By Stewart

October 11, 2006 07:00 PM | Link to this

The sales commission increases the incentive to get the highest price..I don’t know of too many people that will pay a flat fee to someone who does not sale a house..You do not have to use a realtor. There are many buy owner and reduced fee services.

By Get in the Game

October 12, 2006 06:43 AM | Link to this

Interesting article, the Brookings Institution ususally does a good job.

Stock brokers, attorneys (tax and civil) - all very specific jobs with specific results in mind.

I am confident almost everyone commenting on this article shall state that they “do not need Realtors”. In that case, they should sell their houses by themselves [if you think you know everything, then no one can ever offer you help].

But, also remember, that when you need a response to the law or creative tax filings - does really doing it yourself truly work?

Can you trade stocks better than a Broker on Wall Street - I mean honestly?

I do agree a fee for service would work, with significant milestones “prices” being accomplished. However, the owners are going to want the service for free, of course.

Again, if you think your posted returns are going to outpace Goldman Sachs, or your taxes more creative than a tax attorney, then go ahead and sell your home by yourself and not compensate anyone along the way.

Instead one should pay your tax attorney MORE and your civil attorney MORE to be placed at the top of the client list.

Think about it, at Goldman, do they really fuss over clients with assets under $500,000 or DITY clients? Does Bill Gates sit at home and trade stocks, via E-Trade, in a futile attempt to outpace Goldman or does he do his taxes using Turbo Tax [all because he does want to pay fees] - of course not.

So, if you paid the Realtors MORE for their “fees” wouldn’t reason dictate that they would be MORE motivated to sell your house since as Jeff put it - they are “struggling to make living”.

Good Luck to All

By TANC

October 12, 2006 09:23 AM | Link to this

The problem is too many agents out there who give the industry a bad name. As it said in the article link above, “all you have to do is fog a mirror and you can get a license to sell in FL”. That’s the problem.

There are many very professional and successful agents who are worth every penny of the commission they earn. If the state did a better job of making sure the individuals who they give licenses to are well trained, educated, experienced and pass vigorous testing and background checks we wouldn’t be having this discussion as the agents out there would be worth the money they are paid (and many are as I said).

Sadly, many are not.

This applies to mortgage brokers as well. Fog a mirror and pass a 100 question Mult CHoice test that a 12 year old could pass doesn’t make you a good mortgage professional. When the most difficult math test question involves dividing one number by another to get a percentage, something is wrong here.

By The End of the Realtor

October 12, 2006 10:34 AM | Link to this

I is so insulting to put a realtor in the same classification as a physician, an attorney or even an accountant.

Realtors are nothing more than a salesperson, who most of them are not making money today as they did the last few years. We have over 12,000 realtors in Palm Beach County alone, and how many sales went through in August? Do the math of how many are making money, and for how much.

The end of the realtor is here. Thanks to the internet and new marketing tools that the public have now to access. Most intellegent buyers today will save the extra dollars to buy off of FSBO’s. What both buyers and sellers only need is the seller’s title company and their own lawyer’s to read over the paper work. I myself went through FSBO’s in my last three deals.

Sure, the more high price homes would need the Sotherby’s and other high profile realtors for those types of homes. The average home can make it by without a realtor. And in certain circumstances, the home that is unoccuppied due to death or relocation would might need a realtor, but for most part, both sellers and buyers can save on both ends without a realtor.

Yes, we have many bad realtors, but we also have some good ones.

Obtaining a Florida Real Estate license is one of the hardest tests to pass in the country, second to California. Many of your realtors out there today took them four to six times to pass the test.

If you think the commission rate is high, well, so does Wal-Mart. Yes, Wal-Mart will get into the real estate industry with their own agents at really low commission prices. That will knockout the smaller firms and put pressure on the national firms for reduce rates.

Time will tell, just remember that i told you this. And most of you know me by now for telling the truth and not some mis-informing b******t that others like to talk here.

EASYASABC

By NUMBERCRUNCHER

October 12, 2006 11:01 AM | Link to this

I have just completed reading the 2006-2007 edition of the 14-hour real estate continuing education course. This includes the 2006 law updates as well.

I must say, this new version is several notches up from previous editions and do not expect too many realtors to easily pass this next test if their license is expiring in March or has expired in September.

For anyone hoping to continue in real estate sales, I suggest you better start studying now if you want to pass by March. The most recent test is loaded with tricky questions, even challenging to lawyers.

Maybe it is time for realtors to go back to school and learn a new skill. The real estate occupation does not look good either in the 2007 Occupational Handbook. This is just the beginning of the end.

By Jeff

October 12, 2006 01:27 PM | Link to this

The real estate pay structure over the last five years has been a joke. The hotter real estate is, the more money they make and the less they work.

I hope this shakeout leaves a few people penniless and the experienced Realtors with a reasonable amount of competition with other skilled professionals.

[trackback - www.housingbubblewatch.com]

By kirk

October 12, 2006 06:41 PM | Link to this

I think realtors should be paid with a “fee for service structure”, or with an hourly rate.

Their fees should depend on their experience and education, just like any other professional.

For sellers, I can see how a system based on commission could work to their advantage, although 6% is way too high.

For buyers, however, the current system works against their interests. Buyers need an independent, objective advice. Realtors that are paid only when the house sells cannot be objective advisers for buyers, therefore buyers should only get agents that are paid by service or hourly.

A fee-for-service or hourly rate should also work well for the agent, because the realtor is paid for his/her time no matter what.

By Robert Muchel

October 13, 2006 08:50 AM | Link to this

I think being a Reator in The Palm Beaches is a hard Job and payment of a commission to a realtor is small compared to the work he/she does to find the right home for their customer. The payment to the Broker is the issue that should be discussed here.

By Robert Muchel

October 13, 2006 09:42 AM | Link to this

Jeff: The paper you referred to which I read, was In reference to Brokers not Realtors.

Robert Muchel RMuchel@netscape.com

By lladnareneerg

October 13, 2006 10:04 AM | Link to this

So what ?? The market is the market. If the market dictates another percentage, the market will follow. There is no safe rule that caps a fee. If I the seller wants to sell, let it be the choice of the seller(ME) of the compensation to the broker. It is stupid to limit or cap a fee if a transaction is being concluuded. Would a seller rather sit there with the property and hold out over a fee? Time is money. Pay them to move the inventory.Cash is king, at this point in the game.

By Bubba

October 13, 2006 10:42 AM | Link to this

If a realtor earns a 6% commission on a $400,000 home (which is about the average price here in PB County), the owner will pay about $24,000 in commissions.

That $24,000 gets divided up between buyer’s and seller’s realtors, but still is a cost to the seller.

How many hours of work do you think a realtor will put into selling your home?

If they put in 100 hours, the seller is paying $240.00 per hour for the realtor’s services.

That’s equal to about 2 work weeks, Monday thru Friday, from 8:00 am to 7:00 pm with a 1 hour lunch.

How many people think a realtor actually will put in that kind of time on your home? If they put in less time, the money they make per hour actually increases.

Realtors may argue that they incur expenses, but I’m sure sellers would rather pay those expenses out of pocket than pay a premium for the realtor to take out an add.

Realtors are overpaid. If you can sell the house yourself, you are better of. Having a lawyer review the contract and closing documentation will cost you only a fraction of the cost of a realtor.

By Frank

October 13, 2006 12:02 PM | Link to this

I think Realtors are over paid for what they do. In the frenzied market the last couple years, they were merely chauffeurs who would take a home buyer from house to house and attempted to gouge them as best they could. At one point it seemed anyone with a pulse was getting a real estate license.(Which I think is obvious if you look at the sharp rise in the number of realtors in the state of FL over the last five years) Or they were becoming a Mortgage Broker.

I doubt there is any realtor who has a great amount of experience and give you anything more for your money than $40/month for internet service can give you.

I will be happy to see these “Realtors” who worked 20 hours a week during the frenzy and made a good living actually have to work for a living. What will be even better is to watch the ones who invested in property with the rest of the idiots to try to make a quick buck go bankrupt.

The realtor in this market was very similar to the day trader in the tech boom of the 90’s.

Get a real JOB.

By Mash

October 13, 2006 12:08 PM | Link to this

Real estate commissions went up as the prices did, so they did the same work for double the money. if you use a lower priced agency, the other realtors will NOT show your property. You are forced to use MLS.

By MikeG

October 13, 2006 12:23 PM | Link to this

Why is everyone against realtors. They did not put a gun to anyones head to buy or sell. A realtor does get the entire 6% they may only get 1 to 2 % and they may or may not have alot of expenses. Realtors only get paid when they sell house. If they sell nothing they get nothing, Yes most realtors maid a boat load of money in the boom times, and now many are struggling to make ands meet. But like any sales job it is feast or famine. I personnaly could not stand being a realtor, having drive people around looking at houses. I just don’t have the patience, So if you don’t like realtors don’t use them. But if you are selling a house I would always recommend using a realtor. Houses listed for sale by owner usally don’t sell or it takes twice as long to sell.

By lladnareneerg

October 13, 2006 12:27 PM | Link to this

Frank, I am a Developer who will pay a commision to a broker any time for bringing me a buyer or leasee. You obviviously do not have any experierience in the business of development, banking or sales. Sure, it does not feel good to write that check. But, I think that is your greed is holding you back. For my part, I have full buildings, and full homes to show for it. And they pay they rent on time.

