Twelve of Florida’s metropolitan statistical areas (MSAs) reported higher existing home sales in May; 14 MSAs also had higher condo sales. It’s the sixth consecutive month that Florida Realtors has reported higher year-over-year existing home and existing condo sales statewide.

“With low mortgage rates and a broad inventory of homes at affordable prices, qualified buyers are realizing that there may never be a better time to find the home they’ve been dreaming of in Florida,” said 2011 Florida Realtors President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart. “Consult a local Realtor® about qualification criteria and to find out more about opportunities in your local housing market.”

Florida’s median sales price for existing homes last month was $135,500; a year ago, it was $142,900 for a 5 percent decrease. However, May’s statewide existing home median price was about 2.9 percent higher than it was in April. Analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in April 2011 was $163,200, down 5.4 percent from a year ago, according to NAR. In California, the statewide median resales price was $293,570 in April; in Massachusetts, it was $279,000; in Maryland, it was $226,370; and in New York, it was $200,000.

According to NAR’s latest industry outlook, tight credit is one of the reasons why the market is underperforming. “Although existing-home sales are expected to trend up unevenly through next year, unnecessarily tight credit is continuing to restrain the market along with a steady level of low appraisals that result in contract cancellations,” said NAR Chief Economist Lawrence Yun. “A robust economic and housing market recovery cannot occur as long as banks continue to hold onto huge cash reserves.”

In Florida’s year-to-year comparison for condos, 8,338 units sold statewide last month compared to 7,104 units in May 2010 for an increase of 17 percent. The statewide existing condo median sales price last month was $98,200; in May 2010 it was $96,400 for a 2 percent increase. May’s statewide existing condo median price was about 6.9 percent higher than it was in April. The national median existing condo sales price was $167,300 in April 2011, according to NAR.

The interest rate for a 30-year fixed-rate mortgage averaged 4.64 percent in May, a drop from the 4.89 percent averaged during the same month a year earlier, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

© 2011 Florida Realtors®

So many of you out there are calling and e-mailing asking about our beaches here in South West Florida. I decided to start a blog about Bradenton Sarasota, in general, but every time I blog there will be an update on the beach-the water- our sand.
I went down to the beach yesterday with my favorite photographer/video maker. We took a few picures and some video. The bottom line is the beach is fine. Actually it’s beautiful. There were hundreds of people there with umbellas up, suntan lotion on, radios talking. They were playing frisbee, chasing kids and some, the lucky ones, were just… breathing. The worlds crazy right now with so much going on that seems out of our control. But the sand and the waves -the breeze off the ocean kinda made it all go away.
I was an observer but standing there smelling the ocean with the sun on my face made me remember why I moved here. I forget sometimes to go down there and just be still. To stop working or fixing diner or doing laundry or talking about real estate and breathe. Dr Oz says stress will kill you. There is no way to be stressed out at the beach- I don’t think it’s possible.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.

Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. “Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the homebuyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.”

The PHSI in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago. In the Midwest the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008. Pending home sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago. In the West the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.

Yun cautioned that home sales could dip in the months ahead.

“The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.

“Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,” Yun said.

© 2009 Florida Realtors®

Statewide sales of existing condominiums in the third quarter rose 56 percent compared to the same time the previous year. This marks the fourth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.

Statewide sales activity in 3Q 2009 also increased over 2Q 2009’s sales figure in both the existing home and existing condo markets, Florida Realtors’ records show. For 3Q 2009, statewide sales of existing homes rose 2.82 percent over the 2Q 2009 figure; existing condo sales statewide in 3Q 2009 increased 0.37 percent over the 2Q 2009 level.

To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts.

“Most economists think the recession is over, but people are afraid to spend money as unemployment keeps going up, which creates problems for every sector of the real estate market,” said Tim Becker, the center’s director.

On the positive side, survey respondents expressed increasing optimism about their own business outlook, and predicted great opportunities for future investment. Becker noted that the euro’s favorable exchange rate against the dollar and the availability of desirable commercial property at low prices is encouraging international investors.

“Everybody thinks that Florida will rebound because we have so much going for us – the sun shines every day and there are a lot of advantages to living here,” he said. “Foreign investors see that too and believe their prospects are good for long-term investments.”

All of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the third quarter compared to the same three-month-period a year earlier, while 17 MSAs showed gains in condo sales.

