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The Obama administration is considering a plan to take foreclosure properties off the market and rent them in order to control declining home prices according to the Wall Street Journal.

The plan would essentially place the government as acting landlord with Fannie and Freddie taking part in the government takeover of foreclosure properties. So far nothing is concrete but the White House is seriously considering the plan.

Since the financial collapse of 2008 the government has done everything to try to stabilize the economy including the Real Estate market. We have seen stimulus packages, bailouts, quantitative easing, first time buyer tax credits, home loan modification programs etc. Has the economy or the Real Estate market improved as a result of these stimuli? The answer is a definite no.

The economy is getting sicker with rising unemployment, debt, and foreclosures as the symptoms. This crisis occurred because the government subsidized the housing market with low interest rates and cheap credit that fueled the housing hysteria to absurd levels. Albert Einstein defined insanity as doing the same thing over and over again expecting a different result.  Mr. Einstein’s definition certainly applies in this case.

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The recent stock market plunge is sending a clear message to Americans, that we are not out of this crisis yet. Not by a long shot. The Dow Jones Industrial Average dropped by more than 500 points in the biggest single intra-day loss since the 2008 financial meltdown.

In my previous blog I indicated that home sale cancellations were on the rise. The reason is simple, Americans are scared. Buyers and sellers are waiting to see what happens next. They do not want to get caught up in a large ticket transaction like purchasing a home when the U.S. economy is struggling to stay afloat.

The epicenter of the global financial crisis was and still is Real Estate. Firms gobbled up mortgage back securities consisting of high risk loans that went sour when homeowners began defaulting on their ARMS.  As the crisis continues, the Real Estate industry will still be caught in the middle as distressed properties take up large chunks of home inventories across the country.

If you are a buyer or seller in this market, you must tread carefully as the U.S economy heads towards uncharted territory. It’s unclear if and when another financial crisis like in 2008 will occur.  In any case you must seriously weigh your options and make sure that if your buying or selling a home, it is a risk that you can afford.

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An article by CNBC reports that home sale cancellations increased by 16 % of pending home sale contracts.  The increase has taken many in the industry off guard including the chief economists at the National Association of Realtors (NAR) who is baffled by the increase, that according to CNBC.

The rise in cancellations shouldn’t be a surprise to anyone, especially those working in the industry. Distressed properties including short sales are difficult and lengthy transactions that tests the patience of both the buyer and seller.

Short sales still make up a big chunk of inventory in states like California, Nevada, and Florida who have been ravaged by the Real Estate collapse.  We must also consider the current state of the economy. High unemployment, out of control debt, and an uncertain economic future are making buyers think twice before they go through with purchasing a home.  To put it bluntly, Americans are afraid. They’re afraid of losing their jobs, their savings and their homes. It’s no wonder why buyers are getting cold feet.

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I absolutely love cars. I know I know your wondering why I’m talking about cars in a Real Estate blog. I’ll get to that in a minute. Anyway, my favorite kind of car are your American muscle cars. I own a Mustang which is an absolute bute. Of course I share an affinity for European style cars like BMW, Mercedes, and others. What does that have to do with Real Estate? Well I think the home you own and where you live should be able to accommodate the vehicle you drive.  You don’t want to be driving your lambo in the streets of New York would you? To appreciate open road cars, you need well…. the open road. States like my home of Florida are great for cruising with the top down because of open highways and plenty of road to break in your new sports car. As far as the home, you want a property with a wide drive way and a spacious garage to house your favorite vehicle. I know this is a no brainer, but you will be surprised how many buyers purchase homes with a garage and driveway that doesn’t appropriately store their vehicle. A car just like a home is a reflection of your personality. You want to emphasize that as much as possible. There is nothing wrong with a little showing off.

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The Real Estate market continues to struggle as home prices fall once again to record lows. The Real Estate market has been one of the hardest hit sectors of the U.S. economy. As of right now it seems like its business as usual with foreclosures and vacant homes ravaging the market.  Naturally most realtors would say this is the best time to buy because of  low prices. Perhaps it is, but only if you can actually afford to purchase a home.  If you have the cash and the ability to purchase property either for yourself or as an investment, then certainly it is the right time. If you don’t have the cash. It’s best to sit tight and build capital. If you do have the money, then time is of the essence when purchasing a home at a great price. The reason why time may not be on your side is due to inflation. Right now consumer goods such as food, oil, and other items are increasing in price as the dollar loses value. This means that your purchasing power will gradually diminish as inflation takes hold on the economy. What we may see in the not so distant future is a rise in home prices. Not because of a reduction in inventory or economic growth, but because of inflation and its effect on the economy. Gas, food, and other items are becoming more expensive by the day. This can eventually trickle down to home prices. So if your someone who is looking to purchase a property, then you may want to seriously think about your decision and make it within a reasonable amount of time. The longer you wait, the more your money loses value. Sadly these are the economic realities that we face. There is not way to sugar coat. However being smart and recognizing future reen