By GETTING DUMBER READING THIS

October 13, 2006 01:17 PM | Link to this

JEFF,

I CAN ASSUME THAT YOU’RE NOT THE HAPPIEST PERSON IN THE WORLD AFTER READING ALL OF YOUR REPORTS FILLED WITH NEGATIVITY, DOOM AND GLOOM. I THINK IT’S INCREDIBLE HOW IN YOUR FICTION PIECES, YOU REPORT THE MOST DEROGATORY ITEMS PERTAINING TO THE REAL ESTATE MARKET ON A WEEKLY BASIS! YOU SHOULD BE SO PROUD OF YOURSELF! I THINK YOU MUST STILL BE BITTER OVER SELLING YOUR DELRAY BEACH TOWNHOME IN 2001! THESE OVERPRICED REALTORS THAT YOU SPEAK OF ARE THE ONES THAT HELP PAY YOUR SALARY THROUGH THE OVERPRICED ADVERTISEMENTS IN YOUR PUBLICATION! I HOPE YOU OPEN YOUR EYES ONE DAY AND SEE THE BRIGHT SIDE OF THINGS ONCE IN AWHILE. YOU SHOULD REALIZE THERE ARE PLENTY OF PEOPLE LIKE FRANK THE DEVELOPER OUT THERE WHO HAVE NO PROBLEM PAYING FOR THE RESULTS THAT THE “OVERPRICED” REALTORS GET FOR THEM!

By Frank

October 13, 2006 01:19 PM | Link to this

True getting real service and attention from a realtor if your property is in the lower price brackets is almost impossible… but the light at the end of the tunnel is that more people than ever are choosing to sell themselves. The reality is many realtors have become lazy from a lack of inventory and a boom in consumers. Now that there are fewer legitimate consumers and as much, if not more, inventory than ever… we can say that the realtors who provide bad service will be weeded out fairly quickly. I imagine good realtors will still do well in this market, and I personally feel that if a realtor does his/her job properly than I do not mind paying them the 2-4%. Bottom line for me is… if the service warrants the fee I do not mind, but if the service is poor than I certainly would object.

By To Easyasabc

October 13, 2006 02:45 PM | Link to this

I finally agree with you about something. Now, if we can just get you out from under your rock to start looking at what’s really happening in the market…

By Mike Fink

October 13, 2006 03:17 PM | Link to this

Find of the day.. :)

Home orig list price was 429K. Now for sale for 250K.

Yeah, prices are going up as we speak. Tell me how this happens then. :)

Man, the neighbors are not going to be happy when this sells. That’s going to kill their comps, huh?

http://rmlsfl.mlxchange.com/Pub/EmailView.asp?r=741060501&s=RML&t=RML

By postman

October 13, 2006 04:10 PM | Link to this

The Naples News reports from Florida. “Some local real estate professionals are livid. It’s bad enough that sales of single-family houses in the Naples area has dipped nearly 50 percent. An auction scheduled for Oct. 21 has some Realtors seeing red, as in the bookkeeping term for financial loss.”

“The proposed auction has tied up the real estate market for the next few weeks, some Realtors protested in early October. People have stopped buying so they can wait and see what they can pick up at the sale, at which they can bid online or at the Naples Beach Hotel & Country Club for some 45 homes.”

“Drake’s listings show the 45 upscale properties listed for a minimum of $1. Real estate professionals say it is especially obnoxious because many of the properties that will be sold on the auction block, by seller desire, not because they can’t pay the taxes, were purchased by speculators who likely attempted to manipulate the market.”

“‘The majority of investors are selling off with little or no profits. Look at the 11 homes (in Lake Park) going up for auction by an investor now,’ says longtime Naples resident real estate agent Jerry Krecicki.”

“One of the sellers who signed up for the auction has 11 properties, and probably counted on Naples’ continuing sales boon but, apparently, miscalculated, (realtor) John Turner said. Turner cited a house that listed for $569,000 on March 5, 2005. Moorings resident Marjorie Dresner bought the house on March 7, 2005, and closed on it on April 26, 2005 for $585,000, Turner said.”

“Collier County Property Appraiser Abe Skinner had the house’s appraised value listed as $450,726. Likewise, a home was listed for $625,000. Dresner bought it for $635,000 on June 10, 2005. The assessed value listed as $563,933. On Oct. 2, Dresner sold it for $564,000, Turner said.”

“‘She kept going around buying these (houses) and she was paying way too much for them,’ Turner said.”

“Dresner, who owns 26 of the 45 properties up for auction, could not be reached for comment. Dresner indicated to auctioneer Paul Drake that the Oct. 21 event is a business decision. ‘We are auctioning off everything she owns, except for her own home,’ Drake said.”

“Krecicki said when folks buy for more than the property is worth, they ultimately end up devaluing the neighborhood, he said. ‘It’s bad enough that we have a real estate market that is, as a whole, slowing down,’ Krecicki said. That kind of market manipulation is wrong, he said.”

“So much so that the Naples Area Board of Realtors wouldn’t allow Drake to include his auction properties in the organization’s multiple listing services. ‘Everyone called up complaining. Realtors are in an uproar over this,’ Krecicki said.”

“‘Nobody can deny that transactions are, arguably, down about 50 percent, and buyers are generally reluctant to make offers. They don’t want to overpay. Or they feel the market will continue to decline,’ Drake said.”

By When it goes wrong...

October 13, 2006 04:43 PM | Link to this

There are so many interesting perspectives here, all shaped by personal experience, it’s impossible to address them as right or wrong; however, it’s been my experience that when people find themselves in the position of needing a realtor, that’s when they realize it would have been well worth it to hire one.

There are many pitfalls in real estate and any one of them can make it worth your while to hire a realtor.

I work in Commercial Real Estate and have my own Broker’s license, but when it comes time to buying or selling my own home, I hire a residential Broker, who knows the process inside out and back to front, protects my interests and let’s me focus on my core business.

Just like anything else, hire someone qualified, pay a fair price that works for both of you, and it’ll work out fine.

By crazydem

October 13, 2006 04:50 PM | Link to this

The Post didn’t mention this story-maybe it doesn’t support their “RE sky is falling” theme of the last year. (Or maybe they have a policy against “outing” the fallacy of their reporting, ie, Post refusing to out Foley)

“Relocating to Cheaper Housing Doesn’t Always Cut Costs”

By James R. Hagerty From The Wall Street Journal Online

Moving to an area with lower housing costs often doesn’t pay off for low-income Americans, according to a study to be released today by the Center for Housing Policy, a nonprofit research group based in Washington.

The study, which looks at families with low to moderate incomes in 28 metropolitan areas, found that transportation costs in places with cheaper housing are often so high that they wipe out the savings from lower rent or mortgage payments. Such places tend to be farther from employers or short on public transportation, which makes commuting costlier.

The study found that housing and transportation costs combined eat up an average of 57% of annual income for “working” families, which the study defines as those with incomes of $20,000 to $50,000 a year. The combined costs ranged from 54% of income in Pittsburgh to 63% in San Francisco; in 25 of the 28 metro areas, the combined total was within three percentage points of the 57% average.

Related Links

Join a discussion on the U.S. housing market.
The findings contradict the common notion that many people would be better off financially if they moved from areas with high housing costs, such as California, to states like Texas or Georgia, where housing is much cheaper.

The median house price in San Diego, at $613,000, is four times that of Dallas. But the study found that working families in San Diego spend 59% of their income on housing and transportation, only slightly more than the 57% they spend in Dallas. Families in Dallas spent just 26% of their income on housing, compared with 31% in San Diego, but the Dallas families spent more on transport.

The study also found that moving to an inexpensive outer suburb, but continuing to work near a city center, often backfires. Typically, a move that adds more than about 12 miles to a one-way commute will result in a rise in transport costs that outweighs the savings on housing, the researchers found.

The data on housing and transport costs for working families come from the 2000 U.S. Census. Since then, both housing and transport costs have jumped, but Barbara J. Lipman, research director at the Center for Housing Policy, said the results are still valid. Housing and transport costs have grown by roughly similar amounts.

The center is an arm of the National Housing Conference, a nonprofit group that favors more spending on affordable-housing programs for low- and moderate-income people. The conference is funded by groups including the MacArthur Foundation and mortgage-finance companies Fannie Mae and Freddie Mac.

By Nose it All

October 13, 2006 05:08 PM | Link to this

WHAT ABOUT OVERHEAD, the office, the costs of advertising, ect, its just not cut and dried 6% to dealmaker…Do it yourself.While you’re at it do your own plumbing, electrical,cut your own grass, WHAT’S WRONG WITH PEOPLE MAKING MONEY, IN ANY PROFESSION? Nobody is twisting anybodys arm. One thing you will need is a real estate attorney, don’t do a deal without one, you’ll be sorry.

By Nose it All

October 13, 2006 05:09 PM | Link to this

WHAT ABOUT OVERHEAD, the office, the costs of advertising, ect, its just not cut and dried 6% to dealmaker…Do it yourself.While you’re at it do your own plumbing, electrical,cut your own grass, WHAT’S WRONG WITH PEOPLE MAKING MONEY, IN ANY PROFESSION? Nobody is twisting anybodys arm. One thing you will need is a real estate attorney, don’t do a deal without one, you’ll be sorry.

