Ocala Florida Real Estate Statistics February, 2008

Ocala Florida Real Estate Statistics February, 2008
by Brigitte Shultz

According to OMCAR (Ocala Marion County Board of Realtors) from the end of February of 2007 to February 28th, 2008 the average sales price for residential homes fell from $189,959 to $167,969 for a decrease of 12%.

The average list price fell from $198,333 to $181,480, or a decline of 8.5% for the same 12 months period.

The median sales price fell from $165,144 to $145,000 for a decline of 12%.

Our MLS has 7459 active listings as of the March 26th 2008, which shows the first significant drop in inventory.

Interesting Ocala History

Ocala (Indian village name meaning "Big Hammock" ) is the largest city within Marion County which is the fifth largest county in the state of Florida. Hernando de Soto passed through a Timucua village or province named Ocali or Ocale near the present site of Ocala during his famous expedition through what is today the southeastern United States in 1539. Greater Ocala is known as the "Kingdom of the Sun." Rail service reached Ocala in June 1881, encouraging economic development. Two years later, much of the Ocala downtown area was destroyed by fire on Thanksgiving Day, 1883. Buildings were rebuilt with brick, granite, and steel rather than lumber. By 1888, Ocala was known state-wide as "The Brick City."

In December 1890, the Farmers' Alliance and Industrial Union, a forerunner of the Populist Party held its national convention in Ocala. At the convention, the Alliance adopted a platform that would become known as the "Ocala Demands." This platform included abolition of national banks, low interest government loans, free and unlimited coinage of silver, reclamation of excess railroad lands by the government, a graduated income tax, and direct election of United States Senators. Most of the "Ocala Demands" were to become part of the Populist Party platform. Ocala was an important center of citrus production until the "Big Freeze" of 1894-1895.


More Information about Ocala can be found at: Ocala Real Estate Links

The Shultz Team
Ocala Florida Real Estate Team
Re/Max Premier Realty
800-243-4087
352-291-1276
Info@OcalaVisualTours.com
www.OcalaVisualTours.com

Marion County Florida Tax Relief Information

Here is some more information for you about the upcoming tax changes for Marion County, FL:

On January 29, Florida voters approved Amendment 1 that provides additional tax relief to property owners. The Amendment has four provisions. Below is the information you need to know about each provision:

1. Doubling the Homestead - this allows an additional exemption of $25,000 to apply to the value between $50,000 and $75,000. For instance: for a home valued at $72,000, the first $25,000 is tax exempt; taxes are due on the second $25,000. Then, $22,000 would be tax exempt as that's the amount that's more than $50,000. The additional $25,000 exemption would be applied to all levies with the exception of school districts.Filing Information - NoneAction Required - No action required by the property owner.

2. Portability - this allows homestead property owners to transfer up to $500,000 of their Save-Our-Homes benefits within 1 year and not more than 2 years after relinquishing their previous homestead. If the homestead is more valuable than the old homestead, a taxpayer can transfer the entire old CAP dollar amount (up to $500,000 CAP transfer). If a taxpayer downsizes, the percentage of protection will transfer to the new homestead. In other words, if they had 50% protection before, they will have 50% protection in the new downsized home (up to $500,000 CAP transfer).Filing Information - To qualify for this benefit for 2008 you must have received homestead exemption on your previous Florida property for 2007 and be claiming homestead exemption on your new property for 2008.Action Required - Complete steps 1 through 5 on DR501T form and return it to the property appraiser's office by March 1, 2008. Click here for Form DR501T.pdf

3. TPP $25,000 Exemption - this grants a new $25,000 exemption for tangible personal property. Filing Information - To qualify for the exemption a 2008 Tangible Personal Property Tax Return is required to be filed. The filing deadline is April 1, 2008. Action Required - Taxpayer must file a Tangible Personal Property Return DR405 or if they filed a 2007 Tangible Personal Property Return they can file a DR-405EZ Return instead. Once you file the DR-405EZ Return you will not be required to file a Tangible Personal Property Return in future years unless your value exceeds $25,000.Click here for form DR-405EZ.pdf.

4. Non-Homestead 10% CAP - this limits assessment increases for specified non-homestead real property except for school district taxes. Non-homestead properties will be capped at 10%. This non-homestead CAP would have a based year of 2008 and the CAP would apply in 2009. Properties may be assessed at Just Value following a change in ownership. The 10% CAP on non-homesteads would be applied to all levies with the exception of school districts.Filing Information - NoneAction Required - No action required by the property owner.

