in some cases, monthly mortgage payments to be less money than renting.  About 35% of the September sales were distressed sales.  According to reports, there will be more to come for some time into the future, while the government struggles to clear up a review of banking agency practices, looking at irregularities and weaknesses.

SOMETHING YOU MAY WANT TO KNOW ABOUT… THE STORM AFTER THE CALM

According to Bain & Co, luxury goods including designer clothes, leather goods, watches, jewelry and such were predicted to have a 10% increase in sales in 2010, reported in a study commissioned by Italy’s Fondazione Altagamma association of high-end producers.  Sales had declined by 8% in 2009. 

So far US sales of high-end items are up 12% with wardrobe replenishment after a year of careful holding back, Asians up 22% and Europeans spending 6% more for luxury items.  With the holiday season still ahead, Bain predicts a 9-11% growth during that period, so it’s time to open your wallets folks, and keep the stores in business.

Powering the spending are the Chinese with sales growing 30%. Chinese tourists are traveling the world en masse and spending as they go.  The study reports that larger brands are faring better than smaller ones, which may foretell the possibilities of mergers or absorptions of small companies, and menswear is growing faster than women’s wear… amazing?  Our men are browsing the internet for their favorite brands and buying online.

Leather goods purchases had held up and are expected to grow by 16%.

May as well get in on the buying binge now as, due to the likely continuing lowering of the dollar against the euro, growth is predicted to head down 3-5% in 2011.

A TURN FOR THE BETTER

National Association of Home Builders’ director of economic services says, “For the first time since World War II, I think [foreign] people are more optimistic about the US housing market than Americans.”  

Wall St Journal reports that the successful Sekisui House Ltd, a very large home builder and developer in Japan, is seeking to enter the US housing market and has teamed up with Newland Real Estate Group LLC of San Diego to acquire nearly 500 acres outside Houston which could house more than 1 200 homes.  Local brokers said the price was most likely over $10MM.  

It is anticipated that it will take three years to plot the development and get the project through the approvals process.  

Foreigners are not afraid of the US market as evidenced by the fact that 262 of the a Miami luxury condo’s 372 units have sold and almost 90% of the buyers are foreigners, all paying cash.  It includes a 28,000 sq ft spa and infinity pool on Biscayne Bay.  Units that once sold for up to $670/sq ft now average $319. Hotel-like service is offered, condos are glamorously appointed, great water views abound, daily housekeeping included and a celebrity chef offers room service.  It appears that foreign investors are buying real estate rather than investing in the US stock market, planning to rent out properties and sell when the economy turns around.  It is reported that 80% of all current Miami condo sales are with foreigners.  A property management cottage industry has sprung up across the US to accommodate these foreign buyers.

Locally, The Related Group has held many seminars, e.g. at Robb & Stucky in Boca and at the Boca Marriott, in the past few weeks showcasing their Ft Myers condo complex they purchased at a distress sale and are now offering at very low prices.  Seminars are also being held for condo complexes in foreign cities, and it is reported that buyers are astonished at the values, wondering if they are too good to be true.  They ARE true.

If you would like more information on any of these complexes or similar properties, contact Marilyn Jacobs, Luxury Home Specialist at 561-302-3388.

ZILLOW INDICATES WE HIT BOTTOM AND PRICES ARE SLOWLY RISING...

ROBB & STUCKY’S STAGING TO SELL 

CAN ALSO GIVE YOU RE-DO IDEAS 

IF YOU ARE NOT SELLING!

Seminar to be held on 10/28/2010 at 2 pm at Robb & Stucky in Mizner Park, Boca Raton, upstairs in the Community Room.   

Get tips on how to “prep” your home for a faster sale to make it stand out from others on the market.  Or, if you are not selling, how about ideas to spruce up your home like the experts would do!   

Before or after the seminar take a look through their fabulous furniture and accessory items… just one new beautiful piece can update and enhance the look of your home.

GET OUT THE MEGAPHONES… A FOOTBALL STADIUM 

IS COMING TO BOCA

The Florida Board of Governors unanimously approved a resolution authorizing FAU to finance part of the construction of a 30,000-seat stadium and associated improvements.  In July the FAU Board of Trustees had unanimously approved the project and its financing plan.

FAU’s Innovation Village is located in the north central campus area where the stadium will be built.  This is a gathering place for alumni, students, faculty, staff and community members to live, learn, dine, shop, enjoy and build tradition.  A student housing facility is under construction and scheduled to open in the fall of 2011.  A retail area is being planned.

The $70MM project will be home to the two-time bowl winning OWL football team.  20 luxury suites will be featured with 1,000 club seats and, of course, the latest state-of-the-art amenities.  Completion is scheduled for fall 2001, with construction expected to start in October 2010. 

All together now, let’s give a cheer for the new excitement that is coming to town!

LOOKING FOR A CLASSY, 

REGAL RENTAL?

 Head over to Port of Leith, Edinburgh and climb aboard the Royal Yacht Britannia, launched in 1953.  Walk the red carpet and be greeted by a Pipe Major. 