By charlie shannon

October 13, 2006 05:55 PM | Link to this

It might appear that realtors make a lot of cash for not doing much. But if things deteriorate to the point of lawyers, as sometimes happens, you want to have representation to take care of you. It can get ugly if you do it on your own. Also, relative to the amount of money made by realtors, you have to factor in all the people you work with that use you for free where no money is made. If you divide the # of people worked with into cash made the average per transaction goes way down. And if you are a buyer you are insane to not use a realtor because the seller pays them not you

By J Johnson

October 13, 2006 08:16 PM | Link to this

Please. As a Realtor in Florida, I’m embarassed to tell people what I do for a living sometimes. The amount of business I gleen from unscrupulous agents out there, that promise the world and only list a home is where a majority of my income comes from. This by word of mouth. I am honest and Trustworthy. Of the 12000 agents here in Palm Beach County 25% are worth their R. Florida should demand a revamp of the process to become a broker/agent. Make a bachelors mandetory. To be professional in the Law or Acounting world you need to why not this industry. Hey, I’ve got a nice piece of property in the everglades for sale, waterfront, anyone interested.

By stockbroker

October 13, 2006 09:13 PM | Link to this

Realtors should structure fees like other commission based business. In the Stock Brokerage business fees decrease with an increase in the value of the acount or stock /mutual fund trade. If we priced like realtors do we would be sued out of the business..I was wondering how long it would take for people to wake up and realize how badly realtors are raping evryone out there… ex there should be breaks in commission as the value of homes go up…this is how the mutual fund business works, why shouldt realtors be held to teh same standard sepecially for a one time transaction, not anything like an atty/cpa or financial advisor who has to advise a client for many years. Thanks PBP for bringing this problem to the forefront

By JimmyJ

October 13, 2006 09:37 PM | Link to this

Yea I’vd had my share of realtors, the best is the one that stated that if interest rates went up 2% my mortage payment would only go up 2%.

Sold the last 2 houses FSBO, piece of cake.

Fair commission, yes maybe $2k a transaction.

With the average medium house at 400k paying the used car salemen realwhores(TM)on average $24k is about as crazy as the real estate prices in S. Florida.

I’ll buy bak again after the 50-70% haircut that we are abount to see.

I love going to parties and listening to all the morons talk about their neg am loans.

Are people really this stupid, they were the reason for the runup, and they are the ones who will be left holding the back.

Time to pack up and go back north.

PURE Karma, I say!

By CENSORED

October 13, 2006 09:49 PM | Link to this

WOW, looks like P.B.P. and jeff are preventing freedom of speech again here. Normally, i only write doing the day, and sometimes check the replies. But i have to re-post my article “Here’s The Lowdown” again! It was about what local realtors do and don’t do.

Realtors do the following:

Show only houses with 6% or more on the commission.

Most likly push their own home to sell before yours.

Won’t show homes without keypads. Realtors do not want the owners around when showing.

Tell the seller to reduce the home price twice within two months if not sold.

Have you leave your “OPEN HOUSE”, while all your neighbors track through your home.

Will only show property to people who have been “approved” of a loan, and within that price range.

Would not show homes in white neighborhoods to minorities.

Law enforcement agencies have a list of realtors who are suspected of stealing items from their clients homes.

There are realtors who use seasonal homes that are for sale as a “Love Nest” with their lovers!

And i know NAMES !!!!

There are realtors who leave the lights and a/c running 24/7 at homes where the owners moved away from.

Will bad mouth your house to buyers after they lose the listing.

Never give feedback to sellers of people who saw their property.

Will NOT show homes with commissions under 5%.

Some realtors have bought homes at lower prices from sellers that were on the market for a long time, knowing that they never showed high offers from buyers that were made earlier.

Realtors who take credit on a sale that they were never involved in!

Now, there are some good realtors. But for the most part, i would recommend FSBO listings. Both parties can save money, and they only need a lawyer and a title company to do the real work. If your house is over $1,000,000….then realtor is the way to go. A FSBO is not “chic” on the island.

Many tools out there now for both sides that realtors only had access to earlier.

Now jeff, behave yourself and don’t be a “commie” and start erasing this story again. Or i will have to tell Frank Cerabino not to give you that raise for cutting his grass. I know you are frustrated young man who is not holding. You sold too earlier in Delray, and it haunts you still. Be good and get a haircut for yourself this weekend. If you do erase this story, i will start telling all the little stories i was told about you at the Post.

Well, i have to go to bed now and get up early for my second job i like to have - cleaning the pool out at Century Village. Yes, there is a hottie at the pool there. Her name is Grandma Bubba. She likes it when i extend my pole out in the water. She is all over my A$$ when we are alone!

I bet this makes Bubba-head blush!

I am so nasty!

easyasabc

By Read it for yourself

October 15, 2006 09:26 AM | Link to this

Some robust stats contradict the market-gone-bust reports By Kenneth R. Harney, Washington Post Writers Group October 15, 2006

WASHINGTON — With all the dismal reports about the home real estate market, don’t lose track of something critically important: Mortgage interest rates have been falling quietly but steadily for months and are now at their lowest level in half a year, barely a percentage point above 40-year lows.

New mortgage applications are up sharply, the number of pending home sales is up, the national economy continues to expand moderately, and the rate of unemployment just declined again — to 4.6%.

ADVERTISEMENT All of which begs the question: Just what kind of housing bust is this anyway? With gloom-and-doom purveyors forecasting imminent crashes in dozens of metropolitan areas, how could such key fundamentals as jobs, interest rates and even pending home sales simultaneously be trending in the opposite direction?

Donald L. Kohn, the Federal Reserve’s vice chairman, took a stab at that seeming conundrum in a recent speech at New York University. His views are worth keeping in mind if you want to put the negative news on home prices and sales in perspective.

To begin with the fundamental point: Kohn sees no imminent bust or crash in housing. It is a “correction” that’s underway — a cyclical re-balancing of a marketplace that got too hot for too long in some parts of the country and is now heading back toward more “normal” conditions, where prices are more in line with what consumers can afford.

“The reported declines in house prices in a number of areas should help to facilitate the re-balancing of supply and demand in those markets,” Kohn said. Not all home sellers have fully grasped the altered realities in their own local markets — that they’ve got to reduce their asking prices if they truly want to sell. So the process is still unfolding. Re-priced houses, in turn, should stimulate greater numbers of potential buyers to get off the sidelines and make offers. The unexpected 4.3% increase in the latest monthly number of pending home-sales contracts heading for closing nationwide reported Oct. 2 by the National Assn. of Realtors could be a sign that Kohn’s prediction is already taking shape.

Second, said Kohn, the housing correction — expressed through new-home starts — suggests we are well on our way toward bottoming out and eventually returning to positive growth in new-home starts and resales.

Now to interest rates. Today’s “unusually low” long-term mortgage rate environment “stands in sharp contrast to some past downturns in the housing market that followed actions by the Federal Reserve to tighten credit conditions significantly.” Translation: Affordable mortgage money should help shorten the current housing down cycle compared with credit-squeezed periods in the 1980s, when mortgage rates sometimes exceeded 16% for fixed-rate loans.

A final key factor, according to Kohn: “Continuing growth in real incomes should underpin the demand for housing and, as home prices stop rising, help erode affordability constraints.”

Add it all up: Lower asking and selling prices on houses are integral parts of the correction. Lower interest rates should make those lower prices affordable to a broader number of potential buyers. That could become an even more important factor if mortgage rates dip below 6% in the coming months, as some Wall Street capital market analysts expect.

5.75% a possibility

James Glassman, a managing director at JP Morgan Chase, says 30-year fixed-rate mortgages at 5.75% are a distinct possibility if long-term rates in the global bond market continue to ease.

So, what’s the source of some of the confusion about just where housing is headed? Mike Moran, chief economist of Wall Street’s Daiwa Securities America, minces no words: The financial press and TV news shows are over-dramatizing what is a normal and long-predicted cyclical re-balancing, and “portraying it as a catastrophe,” he said

Housing “is going through a correction that’s badly needed,” he said. “The key issue is whether it is orderly or disorderly” — and all signs point to a continued orderly process, not a breakout bust or panic.

Doug Duncan, chief economist of the Mortgage Bankers Assn., points out that national housing sales numbers are merely rolling back to 2003 levels — “and that was a record year.” Serious sellers and buyers shouldn’t be misled by predictions of imminent crashes, Duncan said. Not only do the doom reports ignore the positives out there in the marketplace — mortgage rates in particular — but also “the rhetoric is just way overwrought.”

By crazydem

October 16, 2006 08:46 AM | Link to this

Who the heck is Donald L. Kohn, the Federal Reserve vice chairman? Doesn’t this guy read the Post? Didn’t he see their headline last month that said “HOUSING BUBBLE BURSTING”…it was in the Accent section, right next to “Paris Hilton out for Hamburger, caught drinking and driving.” He’s obviously not familiar with the Ponzi schemes, the parties everyone attends where they only talk about NEG AM loans (some party), “halfways” from NC, and the rent/own ratio. Well I got a message for the FEDERAL RESERVE: They need to learn how to parse real news from all the obvious hoopla out there by the cheerleaders, and they can start by reading the Clematis Street Post!

By It's Monday !

October 16, 2006 10:04 AM | Link to this

Goooooooood Morning Palm Beachers.

Did everyone have a great weekend?

Did you buy ?

Did you Sell ?

Did you drive around and look at “open houses”, then go home and reworked your numbers?

It seems this morning that there was not much activity happen on this site over the weekend.

Kinda makes you wonder that the usual suspects that always want to lower the prices here in this area are maybe realtors?????

They maybe wanted to stay away from this story!

I can’t believe all of them went on vacation…..or maybe they did….are the ski slopes open in the hills of Carolina ????

Something to think about.

