Florida Existing Homes Sales up 27% for December

ORLANDO, Fla. – Jan. 26, 2009 – Florida’s existing home sales rose in December, making it the fourth consecutive month that sales activity demonstrated gains in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). December’s statewide sales also increased over November’s figures in both the existing home and existing condo markets.

Existing home sales rose 27 percent last month with a total of 11,053 homes sold statewide compared to 8,712 homes sold in December 2007, according to FAR. December’s statewide existing home sales were 28.9 percent higher than November’s statewide sales.

Florida Realtors also reported a 12 percent gain in statewide sales of existing condominiums in December, marking the third recent month (following September and October) for higher statewide existing home and existing condo sales compared to year-ago levels. Statewide existing condo sales last month increased 37.7 percent over the total units sold in November.

Sixteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in December; 11 MSAs also showed gains in condo sales, marking the sixth month in a row that a number of markets have reported increased sales activity.

Florida’s median sales price for existing homes last month was $155,500; a year ago, it was $213,600 for a 27 percent decrease. According to industry analysts with the National Association of Realtors® (NAR), there remains a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. 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 November 2008 was $180,800, down 12.8 percent from a year earlier, according to NAR. In California, the statewide median resales price was $285,680 in November; in Massachusetts, it was $283,000; in Maryland, it was $262,109; and in New York, it was $210,000.

While overall sales have softened nationally in recent months, NAR’s latest housing outlook noted a trend of increasing activity in Florida, California, Arizona and Nevada markets. “Sales are rising in areas with large numbers of distressed properties as bargain hunters take advantage of discounted home prices,” said NAR Chief Economist Lawrence Yun. “It is imperative to provide incentives for homebuyers to get back into the market. It also depends on how effectively Congress and the new administration can help facilitate the short sales process and unclog the mortgage pipeline – impediments remain for some buyers with good credit.”

In Florida’s year-to-year comparison for condos, 3,138 units sold statewide compared to 2,814 sold in December 2007 for a 12 percent increase. The statewide existing condo median sales price last month was $130,600; in December 2007 it was $192,600 for a 32 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $185,400 in November 2008.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 5.29 percent, significantly lower than the average rate of 6.10 percent in December 2007, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s large to medium-size markets, the West Palm Beach-Boca Raton MSA reported a total of 638 homes sold in December compared to 467 homes a year ago for a 37 percent increase. The existing home median sales price was $246,000; a year ago, it was $337,900 for a 27 percent decrease. In the year-to-year comparison for the existing condo market, a total of 527 units sold in the MSA last month, up 26 percent compared to 419 condos sold the previous December. The market’s existing condo median price was $112,900; a year ago, it was $161,400 for a 30 percent decrease.

Source: www.FloridaRealtors.org

TDC Meeting Agenda – Discuss Bed Tax Collections, Sports Marketing

Tuesday’s combined Panama City Beach Tourist Development Council/Convention and Visitors Bureau (TDC/CVB) should be a good one. With presentations from Ellen Killough of the Visual Arts Center and Emerald Coast Cruizin, we should have a better idea of how some events went last year and what we are to expect this year.

The four board action items include consideration for approval the financial statements, Coastal Planning and Engineering Invoices, funding for the Northwest Florida Fly-in Visitor Survey, and enhancements to the Clerk of the Court’s Tourist Development Tax.

We’ll also see an update on Sports Marketing Activities and regular marketing activities, along with an update on the new web site.

You can download the agenda here, or view it below.

