Texting while driving unlawful in Florida

Quietly, a new law goes into effect on Tuesday, October 1. It will be illegal to text while driving in Florida. Florida joins 41 other states who have banned texting while driving. If caught, the fine will be $30.00 for the 1st offense and $60 for the second. Unlike other states, the Florida law treats texting while driving as a secondary offense...meaning it is enforced only when it has been observed while committing  a primary offense like speeding, reckless driving, etc. Governor Scott vetoed a $1 million campaign to promote the law thus contributing to low public awareness of its inception. 

Flood insurance nightmares

As many Florida property owners brace for higher flood insurance premiums starting next Tuesday, Oct. 1, legislators from Florida and other coastal states worked overtime to convince Congress to hit the pause button on implementation of the federal Biggert-Waters Act passed last year.
“Florida has paid over $16 billion in premiums to the NFIP since 1978, but the program has paid out only about $4 billion in claims here,” says John Sebree. Senior VP of Public Policy for Florida Realtors,  “Instead of floating the rest of the country, we might be able to rely on the NFIP for mapping and such, and process premiums and payments through a state CAT fund for flood insurance.

Many Floridians are facing catastrophic raises in premiums that could force them out of their homes.

Source: Florida Realtors Organization

Economic update...some mixed signals

The U.S. economy grew at +2.5% in the April-June quarter. There is some concern among economists that growth may be slowing. Another encouraging sign was seen in the number of people requesting unemployment benefits hit its lowest point in 6 years. A survey showed service companies added jobs in August at the fastest rate in 6 years. On the down side, fewer Americans signed contracts to buy homes in August, the third month in a row this indicator has gone down. This indicator had reached a 6 year high in May. Rising interest rates have been cited as a culprit.

Household net worth up +$1.3 Trillion in Spring 2013

U.S. household net worth increased by +$1.3 trillion this spring. The Federal Reserve reports that net worth rose to $74.8 trillion in the April - June quarter. American's wealth bottomed out at $57.2 trillion in 2008. Since then, it has steadily increased to current values. The gains haven't been equally distributed as 10% of households own about 80% of all stocks and have realized the largest increase in net worth.

New home sales bounce back in August

After dropping -14.1% to 391,000. new home sales came back by +7.9% to reach 421,000 when seasonally adjusted.  Keep in mind a healthy market is reached at 700,000 units. The good news seems to be that higher interest rates are not slowing the housing recovery down.

Home prices jump +12.4% in July

Verses 2012, home prices in the U.S. rose +12.4% in July 2013. This is the best showing since 2006. In Tampa, prices rose +2.3% from June to July and +12.6% total. In 15 major markets, prices shrink in their June to July percentage of increase, which may suggest prices are starting to peak. The month over month gains have slowed nationally over the past 3 months. These results were reported by the highly respected Standard and Poor's / Case-Shiller research group.

Florida consumers less optimistic in September

The Florida Consumer Sentiment Index dropped a point to 76 in September. It has risen as high as 81.8 in August. This index measures what consumers expectations about the economy. Poor employment expectations coupled with fewer pay increases over the next 6 months were cited for the lower index result. Business research from the University of Florida releases these results.

Flood insurance real challenge for Dunedin, Fl

The Biggers-Water Act passed in June 2012 takes effect in Florida on October 1, 2013. The effects of this law that requires older homes in flood prone areas to pay higher premiums could devastate the Dunedin homeowners. Any homeowner who purchased a home after June 2012, let their flood insurance lapse, or not using the home as their primary residence will see immediate rate increases. Pam Dubow, Pinellas County Tax Appraiser notes there are 1189 single family homes out of Dunedin's 9,870 single family residences that are pre-FIRM homes...meaning they were built before Flood Insurance Rate Maps were adopted 1970's and 1980's.These 1189 homes are in the high risk flood zones and will see rates increase at much as 25% a year until they reach the new rate structures. This law is painful as homeowners could see a current rate of $2000 a year jump to $10,000 or more.  There is growing concern homeowners may just walk away from their homes if they can not afford the new coverage. This could devastate home values in those affected areas.

Tampa Bay's economy expanding faster than U.S.

In 2012, Tampa Bay's economy grew at a rate of +3.1%, faster than the U. S average growth of +2.5%. In net, 305 of the nation's 381 metropolitan areas has some growth. The leading gainers for Tampa Bay were financial services and trade and professional services.

Florida unemployment drops to 7% in August

Good news and bad news. The unemployment rate in Florida and Tampa Bay fell to 7% in August. The bad news...available jobs fell by -4700. This happens because these two numbers come from two different sources. A year ago, the unemployment rate stood at 8.6% in Florida. Tampa Bay leads the state with jobs creation with 41,700 added in the past year.