Not even Bubba-Head wanted to write to me. Maybe Bubba is mad at me…..in fact, i believe he just packed up the trailer and gave up after seeing the latest data on the up turn of sales that we will experience here soon.

I told you all that the bargin summer season is over and both prices & sales are rising in Florida.

I am glad that Jeff left my story on that he earlier erased on local realtors antics.

Whatever people want to do, move, sell, rent or just wait it out and watch the world go by you…..i hope you all find the place that makes you happy.

We had a great weekend here again, sunny, nice ocean breeze.

Life is good in Palm Beach.

Only 16 days left until the “Snowbird” officially starts.

God help those Boca Raton -Hollywood area year round residents.

By Wondering

October 16, 2006 11:43 AM | Link to this

What stories???????

By Rich R

October 16, 2006 01:32 PM | Link to this

easyasabc, you know that most folks on here spin up after Numbers are released.

It’s been slow in that regard.

Don’t worry my humble friend, things will pick up when there is something new to talk about.

Weekend was nice in NC, chilly at night, beautiful during the day.

Sky slopes are not open yet, but will be at the end of the month.

If you’re thinking about coming up for skying, let me know. I sky and can tell you where the nice ones are.

We are all still waiting for you to display to us were you think values are increasing.

Have a nice day!

By Rich R

October 16, 2006 02:02 PM | Link to this

Oops!

I ment SKI, not SKY

By postman

October 16, 2006 02:23 PM | Link to this

GOOD NIGHT AND GOOD LUCK

Public Builder - Called me to find them bulk buyers with the ability to buy out all remaining units in developments they cannot sell. They are willing to sell at cost. I told them they were about 10% over the current distress market, and they didn’t even hesitate. They said, fine. Drop the price 10% and we’ll pay a 5% commission to you. Just help us get rid of this inventory.

Condo Developer - They have a 600 unit project that is 100% up for resale. This means no one is going to close when the building is completed in January. Every single buyer will walk from their 20% deposits. The developer will simply going to turn the keys over to the bank. And the bank will take a massive hit that will have the Feds on top of them in the blink of an eye.

Townhome Developer - Asked me to resell 132 units that they had sold a year ago for an average of $400,000 a unit. All of their buyers have notified them that they will not close. Unfortunately, even a year ago in the heated market these units were only worth about $250,000. Now, the units will not command more than $175,000 … if they’re lucky.

Real Estate Agent - She sold 10 of the 132 units I just mentioned to her friends, family, banker and co-workers. They’re all going to walk away from their $40,000 deposits, so they don’t lose $250,000. The developer will be stuck with 132 units that are not worth what it cost to build them.

Homeowner - This one really hurts, and this is the next wave of the massive tidal wave hitting this industry. As surfers know, the third set is the biggest. This homeowner purchased her home for $390,000 plus $15,000 in closing costs. It is now worth maybe $300,000. Their interest only ARM is scheduled for refinancing. The bank told them they need to come up with additional cash to cover the drop in equity. But they don’t have the $75,000 the bank wants. And even if they sell for $300,000 and clear $280,000, they can’t pay off their $390,000 mortgage balance. You see, their mortgage was 100% and it was interest only. They are going to walk away from the house and give it to the bank. The bank, if they are lucky, will sell the house for $300,000 less commissions and expenses. Maybe they will net out at $280,000. The math is simple. The bank, at best, will lose at least $110,000 on a $390,000 mortgage. That’s a 28% loss … IF they can sell at $300,000. Back to the donuts. Maybe they can sell a few of these homes at market prices, but as foreclosures mount, prices will drop further.

The Third Wave - This massive tidal wave will effect all aspects of our economy. Some banks will fail. Other banks will suffer the worst liquidity crisis since the Depression. And there is no way to stop this wave. This wave not only effects current mortgage holders who can no longer afford to live in their homes, but it devastates the new home market. Buyers with contracts are finding it tougher to qualify for mortgages. We can’t forget that rates are also up about 18% from a year ago, so buyers cannot afford the same home they could have a year ago.

I will wrap up with a statistic from a recent FDIC presentation.

“Bank exposure to mortgage and home equity is now at peak levels, having risen dramatically. If you look at 1998, the total exposure to mortgage and home equity loans was about 25 percent. In the last quarter, the third quarter, it had risen to 37 percent.”

And here’s the why this tidal wave is a killer. The 25 percent exposure was during a period of rising home prices and low inventory levels. The 37 percent follows the first two tidal waves of the highest inventory levels in the history of the United States and prices falling with equity disappearing daily.

I sold three homes last week for one public builder. Each of these homes sold for 40% less than the same homes sold a year ago. How about all of those neighbors when it comes time to refinance? The appraiser is going to look at current sales prices, and the bank is going to ask for additional funds to meet the equity requirements. Ouch. Where’s the Kool Aid?

By TANC

October 16, 2006 03:40 PM | Link to this

Hey, Hey wait a minute Mr. Postman….

You’re bumming me out….

I think you’ve been sucking down too much kool aid over the weekend yourself.

Is the end of the world also near?

Let me sell my house first before you poison the airwaves! :)

By TANC

October 16, 2006 04:17 PM | Link to this

Hey, Hey wait a minute Mr. Postman….

You’re bumming me out….

I think you’ve been sucking down too much kool aid over the weekend yourself.

Is the end of the world also near?

Let me sell my house first before you poison the airwaves! :)

By Mr Maggoo

October 16, 2006 05:19 PM | Link to this

Wow, I think Postman broght some interesting facts that seem to be very current. Any person looking to buy or sell should really take notice. I, too, have a client who got caught in the middle of the Real Estate craze and now finds that he can’t afford the property and needs to dump the property. Postman has pretty much confirmed my view that my client is not the only one. Furthermore, as for the notion whether Realtors are needed and if they are overpaid is besides the point in this market. I believe we are at a point in the market now where more than ever is when a good Realtor is needed. They are the soldiers at the front line who have buyers that many sellers so desperately need! The real obstacle moving inventory in this market is heavily weighted more on price than interest rates. Does anyone have data on avg household income in S. Fla?

By Inflated House Prices

October 16, 2006 05:52 PM | Link to this

This article suggests how the housing slowdown is not as soft as it seems.

Cash back at closing and other incentives contribute to the masking of the true home sale prices.

http://www.sun-sentinel.com/business/local/sfl-1016homecash,0,1378725.story?coll=sfla-business-front

By Mike Fink

October 17, 2006 07:11 AM | Link to this

School enrollment drops further then anticipated in PB County:

http://www.sun-sentinel.com/business/realestate/sfl-penroll17oct17,0,3162236.story?coll=sfla-busrealestate-headlines

By Rich R

October 17, 2006 08:50 AM | Link to this

postmans post is very reminisent of the failure of the S & L’s.

If you recall there used to be FSLIC in addition to FDIC.

When the S & L’s failed, FSLIC was combined with FDIC and the Thrifts became FSB’s (Federal Savings Bank).

I think we may see history repeat itself.

Hope not!

By postman

October 17, 2006 08:51 AM | Link to this

tanc or tank, you decide?

It’s officially a buyer’s market in Miami Beach and surrounding South Florida communities, according to Alex Shay, a prominent Miami Beach real estate broker, whose award winning website, www.alexshay.com , features some of the most beautiful residential real estate in all of the world.

Miami, FL (PRWEB) October 16, 2006 — It’s officially a buyer’s market in Miami Beach and surrounding South Florida communities, according to Alex Shay, a prominent Miami Beach real estate broker, whose award winning website, www.alexshay.com , features some of the most beautiful residential real estate in all of the world. “The market was bound to change,” said Alex Shay. “Real estate prices couldn’t continue to climb at the rapid rate of the boom days of a couple of years ago, and this is how it should be. The luxury home market is just beginning to once again become balanced, and soon the buyers will be out again in droves, because Miami real estate is still undervalued, relative to real estate in other parts of the country,” said Shay.

Nonetheless, real estate market conditions have been less than favorable lately if you are a seller in Miami. For example, according to data supplied by the Coral Gables, Homestead-South Dade, Kendall-Perrine, and Northwestern Association of Realtors or their MLS, in June of 2005, there were 3,261 single-family homes on the market in Dade County(which includes Miami, Miami Beach, and a number of surrounding smaller cities), with 1,196 sales. In January of 2006, there were 6,364 single-family homes on the market, with only 687 sales. In August of this year, there were 10,579 single-family homes for sale in Dade County, but there were only 705 sales.

The condo market in Dade County has been similar. In June of 2005, there were 5,550 condos for sale in Dade, and there were 1,564 sales. However, moving into January of 2006 there were 11,800 condos listed on the market for sale, but only 915 sales. In August of this year, there were 18,133 condos in Dade for sale, with the number of sales falling to a 15 month low of 823 condos sold.

Shay believes that buying real estate in Miami is a wonderful opportunity for those who love the “magic city”, and for those who have an interest in investing their money in some of the best real estate that dollars, euros, pounds, or any other currency, can buy. “I came to Miami many years ago,” said Shay, “and it always feels like you are on vacation around here. It’s a wonderful place to live and work.” Some of the most beautiful homes in all of Florida, if not in all of the world, are featured on www.alexshay.com , and Shay welcomes all of those who have an interest in Miami luxury real estate to visit his website.

