Of all states, California has the biggest housing market. But population growth is shifting. Since the pandemic began, it’s Florida, of all the states, that got the fastest population increase. More than a thousand people relocate to Florida daily. Florida’s now in second place for total home property value — surging ahead of New York state, which experienced out-migration.
The stats come from Zillow. The company is taking notice of Florida’s home values, which total $160 billion more than they did just one year ago. (Nationwide, Zillow stats show, all housing rose more than $2.6 trillion in total value since last year!)
Meanwhile, the total residential property value in California has dipped.
Interest on a 30-year mortgage has topped 7%, bringing rates up to levels not seen since 2002. And with the prices of homes as high as they are right now, it’s harder to buy a home today than at any time in the past 40 years.
Prices will stay high because of demand for homes — that owners aren’t selling. Owners don’t want to jump back into today’s market. No surprise there!
Meanwhile, those overwhelmed by rising rents find it hard to save enough for down payments. To draw potential buyers into a market like this, mortgage companies are creating incentives. Zillow Home Loans LLC, Rocket Mortgage®, and United Wholesale Mortgage are all advertising new, 1% down payment mortgages.
After Florida passed HB 1419 to deal with deed fraud in the state, Lee County Clerk Kevin Karnes announced a new requirement for filing a property deed. As of August 2023 and onward, you’ll need a government-produced photo ID if you expect to file a deed in Lee County.
Why specifically there? Because Lee County, whose county seat is Fort Myers, is running the state’s anti-fraud pilot program.
Let’s talk about ID verification, and some questions experts are asking about Florida’s new deed-fraud prevention law more generally.
In 2022 and 2023 so far, Fortune magazine reports, 15 companies have stopped issuing insurance policies to Floridians. Most recently, it was Farmers Insurance, citing “risk exposure.” (Farmers subsidiaries will keep working within the state.)
AAA, while not backing out of Florida completely, says: “Last year’s catastrophic hurricane season contributed to an unprecedented rise in reinsurance rates, making it more costly for insurance companies to operate.”
What’s the message here for real estate buyers and owners?
Conventional mortgage backers Fannie Mae and Freddie Mac have solidified updated policies for loans to condo buyers. There are a few new requirements now going into effect, to be part of these loan-backing giants’ permanent rules.
They’d only been temporary provisions until now.
Here’s a Q&A to answer some basic questions on the new rules.
Using a gift deed, you can transfer your home to a new owner.
The transfer of a gift deed occurs among friends and relatives, or between
donors and charities. The giver of the gift deed, formally known as a grantor
or donor, conveys the home to the recipient or donee while
the donor is alive.
The special hallmark of the gift deed is its transfer of real property between people with no consideration. Only use it if no money and nothing of value is given for the home. (Careful, though: to the IRS, a house sold for a dollar is still a gift.)
Here, we shine a spotlight on the gift deed from some
We’ll zoom in on two places where many of our
clients and readers love to give: Arizona and Florida.
We’ll discuss the tax implications of your gift
We’ll outline the alternative ways you can give
your home away or transfer its inherent value to your loved ones.
The information presented in this article is not all-encompassing, nor is it meant to be construed as professional legal advice. Because homestead exemption laws are complicated, consult a qualified attorney with questions regarding homestead exemptions and living trusts in your state.
Via Black’s Law Dictionary, 8th ed., a homestead is “[t]he house, outbuildings, and adjoining land owned and occupied by a person or family as a residence. As long as the homestead does not exceed in area or value the limits fixed by law, in most states it is exempt from forced sale for collection of a debt.” A homestead can only be designated in one jurisdiction, generally where the owner maintains permanent residence.