The statewide existing-home median sales price was $145,400 in the third quarter; a year earlier, it was $185,600 for a decrease of 22 percent. The 3Q 2009 statewide existing-home median sales price was 1.25 percent higher than 2Q’s statewide existing-home median sales price of $143,600. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.

In the year-to-year quarterly comparison for condo sales, 14,797 units sold statewide for the quarter compared to 9,488 in 3Q 2008 for a 56 percent increase. The statewide existing-condo median sales price was $106,100 for the three-month period; in 3Q 2008, it was $160,100 for a decrease of 34 percent.

Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.16 percent in 3Q 2009; one year earlier, it averaged 6.32 percent.

© 2009 Florida Realtors®

WASHINGTON – Oct. 29, 2009 – Senators reached a compromise to extend the $8,000 tax credit for first-time home buyers, a boost the housing industry expects will help it pull out of its two-year-old downturn.

Lawmakers in Washington also added a $6,500 tax credit for other primary-home purchasers and raised the qualifying income limits to $125,000 for single taxpayers and $225,000 for joint taxpayers, housing-industry sources said.

Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, the sources said. The measure still faces votes in the full Senate and the House.

The current tax credit did little for the new-home market in September, the Commerce Department reported – news that took many industry analysts by surprise. Sales fell 3.6 percent from August and 7.8 percent from September 2008.

Industry observers had expected a fifth consecutive monthly increase in new-home sales, believing that the tax incentive for qualified first-time buyers – credited with 357,000 sales of previously owned homes so far this year – would do the trick.

Instead, sales of typically more expensive newly built houses slipped.

“The decline in new-home sales seems to us to be more a function of the attractive pricing available on resales in the current environment than a reflection of weakening demand,” said Michael Feder, president of Radar Logic Inc., of New York, which tracks the market.

“Big deal,” said Joel L. Naroff, of Naroff Economic Advisors, of Holland, Bucks County. “Since hitting rock bottom in March, demand is up 20 percent.”

For Naroff, the robust rise in existing-home purchases – 9.2 percent year over year in September – indicated that the housing market was not faltering.

“Maybe the issue is supply, which fell to its lowest level in 27 years,” he said. “Builders, at least those left standing, have been making sure they don’t have any houses sitting around, and they have been very successful in controlling inventories.”

IHS Global Insight Inc. economist Patrick Newport echoed that, noting new-home inventories “sank for the 29th straight month to their lowest level since November 1982.”

Naroff maintained housing had recovered enough to stand without the tax credit. But Newport said he believed that if the credit were not extended and expanded, housing demand would take a hit, and home sales would drop.

Until the Senate compromise today, the extension of the credit seemed mired in what National Association of Home Builders vice president Jerry Howard called “a game of partisan chicken.”

Howard’s take on the lower September numbers: It was too late to sign a contract on a house that would be completed by the current Nov. 30 deadline, and many buyers were concerned the credit would not be extended.

The credit has helped, acknowledged Marshal Granor, a principal in Granor Price Homes, of Horsham. But he added, “I’d love for it to go away, for a month.”

“People who believe there is no rush aren’t buying, they are waiting for more bargains from more squeezed sellers,” Granor said.

Still, said Feder of Radar Logic, lower home prices have carried “buyers further into the autumn than we would expect, based on historic patterns.”

Declining inventory means builders will have to ramp up production, Newport said.

As the Senate worked on the compromise, third-quarter data were released showing that the burden of foreclosure filings in the post-bubble market continued to shift from the subprime-ridden “sand” states (California, Nevada, Florida and Arizona) to areas with rising levels of unemployment and adjusting rates on the “exotic” mortgages prevalent in high-cost metropolitan markets.

Yet Las Vegas remained the toxic-loan capital, according to the third-quarter survey by RealtyTrac Inc., of Irvine, Calif. – its rate of foreclosure filings was seven times higher than the national average.

Copyright © 2009 The Philadelphia Inquirer, Alan J. Heavens. Distributed by McClatchy-Tribune Information Services.

Housing and Urban Development Secretary Shaun Donovan says the administration is not sold on the idea. For the past several weeks, Obama administration officials have been talking about possibly extending the credit to help spur the economy and create jobs. But at a congressional hearing Tuesday, Donovan said the administration needs better cost estimates.