AGENDA

COMBINED BOARD MEETING
Bay County Tourist Development Council
Panama City Beach Convention & Visitors Bureau, Inc.
Panama City Beach
Tuesday, February 10, 2009 9:00 a.m. Council Room, PCB City Hall

I. CALL MEETING TO ORDER

II. ROLL CALL

A.    Invocation
B.    Pledge of Allegiance
C.    Approve Minutes From the December 17, 2008, and January 12, 2009 Meetings

III. REQUESTS TO ADDRESS THE BOARD ON AGENDA ITEMS (3 Minutes)

IV. UPDATE ON BED TAX COLLECTIONS, Ms. Charlene Honnen, Tourist Development Tax Specialist

V. PRESENTATIONS

A. Visual Arts Center, Ms. Ellen Killough, Executive Director
B. Emerald Coast Cruizin’ Event, Mr. Robert Parrish

VI. BOARD ACTION ITEMS

A.    Discuss and Consider for Approval CVB/TDC Financial Statements Dated November 30, 2008, and December 31, 2008, Mr. Dan Rowe, President
B.    Discuss and Consider for Approval Coastal Planning & Engineering Invoice #90118, Invoice #90119, and Invoice #90143, Mr. Dan Rowe, President
C.    Discuss and Consider for Approval Funding the Northwest Florida Fly-In Visitor Survey, Mr. Dan Rowe, President
D.    Discuss and Consider for Approval Enhancements to the Clerk of the Court’s Tourist Development Tax Collection Efforts, Mr. Bill Kinsaul, Clerk of the Court

VII. BOARD DISCUSSION ITEMS

A. Update on Sports Marketing Activities, Mr. Richard Sanders, VP of Sports Marketing
B. Update on Marketing Activities, Ms. Susan Estler, VP of Marketing

VIII. PRESIDENT’S REPORT

IX. CHAIRMAN’S REPORT

X. AUDIENCE PARTICIPATION

XI. ADJOURNMENT

Adjustable Rate Mortgages Are Our Friends

Yes, I know what you’re probably saying already. Where has this guy been? Living under a rock somewhere? Hasn’t he heard the nightmare stories about sub-prime mortgages, option ARMS and “liar loans” and how all of these ultra-risky vehicles got us into the mess we’re in right now? Indeed, the media has placed much of the blame for the collapse of home prices and the ongoing foreclosure crisis on the loose credit and lax credit standards for the proliferation of these exotic mortgage products that now make up much of the toxic debt on banks’ balance sheets. Yet, somehow, the plain old adjustable rate mortgage that has been around for decades has been painted with the same brush as the other mortgage products and unfairly so. Let me explain why ARMs are still around, always will be around, and why they may be the best friends we have right now.

The complete evaporation of a secondary mortgage market for condominiums and their twin the condo-tels, has forced banks to develop new vehicles for financing these properties. This is where the in-house loans, or portfolio loans as we call them, come in to play. These loans accept the risk associated with condos as collateral in a market that has seen condo prices plunge in recent years and ignore other factors that Fannie Mae and Freddie Mac, along with all the mortgage insurance companies, deem derogatory. But banks can’t loan money on these properties forever when they have no market to sell the loans. Eventually, they would have no money left to lend and would simply have a fat portfolio of nothing but condo loans and no capital. Corus Bank, the owner of Laketowne Wharf, is a great example of this scenario. That is why banks, like the bank I work for, turn to ARMs – they provide interest rate protection to the bank while offering the consumer a quantifiable risk scenario where they can weigh the pros and cons and make an informed decision.

I have been a little perplexed lately when potential borrowers call to inquire about financing for a fantastic deal they are getting on a condo. When I explain I have two options, a 3/1 ARM at 6.00% or a 5/1 ARM at 6.75% there is often an immediate rejection of anything that isn’t a fixed rate and an inferred suspicion that I am some sort of snake oil salesman. Never mind there are no other options out there. What about the fact these ARMs have initial fixed periods at very attractive rates? What about the fact that there are no pre-payment penalties, (we want them to pay it off) very low fees, and annual and lifetime rate caps of 2% and 6% respectively? Do they even give me the opportunity to explain that the ARMs are tied to the 1 year Treasury yield which is one of the most stable indexes to be found having averaged 4.38% over the past twenty years? Do I have a glimmer of hope that they will listen to me explain how ARMs work and that if these ARMs were to adjust today they would actually go down? Nope. If it’s an ARM it’s snake oil and will lead them to financial ruin. Yet for those who don’t associate every ARM loan with housing horror stories and who weigh the pros and cons are using my ARM loans to scoop us fabulous deals on beachfront condominiums and stand to make substantial returns on their measured risk proposition. Did I say risk? Of course there is risk with an ARM. Rates could sky rocket in a worst-case scenario but given that the U.S. will probably keep short-term rates low for a very long time, the risk is acceptable.

