NEW CONSTRUCTION PERMITS ISSUED THIS WEEK

I edited the article in this week's Observer Tribune to highlight that ten permits were issued to builders this week for the construction of new homes.  Looks like some spec homes are being built again.  Shows builder's confidence in the near-term prospects for residental real estate.  You can find the entire article in the Thursday, Feb. 26 issue of the Observer...

                                                   PalmCoastObserver page 27

PALM COAST BUSINESS ACTIVITY

PALM COAST PERMITS

The following is an update for permit
activity in the city for Feb. 12-18. Total
number of all permits issued: 138.
Since 2009, $656 million in construc-
tion dollars have been invested in Palm
Coast.

Residential permits issued:

• Encore Contracting was issued a
$349,000 permit for a single-family
residence at 7 Clermont Court.

• Vanacore Construction was issued a
$337,000 permit for a single-family
residence at 3 Undershire Path.

• Saltwater Homes was issued a
$331,000 permit for a single-family
residence at 55 Edward Drive.

• .Seagate Homes was issued a

$306,000 permit for a single-family
residence at 6 Essington Lane.

• Seagate Homes was issued a
$306,000 permit for a single-family
residence at 13 Promenade Place.

• Vanacore Construction was issued a
$294,000 permit for a single-family
residence at 7 Buffalo View Lane.

• Maronda Homes was issued a
$276,000 permit for a single-family
residence at 4 Lark Place.

• Seagate Homes was issued a
$254,000 permit for a single-family
residence at 111 S. Hummingbird
Place.

• Seagate Homes was issued' a
$231,000 permit for a single-family
residence at 117 Pepperdine Drive.
• Seagate Homes was issued a.
$207,000 permit for a single-family
residence at 34 Raintree Circle.

Source: city of Palm Coast 

Kickstarter: Leading Edge Design and Technology

I’m fascinated by Kickstarter.  Like Shark Tank, I can be one of the first to see lots of new things that will be hitting the market.   And I can gamble a little on getting something neat for a bargain price. 

If you don’t know what Kickstarter is here is my take on it…

Kickstarter is a funding project for creative projects.  Everything from games and music, to art, design and technology.  Rewards vary from project to project, but often include a copy of what is being produced.

Every project creator sets their project's funding goal and deadline. If people like the project, they can pledge money to make it happen. If the project succeeds in reaching its funding goal, all backers' credit cards are charged when time expires. If the project falls short, no one is charged. Funding on Kickstarter is all-or-nothing.  Kickstarter does not allow projects to fundraise for charity or offer financial incentives.

For lots more information here is a link to “Kickstarter 101”

https://www.kickstarter.com/help/faq/kickstarter%20basics#Acco

To review Kickstarter projects go to:

https://www.kickstarter.com/help/faq/kickstarter+basics?ref=faq_nav#TheKickApp

FANNIE MAE AND FREDDIE MAC EXPLAINED.

I just read this interesting and well written article about what Fannie Mae and Freddie Mac. I suspect a lot of others like me will enjoy it as these organizations once again play a big part in  the resurging market for homes and home mortgages.  I read it in our Florida Realtors News daily 

"WASHINGTON (AP) – Feb. 20, 2015 – Mortgage giant Fannie Mae reported net income of $1.3 billion for the fourth quarter. That's down sharply from $6.5 billion a year earlier due largely to losses on investments used to hedge against swings in interest rates.

Still, it was the 12th straight profitable quarter for the government-controlled company.

Washington-based Fannie also said Friday that it will pay a dividend of $1.9 billion to the U.S. Treasury next month. Fannie will have paid $136.4 billion in dividends, exceeding the $116 billion it received from taxpayers during the financial crisis.

The government rescued Fannie and smaller sibling Freddie Mac in September 2008.

For Fannie and Freddie, the decline in long-term interest rates last year brought losses on derivatives, financial transactions the companies use to hedge against rate swings.

Fannie and Freddie own or guarantee about half of all U.S. mortgages, worth about $5 trillion. Along with other federal agencies, they back roughly 90 percent of new home loans.

The two companies don't directly make loans to borrowers. They buy mortgages from lenders, package them as bonds, guarantee them against default and sell them to investors. That helps make loans available.

On Thursday, Freddie posted net income of $227 million for the fourth quarter. That was down sharply from the same period of 2013, as the company sustained losses on the investments it uses to hedge against swings in interest rates. Freddie also said it will pay a dividend of $900 million to the government in March.

Fannie Mae reported net income of $14.2 billion for all of 2014, down steeply from $84 billion in 2013.

Fannie's losses on derivatives reached about $2.5 billion in the fourth quarter and around $4.8 billion in 2014.

The gradual recovery of the housing market has made Freddie and Fannie profitable again.

The market's revival beginning in 2012 has been fitful, and housing has lagged behind the rest of the economy. Despite the low borrowing rates that could lure prospective homebuyers, the market has remained hampered by tight mortgage credit, rising home prices and stagnating incomes.

The federal agency that regulates Freddie and Fannie took action in December to allow consumers to buy homes with downpayments as low as 3 percent, down from the current 5 percent minimum. 

The new guidelines are meant to make houses more affordable for low-income families and first-time buyers."

Today the Dow hit a record high.  Are we blowing bubbles again?  Or returning to a healthy economy?  

FHA LOWERS RATE

The FHA lower the rate sets to insure an FHA mortgage in order to stimulate the housing market.  This information contains their information of why they decreased their rate.  To see the original document go to :  http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=3&id=319358
Then Talk To Ted!