GOOD NEWS AND BAD NEWS ON THE HOME FRONT

Zillow reported that south Florida home values are down 15.4% year-over-year in 4Q2010.  Home Value Index fell to $139,100 from $160,000 at end of 2009.

 Housing bargain sales wins prevail with big losses for many sellers.  This IS THE BEST TIME EVER to buy in Florida.

Foreclosures in Florida fell 54% according to Realty Trac year-over-year in January 2011.  Foreclosure filings last month were 21,671 in Florida, one for every 409 housing units in the state which is 15.4% lower from December 2010.

 What to make of this?  An interesting 9-acre man-made island between Aventura and Sunny Isles Beach is on the market for $49.5MM reports  Condo Vultures.  In the 1950’s the DOT created the island as part of a massive dredging effort.  Assessed value?  $3MM or $7.90 per sq ft according to the Miami-Dade County Property Appraisers Office.   Sounds like an interesting deal… so let’s wait and see who (if anyone) buys this island!

 Mortgage interest rates are going up… rate topped 5% for the first time since last April.  Rates, however, are still historically low according to Florida Realtors organization, and there is actually a $100 a month jump on a $200,000 loan since the lowest rate in November.   Rates follow the 10-year Treasury note yields, heading up with inflation fears.   Many buyers are paying cash.

WANT TO SEE THE NEWEST DECORATOR MODELS?

Model Tour: 1200 Hillsboro Mile, Before & After – 2/8/2011 at 2 pm

Join the Robb & Stucky Design Team of Rene Evans, ASID and Richard Ramus at 1200 Hillsboro Mile for a private tour of their beautiful model. This is an opportunity to see the “before” unfurnished unit and the “after” decorated model–and the transformation is amazing. This event is offsite. The model is located about 1 mile south of Hillsboro on the west side of A1A. Reservations are required so please call early to reserve your space and to receive directions. No cameras, please.

Model Tour: Villas By The Sea, Before & After – 2/16/2011 at 2 pm

Have you ever wondered how a designer finds inspiration and then transforms it into a design concept? Join Robb & Stucky Design Associate Ron Acosta on-site at Villas by the Sea. Ron will start the tour in an unfurnished unit, then continue to the completed model for comparison. He will share his design process, and the secret that inspired the special look of this incredible Oceanside model project. Meet first at the Sales office for Villas by the Sea, located off A1A just north of Commercial Blvd in Lauderdale by the Sea. Reservations are required so please call early to reserve your space and to receive directions. No cameras, please.

Please call (561) 862-5597 to reserve; reservations are limited!

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RECENT STUDY SHOWS WALKABILITY ADDS VALUE TO A PROPERTY

Ceo’S FOR Cities, a national consortium of civic and business leaders, did a 2009 study and found that homes where you can walk to the supermarket and other stores, schools and parks will be valued at $4,000 to $34,000 more than those with less walkability where you have to drive to get to amenities.  The bigger, more urban the city, such as Miami, the higher value walkability adds.  Nearby public transportation also boosts value.

The study covered 94,000 real estate sales of comparable homes in 15 major markets. 

You can use Walkscore to rate the walkability of your home or a home you are considering purchasing. 

HAVE A GREAT TIME IN DELRAY BEACH

A PEEK AT DELRAY BEACH

Delray Beach is the type of coastal town that has it all: unobstructed beaches, shops, the restaurants and definitely, the entertainment.  A little bit for everyone to enjoy.  Delray does a great job with its festivals and fairs.  They close a main street and fill it to capacity with vendors, musicians and artists in a blink of an eye.  When is all over done with, it comes down just as fast as it went up. 

Come on downtown on Thursday, January 27^th for Art & Jazz On The Avenue.  Once a month, during the season, and on a Thursday from 6-10 pm, live musical entertainment is presented, On the Avenue.  Open house specials, and gallery exhibitions are will be browsed at the very least.  Even though it is On the Avenue, it will also extend to the SW 5th Avenue Plaza. 

Highlights will include:

• Florida Panthers’ Partymobile --- interactive games and the launch of the team’s new video game --- at the Delray Beach Magazine booth in the 300 block of East Atlantic Avenue.
• Palm Beach Makos and Cheerleaders in the 400 block of East Atlantic Avenue.
• Exhilarating skateboard course designed and constructed by Stoner Skateboards in the 600 block of East Atlantic Avenue;
• Sports clinics led by Atlantic High School sports leaders on the Great Lawn by Old School Square.
• City of Delray Beach Parks & Recreation sponsored dance and fitness demonstrations and performances led by the Delray Divas, Diamonds and Pearls and Delray Rocks and Cheerleaders Dance, also on the Great Lawn by Old School Square.
• Yankee great Roy White, the Roger Dean Stadium inflatable hitting bay and the Allianz golf hitting bay – all in Worthing Park.
• Representatives of the International Tennis Championships and the US Tennis Association in the 200 and 400 blocks of East Atlantic Avenue.
• Cycling on Your Mark in the 300 block of East Atlantic Avenue.
• Miss Geico 50-foot racing boat with jet turbine engine will be on display in the 500 block of East Atlantic Avenue and sports car along NE 1^st Avenue.
• Roaming Drew Tucker Stomp Band
• The Heavy Pets, a production of 102 Degrees, will be performing on the Old School Square Entertainment Pavilion with Stampede as the opening act. The concert will benefit Delray Beach’s Caring Kitchen through donations collected by volunteers. An after-party hosted by the new Pineapple Groove will start just after the concert.  
• Jim Kolvacik Trio in the 100 block of East Atlantic Avenue
• Groove Merchant and Atlantic High School Jazz Band on SE 4^th Avenue.
• Jazz Stream in the 400 block of East Atlantic Avenue.
• Al Johnson in the 500 block of East Atlantic Avenue.
• Visitors to the Vista BMW tent will be invited to register for a chance to win a new BMW 135i. Details will be available on site.
• Representatives of the Boca Artists Guild in the 100 East Atlantic block.
• Avalon Gallery at 425 E Atlantic Ave.
• Blue Coast Art Exhibit at 110 E Atlantic Ave.
• Blue Gallery at 600 E Atlantic Ave.
• Cacace Fine Art Studio & Gallery at 135 E Atlantic Ave.
• DeBilzan Gallery at 38 E Atlantic Ave.
• Delray Art & Framing at 321 E Atlantic Ave.
• Ford Fine Art at 235 NE 4^th Ave. #101
• Forms Gallery at 415 E Atlantic Ave.
• Kevro’s Gallery, Media Studio & Art Bar at 166 SE 2^nd Ave.
• Ora Sorensen Gallery at 445 E Atlantic Ave.

 Art & Jazz will extend to the SW 5^th Ave Plaza with entertainment from:

• Beacon Center first- and second-grade classes, creative dance team and Village Academy praise dancers.
• Creative dance team, Step Club and Drum Line of the Family Resource Center.

FREE ADMISSION!

THE GOOD NEWS: FALLING REAL ESTATE PRICES MAY ENCOURAGE BUSINESSES TO MOVE TO PALM BEACH COUNTY

 Palm Beach is 40^th on the list of top 55 cities of cheapest places to run a corporate headquarters.  The average age of Boca Raton residents is 42, and in Delray Beach is 44.

They were ranked by Boyd Company, Princeton, NJ, comparing the cost of running a hypothetical 75,000 sq ft office with 300 employees.  The first 3 on the list were New York, San Francisco and San Jose.  Orlando was #55.  

Boyd  Company helps many of America’s best-known companies plan real estate expansions and does surveys in many industries.

UNIQUE HISTORIC LUFF HOUSE IN BOCA TO BE DEMOLISHED?

LUFF HOUSE IN THE 1920'S

 LUFF HOUSE TODAY

 

Foreclosed on last January 2010, the Luff House at 390 East Palmetto Park Road is one of the city’s earliest bungalow-style homes, one of Boca Raton’s 10 oldest surviving structures.  Not wanting to maintain the house, the current owners want it off the property by the end of the year or demolished.

 

The house was built in the early 1920’s using coral rock, unique to South Florida.  The exterior appearance has changed over the years as you can see in the two pictures above. With no historic designation for the house, the owners can demolish the house if they wish, but the Boca Raton Historical Society feels it is important enough to be relocated and used.

 

Suggestions for a new location include Sugar Sand or Spanish River Park, if the historical society or someone else could have it moved.  Cost is estimated for the move at $175,000.  Eligible for state and federal grants, such as from the Florida Bureau of Historic Preservation, those funds have dwindled as the economy has.  

 

Perhaps a group within the area will agree that this property is steeped in historical value and worth saving and reusing, and find funding to get this gem moved and used as an educational facility or for their own personal use.  It has been occupied by several businesses – antiques, watches, jewelers, and was the home of community agencies such as the Junior Service League and first home of the Boca Raton Historical Society.  

 

Anyone interested in helping can contact the Boca Raton Historical Society at (561) 395-6766, extension 106.

THE LITTLE RED SCHOOLHOUSE in PALM BEACH

Pioneer Day at the Little Red Schoolhouse in Palm Beach is tentatively scheduled for Tuesday, January 15, 2011 from 1-3 pm.  Check with the Preservation Foundation at  561-832-0731. It is now home to a program of Palm Beach’s living history taking children back in time for a mini-day in a one-room school of the 1890’s, home to The Preservation Foundation of Palm Beach.

The Little Red Schoolhouse is in Phipps Ocean Park in Palm Beach, 2185 South Ocean Drive in Palm Beach.  Refurbished in 1960 by the Gardeners Society of Palm Beach and the Town of Palm Beach, it remained unused until 1990 when it became part of the pioneer education program.  Education in America’s one-room schoolhouses stressed discipline, moral values and “the 3 R’s.”  Visiting students today participate in a spelling bee, trace Spencerian script and recite from Tom Sawyer, Little Women, The Ancient Mariner and McGuffey’s Readers.  Period artifacts are also part of the pioneer educational experience.

Starting with seven students in 1886, there were 35 students by the 1880’s.  The schoolhouse was located about a mile north of the Royal Poinciana Bridge on Lake Trail in Palm Beach.  Children arrived by boat, bicycle or on foot from Lake Worth families and were all taught together in one room.  The school ceased operation in 1901 and became a tool shed on the John S. Phipps property, falling into decline and deterioration in future years.  

Preserving past educational history and its artifacts is so important to the school children of today.  There are interesting positive lessons to learn from the past.

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.