No one wants you to take an ARM more than the bank someone once told me. Over the years I have found this to be more or less true from a banker’s perspective. So why have I, personally, taken out several ARM loans over the years? It is because that while an ARM provides some safety for the banks, it also provides opportunities to borrowers. Lower rates equate to qualifying for more loan. If I anticipate a rise in property values or an increase in my income, why not look at an ARM? But most significantly, when it is the only mortgage option available and there perhaps once in a lifetime opportunities on beach-front real estate, do ARMs not beg some consideration? ARMs are like bridges, they get us over an obstacle though we may not know what we’ll find on the other side. One borrower said to me recently when we were discussing the end of that bridge on a 5/1 ARM he was applying for, he poignantly stated, “If things aren’t better than this in five years then God help us all.” This lead me to reflect that the bank portfolio ARMs may not be a panacea but they do offer buyers, Realtors and bankers alike, a bridge to better times ahead.

For this and more, visit my blog at www.activerain.com/blogs/hpalmer

With over fifteen years of mortgage and real estate experience, Hunter Palmer has the knowledge and expertise to help home buyers and Realtors navigate the ever changing real estate finance landscape.

Doggie Doo on the Beach at Pier Park – Move the Doggie Beach

As a resident of Panama City beach living directly across the street from the “doggie beach” I have seen numerous infractions of the boundaries, clean up, and leash rules. The aptly nicknamed “tootsie roll beach” has been true to its name and I and my children have happened upon several “accidents” outside the designated “doggie beach” boundary. When the dog beach was approved in October 2007 several of my friends and neighbors asked the question “Why this beach?” We are not opposed to a dog beach per say, we are more concerned as to why the city would tarnish the beach directly in front of our newest and nicest tourist attraction.

Take the Poll

In the larger of the sidebars on the right, directly below the Featured Video a poll has been created.

The question: Do you think the dog beach should be moved from the City Pier at Pier Park to another location?

The city told me they designated the Pier Park beach as the dog beach because it is a “dog friendly” area due to the allowance of dogs in Aaron Bessant Park and along the sidewalk areas of Pier Park. I believe that dogs in these areas are great. The City should acknowledge though that Pier Park has its own security guards to enforce proper leashing and clean up compliance. In Aaron Bessant Park there is a great deal of rule breaking and accidents left behind but my children are not sitting in minimal clothing and digging where the dogs are playing. On the beach my children are in fact sitting in minimal clothing and digging. Last fall break I had family visiting and we had to scoop up three accidents 200 yards west of the dog beach boundary before allowing my children to play. In this same area a man took his dog out into the water right next to where my children were wading. Dogs are known shark attractants and when I politely asked him to move back down to the dog beach he ignored me.

After complaining to the city about the dog beach infractions I was directed to Stephani Somerset the executive director of Bay Families with Dogs. She told me to let the perpetrators know of the dog beach boundary as some of them may be unaware. I wanted her to be right but after approaching two more people about the fact they had their unleashed dogs outside the dog boundary they’re response was, “yes we know where the boundary is”, and proceeded to remain in their seats. I go to the beach to relax not play police.

In an article in the News Herald on 2/4/09 it was said that “98 percent of dog owners who use the beach pick up after their dogs…” I would like to say in my experience of being outside of the boundaries of the dog beach the statistic is more like 50 percent. If dog owners were cleaning up after themselves 98 percent of the time why would the dog beach have to hire a beach butler, which it has since done. The ironic part is that the beach butler only cleans up after the 400 feet of designated dog beach. This leaves the accidents outside the dog beach for us to clean up.