Information Provied By Marion County Property Appraisers

DIRECT LINK:

http://www.pa.marion.fl.us/

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$1,100,000

MLS# 276113

ID#: 781

Ocala, FL

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Info@OcalaVisualTours.com

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Feds cut rates again

The Federal Reserve has cut key interest rates for the fifth time since September 2007.

For those of you with a loan tied directly to the Prime Rate, like home equity lines of credit or HELOC accounts and charge cards with variable rates will see an interest rate reduction on their next statement.

Long-term mortgage rates, however, could actually see an increase after today's cut, based on past performance and trends.

So don't count on long term rates to decrease more. Our current rates are the lowest rates we have seen since 2005. Go ahead and buy to capture a great rate before it is too late.

Ocala Florida Real Estate Statistics January, 2008
by Brigitte Shultz

According to OMCAR (Ocala Marion County Board of Realtors) from the end of December of 2006 to December 31, 2007 the average sales price for residential homes fell from $199,152 to $165,653 for a decline of 16.8%.

The average list price fell from $211,771 to $178,685, or a decline of 15.6% for the same 12 months period.

The median sales price fell from $160,000 to $140,450 for a decline of 12%.

Our MLS had 7891 active residential listings as of the end of 2007, which represents a 39.5 months supply of homes for sale. A 3-5 months supply is ideal for a balanced market. This also means for every buyer there are 39.5 homes on the market to choose from.

BUYERS, WHAT ARE YOU WAITING FOR?

Interest rates are at historic lows. They may dip at least once more. But what if they don’t? By waiting, interest rates may creep up again. Please look at these 2 examples that illustrate how expensive a one point interest rate increase can be:

On a $200,000 loan an increase from 6 to 7 percent costs the buyer an additional $47,340 over the life of the loan.

On a $400,000 loan, a one percent interest rate increase from 6 to 7 percent costs the buyer an additional $94,680 over the life of the loan.

According to the Federal Reserve, the average renter accumulated $4000 in wealth between 1995 and 2004 versus the $184,400 average home owner’s accumulation.
It costs the first time home buyers an average of $18,000 for every year they wait to purchase a home.

The incredible drop in prices in the last two years and a historic increase in inventory has led to a more affordable housing market that gives buyers greater opportunity to find their dream home.

CALL THE SHULTZ TEAM NOW AND START INVESTING IN YOUR FUTURE.

7 TOP REASONS WHY TO BUY REAL ESTATE NOW!!!

1. Record Inventory: There are 7862 homes on the market in Ocala/Marion County today. 2376 homes are brand new and have never been lived in. There is something on the market in every price range. Just 2 years ago, buyers had to make compromises to find their dream home. We also have many building lots in all sizes at fantastic prices.
2. No Bidding Wars: In 2005 multiple offers on one property drove buyers insane. They had to make their first offer the best offer, or they would loose the house they wanted. Many buyers gave more than the asking price. In today’s Buyer’s Market I have not seen any competitive bidding.
3. Time to shop: In the Seller’s market of two years ago, time was of the essence. You had to hurry to make an offer, or you would be in competition with other buyers. Today you can take your time – look at several homes and weigh all your options.
4. Make an offer: Sellers invite you to make offers. Most of them will not be insulted if you make them a reasonable offer they can’t refuse.
5. Inspections: Buyers are encouraged to obtain home and termite inspections and appraisals. During the hot Seller’s market, many buyers waived these contingencies to gain advantage with multiple offers.
6. Builder concessions: Builders are extremely motivated to sell the many specs they have in their inventory. They are offering help with closing costs, inexpensive lease options and offering many of upgrades at a great discount.
7. Financing: Gone are the days of no doc, adjustable and sub-prime loans. Low fixed rates are back (the feds lowered the prime rate by a quarter point last night). FHA financing, special loans for first time home buyers, teachers and police officers are still available. Don’t wait, buy Real Estate now!!!!

THE OCALA REAL ESTATE MARKET

Many people are asking themselves what happened to the Ocala Real Estate market. Our market had a great run up in prices which fizzled out in 2005/2006 and now we are going through a much needed correction. Although Ocala has a low unemployment rate, our wages are also much lower than the average wage in the rest of the country. So once the investors quit buying and became sellers, our local economy could not support the appreciated values of most of our homes.