“To truly understand the costs, we will not know that until Americans have filed their tax returns,” Donovan told the Senate Banking Committee. “We believe it’s critical to have the information necessary to make a fully informed decision about the costs.”

Tax filing season doesn’t start until next year. But Donovan said he expects to get cost data in the next few weeks. “We understand the urgency of this situation,” Donovan said.

The Internal Revenue Service has opened 107,000 examinations of questionable claims and identified 167 criminal schemes involving the tax credit since it was expanded as part of the economic stimulus package enacted in February.

But lawmakers understand the program is popular and has helped the struggling housing industry recover.

Lawmakers said they might add protections to help prevent fraud. But there is a growing consensus among congressional leaders that the housing market is still fragile enough to justify extending the program.

House Majority Leader Steny Hoyer, D-Md., said he favors extending the existing credit through the end of the year as lawmakers work to “find out about how ethically and how honestly this policy is being pursued.”

Senate Banking Committee Chairman Chris Dodd said, “We still need to use every tool at our disposal” to help the housing market. Dodd, D-Conn., has joined Sen. Johnny Isakson, R-Ga., in sponsoring a bill that would extend the credit until June 30 and expand it to people who already own homes.

It would cost about $1 billion a month to extend the existing credit, according to congressional estimates. The bill sponsored by Dodd and Isakson is estimated to cost $16.7 billion.

The existing credit allows qualified first-time homebuyers to reduce their federal income taxes by 10 percent of the price of a home, up to a maximum of $8,000. Homes purchased after Jan. 1 are eligible. The full credit is limited to single filers making less than $75,000 a year and joint filers making less than $150,000.

About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

“The housing market would not have moved without this tax credit,” said Lucien Salvant, spokesman for the National Association of Realtors. “It’s a fragile recovery, which is why we think it should be extended.”

The IRS began special screening procedures for tax returns claiming the credit after it was enacted, said IRS spokesman Frank Keith. For example, taxpayers who previously claimed the mortgage interest deduction would warrant a second look if they claimed the first-time homebuyers credit, he said.

Processing claims presented special challenges for the IRS during the spring tax filing season because homebuyers were eligible for different credits, depending on when they purchased their homes.

First-time homebuyers who purchased homes in 2008 were eligible for only $7,500 in tax credits, and the credits had to be repaid over the following 15 years. Those who bought homes in 2009 were eligible for up to $8,000, and there was no requirement to repay the money. Also, people who bought homes in 2009 were allowed to claim the credit on their 2008 tax returns.

An audit by the agency’s inspector general found that 93 percent of the returns claiming credits for homes bought in 2009 were coded incorrectly, meaning those taxpayers could be incorrectly identified as liable for repaying the credit. The audit was released in September by the Treasury Inspector General for Tax Administration. It reviewed 47,276 electronically filed returns.

The IRS, in a response to the audit, said it plans to track the returns and confirm that taxpayers are liable to repay the credit before pursuing them.

Copyright 2009 The Associated Press, Stephen Ohlemacher, Associated Press writer.

“I think Florida consumers are buying into the argument that the worst of the recession is over and we have avoided a complete meltdown,” says Chris McCarty, survey director of UF’s Bureau of Economic and Business Research. “Once again, they have surprised us with a higher-than-expected index.”

This month’s three-point rise follows a four-point revised increase in August. Of the five components that make up September’s index, three rose, one declined and one was unchanged. Perceptions of personal finances now compared with a year ago remained unchanged at 44, only five points above its all-time low of 39 in December. Expectations about personal finances a year from now fell three points to 81.

In contrast, perceptions of U.S. economic conditions over the next year rose three points to 75, while expectations about economic conditions over the next five years rose five points to 86. Perceptions of whether it is a good time to buy big-ticket items, such as appliances and cars, rose nine points to 84.

“It is worth noting that the two index components that gauge perceptions of personal finances both now and in the future are flat or down,” McCarty says. “All of the increase is in perceptions of future economic conditions, and in the perception that if you have the money, it’s a good time to buy.”

There are some signs that the economy is improving, he says.

Once again, the median price of a single-family home is virtually flat compared with the previous month, and up for the year, suggesting that housing prices in many areas of Florida have bottomed out, McCarty says. Although foreclosures are still high, the rate seems to be declining.