Home prices up +23% in Tampa Bay area

The medium price home in the Tampa Bay area reached $160,000 in August, up +23.1% over August 2012. Home prices are lower overall in Tampa vs. the state of Florida, but prices are increasing at a faster rate. The rate for the entire state was +18.6%. In August, the number of existing home sales in the Bay area reached 3468, up 10% from last year.

Mortgage interest rates drop last week

The average rate on a 30 year fixed mortgage dropped to 4.5% down from 4.57% the week before. A 15 year dropped to 3.54% down from 3.59%

USF sets record for research grants

USF hauled in $414 million in research grants and contracts for its best year ever.  Typically placing in the top 50 colleges for receiving this kind of revenue, it separates USF from many other schools in Florida. Judy Genshaft,  President of USF, sets research and innovation as one of USF's four core strategies. Last year, USF took in $411 million in grants and contracts. USF is a very important "economic engine" in the Tampa Bay economy.

Fed to keep buying down lower interest rates

The stock markets took off to new record highs on the news the Fed was going to continue buying up to $85 billion in bonds each month to keep interest rates down and spur economic growth. Two concerns mentioned by the Fed that led to this decision were increasing home mortgage rates ( up over 1% since last Spring ) and conclusive evidence the job market  and economy are approaching full health. To date, the economy and job market results have remained mixed.

Inflation hardly noticeable

The Consumer Price Index hardly moved last month moving up jus +.1% in August. In July the increase was +.2%. In the past 12 months, prices have risen +1.5%...below the Federal Reserves target of +2%.

Bill Gates earns richest man in America award for 20th straight year

Forbes Magazine has identified the 400 richest Americans. Bill Gates led all with a net worth of $72 Billion. He has led for 20 straight years. Warren Buffet came in second at $58.5 billion. Two Tampa Bay folks made the list...Edward DeBartolo, Jr. at $2.6 billion came in at 209th and at 314 came Ronald Wanek at $1.6 billion. Forbes Magazine reported the combined net worth of these 400 people increased to $2 trillion this year, up from $1.7 trillion last year.

The "Man On The Move"...has moved!

Jim Chapman, “The Man On the Move”… has moved to Amerivest Realty as their first agent in the Clearwater market.  Recent additions of agents in Orlando and Daytona by Amerivest Realty heralds an aggressive expansion for this very successful company. Amerivest Realty  has pioneered growth through innovation, and excellence in service. Ranked among the most advanced companies in using Internet marketing, virtual applications, paperless transactions, and innovative branding, Amerivest Realty has grown steadily over the past 16 years. Market leaders in Naples, Sanibel, and Ft. Myers, Amerivest Realty (  http://amerivestrealty.com/  )    offers its agents superb support, lower fees to clients, and a full range of real estate services.  Through my move, I am  branding my practice around myself, integrating social media much more aggressively, enjoying increased earnings, and targeting my practice to the needs of each client.  Visit my Facebook page at https://www.facebook.com/TheManOnTheMoveforyou and leave a comment. Also note the “news and blog” tab. I keep that up to date with daily posts offering quick updates on things affecting our industry and the economy in general.

Florida bridges among best in U.S.

Nationally, an Associated Press study shows there are 65,605  structurally deficient bridges in the U.S. It also noted 20,808 are "fracture critical"  which means if one component of the bridge fails, it could collapse. On the other hand, Florid which has 6,661 bridges has just 17 with structural deficiencies and just 2 that are "fracture critical".  Historically, Florida has invested a lot more in bridge maintenance than they get from national allocation funds. This proactive program is reflected in the good bridges throughout the state.

Credit card debt declinng

Again, Americans' credit card debt declined $1.84 billion ( -2.6% at an annual rate ) in July. This followed a drop of 5.2% in June. This concerns economists as consume spending makes up about 70% of our nation's GDP. There was a bright side, consumers did step up their debt to buy cars, and send their kids to college, etc. This debt grew at a  +4.4% annual rate.

Flood insurance going up +25% annually into the future

If you need flood insurance, get ready to pony up large increases. Many older Florida homes are in low lying, flood prone areas which have never had an elevation certificate. That is all changing as insurance renewals come around. Many older homes have been receiving lower premiums which will no longer be available. These homes will now pay rates more consistent with their risk of flooding. There is no end to future increases at this time.

Senior workers make excellent employees

More and more employers are hiring seniors. Employers doing this cite better attendance, excellent experience base to draw from, less accident prone, and they interact better with other seniors, the largest growing segment of  U.S. population. The historical stereotypes about older workers are being broken down as seniors show employers the value they bring to the job.