 This grand ship has played home to The Queen and Royal Family for a half century and entertained kings, queens, presidents and prime ministers worldwide.  It is decked out with comfortable casual furniture and the walls hold aged family portraits.  The Yacht is said to be Scotland’s most popular attraction.

The State Dining room holds gifts to Her Majesty from 968 official worldwide state visits.  Four honeymoons took place on the yacht including Princess Diana and Prince Charles honeymoon, but if your heart is set on having your wedding there: sorry, no weddings allowed.  Suitable for a corporate event, the casual setting is regal and can include a harpist or pianist, fireworks, dancing to jazz or a traditional celtic band.  Up to 176 guests can be feted for dinner or up to 380 for champagne receptions. 

 Staff is white-gloved and served in fine china with silver engraved with Britannia’s crest.  Public tours are available during the day and imagine yourself sipping afternoon tea, sitting on a Britannia deck chair, overlooking the Firth of Forth.  Cover the Royal Deck with an awning, plan an awesome dinner and invite the 80 people you want to impress the most.   

Cheerio!

IN YOUR WILDEST DREAMS….

While Only “a dream” at the moment, just like the Flash Gordon comics of years ago that put a man on the moon… which happened during our lifetime… the design has been made for a yacht that can fly.  It has been exhibited at the Paris’ Air & Space Museum.

Just click the button and your “superyacht with wings” takes you where ever you want to go.

The masts can be operated independently and sails are stored within them.  The masts become wings when flying is preferred.  46 meters, with 4 mobile masts reaching 40’, the designer said he did not mean to make it feasible, but rather an innovative concept. 

Any bets on how soon this will become reality?

IF SOMEONE YOU KNOW DOES NOT HAVE HEALTH INSURANCE…

CVS/pharmacy and MinuteClinic, one of their divisions, will be offering free flu shots to those without health insurance this upcoming flue season.  Vouchers will be issued to clinics and health centers across the country that are redeemable for free flu shots.  The clinics and health centers will identify uninsured individuals from their existing patient populations starting September 20^th.

CVS Caremark the largest US pharmacy health care provider, will be partnering with Direct Relief USA for this program.  Direct Relief is a non-profit organization working with 1100 clinics and health centers in all 50 states.  They provide free medications and supplies for low-income and uninsured patients, with most facilities affiliated with either the National Association of Community Health Centers or the National Association of Free Clinics. 

Names and locations of the voucher providers will be available September 20^th by using the MyFlu Shot Scheduler at www.cvs.com/flu or calling 888-FLU-SHOT.  Vaccinations will be available 7 days a week during regular business hours with no appointment required.  Participants will receive, after getting the shot, a discount on pharmacy products.  You can check that out at the site just mentioned.  If you know anyone who wants even minimal health care coverage, call Licensed Independent Insurance Agent Marilyn Jacobs at 561-302-3388 to get details for an affordable health plan.

IT’s TIME TO GET THE FACTS ABOUT SOCIAL MEDIA MARKETING   

Robb & Stucky is holding a seminar at their Boca Store in Mizner Park – 200 Plaza Real - (no charge) on Wednesday, September 15 at 3 pm.

We will learn what Social Media Marketing is and:

·        Categories of Social Media Marketing

·        What are Blogs?

·        20 Reasons your business should use Social Media Marketing

·        How does this relate to SEO (Search Engine Optimization)

·        How does Social Media Marketing relate to you and your business success?

To reserve, email info@superiorvirtualservices.com with your name and type of business you are in.

… See you there!

Read more: http://bocaratonhomesforsale.blogspot.com/#ixzz0ysWxMYzi

ILHM PRESIDENT WACO MOORE SHOWS THAT 

“LESS IS MORE”

The September 2010 issue of Better Homes and Gardens features the home of Institute for Luxury Home Marketing President, Waco Moore, built in 1957 and then named as Better Homes and Gardens “Idea House of the Year.”  Waco and his wife Mila Goldman-Moore, who is an architect and served as general contractor after they purchased the house, have kept true to the modern aesthetic, but have incorporated “green features” such as shredded denim insulation and tank-less hot water heaters.  Mila says her favorite element in their bedroom is the easy access to the outdoors and future plans may include a porch with a sleeping alcove in that area.

Before moving in, they stripped the interior down to the studs, maintained the basic floor plan, and removed crown moldings to keep a simplified look.  They also replaced Victorian-style decorative doorknobs. Planning ahead, the inexpensive kitchen cabinets are freestanding, and if they redo the kitchen, they will merely be moved into the garage.  Open storage shelves help to declutter.

Still “The Idea House of the Year,” the Moore’s are in trend with today’s modern times with a non-wasted space floor plan, connections between living areas that are “family-friendly,” natural light streaming in, and a nice indoor-outdoor flow making the house seem larger than its 2100 sq ft.  Towering canopy oaks shade the house and offer breezes and sunlight where it is needed.