“I want people to buy real estate in Miami Beach, because Miami luxury real estate is always going to be a good investment. The doldrums of the real estate markets of the 70’s and 80’s are long gone, and in 2006 and 2007, those who invest in Miami real estate are going to be very glad they did,” said Shay, “and a buyer can make a great deal right now.” Miami is an international city, and the most unique city in America, with it’s warm ocean breezes, and sunny, bright days. The weather and the wonderful beaches are among the predominant reasons that people from all over the world come to Miami Beach. It’s beautiful all year round. It is the third most visited city in the United States, behind New York and Los Angeles.

Alex Shay is an experienced real estate broker, who specializes in luxury real estate in Miami, and Miami Beach, as well as Coral Gables, Key Biscayne, Aventura, Bal Harbour, Indian Creek, and all of the surrounding South Florida community. He has been licensed to practice real estate in the State of Florida for over 20 years, and he brings his expertise and negotiating skills to his clients, whether they are his neighbors, or clients from as far away as Taiwan. “We are in a buyer’s market now”, he said, “and it’s a great time to invest in Miami real estate.” Literally thousands of homes can be viewed on his user friendly website (www.alexshay.com).

By Rich R

October 17, 2006 08:55 AM | Link to this

To Mike Fink,

I saw the same article about school attendance dropping.

This suggests that working class folks have come to the end of the line and no longer can live in SoFla even if they wanted to.

At the same time school attendance is dropping in SoFla, it’s exploding in NC and other areas of the country that are more favorable for the working class. Next month voters in Wake County, NC will vote on a billion dollar bond issue to build schools.

There is a significant migration out of SoFla.

Many will propose that the Boomers will flock to SoFla and take this inventory of homes, but I would suggest that the working class account for a much higher percentage of the population then Boomers or potential boomer migration.

Also, Snowbirds are only in town a portion of the year, when families move out of state, and boomers go north for the summer, this could rock the local economy.

Just my thought.

By To: Easyasabc

October 17, 2006 11:17 AM | Link to this

I didn’t forget you, I was just focusing on the very weird football weekend.

So what do you make of the school enrollment/crime reports that came out today?

That crime report really can’t be good for the baby boomers moving here. By the way, you should feel lucky, that hottie at the century village pool can probably take out here dentures…

By Rich R

October 17, 2006 11:37 AM | Link to this

You are starting to scare me easyasabc.

I actually agree with you.

It was a weird football weekend.

LOL

By YouBet.com

October 17, 2006 12:35 PM | Link to this

Sounds like you lost some bets on football games this weekend Rich R. Don’t tell me you switched from horse races to football games to bet on now. How did you like those Chicago Bears last night? It is that Chicago team you have to watch out for this season. They are a tough team to beat and don’t fool around. They take their game seriously. Don’t bet against them or you will be losing even more money.

By Bubba

October 17, 2006 04:03 PM | Link to this

You used to make money by betting the under on the Bears games, but that theory, like always betting that PB Real Estate would go up, has gone out the window.

By Rich R

October 17, 2006 04:05 PM | Link to this

LOL

I don’t gamble on horses (never did) or ball games. Life in itself is a gamble.

But thanks for your advice anyway.

By Heres my opinion and mine only

October 18, 2006 07:52 AM | Link to this

Hey Rich R I posted a message about 2 weeks ago in regards to having purchase a home in charlotte, nc but was unable to move until I was able to sell my home here in palm beach county. I’m glad to announce that yesterday My wife and I signed a contract for the sale of our home here in Fl with a 20K deposit. Also I have a job interview on Friday with a former colleague of mine down here. He has already told me the job is basically in the bag. I’m finally liberated from this place. I moved down here from New England 3 yrs ago and this experience has just been the worse and, to this point, the worse thing I have ever done in my life. But now I’m finally leaving. Goodbye Florida. To all floridians, you can have your fricking paradise (what a joke), I want nothing to do with it, and I promise, I won’t let the door hit me in the behind on my way out. I HATE THIS PLACE

By Rich R

October 18, 2006 09:53 AM | Link to this

Good for you. Congrats…

I’m happy to hear you sold your home, I’m sure that takes allot of pressure off.

In this case, I’m glad you didn’t use your real email address; you would get many bashing emails if you did.

I wish you all the luck in Charlotte, I was over there a few weeks ago visiting a friend. It’s a great town.

I’m sure you will be very happy in NC; I certainly am. My only regret is I didn’t move long ago.

It’s all about choices.

If you want to validate your decision, continue to ride this blog after you move. You will undoubtedly find great humor and entertaiment from it. I do.

I guess my problem is that I care about people, even people I don’t know. Not much of that in SoFla. You will find it in NC.

Don’t be shocked on your move in day if your neighbors show up at your door with a fresh baked pie, and insist of helping you move in; it’s a southern thing.

Best of Luck to you.

By Don't be Angry

October 18, 2006 10:07 AM | Link to this

To: Not Telling

Maybe you moved down here three years with that crowd that expected alot in life. It seems we had a group of people who are angry and bitter that once in their life, they just did not get it their way.

It seems that this same group are all shuffeling off to the Carolinas to find their paradise now. Paradise is what you make out of it.

I suspect that we will not hear from the last of you.

I have just notice more and more these days of “Angry” young yuppies who are just over their heads in debt, not happy who they are with and just is mad at the world. People, you need to start growing up and realize we all don’t get what we want in life ! Some of you are out there are just plain spoiled rotten. You felt that mommy and daddy did not give you enough attention. You show it in your remarks like “I HATE THIS PLACE”.

Just move on with your life. If you think you have it bad, you really don’t know what having it bad is like.

If you have your health, a job, a roof above your head, someone to love….then you are ok in life.

Time to let go your anger, because in the long run, you will meet up with someone who won’t take that s**t from you and will kick your a*s out of Carolina.

Consider yourself not a Floridian anymore, but just a “Halfback” moving back up north and landing halfway between New England and Florida.

For the natives of Carolinas, comfort the rejects from Florida. You will hear all of their failures & bitterness they had in Florida.

I hope Raliegh has enough in their budget to set up a crisis center for the “halfbacks”. Maybe Rich R. can give his time to console and maybe pick up a few bucks to help relocate these people.

By What is up with these Realtors?

October 18, 2006 11:17 AM | Link to this

I have been hearing this from people who are trying to sell in Florida. Realtors not working with other Realtors. It seems that Realtors will ONLY SHOW thier own listings, and NO OTHER listings to their customers. Isn’t this a dis-service to BOTH the buyer and seller???? And i have known this for a long time, only 6% commission or more of what the realtors are only showing to buyers.

Anyone else who has come across this, please tell us.

These realtors must be fighting with each other these days. Maybe many of them will have to bite the bullet if they want to survive and pay off their mortgage. If they don’t, then they might as well put that bullet in their head!

It is time for the State of Florida to clean out the Lowlife Realtors in this state.

By Rich R

October 18, 2006 12:11 PM | Link to this

I agree with SOME of the post above (Don’t be angry), but I feel that Florida has changed a whole lot, very quickly.

I grew up there (over 35 years) and it used to be a great place. I don’t have that opinion anymore.

Folks with plenty of cash thrive in SoFla; it’s the working class that is getting their brains beaten out.

Everyone has choices, but I firmly believe that everyone is in their pursuit of happiness. When your financial world is turned upside down over a period of a couple of years, that pursuit of happiness becomes hindered. Uncertainty of future events, just adds stress to an already stressful life.

Don’t bash people for having a less then favorable opinion of SoFla, just understand where they are coming from and accept that not everyone will agree on everything.

It’s ok to disagree. It’s all about choices.

I left Florida based on a rapidly diminishing quality of life; many are struggling financially because of the “Great Housing Boom”. It’s now time to pay the piper, and it’s causing great harm to many.

Even the folks with plenty of cash have this wealth from a lifetime of hard work and have achieved a level of success not common for the average Joe; good for you.

But, keep in mind, not everyone has retired from a success profession, many are young, and still working for the day they too can retire in comfort.

Also, people retiring now, had opportunities that young people today don’t have.

No longer can you expect to work for a company that will provide a nice retirement plan. Work for that company for 30 years and move to a condo in SoFla with a nice pension including healthcare. Now, you are on your own, and it’s much, much more different then generations past.

Bashers consider yourself luck and appreciate what younger, hard working folks have to deal with. Remember, you too were young and working hard at some point, and wouldn’t like to be beaten down for doing nothing more then trying to provide for your family with your head held high. THAT IS THE AMERICAN WAY.

I’m sorry for the long post, but sometimes I just have to vent too.

Easyasabc, it’s your turn.

By A Southern Thing

October 18, 2006 12:17 PM | Link to this

I like how Rich R. mention the pie at your door as a “Southern Thing”

Here are a few other “Southern Things” you might find in Carolina….

NASCAR every Friday and Saturday nights and Sunday afternoons.

Then people who go see those races, will want to become NASCAR drivers as they leave the parking lot.

Crimes never getting solved, due to everyones DNA matches !

Abandon cars and yard sales in front of people’s front yards.

A truck with rebel flag on its grill in your review mirror.

S**t-kickers living next to you.

The smell of a Waffel House cooking breakfast in the early morning hours.

All your TV channels having a minister on preaching the evils of money, sex and booze.

Guys with their bed sheets over their heads meetings at someone’s farm field. Bitching how bad Florida was to them.

Fighting over the food bar at Shoney’s.

Women with BIG, WIDE asses. If you don’t have now ladies, you will have it as the years go by in Carolina.

Men who will have even bigger bellies.

The thought of all of you haveing “chubby sex” in that state.

Rich R. having everybodies e-mail address in the Raliegh area.