Three of the reasons people were moving to Ocala to retire here, were the low prices of homes, insurance and taxes. Our inventory went from around 1100 residential listings in June of 2005 to 7860+ residential listings today, which is a 714% increase in inventory.
On the buying side, volume was 48% in September, and has been off 30-50% consecutively for the past 12 months.

Sub Prime loans are very hard to get any more, which cuts out a lot of buyers who are willing, but not able.

The Sub Prime woes, foreclosures and the high inventories are nationwide problems, which keeps buyers from selling in other states, and in turn from buying here.

This is a much needed correction and it will take years to absorb our high inventory.
Hopefully our local government will help with real estate tax reductions. They are working on a PROPOSED SUPER HOMESTEAD (check it out at http://www.pa.marion.fl.us/).

Ocala is a beautiful place to live and lots of baby boomers are getting ready to retire and there are only so many warm places to move to in our country. I am very optimistic for the future of the Ocala Real Estate market – it’s a perfect time to buy and realistic
priced homes are selling every day.

Seniors - 2006 Tax Tips & 2007 Tax Changes

Brought to you by the Senior Advantage Real Estate Council®

2006 TAX TIPS

The April IRS tax filing deadline is looming. Here are some tax tips to pass to clients and to use as you prepare your own returns.
-Early mortgage and property tax payments-If you made your January, 2007 mortgage payment before the end of 2006, be sure to deduct the mortgage interest for that January payment on your 2006 taxes. The same goes for pre-paid property taxes.
-Retirement Contributions-If you're self-employed and have a Simplified Employee Pension (SEP), you have until April 16, 2007 to make contributions for tax year 2006. If you file an extension on your tax returns, you can extend that date to October 15, 2007.
-Home office deductions-If you're self-employed and qualify for a home office deduction, don't forget to write off a portion of heating and lighting costs and home insurance premiums.
-Energy-efficient renovations-If you've modified your home with energy efficient products, such as solar panels, energy-efficient windows, and so forth, see whether you're eligible for a tax credit.
-Investment Properties-Add up receipts associated with investment properties. Repairs to keep the property in good working condition are deductible during the year you pay them. Significant investments, like a major kitchen renovation, get depreciated over 27.5 years for residential real estate.


2007 TAX CHANGES

There are a number of changes in the laws affecting estate, gift, and capital gains taxes. Here's some brief information on the changes.

Federal estate tax law amounts--For many over age 50, their home is the largest asset in their estate. The amount in an estate that is excluded from Federal Estate Tax is $2 million for 2007 and 2008. The exclusion rises to $3.5 million for 2009.

Gift tax--An individual can make a gift of up to $12,000 to any other individual without paying a gift tax or reporting the gift. Just a reminder: The tax on gifts over $12,000 is paid by the donor--the person giving the gift.

Capital Gains Tax-In 2007 and 2008, the maximum tax percentage is 15% on long-term (over a year) capital gains (sales price minus basis, which varies based on the circumstances). On December 31, 2008, that maximum rises to 20%.

The minimum tax percentage fluctuates. It is 5% in 2007, dips to a zero minimum (0%) in 2008 and then goes up to 10% on December 31, 2008.

In 2007, the capital gains tax exemption amounts remain the same: $250,000 is not subject to tax for an individual, and for couples, the figure is $500,000.


NEW LIMITS: RETIREMENT ACCOUNTS

(Most Baby Boomers are still contributing to retirement accounts. For those who are no longer working, the distributions may be their primary source of money to live. The source of money impacts their housing and lifestyle goals.)

Contribution limits:
Roth IRAs and traditional IRAs 2007: $ 4,000 2008: $ 5,000

Roth IRA Basics:
-Contributions are made with after-tax dollars
-Contributions are not deductible
-Can contribute even after the age of 70 -1/2
-Money can stay in a Roth IRA for your lifetime
-No tax penalty if you withdraw early
-Qualified distributions are tax free
-No income restrictions
-No income tax on withdrawals during retirement

Roth IRA income limits increase in 2007:
-Single people: A full contribution is allowed if income is $99,000 or less. A partial contribution is allowed if income is up to $114,000.
-Married couples: Contribution limits range from $156,000 to $166,000.
-To convert from a traditional to a Roth IRA, income cannot exceed $100,000, regardless of marital status.