In other good news, inflation and, in particular, gas prices remain low overall compared with a year ago, McCarty says. In the past few years, gas prices have dominated the consumer confidence index. In addition, the stock market is still up for the year and at least for now appears stable.

“On the negative side, unemployment remains at 10.7 percent for Florida,” McCarty says. “This number is not expected to improve much until next year, and it could still get worse. Florida lost population this past year and could do so again as the underlying problems that prevent people from moving are still in place.”

Tourisms both domestically and internationally also are down as consumers trim discretionary spending, McCarty said. Programs such as Cash for Clunkers at least temporarily lifted retail sales, but sales tax revenues in Florida have dropped 10 percent from a year ago.

“In the near term, we expect consumer confidence to decline at least a point or two as the holiday season nears and stimulus programs like Cash for Clunkers and rebates for first-time home buyers expire,” he says. “The discussion about health care reform will be at center stage this fall, and may affect confidence if the plans involve increased payments from the middle class.”

Also of economic concern is that, at some point, extended unemployment benefits will run out, putting more pressure on the unemployed. In the long term, consumers need to be prepared for the inevitable drawing back of stimulus money from the economy, McCarty says.

The U.S. government effectively printed money to avoid a depression, and at some point most of the money will have to be withdrawn from the economy to avoid inflation and a very weak dollar, McCarty says. When that happens, interest rates will rise dramatically.

“We also have to think about how the Florida economy will adjust moving forward,” he says. “It is likely that discussions about off-shore drilling will receive much more attention as Florida looks for industries to replace those dependent on population growth.”

The research center conducts the Florida Consumer Attitude Survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for September was conducted from 412 responses. The index is benchmarked to 1966, so a value of 100 represents the same level of confidence for that year.

© 2009 Florida Realtors®

“We’re busy,” said Laurie Zobel, owner of Zobel Real Estate, located in Port Charlotte since 1979. “We’re getting a lot of calls on various types of real estate. We’re getting calls on vacant land from people who want to build in the future. We are busy selling homes.”

The situation is similar for Cynthia Logan of Coldwell Banker Sunstar Realty in Port Charlotte.

“I’m getting a heightened amount of calls from people who want to retire here after reading some of the recent publicity about it being an affordable place to live,” said Logan, president of the Punta Gorda, Port Charlotte, North Port Multi Listing Service.

Across the state, sales are up but prices are down. Sales of existing homes in Florida rose 28 percent in August, compared to August 2008.

Some 13,850 homes sold statewide last month, compared to 10,813 a year ago, according to data released by Florida Realtors, a trade association that represents Realtors.

The association also reports a 45 percent increase in sales of existing condominiums statewide, compared to last year. Sixteen of Florida’s 20 metropolitan statistical areas reported increased existing home sales in August while 18 showed increases in condo sales, the FR release said.

It’s the 12th straight month that sales have increased statewide and the 14th consecutive month that the majority of the state’s MSAs have reported increased sales.

There are encouraging signs locally. Some 230 existing homes were sold in Punta Gorda and surrounding areas in August, compared to 176 last year, a 31 percent increase. Some 678 existing homes were sold in the Sarasota-Bradenton area (including North Port and Venice), compared to 551 in August 2008, a 23 percent increase.

Zobel, who runs a one-person office, operates primarily in Charlotte County and North Port. She is writing at least one contract per week for an existing home sale.

Zobel has worked on three contracts for land sales this week. “That’s up and that’s encouraging,” she said.

Success is relative. In 2004-05, Zobel says she was writing 40 vacant lot contracts and selling approximately 20 homes per month.

Meanwhile, the sales of existing condos increased in August, up 186 percent in the Punta Gorda area (from 14 last year to 40 now) and up 34 percent in the Sarasota MSA (from 126 to 169).

The median sales price for condos was $98,000 in Punta Gorda (down 42 percent from $170,000) and $185,600 in the Sarasota MSA (down 16 percent from $220,000).

Median sales prices of existing single-family homes decreased in August compared to last year. Statewide, the median sales price for existing homes in August was $147,400, down 22 percent from a year ago, when it was $188,500. Sales of foreclosures and other “distressed” properties continue to reduce the median price “because they generally sell at a discount relative to traditional homes,” according to Florida Realtors.

The national median sales price for existing homes was $178,300 in July, down 14.6 percent from a year earlier, according to the National Association of Realtors.