I would like to state for the record, growing up I owned a dog who I loved dearly and I have many friends with dogs which they adore. I recognize the importance of raising a happy dog with a life full of exercise and variety but choosing the beach directly in front of our newest and nicest addition to Panama City Beach to provide that “exercise and variety” is not the decision the majority of residents would have agreed to. As I speak to friends and neighbors, including dog owners, we all feel this was the wrong beach to use as a test site for an unregulated city ordinance.

During a time when we are competing with other panhandle beaches for much needed tourism dollars my question to the city is, “What was the motivation in turning the city’s potentially most active beach into a dog beach?” . I don’t see how a dog beach could bring in increased revenue for the improvement of our city. There are no “Dog” retail shops in Pier Park. My point is that making THIS beach a dog beach only downgrades the beach without bringing any additional revenue to the area for things such as sidewalks and community upgrades.

Millions of dollars have been used to put retail on the beach to create an atmosphere in which tourists can have beach, dining, and shopping in one trip. The majority of tourists don’t bring their animals with them. The idea of lying on the sand that is possibly tainted with the morning’s dog activities is not exactly appealing. I understand it is a “nice” thing to have for “some” of the residents but my friends with dogs have admitted they would not take their children to the dog beach for fear of what they might dig up.

My request is that the city moves the dog beach away from the Pier Park beach. Again I am not trying to eliminate the idea of a dog beach. I am not trying to be unsympathetic or unfair to the dog owners who have respected the dog beach boundaries. I am trying to say the Pier Park dog beach experiment needs to end. The majority of dog owners of Panama City Beach have not shown they can govern themselves in this privilege.

Guy Harvey's in Pier Park to Open Soon

Guy Harvey’s Island Grill in Pier Park will be open first part of April, as long as everything goes according to schedule. Interior construction is heavy under way on the 10,000 square foot restaurant and shop and is located at the south side of Pier Park, right next to Reggae J’s and across from Back Porch and Margaritaville.

This will be Guy Harvey’s fifth location with others located in Orange Beach, AL, Marco Island, Key West and Grand Cayman.

The Pier Park location will feature a restaurant that will seat around 200 people and a shop where tourists and locals alike can purchase merchandise from artwork to belts adorned with various sea wild-life. There will be two levels, although at this time, I’m unsure what the second floor will hold.

The menu will include similar items as the other locations with a few “local” adaptations. However, you will not see on the menu items such as swordfish, chilean sea bass, grouper, or any other billfish or shark species for that matter. Guy Harvey deems these species threatened or depleted.

Visit www.GuyHarveyInc.com for more details on Guy Harvey, and check the picture below to see what the place looks like inside, right now.

Laketown Wharf – Corus Bank "Unlikely to Survive '09"

The future of Laketown Wharf in Panama City Beach is again dealt a blow of uncertainly as the owning bank, Corus shows increasing signs of weakening. Friday, they reported a quarterly loss of $260.7 million and stated that more than a third of their “$4.1 billion in outstanding loans were nonperforming.” On the bright side, Mike Dulberg, Corus’s CFO reported that they have $758 million in capital and $4 billion in liquid assetts and the vast majority of its $7.6 billion in consumer deposits is federally insured.

In the article, Daniel Cardenas, senior vice president at Chicago brokerage Howe Barnes Hoefer & Arnett Inc., was quoted:

“The company is in dire straits. Barring a surprise injection of private capital and/or a dramatic rebound in condo values, Corus appears unlikely to survive 2009.”

The article was published in the Wall Street Jounal Commercial section in limited “subscriber only” format, but I found it elsewhere, in full:

Condo King Corus Weights Its Options

County to Charge for Access to New Pier

Since apparently I’m all about people having to pay more for stuff, you would think that I would agree with Bay County deciding to charge the same fee as Panama City Beach did (and will in the future) for using the pier – and you would actually be correct. However, not at first.