Catch-up contributions:
Individuals age 50 and older can make "catch-up" contributions to their retirement plans.
-Regular IRAs: Limits for 2007: $5,000; Limits for 2008: $6,000
-SEP IRAs, 401K, 403(b) and 457 plans: Limits for 2007: $5,000
-SIMPLE plans: Catch-up contributions equal 50% of whatever the current limit is for 401k, SEP, and 457 plans.

Qualified retirement plans: The current contribution limit allowed to be considered when determining contribution amounts and benefits is $250,000.

Defined benefit plans:
-2007 cap on annual benefits is the lesser of $180,000 or 100% of the average compensation for the last three years.
-Annual additions are limited to the lesser of $45,000 or 100% of compensation.

401K, SEP, 403 B, Elective Deferrals:
The 2007 limit is $15,500 for elective deferrals for 401k plans, tax sheltered annuities, and salary deduction simplified employee pension plans.

Annual elective deferrals to a SIMPLE plan: The 2007 limit is $10,500.

Annual deferrals under section 457 plans (such as deferred compensation plans or state or local governments or tax-exempt organizations): The 2007 limit is $15,500.

Many thanks to the SENIOR ADVANTAGE REAL ESTATE COUNCIL® for putting this together!
www.seniorsrealestate.com

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For current price please call: (800) 828-7993...ID# 792 or you can visit the Visual Tour:

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Ocala Real Estate Market Report

Your Ocala Real Estate Market Report! - By Art & Brigitte Shultz

The Shultz Team has recently completed a Real Estate Market Report spanning the past six years in Marion County (Jan 2001 - Dec 2006). Please take a moment to view this report. As you will note, the number of residential parcels sold was down by approximately 18% in 2006.

As your "Realtors For Life," our intent is to keep you informed of changes in the market place on a timely basis. Recently many of you have expressed an interest in a current market analysis update on your personal property. We'd be happy to take the time to meet with you and provide you with a current CMA (Comparative Market Analysis) at your convenience.

Please give us a call if you have any questions or comments, and please let us know how we can best serve your needs. (800) 243-4087 - Info@OcalaVisualTours.com

For a complete market report of homes in your price range, please visit our Marion County Market Report page: http://www.theshultzteam.com/Nav.aspx/Page=%2fPageManager%2fDefault.aspx%2fPageID%3d1220620

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Ocala Real Estate Market Trends

Everyone is watching the housing market with much interest these days. After a fantastic run up in values in 2004 and 2005, the market has temporarily run out of steam. We have gone from a strong seller’s market to a very strong buyer’s market. Our inventory of homes for sale has gone from 1188 in June of 05 to 6200 today. A home’s average days on the market has almost doubled since a year ago. Art and I love statistics; what we find very interesting is that in spite of a huge inventory and houses taking longer to sell, our average price for residential homes from the last quarter of 2005 to the last quarter of 2006 has slightly increased from $187,302 to $191,221. While this is encouraging, it also could be somewhat misleading to the laymen. In actuality, prices have declined 5-7% from last year’s highs. The increase in the average price is due to an inordinate volume of new construction. Stay tuned for more on Marion County market trends and seller/buyer tips in following issues.
Please feel free to visit our website www.OcalaVisualTours.com for all local and statewide real estate listings. For a free market analysis e-mail us at Info@OcalaVisualTours.com

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Existing Home Prices Break Record

Published in the Ocala Star Banner was an article about how local home prices have increased by 30% than what they were in 2004.

"The median price an an existing local home sold last year was $142,000 up 30% from the $109,900 recorded for 2004 - and more than double the $70,700 norm registered just seven years ago." These figures and increases were parallel with the state's median figure which rose 29% (figures provided by the Florida Association of Realtors).

As with anything, there are two sides to every story. Marion County is still considered one of the highest value to home ratios in Florida - basically buyers get more for their money here than most areas of the state. Who wouldn't be interested in purchasing a top-notch luxury home in Ocala for $500,000 compared to what that same home would be worth in say Palm Beach or Miami? Considerable difference!