The median sales price of an existing home in the Punta Gorda area last month was $103,300, down from $138,100, a 25 percent decrease. The sales price in the Sarasota MSA was $164,200, down 25 percent from $218,200.

But the “sales up/prices down” mantra doesn’t fly for some in Charlotte County.

“You can’t say that across the board,” said Logan, who has worked in real estate in Florida since 1975. “There is some stabilization to the pricing. We are a declining market, in general.”

Zobel also sees prices stabilizing.

“We’re not having to reduce prices as much as we did in the past,” she said. Right now she’s showing homes priced from $80,000 – a three-bedroom home built in 2006 – and up.

Logan handles a lot of bank-owned properties, but she says those listings “have slowed up somewhat. The banks seem to be holding them back.”

Most of Zobel’s sales are short sales and foreclosures, “but I’m seeing more and more sales where you have a regular buyer and a regular seller,” she said. A short sale is a real estate transaction wherein a bank agrees to accept less than the balance owed on the property.

“We are getting the short sales to closing,” Zobel said. “There are fantastic deals, but you have to be patient.”

Copyright © 2009 The Sun, Port Charlotte, Fla., Ed Scott. Distributed by McClatchy-Tribune Information Services.

On Friday, 40 states will file detailed high-speed rail project applications with the Federal Railroad Administration. In December, President Barack Obama will announce which will get money from the $787 billion federal stimulus plan to generate jobs.

If Florida gets the $2.5 billion it seeks, it will represent a stunning reversal of political fortunes – after 25 years of promises and setbacks – that will provide thousands of new jobs as early as 2011, when construction on the 95-mile Tampa-Orlando segment could begin.

The Florida funding request also covers planning an Orlando-Miami segment that could complete a 361-mile high-speed rail corridor between Tampa and South Florida in 2017.

That 180 mph-plus East Coast corridor would cost about $8 billion, not including right-of-way purchases. Amtrak could provide additional service from Jacksonville south.

Potential drawbacks – including construction and operations costs and how much demand there might be to pay $30 for a 64-minute ride from Tampa to Orlando International Airport – appear to have been relegated to the background.

Why? The prospects of jobs – at a time when it’s common for hundreds of people to vie for a handful of positions.

“High-speed rail will bring an unprecedented number of new jobs to Florida, with the overriding goal of supporting the federal recovery plan,” said U.S. Rep. Kathy Castor, D-Tampa, who has participated in several White House discussions on the topic this year.

“At the same time, anyone who has traveled around the country or to Europe knows how important the investment can be to modernize transportation,” she said. “The high-speed rail project can provide a real shot in the arm you don’t see happening from real estate.”

Estimates by those involved in Florida’s previous high-speed rail plans indicate as many as 15,000 construction jobs could be required for the Tampa-Orlando leg. Florida’s Department of Transportation estimates more than 20,000 would be created over four years for the Orlando-Miami link.

Florida’s prospects

Interviews with congressional and state officials and local business interests reveal advantages Florida is expected to have when the Obama administration makes its initial funding choices:

• Environmental plans for the Tampa-Orlando corridor are complete, unlike other U.S. corridors.

• Florida is the only state that has acquired a high-speed rail right of way – the median of Interstate 4, estimated to be worth more than $100 billion.

• Construction could begin as early as 2011, providing the Obama administration with potential political gains in an important presidential election swing state.

Forty states are competing for $8 billion. At least $5 billion more from annual federal budgets could be allocated to 10 high-speed corridors nationwide.

Florida’s proponents acknowledge the tough competition, but say it is advantageous that their bid covers the construction of the entire project from Tampa to Orlando, unlike states such as California, where state money would be required in addition to federal dollars.

Competitors could seize upon Florida not proposing some state matching money as a point in their favor, said Ross Capon, National Association of Railroad Passengers’ executive director. But Capon said another factor – how operational costs would be covered – could play a role. Those details have not been released.

Another advantage for Florida is that its lobbying effort enjoys unusual bipartisan participation. Supporters include the Republican governor; both Florida U.S. senators; eight Democratic and three Republican congressmen; 21 state Republican and seven Democratic legislators; and a broad representation of business groups, the advocacy group FastRailConnectUs.com says.