I’ll be frank, the only real objection I have to paying a fee at a place like this is because I’m not usually carrying cash. I don’t remember if they accepted credit cards, but who likes to charge a dollar anyway. Plus, who wants to pay $6 just to take the wife and kids out to the end of the pier for 10 minutes on the remote chance that we’ll actually see a fish that is radical enough to entertain the kids. I mean, seriously, $6 for something that I’ve already paid for through being a tax-payer?

But, the reality of the situation is that the tax dollars that I’ve put towards (or actually will put towards in the future as I’m sure this was financed through bonds) our new pier(s) is actually going to the construction, not the upkeep. An article in the paper this morning quoted Mike Thomas as stating that Bay County has never run a pier, they just built M.B. Miller Pier and let it run down. This brings up an interesting point.

Why did I never go to the county pier years ago even though there is tons of space and could be a perfect place for families to hang what with all the setting areas, boardwalks and wide open spaces? *pause* Because it was scary. That’s right, I said it – SCARY. With the fees, the county would be able to pay for running operating expenses, such as security and pay staff to be onsite. Now, I know what some of you are thinking – Eliminate the fees and pay for the running costs with other county fees, just reallocate, adjust budgets in other categories or fire a couple unneeded people. I know, I know, sounds like a great idea, but you know that the county doesn’t work that way, in fact what municipality does? You can’t expect government to pay for something NOT directly associated with it.

So, with that said, knowing that the money can’t come from anywhere else, I totally agree with the usage fee. I want both piers to be on an equal playing field and I want to be able to use either one safely. Do I like paying the fee? Not really, but it isn’t because I’m always broke, its more of just an inconvenience, but I’ll find a few bucks if I want to go to the pier, as long as there will be tons of other people there enjoying it with their families and not a bunch of punk drunks.

The twin county and city piers, dubbed M.B. Miller and Dan Russell, respectively will be identical, measuring 1.500 feet long. The cost is a little more than they style pier that was there before, but they are designed to sustain damage in a more efficient way in order to minimize the cost of repair in the future.

The fees for access to the pier are $5 per adult fisherman, $2 per child fisherman and $1 if you just want to watch.

Seabreeze Jazz Festival 2009 at Pier Park

The Seabreeze Jazz Festival is coming to Pier Park in April, bringing not only something new to our area because of Pier Park, but also a huge list of artists and a promise of a high-quality, entertaining weekend.

The weekend will start Thursday April 16th at 7 pm with a dinner Cruise with Alex Bugnon on board the Salaris dinner yacht from the Bay Point Marina. Friday, gates open at 5 pm at the Pier Park Amphitheatre (aka, Aaron Bessant Park) with jazz to begin filling the air at 6 pm. At 8:30 pm, an All-Star Jam will begin featuring various artists such as Nick Colionne, Shilts, and Four 80 East.

The festival will continue Saturday morning at 9 am and continue with food and jazz all day long.

The general admission cost each day is $80 per person with a weekend pass being sold ad $130 per person. The VIP pass is $375 per person and includes all performances all weekend, on-site VIP parking, early admission, covered seating with closeup view of performances, breakfast and lunch on Saturday and Sunday with evening food included Friday through Sunday – oh, and the VIP tickets are sold out, according to the website. If you want to eat on the Solaris, tickets are $135 per person.

Full event details:

COST:
General Admission Each Day: $80 per person
Weekend Pass: $130 per person
VIP Weekend Pass: $375 per person

WHEN:
Thursday, April 16 through Sunday, April 19
(see attached schedule)

WHERE:
Pier Park – Amphitheater
600 Pier Park Drive
Panama City Beach, FL 32413

2009 Seabreeze Jazz Festival Schedule
Pier Park Amphitheater Panama City Beach, FL
Presented By ResortQuest

Festival Host: Nick Colionne

Thursday, April 16

7 p.m.
Smooth Jazz Dinner Cruise with Alex Bugnon
Presented by Marriott Bay Point Resort
Aboard The Solaris dinner yacht; boarding begins at 6 p.m. at the Bay Point Marina

Friday, April 17

(Gates open at 5 p.m.)