All new residents sitting down with Rich R. and his girlfriend for dinner. (NO FIGHTING at the food bar!)

True Carolina’s reminding you that you are not one of them but a “halfback”.

Knowing that the only job that your high school graduated sons & daughters can get in Carolinas is a job with the military.

Smelling the wood burning in the hills, not knowing if it is your neighbors fireplace, or a out of control fire on the other side of the hill.

Seeing a strange yellow color in your drinking water.

Guys walking around with one suspender holding their pants up.

Young teenage girls walking around pregnant while their boyfrind are signing up for a tour in Iraq.

Waking up in the morning forgetting if you are living in North or South Carolina.

Being told to leave your home/trailer due to a toxic waste fire.

Just remember….it is a Southern Thing to laugh about.

By Rich R

October 18, 2006 12:55 PM | Link to this

easyasabc, you are describing SoFla.

It’s not like that here. You should visit, but please go home afterwards.

I would expect nothing less from you.

Have at it and enjoy yourself.

It’s you that people are trying to get away from.

I feel sorry for your neighbors.

Have fun man, it’s all you have. Oh, and should really consider talking to your doctor to have your med’s adjusted.

By Having Fun in Paradise

October 18, 2006 01:42 PM | Link to this

Rich R., you just are mad that you are being made a fool again here. You need to relax, take things in stride, re-adjust your suspender and watch your girlfriend’s a*s expand in Carolina.

Going to take my medicine now by walking over to the beach and watching the young clad bikini girls covered themselves with oil. Wasting away here in Margaritaville, and enjoying Cheeseburgers in Paradise.

Have to let Grandma Bubba know she is still #1 hottie to me, with or without her false teeth!

Grandma Bubba knows she has a dummie for a grandson in Bubba Head.

Ha Ha Ha

Yes, i had fun today.

Life is good in Palm Beach!

By Rich R

October 18, 2006 02:12 PM | Link to this

“Rich R., you just are mad that you are being made a fool again here.”

That’s priceless.

You’re too funny.

btw, what beach would that be? Just curious.

By postman

October 18, 2006 03:42 PM | Link to this

CLASSIC

“Shelton said the Jacksonville market has been wonderful, relatively speaking. ‘The rest of Florida is just paying for its sins.’ ‘The rest of Florida is like a dead zone and Jacksonville stayed insulated because it never got out of hand building,’ said Shelton.”

By Carolina Southern Belle

October 18, 2006 03:52 PM | Link to this

I moved to Florida 3 years ago and am from Raleigh. I am moving back there now since it is so disgusting here. The thought that many of you who I detest here is moving back to my home state sickens and saddens my heart. We do not accept anyone from any other state but our own. The low cost of living in the Carolinas is only attracting criminals and low life scum from Florida who cannot afford to live there and failed in their business. I for one would like to see the cost of housing in Carolina increase as rapidly as possible so that the low life from Florida do not settled there and continue their journey back to their birthplace i.e., New Jersey and New York. Carolina was beautiful until the hideous and deceitful residents of Florida started migrating to my beloved state. Do me a favor all you Florida residents migrating to my beloved Carolina, do not stop. Keep rolling along in those SUV’s all the way up the coast to where your kind belongs. Your kind is not wanted nor accepted. You are just trashing Carolina like you trashed Florida. You don’t know one thing about southern hospitality or gentleness or even manners. I thank you kindly for reading what I think of you Florida reject failures trying to call Carolina their new home. To all you degenerates out there, home is where the heart is and believe me you white trash out there, your heart is not, was not, and will never be in Carolina. I speak for all BORN AND RAISED CAROLINA RESIDENTS.

By Rich R

October 18, 2006 04:08 PM | Link to this

Belle,

I really hope your post is not directed to me.

I did grow up in FL and moved to Raleigh 18 months ago.

I absolutely love it here and have been received very well.

I expanded my business in NC and now provide good paying jobs to over 100 people in NC.

I wouldn’t give you 2 cents for FL now.

The nasty people in FL that you speak of would not move to NC anyway. They are too wrapped up in their misery.

There are a lot of very nice people in SoFla that like you, just can’t take the madness in SoFla.

NC is thriving due to the growth.

It’s the quality of the people moving here, not the quantity.

I do have one question for you though.

AFter living in Raleigh, why in corn sake would you go down there?

Good luck in your move, I hope you travel safely and I’m sure you will find Raleigh just as you left it.

I did notice one thing in Raleigh, people tend to calm down and relax when the get here. All the stress and pressure go away and they are able to be nice.

Also, niceness breed niceness.

People around here are so nice, you can only be nice back. Folks that bring their attitude with them when they arrive in NC quickly leave. You probably know that.

Once again, thanks for proving my point.

By to rich r

October 18, 2006 06:06 PM | Link to this

if you would not give 2 cents for fl, why are you reading this blog?

you just do not stop. you are gone, stay gone, and be gone.

By Rich R

October 18, 2006 07:19 PM | Link to this

No way.

This blog is just too entertaining to tune out.

I think I’ll stay, but thanks for your input.

By to rich r

October 18, 2006 09:23 PM | Link to this

once again, you make very little sense. you will not give 2 cents for fl, but this blog, is about fl, is too entertaining.

isn’t your time that you spend reading this, which seems to be a lot, worth more than 2 cents?

it is sad, that you have no other entertainment in hicksville.

By Steve

October 18, 2006 10:42 PM | Link to this

Is it fall yet? Aren’t sales supposed to pick up in the fall? HAA

Even the PB Post Real Deal stopped posting real estate articles. The condition of the market is that obvious. No sense adding insult to injury I guess.

By Dulldrum in Hicksville

October 19, 2006 10:00 AM | Link to this

This what happens when you live in Raliegh. You have to go back and read Florida news. No entertainment night life, neighbors not bringing pies to your door, seeing the same minister preaching on your tv channels, you get tired eatting out at Shoney’s, Denny’s and Checker’s. Life is not fun anymore in Hicksville. There is just no action going on there. No girls in bikinis to look at.

Hey Rich, you want to know what beach i am at? You know what they say…Curiosity kills the cat, Satisfaction brings them back!

We have a high number of killings here so far, i hate to return fire and have Raliegh lose their favorite son in a drive by shooting. Then again, you have lots of associates with that company of yours who can do your dirty work. Don’t worry, i have enough bullets for all my enemies. I like to keep my friends close, but i like to keep my enemies even closer.

Steve, no one is listening to you. You and RCA are both losers. Non-buyers. Renters. Have Nots in life. Angry, bitter white guys who are over their head in debt. Go back to work Steve and start shinning some shoes again.

Belle, re-think your move. If all the low lifes are moving to Carolina, wouldn’t you rather stay here. If i wanted to move, i know my future home is California. I have been there many times and you get better quality in all aspects there than in Florida. Take a trip to California and see yourself.

Hey Jeff and Linda, what are you two doing? Looking at property to buy here? Moving to Raliegh this fall? Delivering newspapers or taking calls for ads? Linda, did you get away from the Juice Newton hair look? Jeff, did cut Cerabino’s grass the other day? I bet you drive by your old Delray home thinking what you could have sold it at todays prices. You sold it to early Jeff!

Life is good in Palm Beach.

Ok everyone, stop laughing and get back to work off that debt. Going to have lunch with Suze Orman in Boca. Just business when we are together. We talk about people first, then money.

By funny

October 19, 2006 10:33 AM | Link to this

Easyasabc is KING!

By Rich R

October 19, 2006 10:40 AM | Link to this

Did you run out of your Prozac or Zoloft today easyasabc?

I would suggest you try Xanax. That might work, it’s hard on the liver, but is def. for you.

I feel sorry for you.

Plenty to do in Raleigh, went over and saw the Monet exhibit yesterday at the Museum of Art.

Such a waste of human flesh.

But very entertaining. I find humor in the way you are consolidating your bashing and covering all of us in one post.

I think all of the Pharm. Research companies in Raleigh are hiring, you may qualify as a lab rat. do you want me to send you the apps?

You rodent you…

By Dave

October 19, 2006 11:04 AM | Link to this

Off to Raleigh!

I’ve posted before about moving to Raleigh, NC to take a promotion with my company.

I am very happy to report, I sold my home yesterday to the person who is taking over my position here in South Florida. Lucky us. We saved the RE commission and kicked back half to the buyer. That made the deal. We had the house appraised and too off 3%. The sad part is that the home was appraised last year for possible refi and the new number was 14% lower. We’ve been in the house for over 10 years, so the lower amount is fine.

Thanks to the help from Rich R, we were able to find a beautiful 2,400 sf, 4 bedroom 3-½ bathroom home on .85 of an acre. New construction, 2 car garage, and loaded with upgrades, we even picked our own carpet, cabinets and colors.

The best part was that this home cost about half of what I sold my home here for and will not need a mortgage in NC. Taxes on this brand new home are only $1,700 per year and the insurance quote is only $647 per year.

I did the math and even with the State Income tax in NC, I’ll save over $32,000 per year. No more mortgage payments, $4,000 less in taxes, and $4,300 less in insurance. The new home is 6 miles from the office and that means no traffic either.

My wife is so excited, she wants to leave this week and get things ready. I’m getting quotes from movers today.

Even by two boys can’t wait because they are eagerly awaiting the birth of their new puppy, an English Mastiff.

I always loved South Florida and will miss it, but after spending time in Raleigh, I do have to say, I’m looking forward to living there.

To the people that speak badly of Rich R, you don’t have a clue.

I wish everyone here luck and thank you South Florida for everything. Our time here has been great.