Others feel that Ocala may be becoming "overvalued" - National City chief economist Richard Dekaser told the Star Banner "...in the course of 2005, we saw a spread of overvaluation. It wasn't so much in your part of the state (Central Florida) at first - but by mid year, the state as a whole was experiencing some home prices that were out of line with historic norm. That doesn't mean there is going to be a bust in Florida...what can happen is that you will see an end to the ferocious increases."



It's clear that although we have had a considerable year of steady price increases across the entire county - where the value of land was up at a phenominal rate (thus creating price increases on existing homes as the land beneath them became more valuable, and the understanding that in a lot of "close-in" subdivisions those lots were being purchased and built upon, so if you wanted "in" on your favorite neighborhood, an existing home was your only option).

We currently are seeing what we like to refer to as a "market correction" where it is self-adjusting to a more reasonable price range. The rise has stopped, but has by-no-means dipped down. It was a hard transition for some sellers when just as the curve was hitting us, the speculation of increased prices was still there, so often sellers would over-price their home with the expectations that the market would catch up with their slightly over-priced (at the time) home. When the market leveled out, those homes were placed above market value and eventually had to drop from the speculated value to actual market value or lower to regain interest. Usually the price per square foot is the number you want to look at, because breaking it down is what buyers look at. "What kind of home am I getting for my money?" All things are considered such as upgrades (tile, wood cabinetry or flooring, granite countertops, etc.) and structural additions such as swimming pools, garages and barns but that bottom dollar mark has swayed many-a-buyer in their final decision making.

If you want to know what a home is worth, you'll have to take an objective look at what's selling in your neighborhood (and is why a Realtor will give you a Comparative Market Analysis on your home to show you up front what your home is worth). A lot of people believe that their home should be priced along with what their neighbor or friend has their home priced at. That is not necessarily true - you can price your home at whatever you like, what you have to look at is what they are SELLING for. With a CMA you will be able to see the price of your competition (active homes on the market), the price of homes that had recently gone pending (what's moving on the market) and then the prices of sold homes in your neighborhood (and you can see the difference between their asking and sold price). If your home's market value is at $300,000 - you can price it at $400,000 if you'd like to, but don't expect to get a lot of activity on it if homes are selling in your neighborhood for $300,000 or lower. Buyers won't pay more for a home if the value is not there, remember, their agent also does a CMA on the homes they have narrowed down and are going to make a decision on. Their agent will break down the price per square footage on each home and they make a decision based on the market value of that home. A lot of times buyer won't make an offer on an overly-priced home because 1) If they make a lower more realistic offer than what the seller has priced it at, it may cause them to become offended at the asking price and kill the offer AND 2) It's much harder on them to negotiate because they feel their median offer is already inflated due to the over-priced home. The quickest way a seller can move their home is to price it at market value.

Hot Florida Market...Simmering Still or Cooling Off?

There has been so much talk about which way the crazy Florida market is heading... We have seen a drastic increase in market values in our area due to a lot of investor flipping. A lot of people are worried about the "real estate bubble bursting" and we have not seen anything out of the ordinary for this time of the year. People are still selling and buying homes, and at today's interest rates, who can blame them? Home prices were increasing at such a frenzied rate that it was hard for appraisers to keep up with the current market values...now that the dust has settled we can get a good look at where our market is standing.

Land values have gone up considerably and homes in newer or prestigious areas are becoming less affordable. Although we feel the market has "leveled off" to a degree, it is by no means regressing. A steady price index is evidence of that.

In the 13 years I have been selling Real Estate in Ocala, I have never seen a 38% increase in market values in one single year.



Back in October of 2005, we had 2,139 homes on the market - today (as of February 10th, 2006), the current number of homes on the market is 3,133. What does that mean? Back in 2005 hard and steady price increases forced the market into becoming a "sellers market" where we had an overabundance of buyers with very few homes to choose from - so the sellers often got their asking price or even OVER their asking price if there was a bidding war with buyers (trust me in saying juggling a few of those was an interesting experience to say the least!)...but now we have slipped back into a more stable scenario where the market has leveled out. Even land is starting to come back into focus, where back in October of 2005 we had 5047 lots on the market, and today 7,133. This is showing that prices and values are beginning to meet again and stabilizing. Yet existing home sales were up 2.9% just in December.

Needless to say, 2005 had been a VERY interesting year for real estate! I can't wait to see what 2006 will bring.