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THIS MONTH · Pg 2 Editorial - Disparate Impact-A Case to Watch. · Pg 2 Coral Bay Sales Data-1st Half of 2008-Chart · Pg 3 Coral Bay Home Models · Pg 3 The Recall · Pg 4 State Of The Market 2008 · Pg 4 Investors · Pg 4 Property Taxes · Pg 4 Insurance · Pg 5 Population Migration · Pg 5 Move-up Move-down Problems · Pg 5 Lending Standards · Pg 5 SE FL MLS Snapshot—Chart · Pg 6 Foreclosures · Pg 6 New Construction · Pg 6 Public Confidence · Pg 6 What It All Means · Pg 6 Yearly Avg Sales-1990-2008
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Consultant, Realtor, Mortgage Broker, CAM (954) 263-6287 Copyright, 2008 Velie Real Estate Services, LLC |
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Articles and opinions here in do not necessarily reflect the opinions of EXIT Realty or any of my business, social, or voluntary affiliations or associations. |
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No One Knows Coral Bay Like Eddie Velie Consultant, Realtor, Mortgage Broker, CAM |
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At Home In Coral Bay — July-August, 2008 |
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A Mortgage & Real Estate Newsletter By Eddie Velie Real Estate Services, LLC |
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IN THIS ISSUE “The true numbers are much higher. Manually scanning all 68 active listings yields 51 Short sales or 77% of Active listings are short sales.” (in Coral Bay) “There were 104 (10.4%) of our Coral Bay homes in the foreclosure process, according to Broward public records, on July 27, 2008.” |
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With only 13 home sales in the 1st HALF of 2008, every sale is critical. The policy is destroying our property values because it DECREASES demand. Demand is the number of people who want to buy into Coral Bay. This happens because the cars on the lawns destroy the grass and landscaping, owners put in ugly improvised driveways. Some people may not recommend their friends move into Coral Bay. Demand goes down by keeping immigrants from pooling their income to buy into Coral Bay. If you were selling today, would you rather have 3 incomes pooled together to buy your house, or one income that qualifies to offer you much less? The ticket and tow policy INCREASES supply because our neighbors want to move after being harassed by having their cars towed. Here’s irony for you — While recently interviewing a client, they said they wanted to move because there were “too many people living in a house down the street” and they were all parking on the lawn making the neighborhood look bad. When I explained that they had no choice, because of the CDD’s ticket and tow policy, they changed their perspective. Having stupid policies is not illegal. Foolishly harassing your constituency is not illegal. But, violating the civil rights of your constituency is. And, punitive damages can be enormous. Perhaps it is only ignorance on the CDD boards part. Not any more —. (Source: Daily Business Review, June 19, 2008, by Bud Newman) Copyright: Eddie Velie Real Estate Services, LLC |
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No One Knows Coral Bay Like Eddie Velie Consultant, Realtor, Mortgage Broker, CAM |
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Page 2 |
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At Home In Coral Bay — July-August, 2008 |
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A Mortgage & Real Estate Newsletter By Eddie Velie Real Estate Services, LLC |
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CDD Editorial – Disparate Impact & A Case To Watch Disparate Impact is a Human Resource Management (HRM) term coined early on in the Civil Rights movement. Corporations began affirmative action hiring in the upswing of an economic cycle. When the economy peaked and declined, they laid off the most recently hired people creating a disproportionate and unfair impact on minority new hires. The term “Disparate Treatment” was coined to refer to the unfair impact of executive policies on certain groups of protected classes. A Masters degree in HRM allows me to recognize the effect of the CDDs ticket and tow policy on protected groups including certain Nationalities, race, & familial status. I never brought this up before because there is no precedent (that I’m aware of) for this type of observed conditions. After reading an article in the June 19, 2008 edition of the Daily Business Review, I realized the precedent could be established soon. The article is entitled, “Reinstated Suit Claims Jupiter Drives Away Hispanics.” A federal appeals court reinstated a lawsuit by an apartment complex against the City of Jupiter. There are several similarities between that case and the CDDs ticket and tow policy. The suit claims a City of Jupiter overcrowding ordinance, and the increased enforcement of it, discriminated against Hispanics. The Coral Bay parallel is the on-again, off-again enforcement of the ticket and tow policy and it’s impact on Nationalities that prefer to have several generations living together and familial status. “The court noted the town adopted the ordinance, ‘despite the warning of at least one advocate for the local immigrant population that an overcrowding measure enforced only against Hispanic residents raised the specter of potential civil rights violations.” The parallel to Coral Bay is what I have stated repeatedly; The policy unfairly impacts certain groups: families with teens, and immigrants. In the Jupiter lawsuit, the plaintiff’s attorney commented, “The town tried to |
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pretend, as they have to, that this was a health and safety matter.” The parallel to Coral Bay is, the CDD pretends the policy is for safety by keeping the roads clear for emergency services from 2—6 AM. The façade is evident when you ask how emergency services might get thru the streets the rest of the time. Matthew Dietz, a Miami civil rights attorney, in an interview with the Daily Business Review said, “The appeals court imposed a strict scrutiny standard of review.” “The town will have to demonstrate the ordinance is the least restrictive means available to attain it’s goal.” The parallel to Coral Bay is the CDD board has alternative means by ordering parking on one side of the street with signs. Illegal parking could be enforced on the first offense because all drivers know they must obey traffic signs. |
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No One Knows Coral Bay Like Eddie Velie Consultant, Realtor, Mortgage Broker, CAM |