By Bubba

October 19, 2006 12:41 PM | Link to this

Hey Easyasabc: If you were looking at a neighborhood to buy here in PB County, which one would you pick? Where can you get the best value and the highest chances at solid appreciation? I work in downtown WPB, so Boca/Delray is probably too far.

I’m still not convinced that prices are coming up, but if they do then it would be time to buy. But the big question is where. Any suggestions?

By Easyabc Fan

October 19, 2006 01:15 PM | Link to this

I am a big fan of yours Easyabc. I get more laughs out of you sticking it to that so called medication expert Rich than watching Jay Leno at night. Actually Rich is the Pill.

To “to rich r”, you are right about Rich too. Actually if you read everything he writes, you will come to the conclusions that he is just a realtor/loser waiting for someone to walk into his office. Notice how he has made so many references to real estate market and how it is not picking up when it should be. Why should Rich care about whether real estate is moving or not if he is really in Raleigh and not a realtor. No, I think he gave it away too many times he is a realtor looking for leads here in Florida. Rich probably has relatives in Raleigh who went to an art exhibit yesterday. He is in touch with family members everyday in Raleigh giving him the latest news there.

Maybe Dave the pillman is working for Rich since they both are into drugs. Or maybe Dave the pillman works for Rich now in his office.

Rich you are a waste of life. Why don’t you use your free time and visit sick people in the hospital or work with youths by donating you time on little league or youth clubs. Someday you will wish you had time to do the important things in life than waste it on these blogs with all your lies and deception. Boy do you ever need to see a shrink.

By postman

October 19, 2006 01:22 PM | Link to this

hey easy!

here’s a story that will make you cry like a baby!

S. Florida condo owners face foreclosure after getting big hurricane-repair bills

ALLALAKAZARCACOCTDEDCFLGAHIIDILINIAKSKYLAMEMDMAMIMNMSMOMTNENVNHNJNMNYNCNDOHOKORPARISCSDTNTXUTVTVAWAWVWIWY

By Joe Kollin South Florida Sun-Sentinel

October 19, 2006

It isn’t easy telling an elderly widow living on Social Security or a young laborer with a wife and kids that they must come up with thousands of dollars in a matter of months or face foreclosure of their homes.

But that’s what condo and homeowner association boards throughout South Florida are telling owners after last year’s hurricanes left them facing huge, unbudgeted bills for repairs and for new insurance, which in some cases has doubled or tripled.

“We’re getting about a dozen calls a day from frantic owners,” said Danille R. Carroll, the state condo ombudsman. “We tell them there’s not anything they can do but pay the assessment and that they aren’t alone, that associations all over the state are doing the same thing.”

While state law requires boards to maintain the value of the community’s common property and keep it insured, owners can petition the board to change the terms of its assessments. That could mean allowing for longer repayment or stretching out the time needed for repairs. If that doesn’t work, owners can try to recall board members or file a lawsuit against the board.

If that fails, owners who can’t pay face liens on their property and bills for their association’s legal fees. Ultimately, their homes can be foreclosed, although no figures are available on how often this is happening.

Steve Weiss owns a three-bedroom townhouse in the 358-unit Shaker Village complex in Tamarac. The association’s law firm has filed a lien on his uninhabitable unit because he is having trouble coming up with the $2,500 special assessment.

Hurricane Wilma last October damaged the wiring in his building. Later, rain damaged the roof and his ceilings collapsed.

Since then, the 45-year-old maintenance worker, his wife, Cherylann, and their four children, ages 5 to 12, have been living in hotels, paying $60 to $80 a day. He also must pay the $786 insurance and mortgage on the townhouse, plus $255 a month maintenance.

Even with the special assessment payable over eight months, he hasn’t been able to do it.

“We asked if we could wait and pay the assessment after we moved back in and didn’t have the hotel to worry about, but the association said no,” Weiss said.

Because he hasn’t paid, the board turned him over to its law firm for collection and it accelerated the payments. Although the full amount isn’t due until December, the lawyers since July have been demanding the full amount immediately.

Weiss said he tried arranging payments, but every time he inquires, the lawyers add attorney costs to his bill. In July, the lien included attorney fees of $472; by September it was $839. State law lets condo lawyers take their fees before turning payments over to associations.

Although the power in Weiss’ townhouse is on again and the roof is fixed, the ceilings haven’t been repaired and mold has become a major problem. The association tells Weiss that he might be able to move back around Christmas.

Bernice Klayman, president of Weiss’ association, said the board needs almost $900,000 for repairs and insurance. It had to turn delinquents over to its law firm because “if we didn’t, people wouldn’t pay, and if they didn’t pay, especially with no late fee on the assessment, how would we have the money to pay the contractors?”

Association directors, who must also pay the assessments, say they have no choice but to impose the special assessments. Forcing people to come up with extra money is never easy.

“You lose a lot of sleep over it,” said Joel Leshinsky, president of the Inverrary Association of Lauderhill, which includes 31 condo and homeowner associations. “You have to make the hard decisions that enable you to protect everyone while remembering that you’re not talking about doors or walls, you’re talking about human beings.

“It’s the crying I can’t take from the 80-year-old woman in the walker who can’t pay a $5,000 special assessment. It pulls on your heart, but you can’t let your personal feelings be a factor. It’s a tough thing to do.”

Buying a home in a community with an association comes with the responsibility to maintain the commonly owned property, said Gary Poliakoff, whose Fort Lauderdale-based law firm represents 4,000 associations in Florida.

“Most unit owners do not appreciate the fact that they might be exposed to very burdensome common expenses,” he said, especially insurance.

“Forty to 50 percent of the budgets of some associations now are going for insurance,” Poliakoff said. “That’s creating an enormous burden on boards.”

Not every board is having problems.

The directors at the 235-unit Braemar Isle on the east side of the Intracoastal Waterway in Highland Beach needed almost $1 million. In March, they imposed an assessment that averages $4,000 per unit, due in July.

Almost everyone paid, said manager Mona Texeira, and the association took out a Small Business Administration loan to cover any extra expenses.

Statewide, boards are using several methods to collect special assessments. Some are telling owners to get it immediately any way they can. Others are borrowing money so they can pay expenses while letting owners pay them back over a longer period. Still others put off repairs until owners can get money.

State law requires boards to make their decisions in a specific way, Poliakoff said. In condos, owners must get personal notice of the meeting at which the special assessment will be considered. Boards must let owners see books and records with all backup information.

Condo owners who aren’t told of the meeting or aren’t allowed to see the books and records should file a complaint with the state Division of Florida Land Sales, Condominiums & Mobile homes or the condo ombudsman.

No state agency hears homeowner association complaints, so those owners must file lawsuits to see the books. The state does not track such suits.

Associations first file a lien against delinquents. If the owner doesn’t pay, they have the option of filing a foreclosure suit.

When such suits are filed, owners can defend themselves in court, and judges usually try to get the parties to mediate their dispute. But if an owner loses the case or doesn’t respond to the suit, the property is sold to the highest bidder. The money raised goes to pay the debt, with the owner getting anything left.

Joan Walter, a widow in her 70s, moved to the 7,200-unit Kings Point in Delray Beach 30 years ago from Brooklyn, N.Y., with her late husband, an upholsterer.

Walter’s $271 monthly maintenance is going up $71, and the association just got word that its insurance is increasing $3.2 million for the year. That will add as much as $132 a month to the great-grandmother’s costs.

“I’ve looked to get out but there is no place [to go],” she said. “I afforded it very well but I can’t keep up with it. All I get is my late husband’s Social Security. You think in old age you’ll be comfortable and then this happens.”

Some associations say they can tough it out.

Ron Pacella, president of Hollybrook Golf & Tennis Club in Pembroke Pines, says his board assessed each owner $1,700.

“Less than 100 of our 1,902 owners are dragging their feet, and if they don’t pay by the end of the year, they will be liened for what they didn’t pay,” Pacella said. “Would we foreclose? No, we wouldn’t do that. The lien would remain until they sell.”

By Rich R

October 19, 2006 01:31 PM | Link to this

postman, I saw that article this morning.

Everyone seems the think that boomers and retirees will come to the aid of the SoFla RE market.

This illustrates that the current state of affairs is affecting this group much more then many think.

It further suggests that this group, who for many years have fueled the RE market is not stressed to the point of failure.

Who is going to replace this group?

Certainly not the working class. Where are all the rich people from the north?

I think this book has many more chapters to be written and I think when the final chapter is complete, it will be a horror story.

:(

By Steve

October 19, 2006 06:42 PM | Link to this

Where is the new post from The Real Deal? I’m tired of this same old post. Hey easyassbc, you got something against white guys?

By Truth Is

October 19, 2006 09:11 PM | Link to this

Truth is that since the real estate market has been so slow, my boss sent me away to study journalism so I can come back and write great real estate stories so that all your realtors can sell your properties. Guess you don’t advertise in the Post if I don’t write more positive stories. Lower revenues from Post means I won’t get a raise. I watched NBC News tonight and learned from them that the prices of property is suppossed to increase here now. So tomorrow I will write about what I saw on television tonight. Sorry, Post does not pay me enough to buy a copy of Sun-Sentinel so I can read their stories so I can write about it on the Post. Does anyone have any ideas of what I can do a story on in the real estate market?

By Rich R

October 20, 2006 07:44 AM | Link to this

Average Joe is getting slammed.

Article in today’s Sun Sentinel talking about Homelessness due to skyrocking housing costs.

