TAXES & INSURANCE: The most notable tax news comes from the Palm Beach County Commissioners. They have made good on their promise not to increase the county tax rate for 2009. However, 2010 is another story - as long as we have a depressed real estate market that continues to reduce property tax revenue, serious service cuts will stay on the table. The insurance market has settled down over the last year. However, if you want to keep your insurance premium to a minimum, you must be proactive with your insurance company. Make a phone call to your agent periodically and ask if any new discounts are available. Specifically, ask if a Mitigation Inspection could lower your premium. Florida insurance companies are required to provide credits for dwellings that meet specific windstorm safety features. The typical cost for an inspection by a licensed professional is $150. Most inspection companies offer a refund if savings do not exceed the inspection cost. This website is available for premium comparisons: Florida Department of Financial Services .
MARKET NOTES: Sales for most of the PGA corridor residential areas are mixed when compared to the same period for last year - see chart below. I expect, by the end of the year, the number of sales should equal or exceed last year's numbers, which could be the first step in recovery for our market. The local and national press constantly publicize the huge inventory of unsold homes. As you know, real estate markets are local. The market that I cover, and most likely the market where you own a home, is not suffering from huge inventory. What we have is a seller's market without buyers, i.e. low demand. For example PGA National has 240 properties for sale, by no means a record and less than 5% of the 5000 unit subdivision. Mirasol has 100 homes for sale, less than 10% of the 1100 home subdivision.....Mansion market on fire! High profile local commercial sales have been replaced by high profile ocean front Palm Beach mansion sales: one for $80 million and Trump has a buyer at $100 million for the former Gosman mansion he picked up for a meager $42 million! New to the area - check out my new page of best nearby restaurants - good food from fine dining to sports bar to carry-out.
INTEREST RATES: Locally, 30 year mortgage rates are averaging about 6.25%. Mortgage money is available, but buyers must be able to qualify under the traditional underwriting standards that were in force before the boom - verifiable income, good credit, etc. Appraisals are making it difficult for some sales to close - appraiser rules now prevent the use of comparable sales older than six months. When appraisals do not equal the contract sale price several choices are available, all unpleasant: let the sale fall through, the buyer has to make up the difference, the seller has to reduce the sale price or a combination of the last two. If your sale or purchase is contingent on financing, make sure the property will appraise before signing a contract.