Vice President Joe Biden and U.S. Transportation Secretary Ray LaHood in June made public comments supportive of Florida’s rail plans, with LaHood saying Florida and California were leading contenders. LaHood is scheduled to address a transportation conference in Orlando next month.

The business community also has rallied to the cause.

“Our company has a strong interest in transportation initiatives that benefit all sectors of the economy,” said Becca Bides, spokeswoman for Busch Entertainment Corp. “As a significant employer in both Orlando and Tampa regions, we also are interested in bettering transportation options for our 11,000 employees.”

Disney also sees advantages.

“We are encouraged by the opportunities that high-speed rail could bring to Florida,” said Zoraya Suarez, Walt Disney World’s manager of media relations. “We would work with local officials to place a station for the new system on or near our property, taking into consideration the needs of both tourists and local residents.”

One initial drawback in Tampa and Orlando would be the lack of state-of-the-art mass transit to provide connections to and from high-speed rail in 2014. Hillsborough County’s first light rail lines serving downtown would not be possible until 2018 – pending approval of a 1 cent county tax, among other factors.

More than mobility

High-speed rail evokes notions of a fast, comfortable trip commonplace in Europe and Japan, but a recent Washington policy shift emphasizes economic development and wise land use that state-of-the-art local transit and high-speed rail can promote.

“My experience is that an investment in transit intersects with land use and economic development,” said G.B. Arrington, a principal with the transportation development firm PB PlaceMaking. Arrington helped write a new Federal Transit Administration policy on ranking transportation projects for funding that took effect in July.

“For places that are successful, it is all about having a long-term vision of a community. Florida’s density and activity centers make high-speed rail a logical fit.”

That’s the groundwork Lakeland businessman Doc Dockery produced in gaining voter approval in 2000 for a constitutional amendment for a high-speed rail system. In 2004, then-Gov. Jeb Bush persuaded voters to remove it.

Former Hillsborough County Commissioner Ed Turanchik, who is leading the high-speed rail lobbying in Florida, has invoked the performance of University of Florida quarterback Tim Tebow in his efforts to build support.

“High-speed rail is the Tim Tebow of transportation,” Turanchik said. “It’s a game changer.”

Copyright © 2009 Tampa Tribune, Fla., Ted Jackovics. Distributed by McClatchy-Tribune Information Services.

Those just beginning the process will have to beat the average time it takes to buy a home, a challenge that real estate professionals can help buyers meet even though it’s taking longer today to close most transactions today, according to Realtor.com officials.

On average, first-time buyers search 12 weeks to find a home, while closing can take up to 60 days, depending on individual circumstances and local regulations.

Additionally, the tax credit has proved to be extremely popular this year: studies show that taking advantage of the first-time homebuyer’s federal tax credit and relevant state incentives is the most important reason motivating 10.8 percent of buyers today. In fact, approximately 1.14 million buyers have already filed for the credit. Many more are expected to file for the credit when income taxes are due April 2010.

Historically high affordability is a major factor driving first-time homebuyers today, a growing group that accounted for one third of all purchases in July 2009, according to a survey by the National Association of Realtors®.

NAR’s affordability index in July 2009 was 36.0 percentage points higher than July 2008. Under these conditions, the typical median-income family can allocate 15.8 percent of their gross income to mortgage payments, well below the traditional allowance of 25 percent. Interest rates, which play a major factor in affordability, remain low, and averaged 5.22 percent in July for a 30-year fixed rate loan.

Realtor.com President Errol Samuelson said, “The national median home today costs approximately $174,100. By moving quickly to find and close on a home by Nov. 30, first-time buyers qualifying for the $8,000 tax credit can actually purchase this same home for only $166,100, an almost 4.5 percent discount off of the price of a typical new home. Because affordability this year is at its highest level in 28 years, and the market offers an incredible selection of homes within reach of most first-time buyers, we expect their numbers to grow as they pursue this once-in-a-generation opportunity to become homeowners.”

He added that by combining the effective use of technology for information-gathering with expert advice from local Realtors, today’s first-time home buyers can beat the clock and use the $8,000 federal tax credit, along with any available state-level credits, to purchase a home before the Dec. 1 deadline.

“By moving quickly, being prepared to make decisions in the face of increased competition, and using the expertise of a real estate professional, first-time homebuyers can still close on time and qualify for the $8,000 federal tax credit,” Samuelson said.

© 2009 Florida Realtors®