Here’s the link:

http://www.sun-sentinel.com/news/local/southflorida/sfl-chomelessoct20,0,4630530.story?coll=sfla-home-headlines

I guess easyasabc would just say “Too Bad”.

And many call SoFla “Paradise”.

By Its Friday !

October 20, 2006 09:50 AM | Link to this

The weekend is here again, time for the dreamers to go around looking at houses/condos/townhomes in their area and across town. Maybe they will check out their neighbors “open house” while the home owners are away? For realtors to sit at these “open houses” eatting out of the owners refrig and looking through the sellers dresser drawers. And not let us forget about the new buyers flying in from the New York area. Too bad about those Mets and Yankees not making it to the world series this year. Winter will soon be there! Will you be here for the winter or there in the cold?

I did read about the article abou the lost of over 1,000 students in the school system. But if you read on, it said the Baby Boomers will come in and buy up ALL of the houses from the low income families who got priced out of the area. Anyway, if you are under 18 yrs. of age, you are not a property owner. How many of those kids parents rented? How many of those kids just used Florda as landing base to move somewhere else as they came here from another country? Any data out there?

Ft. Lauderdale is building up big time. Sorry to hear the Yankee Clipper might go. It is a true landmark.

Suze did not show up for lunch, she sent her regrets to our group, but she did send several of her money people. She promise to be with us next month. She has a place in Boca, and New York, and San Francisco and several other places. She does ok for herself. She did great for our group.

Bubba, i do not invest in trailer parks, so you will have to ask Rich R. about areas to buy into. Anyway, you have no money.

DOW over 12,000….how long will it last? How soon will people start to take out and buy homes? If you want to know, you needed to hear what suze’s people said told us. It was interesting.

RCA…no one is listening to you. Go back and eat your pudding and go mumble to the ducks at your nursing home lake.

Steve….i have nothing against white guys, or any other type of people. I just know you are a bitter, angry, ignorant, racist, have not, fascist, white guy who rents and does not make the money to afford to live here.

And then we have Rich R……You know Rich, most notable rodents out there are really loved by many people. There is “Jerry” from Tom & Jerry. And then there is “Speedy Gonzalez”. And we cannot forget the famous one of them all….M-I-C-K-E-Y M-O-U-S-E…

MICKEY MOUSE !

You sure know your pills. Does that Dave, the pill man guy, supply you your medicine? i bet he is one of your best employees at your drug lab. I bet you are popping all those pills all the time. Any pill out there for your girlfriend to take to reduce that wide a*s of hers? I thought about her this morning while i was driving. There was a “Wide Load” taking up two lanes on the expressway.

Just stay up in Raliegh and enjoy the Carolina life. I hate to have you looking for me as i take my afternoon walk along the beach here. Because if you come here as George Washington…i’ll send you back as Abe Lincoln.

Capeche !

To all my fans out there, i am really here to talk about the “Florida” real estate market. It seems we have certain people who got so desperate of trying to bad mouth this area, they try to do anything here. Including getting your email address and trying to locate you through mail or phone. They turn out to be realtors or brokers who can’t sell here or in other areas.

Maybe Jeff or Linda will have something new to say. They might feed off of that NBC report someone mention.

I hope i cover from everyone who wanted to get my feedback.

You know, i should be writing for the POST as a REAL DEAL writer and give up that second job cleaning the pool at Century Village. At least my stuff is better than what i read from the “so called” reporters.

By One last thing

October 20, 2006 09:51 AM | Link to this

I forgot to say that…

Life is good in Paradise!

By Hey easyasabc

October 20, 2006 10:21 AM | Link to this

Sounds like you don’t invest in anything. Oh yeah, your big tip was swampland out in the everglades. That’s brilliant.

And remember, who needs money to own if property values are increasing? You can get one of these crazy loans and your life will be secure b/c there’s no way that prices will drop, right?

Fact it, you aren’t buying now either, which means you don’t put your money where your mouth is.

That should be a strong message to all you people out there on the fence about whether to buy or not, EVEN THE CHEERLEADERS WON’T BUY NOW!!!

By Steve

October 20, 2006 10:36 AM | Link to this

Easyassbc, you crack me up. Keep up the good work.

By BP

October 20, 2006 11:22 AM | Link to this

Easyassbc:

3,600 kids left the school system this year alone not 1000. Babyboomers can’t sell their homes up north either no can they afford to live here. By the way the family drain continues if you read the article is said that 600 more kids have left since school started. South Florida is growing right? By the way why do baby boomers need single family homes? Remember they are downsizing. So if families are leaving who will by all the McMansions? Tell us easyabc how many places do you have for sale? You never answer that question.

By Poor Bubba

October 20, 2006 12:03 PM | Link to this

Poor Bubba

Only if Bubba knew what it is like to make a nice bundle before the word gets out to investors. Hey, you don’t want to invest in the Clewiston/ Belle Glade area, you will be just kicking yourself in the pants later.

As i said it before, i say it again….Bubba has no money!

Remember Bubba, all of us had made our money and put into various investments besides real estate. You are becoming another angry, bitter white guy like Steve who want to know the secret of making money. To make money, you need to have money. And Bubba, you don’t have it!

Call on Rich and he will help you find your “Mayberry” in Carolina. Florida is not for you.

I am going to have some wine and eat some cheese & crackers under a palm tree, catching some rays with a nice lady at the beach that i meet several times. She will have the snacks and i will bring my cork screw and vintage wine to get us going.

No need for the sellers to panic, you have something that all these bashers want. They just have to pay the price. Florida is not like a Burger King. Buyers don’t have it their way. It is the sellers way of what the sale price will be. If you don’t like it, then go somewhere else. Someone else will buy the property that you wanted. Too many realtors out there are in a panic because they have a mortgage to pay off. More FSBO signs went up than realtors signs in the past months. Save some money and buy from owners. If the bashers had money, they would have bought by now. Money talks, B******t walks. Isn’t that right Bubba!

I got to go, my lady friend called. I cannot guarntee i will be back today, but catch everyone again on Monday or Tuesday.

Yes, there is other things in life more important than real estate.

Life is so good in Palm Beach!

By TH

October 20, 2006 12:07 PM | Link to this

Just in the past 6 weeks the school district has lost over 600 kids….on top of how many they lost at the beginning of the year…..

By T

October 20, 2006 12:11 PM | Link to this

Today, there are 27,611 homes on the market in Palm Beach County.

A year ago, the MLS counted 11,605 properties for sale.

And two years ago, the number was a mere 7,044.

By postman

October 20, 2006 02:34 PM | Link to this

hey easy, remember when prices was going up every year at 50 to 100% clip?

hey easy, easy!

oh, i forgot, easy is ready to jump in a lake with the gators.

remember cheerleaders, it is time to put on your skirts and monkey suits and beg for buyers.

i cant wait to see easy in the jump skirt.

By Rich R

October 22, 2006 01:46 PM | Link to this

Haven’t any of you figured easy out yet?

He owns nothing, never has and is a renter.

He is here for the entertainment value and to see how many of us he can get to respond to his non-sense.

Sorry I haven’t been around this weekend, I went for a drive on the Blue Ridge Mountain Parkway to see the change in Seasons, anyone want to see the pics, email me, I put then on Snapfish.

It was amazing this year. The view from Grandfather mountain was spectacular.

By Rich R

October 22, 2006 04:49 PM | Link to this

Haven’t any of you figured easy out yet?

He owns nothing, never has and is a renter.

He is here for the entertainment value and to see how many of us he can get to respond to his non-sense.

Sorry I haven’t been around this weekend, I went for a drive on the Blue Ridge Mountain Parkway to see the change in Seasons, anyone want to see the pics, email me, I put then on Snapfish.com

It was amazing this year. The view from Grandfather mountain was spectacular.

By Internet Madam

October 22, 2006 09:38 PM | Link to this

Hello Rich. I just got back from Vegas myself. It was a professional trade show there this past week. I had some stunning and beautiful photos taken. What goes on in Vegas, stays in Vegas but these photos are great for the memories.

I read you had a fat girlfriend but I have been reading now that you are driving around looking for a guy named easy? Are you gay Rich? I think I have you figured out now. Maybe I should send you these stunning photos which could convert you someday. I have some tremendous mountain views for you to look at too. I will email my photos to you and you can email your change of season photos to me.

By the way, what sign are you Rich? I study astrology.

By Internet Madam

October 22, 2006 10:20 PM | Link to this

Hey Rich, what are you doing for the Halloween festivities? Join me and my ladies down in Key West for Fantasyfest this week. Tell me what costume you will be wearing. We have various tricks and treats, whatever your preference is. Meanwhile we can discuss home values in the Keys.

By Rich R

October 23, 2006 10:49 AM | Link to this

internet madem and easy are the same person.

I’d bet on it.

Just too, too funny.

By YouBet.com

October 23, 2006 01:29 PM | Link to this

To Rich R.

I thought you did not bet on anything. I only bet on sure things and I will bet you your boat that Easy and Internet Madam are not the same person. I remember reading once that you own a boat. Want to put your boat or your money where you mouth is? We can all visit Internet Madam this week. How about it Easy? Want to see Internet Madam, Rich R. and me down in Key West? I’ll give you and Internet Madam a ride on the boat after I win it from Rich R.

By Rich R

October 23, 2006 06:18 PM | Link to this

I have a 42’Valiant, but unlike Florida, I had to pull it out of the water for the winter.

But hit me up next spring.

The only way Easy or Internet Madam would be on it would be with a hook in their mouth.