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At Home In Coral Bay — July-August, 2008 |
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A Mortgage & Real Estate Newsletter By Eddie Velie Real Estate Services, LLC |
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CORAL BAY MODELS I know of 28 model names in Coral Bay Community Development District. The blanks in the chart on the left indicate the models for which I do not have the floor plan. When an original owner sells, all original developer and builder documentation goes with them and is gone forever so I started collecting them. You will most likely find these things stashed away with your mortgage and deed papers. If you have an original floor plan (or good copy), and wish to donate it, please donate them for preservation. If you have any old letters, news letters, pamphlets, flyers, ads, folders, postcards, newsletters, etc., please donate them for preservation. To Donate Call Eddie Velie at 954-263-6287 |
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THE RECALL The recall was not carried out as planned due to a lack of volunteers to collect signatures. The volunteers from the first attempt ran out of steam and no one else came forward to help. This in no way means we did not have enough support for the recall. There are enough people who would sign but not enough people to collect the signatures. Based on my own signature gathering of over 40 signatures, it would take less than 40 hours to collect the 175 needed. Or, if your less aggressive you could even double that to 80 hours. But still, that is only 10 people working eight hours each or 80 divided by 15 people is only 5.3 hours each. Like an elected friend of mine said once, “it’s the people’s fault.” That’s not to say this person was laying blame on the constituency for some problem in the |
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community. It is to say that if they don’t like what the elected officials are doing, they should do something. We get what we deserve. If we, the registered voters living in Coral Bay, are not motivated to assist with the recall, then we are not annoyed enough by the arrogant behavior and denial about what the people want from the CDD board of directors. We are not annoyed enough by the refusal to maintain our amenities. We are not annoyed enough by the run-up in our assessments and the lack of repairs and maintenance while collecting the 1.3 million dollars per year, plus all the FEMA money they are so proud of procuring. The cost of the CDD to our individual home owners is enormous and nearly incalculable. While we pay them the extra $110 per month than our neighbors in the Carolinas, the Carolinas look better with their better paved roads, mail boxes, street signs. We will help pay for the bond issue to re-pave Margate but we will have to pay for our own roads ourselves. We will help pay for the Margate boat ramps, parks, canals, basketball courts, tennis courts, playgrounds, streets, community centers, libraries, public works, landscaping, and more. For our extra expense, we will top it off by getting $20,000 less when we sell our homes than most of the other single family homes in Margate. A recall can still be done. But, I cannot to do all the work (not withstanding those |
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that did help). It must be a team effort. Not an individual effort. For those that would sit and watch, ready to run for a seat on the board, but will not help collect signatures, too bad, it will be another two years for you. The Supervisor of Elections moved the qualifying period for candidates up to June and the only people registering and qualifying are already on the CDD board. Congratulations Tina Hagan and Sandra McCormick. Tina Hagan is currently the CDD Treasurer and is running for Seat 1 unopposed. Sandi is running against Tony the Taxman for seat 2. Good riddance Tony the Tax Man. Copyright, Velie Real Estate Svcs, LLC |
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No One Knows Coral Bay Like Eddie Velie Consultant, Realtor, Mortgage Broker, CAM |
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At Home In Coral Bay — July-August, 2008 |
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A Mortgage & Real Estate Newsletter By Eddie Velie Real Estate Services, LLC |
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State Of The Market Report 2008 While the legislature continues to fight with the insurance companies to control insurance costs, and grapple with recommendations for tax reductions, there are many other things that are affecting our real estate market. The most direct affect on the values of our homes are the Principle required for a down payment, the interest rate, taxes, insurance, HOA & condo assessments, and mortgage Insurance. Why? Because these things make up the housing expense ratio that everyone has to qualify for when buying a home. The indirect things that affect the value of our homes are things like, unemployment or job creation, consumer confidence, outside investors, mortgage lender policy, government policy, the bond markets, the stock markets, mass media, and population shifts. This article attempts to summarize and put into perspective the direct and indirect influences affecting our housing market to derive a future outlook, if possible. INVESTORS Last year I reported, “investors have fled the market” and noted some problems that it would cause. As predicted, the |
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number of homes affordable by the median family income rose from 27.7% to 46.5% as the median income went up and the median home price went down. The index will not and cannot get to 100% affordable. Investors love SE Florida for the tropical climate and the amazing cool and dry winters. The investors are back. Not the local flippers, but the International investors taking advantage of the weak Dollar and the NEW real estate investment trusts (REITs) not encumbered by properties bought at market peak. They buy only the lowest priced properties looking for a positive cash flow. The lowest priced properties in any given neighborhood go under contract in less than a week. These are the properties the banks are trying to dump from the books NOW so they can stop accumulating the taxes, insurance, and depreciation. Investors buy at a price low enough so their expenses are covered by the rent they can expect to get. The expenses on individual homes are the same as we use to qualify buyers plus maintenance and vacancy. When the (PITI) principle, interest, taxes and insurance, and HOA fees are lower than the rent, it’s time for |