6 – 7:45 p.m.
Urban Jazz Coalition

8:30 p.m.
Smooth Jazz All-Star Jam
Featuring Nick Colionne, Shilts, Four 80 East, Brian Simpson, Matt Marshak, Joyce Cooling, Nils, Alex, Bugnon, Eric Darius, Althea Rene, Jackiem Joyner and special guests

10:30 p.m.
Jazz Under the Stars Party
With Urban Jazz Coalition and friends
(Pier Park Special Club Location)
Sponsored by Smooth Lounge dot com

Saturday, April 18

(Gates open at 9 a.m. – VIP early entry at 8:30 a.m.)

10 a.m. – 11 a.m.
Althea Rene

11:30 a.m. – 1 p.m.
Eric Darius

1:30 p.m. – 2:45 p.m.
The Seabreeze Groove Project
Featuring Four 80 East, Shilts and Matt Marshak
Sponsored by Smooth Lounge dot com

3:15 p.m. – 4:30 p.m.
Joyce Cooling

5 p.m. – 6:30 p.m.
Will Downing

7 p.m. – 9 p.m.
Wayman Tisdale

9:30 p.m.
Jazz Under the Stars Party
With Four 80 East, Shilts, Matt Marshak and friends
(Pier Park Special Club Location)
Sponsored by Smooth Lounge dot com

Sunday, April 19

(Gates open at 9 a.m. – VIP early entry at 8:30 a.m.)

10 a.m. – 11 a.m.
Jones and Company

11:30 a.m. – 12:30 p.m.
Roman Street

1 p.m. – 2:30 p.m.
Brian Simpson / Nils / Jackiem Joyner

3 p.m. – 4:30 p.m.
Warren Hill

5 p.m. – 6:30 p.m.
Nick Colionne

7 p.m. – 8:30 p.m.
Boney James

Main Runway is PAVED at New Airport – VIDEO!

That’s right, the approved 8,400 feet of the main runway at the new airport site in Panama City is complete. With the exception of the center where the runway lights will be installed, they are done. Approval should come shortly from the FAA for the extension to the full 10,000 feet which will take just over 14 days to complete.

Onsite, they have the capability to produce concrete at the pace of filling a new mixing truck every 2.5 minutes so the actual paving goes pretty quick. The concrete layer is 15 inches thick and it lays on top of 4 inches of asphalt. The density is also much greater than the stuff you use to to pour your home’s foundation.

The terminal barely resembles a frame right now but is coming along. Construction time on the terminal will last almost the duration of the project, along with te air traffic control tower. The air traffic control tower has 72 piles already installed that reach 45 feet into the earth. Instead of using pre-cast piles, they used auger-cast piles said Roy Willett, Senior Project Manager of KBR. Auger-cast piles are set by drilling into the ground, and as the dirt comes up, it is replaced with concrete, all the while placing a steel rebar pole down the middle for reinforcement. In the video, you can see where the earth movers are digging around the rebar to clear out the top of the pilings.

In my interview with Dr. Ed Wright, stand-in director of the Bay County Economic Development Alliance, it was mentioned that he wasn’t sure if the new airport would need any modifications with regards to turn-radius/taxiway requirements to accommodate the large Airbus A380 or other large cargo aircraft. Willett confirmed that short of the largest of the Antonov and the largest of the Airforce’s cargo planes, the new airport will be able to accommodate it all with the 10,000 foot runway – turning radii and all. Awesome, just flat-out awesome.!

I took some great footage this trip, enjoy!

http://vimeo.com/moogaloop.swf?clip_id=3070601&server=vimeo.com&show_title=0&show_byline=0&show_portrait=0&color=00ADEF&fullscreen=1
January Airport Construction Update from Jason Koertge on Vimeo.

The Panama City Airport relocation is moving along quickly with the main runway almost completely paved. The prep work has been done for the extension to 10,000 and upon FAA approval, will be complete within a couple weeks. The Terminal is under construction, as well as the air traffic control tower.

Here are the photos.