Women lead way in job recovery

Women have recovered all the jobs they lost in the recession. In August, 68 million women were employed which exceed their high point of 67.97 million before the recession. Women have recovered more quickly because they find work in healthcare, education, retail stores, hotels, and restaurants. In August the unemployment rate was 6.8% for women while 7.7% of the men were unemployed. Men's jobs are -2.1 million to before recession levels. Since men mostly work construction and manufacturing, these jobs are slower to create without significant improvement in the economy.

Richmond, California takes on underwater mortgages

Richmond, California's City Council voted 4 - 3 to expand a new concept they passed recently  to other cities. The  Council voted on Wednesday to use their power of eminent domain to seize underwater mortgages. Then, they would offer the bank current market value, and create a new loan for the homeowner at a lower payment. The goal here is to help people stay in their homes with a payment they can afford. Banks have filed lawsuits to stop Richmond from moving ahead with this plan...a first of its kind in the country.

Florida foreclosures drop -40% in August

It has been estimated that Florida foreclosure activity dropped by up to 40% in August due to a new Florida  law From June to July, foreclosure volume dropped -70% in Florida. A new law that supposedly speeds up foreclosures is to blame. Lenders must now prove they hold the original promissory note giving them the authority to foreclosure. In the past, banks have been accused of moving ahead with foreclosures without this proof. It is expected foreclosure volume will come back as banks become better equipped to deal with the new legal requirements.

Citizens insurance rate increase softened

Florida's insurance commission allowed Citizens to lower their rate request hike down to +6.3%. This is -1.6% less than originally proposed. Owners who do not live near the water will probably see a +4.4%  increase as opposed to an average proposed increase of +7.3%. These new rates will take affect on January 1, 2014. There are 270,000 customers in the Hillsborough, Pinellas, and Pasco counties cover by Citizens.

3 positive signs for economy

It was reported Thursday that service companies were hiring more people, and layoffs are dwindling. Good job growth numbers are expected on Friday. This comes on the back of 3 positives that include the service sector hiring workers at the fastest rate in 8 years, application for unemployment benefits have dropped to the lower point dating back to October 2007, and last month, U.S. factories grew at their strongest pace in more than 2 years. Unemployment is now down to 7.4%.

Laid off Pilots return to work

United Airlines has called back 600 of the 1437 pilots laid off in 2008 and 2009 when fuel prices were increasing, the economy suffering, and fewer people flying. United has about 12,000 pilots.

43% of Tampa Bay mortgages underwater

RealtyTrac reports that 43% of the Tampa Bay area mortgages are seriously underwater...where the balance on the mortgage exceeds current market value by at least +25%. This is down slightly from a year ago when it stood at +46%. This level of underwater mortgages ties Tampa Bay with Orlando ranked at the 3rd worst market in America for underwater mortgages. People are reluctant to list homes when the mortgage exceeds its resale value. This is hampering sales as people hold their homes off the market. It is estimated it will take about 3 years for underwater mortgages to recover.

Nationally, home prices jump +12.4% in July

CoreLogic, a real estate data agency, reported 99 out of 100 cities saw homes increasing in value this July vs. last July. The Tampa Bay area witnessed a +10.5% increase. Florida in total was up +12.6%.
CoreLogic also reported that nationally home prices had rebounded to the point they are 18% below their 2006 highs. However, Florida's values are still -37.6% below their September 2006 values.

Flood insurance woes on the horizon

An older home, with its lowest floor 6 feet below the base flood elevation, has paid about $2,500 annually for flood insurance. The new rates going into affect could raise the premium to $15,000 annually. Why?  There have been subsidies in place for older homes which did not have elevation certificates that are now being phased out. Congress passed the Flood Insurance Reform Act of 2012 requiring FEMA to eliminate a $20 billion deficit in the flood insurance program caused by disasters like Katrina and Sandy. To meet that requirement, FEMA is removing the subsidy on about 20% of all policies nationwide for home built before 1975. Pinellas Country has the largest number of parcels ( 51,000 ) in the nation affected by the law. Hillsborough and Sarasota counties are in the top 12. As people try to renew their policies, they will be required to get an elevation certificate...and their rates  may skyrocket. With home sales up +9% this year along the beach, this change in flood insurance premiums could be catastrophic for home sales.

5400 New Tampa Bay Homes ( Good News and Bad News )

New home sales are expected to reach 5400 units in 2013, +31% over last year. That's the good news. The bad news is the market is only at about 40% of what it was selling in good years...9000+ units.  In 2005, during the crazy times, builders closed on over 25,000 units. Pinellas County has issued 399 new home permits this year, double last year's total. Lennar leads all builders with 485 closings so far this year in the Tampa Bay area. In Florida, there were 356,000 construction workers, down by 50% over the boom times. Skilled trades are critical to a growing housing market.