DECEMBER 26 & 27, 2010 HEAD TO 4TH ANNUAL DELRAY BEACH HOLIDAY ART & CRAFT FAIR

Delray Beach will hold the next Art & Craft Fair in Pineapple Grove, north on NE 2^nd off Atlantic Avenue, from 10 am to 5 pm.   More than 100 booths will be featured.   Items to browse and purchase will include some of the finest arts and crafts in the US e.g. life sized sculptures, paintings, handmade jewelry, pottery and some very unique treasures.  Don’t miss the adjacent crafters market place with handmade body products, beautiful candles, wood plant holders and an expansive green market.

Show is now closed in jewelry category and only wait list applications will be accepted for this category.

Exhibitor parking is at City Hall on NW 1^st Avenue.  Both size is 10’x10’ but a double space may be available too.  For show fees email info@artfestival.com

NEW APPRAISAL GUIDELINES FROM FEDERAL RESERVE

A joint version of property appraisal guidelines was released 12-6-2010 by the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the National Credit Union Administration.  It is expected that this will be the final version.

Appraisal independence is cited, with lenders exchanging information with appraisers, but not being able to “directly or indirectly coerce, influence, or otherwise encourage an appraiser or a person who performs an evaluation to misstate or misrepresent the value of the property.”  Lenders cannot tell appraiser of any expected or qualifying estimate of value, nor mention a minimum value requirement for approval or condition of the valuation being ordered.  Lenders can’t tie compensation to appraiser to loan approval, nor blacklist an appraiser if valuations do not meet expected thresholds.

BPOs (broker price opinions) do NOT comply with minimum appraisal standards.

DESPITE FORECLOSURES, COOL WEATHER, RAMPANT UNEMPLOYMENT - NOW SEE THE GOOD NEWS!

NOTE THAT OUR PART OF FLORIDA

RANKS HIGH IN LIFE EXPECTANCY!

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]

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.

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.

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.

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.   

 

Come earlier and stop in one of the trendy Mizner Park restaurants for lunch... perhaps eating outside, watching the passing parade.  Could be a lovely way to spend an afternoon!

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?

SEARCH FOR UNCLAIMED ITEMS

The State of Florida currently has unclaimed property accounts valued at more than $3BB from sources such as:

• Dormant accounts in financial institutions, insurance and utility companies, securities and holdings
• Tangible property including watches, jewelry, coins, currency, stamps, historical items and others from abandoned safe deposit boxes

Unclaimed money is deposited into the state school fund and used for public education. However there is no statute of limitations and have the right to claim their property at any time.  Try your search here: Unclaimed Property Search .  If you want to go through a catalog of items being auctioned today that is on the same site.

THE BRITISH HAVE DONE IT AGAIN WITH THE WORLD’S PRICIEST APARTMENT SALE

THE BRITISH HAVE DONE IT AGAIN WITH THE WORLD’S PRICIEST APARTMENT SALE

Sale price: about $220MM.  London skylines, private wine tasting facilities and top security features including bullet-proof windows and a panic room, SAS-trained bodyguards and floor to ceiling windows with fabulous views of central London were the major attractions to the 6-bedroom 2-floor penthouse in One Hyde Park, Knightsbridge, London.  Eye scanners are featured in private elevators to prevent unwanted intruders.  The building is heated using geothermal bore holds sunk 450’ to extract heat from the earth’s crust.  The apartment contains an air purifier to ward off poison gas attacks.  The new owners, anonymous, expect to move in by the end of the year.

Eighty apartments have been sold in this new unique complex, one of the world’s most expensive residential areas.  This upscale neighborhood has an average apartment cost of $30MM.  65% of all properties in the block have been sold with 30% of the buyers Europeans and 25% Middle eastern as the worlds financial elite flock to London, taking advantage of the weakness of the pound. 

There is also tunnel access to the Mandarin Oriental Hotel and their 24-hour room service with TV chef Heston Blumenthal opening a fabulous new restaurant and to spas and squash courts and the unit has its own car park.  

“Trophy properties” sales remain strong.  Some speculate that trophy buyers of today might be from Nigeria or the Middle East, with large oil profits facilitating these sales.

SHOULD YOU BUY INSTEAD OF RENTING?

• NOW IS THE BEST TIME EVER TO BUY A PROPERTY IN FLORIDA. Many homes in move-in condition and fixer-uppers are now very affordable and may be less expensive than renting, even leaving comparable dollars over for a maintenance reserve fund
• Interest rates are still low. For a few extra dollars a month on a 30-year mortgage a first-time buyer could own the house free and clear within 15-20 years, saving interest payments.
• A 1% rise in interest rates will add several hundred dollars per year to even a moderately-priced home so now is the time to take advantage of these low low rates.
• The trend upwards in home market value has already begun in some markets and will begin in others as the foreclosures and short sales are sold.
• First--time buyers incomes will increase over time, their house payment will remain stable, and will be appreciating in the future.
• Paying rent may be buying your landlord a house – why not buy your own house?
• How long do you anticipate living in a house you buy… if interest rates DO dip short term, by the time you sell the property the home market value may have appreciated.
• Rents can rise.

To find out how much house you can afford, get a mortgage pre-approval.  We can recommend lenders to you.

 

BP OIL SPILL ESTIMATED DAMAGE IN DOLLARS

BP OIL SPILL ESTIMATED DAMAGE IN DOLLARS

CoreLogic estimates that the BP DeepWater Horizon oil spill will cost homeowners in gulf coast communities $648MM over one year and over 5 years as much as $3BB.  If the spill reaches the Florida Keys and the Florida Atlantic coast, losses there could reach up to an additional $28BB in 5 years.  The annualized economic value of beach access at risk by oil coming ashore and beaches being closed were taken into account. Premiums were paid by buyers of homes in these coastal communities.  More than 600,000 properties were identified as being within 1000 meters of the coastline in 15 counties from the gulf coast of Alabama to the Atlantic coast of Florida.

FOR MIZNER BUFFS

 

Addison Mizner, Palm Beach society architect, created the “Palm Beach style” in the late 1910’s. It was very well received, and in 1918, he designed the Everglades Club on Worth Avenue. The demand for his work mushroomed, so to keep up with demand, he founded his own factory, Mizner Industries, which grew into one of the largest tile and ironwork Spanish design manufacturing companies in Palm Beach in the 1920’s.  They also made hand made pottery, stamped metal fixtures, cast stone, columns, windows and door surrounds, indoor and outdoor furniture and art glass.  Furnishings were often distressed to give them an antique look.   He imported antique furniture, decorative tiles and other items to add to his line.  His homes became known as the “Mediterranean Revival” style.   

By the 1950’s, styles had changed, and there was not much demand for his style of work.  Lately, the “Mizner Style” has come back into vogue. There is a current exhibit of his works at Town Hall, from Monday thru Friday from 10 am to 4 pm.  Group tours are welcome – call 561-395-6766, ext 100 for more information.