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Home values in many parts of the country have been savaged by the credit bust of 2008. In some parts of the country home prices dropped more then 30%.  Foreclosures and vacant properties are still a factor in reduced home prices. Luxury homes however are a different story.  A recent article in Financial Planning shows that luxury homes actually increased in 2010.  The article indicated that 40% of the worlds exclusive property markets increased in value in 2010. Asian markets were some of the top gainers.  I’ve emphasized in previous blogs that Florida is becoming extremely attractive to high income earners. With lower taxes and a beautiful climate. It’s a no brain-er if you’re someone who is in a high tax bracket.  Wealthy foreigners are also flocking to Florida because they want to take advantage of low home prices. So as far as luxury home are concerned, it’s very likely that luxury home prices will stabilize or rise in value as that niche market thrives due to the growing number of millionaires and a rising middle class found in the states and in emerging markets around the world.  Florida could be the next playground for the rich if it isn’t already.

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America’s top earners are migrating from states like New York and New Jersey to the warmer climate of Florida. That according to a Forbes article written last summer.  The move to Florida, Texas, and other southern states is becoming an increasing trend due to economic uncertainty and higher tax rates in northern states that is prompting upper class earners to move south of the Border. Florida and Texas alone have some of the lowest property tax rates in the nation, Florida being #8 and Texas #4. In Florida, there is no state income tax which is another huge incentive for those in higher income brackets to move to Florida.   Some of the more popular counties for the rich are Nassau and Walton counties located near Jacksonville and Pensacola Florida. However there are many cities in Florida that can appeal to the wealthy. Miami is an obvious choice. With an amazing night life and beautiful luxury homes such as in Star Island and Boca Raton, Miami is certainly a great choice for the urban jet setter. There’s also Tampa which is located on the west coast of Florida. Tampa is surrounded by some of the most beautiful beaches in the state found in Clearwater and Saint Petersburg. Tampa has premier luxury homes such as in Bayshore and South Tampa that cover a number of styles and designs.  Tampa is also an hour away from Orlando, Disney, and other attractions.  Tampa and Miami are just a few of the many great places Florida has to settle down. If you have any questions. Please contact me at frank@findmyfloridahome.net or click on the contact button on the TampaLuxuryHomes site.

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According to an article on TampaBay.com, foreign investors have doubled their purchases of Tampa Bay real estate since last year. Normally foreigners flocked to Miami for bargains after the market bubble of a few years ago. Now foreign investors are looking to Tampa for bargains. You better believe that among these foreigners, a nice percentage of them are looking for luxury property. “Another factor luring the foreign cash:Luxury condos are currently looking cheaper than the cost of building new ones. New construction has halted as the market rids itself of excess inventory from the building boom”(Puente, TampaBay).  If your looking to purchase a luxury home, expect to have some competition as investors from across the globe are looking to Tampa for a good deal.  Some of the areas that foreign buyers will most likely look at are beachfront properties. Saint Petersburg and Clearwater are the obvious choices. If there is a luxury property that has caught your eye. You certainly want to make a decision quickly as more buyers are flooding the market to look for the right priced home.

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Tampa is known for its great weather and rich history. But Tampa also has some of the most beautiful luxury homes in the west coast of Florida. From colonial and ranch homes to modern day mansions. Tampa has a variety of homes to satisfy any home buyer.  However you do have to look at the right parts of town to find what you’re looking for.  One of my favorite high end neighborhoods is Westchase. Westchase is close to the Carrollwood section of Tampa. It has a golf course as well as stores and restaurants. The homes are stunning to where each neighborhood has a specific home design in mind. Some subdivisions have colonial homes while others are modern trac homes.  Another part of Tampa I like is the South Tampa area. The homes off of Bayshore have bungalow and classical homes each having their own architectural style.  They have their own character and charm that many new homes lack.  So if your looking for luxury homes. Westchase and South Tampa are a great place to start.

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Everyone loves to have a little luxury in their lives. Come on who doesn’t? We all want to save to buy that luxury sports car with the leather seats and the big engine.  When we fly, we accumulate frequent flyers points so we can fly first class. When it comes to purchasing a home, not only do we want value, but we want the luxurious amenities that come along with buying a luxury home.  If you’re trying to sell your home, focusing on luxury will get you major points with buyers.  One great idea can be installing a retractable screen over your pool. This adds some wow factor to your home. If you have some exotic cars with a garage to show them off. Keep your garage doors open when potential buyers come and visit. Buyers want to visualize where there putting their stuff when they visit a home. Let them imagine how there Mercedes will look like parked in the driveway. With the kitchen, install an espresso coffee maker. The idea having Starbucks style coffee in the convenience of your own will make buyers scream with delight. These are just some of the many things you can do to make your home standout in todays buyers market.  If you have the money, spare no expense.

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