Flood Insurance: Facts, Fiction

Flood insurance: facts, fiction

If a flood swamps your home, will insurance cover the damage?

That depends on the value of your home, the amount of water damage and whether you have a flood insurance policy.

Just a couple days after a heavy storm soaked the Erie area, let’s look at some persistent myths about flood insurance.

Myth: You must live in a flood plain to get coverage.

If you live in a flood plain, your mortgage company will likely require you to buy flood insurance. But you can purchase it even if you don’t live within a flood zone.

“Almost anybody can get flood insurance who wants flood insurance,” says Chris Hackett, director of personal lines for the Property Casualty Insurers Association of America.

The price through the federal flood insurance program is based on standardized rates and depends on the home’s value and whether or not it’s in a flood plain, says Don Griffin, vice president of personal lines for the Property Casualty Insurers Association of America.

Myth: Flood insurance covers everything. When it comes to the physical structure of your house, federal flood insurance policies top out at $250,000. If you have a $300,000 house that’s a total loss because of a flood, the most you can recoup through the program is $250,000 to cover the structure itself.

For your personal possessions, the cap is $100,000 under the federal program.

Myth: My homeowners policy covers floods. “Unfortunately, a lot of folks may be under the impression that their standard homeowners policy might cover flood damage,” Hackett says. But the standard policy doesn’t.”

The typical home insurance policy doesn’t cover earthquakes or floods. So a homeowner wanting coverage for either of those disasters will need to pick up separate, specific coverage against those types of disasters.

Myth: Water damage is water damage. When it comes to your insurance, not all water damage is the same.

If there’s a storm and your “roof comes off and water comes through, that would be covered under your homeowners policy,” Hackett says. “Versus a flood situation where the riverbank overflows and you look out of the front of your house and you need a boat to get from point A to point B.”

Most consumers “have a pretty good understanding” of how to draw the line between storm damage and flood damage, he says.

Myth: Flood maps don’t change. Flood plains (and flood plain maps) change and evolve. Just because you weren’t in a flood plain when you bought your home a few years ago doesn’t mean you’re not in one now.

For more information, visit FloodSmart.gov

Source:  Florida Realtors

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The Top U.S. Migration Pattern? New Yorkers Moving to Florida

The Top U.S. Migration Pattern?  New Yorkers Moving to Florida!

Many people are moving across state boundaries, and migration patterns are growing fairly common in some areas, according to a new analysis of census data from Porch, a home improvement resource.

In total number of relocators over the past five years, the most (33,391) moved from New York to Florida. A number of New Jersey residents also moved, and while most made a short trip across the border to Pennsylvania, 16,1981 headed to the Sunshine State – and at the same time, 12,571 Pennsylvanians headed south to Florida.

Outbound Michigan residents (8,820) and Illinois residents (7,875) also predominately headed to Florida.

In other migrations, Californians who leave likely relocate to Texas. In the past five years, an average of more than 25,000 people left California for Texas, likely drawn to the booming tech industries and lower housing costs.

As a percentage of a state’s total population, however, Washington, D.C., North Dakota and Wyoming saw the highest influx of residents moving in from other states, according to the analysis. Alaska saw the most residents moving away.

Relocating most often appeals to young employees, as the study found millennials were the highest percentage of people crossing state borders.

Source: “American Migration: Exploring Where People Move Across America,” Porch.com (July 2018)

 

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The Market in a Minute

 More Inventory Could Be Hitting the Market in the Near Future

For the Week Ending May 11, 2018
The consumer price index, which measures inflation, was slightly lower than expected in April. Lack of inflationary pressure helps keep rates lower.
The producer price index was also a bit lower than April’s forecast, another sign of lower inflation pressure. Prices rose 0.1% instead of the expected 0.3%.
Oil prices continue to rise, hitting the highest levels since 2014. Increasing oil prices could push rates higher.
In response to new tax code limits on property tax deductibility, NJ has enacted legislation to let homeowners declare property taxes as charitable donations.
Could more inventory start hitting the market? In a recent FannieMae survey, 45% of respondents said it’s a good time to sell, a new survey high.
Amazon’s Alexa system is gaining ground in powering smart homes. New home builder Lennar announced plans to include the technology in all new homes.

 

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.

 

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Looking for New Home Construction in SW Florida

Are you looking for new home construction in SW Florida?  Click the link below to search for new developments, floorplans, and more in the Naples, Bonita Springs/Estero area!

BuildersUpdate update SpotlightBuilders Update

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MONTHLY MARKET REPORT FOR MAY 2017

Naples / Bonita Springs / Estero / Marco Island Market Area

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NAPLES, BONITA SPRINGS AND ESTERO

Closed Sales

  •   The number of closed sales year-to-date for Naples, Bonita Springs and Estero increased 7% year-over-year.
  •   Closed sales priced above $2 million increased 25% through May compared to the same period in 2016.During the past 12 months, sales in this category are approximately the same as prior year (429 vs. 426).

New Listings/Inventory

  •   Available inventory on June 1, 2017 consisted of 6,910 units, an increase of 5% over June 1, 2016. This represents 6.9 months of supply based on current absorption rates.
  •   During the 12 months ending May 31, 2017, a total of 20,292 new listings were added to the market, less than a 2% increase from the prior 12 months ending May 31, 2016.

Average and Median Sales Price

  •   Year-to-date average sales price for the area increased 4% to $575,780, up from $553,785 for the same period in 2016. Median price is approximately the same as last year at $330,000 for the period.
  •   Over the past 12 months, the average sales price of properties above $2 million remained static with prior year at $3,806,276.

 

MARCO ISLAND

Closed Sales

  •   During the 12 months ending May 31, 2017, the Marco Island area had 754 closings, down 14% from the same period last year when there were 880 closings.
  • The number of closed sales year-to-date decreased 24% over prior year to 282 vs. 371 in 2016.

New Listings/Inventory

  •   Available inventory on June 1, 2017 consisted of 723 units, down from 765 units last month.
  • During the 12 months ending May 31, 2017, there were a total of 1,398 new listings added to the Marco Island market.This is a 5% reduction from the prior 12-month period when 1,473 new listings were added.

Average and Median Sales Price

  •   Average price of closed sales during the month of May was up 9% year-over-year while median price increased 3% for the period.
  •   The 12-month average price increased 7% over the prior 12 months to $767,020, up from $715,879
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MONTHLY MARKET REPORT FOR APRIL 2017

Naples / Bonita Springs / Estero / Marco Island Market Area

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NAPLES, BONITA SPRINGS AND ESTERO

Closed Sales

The number of closed sales year-to-date for Naples, Bonita Springs and Estero increased 7% year-over-year.
Closed sales priced above two million increased 5% through April compared to the same period in 2016. During the past 12 months, sales in this category decreased 13% (387 vs. 445.

New Listings/Inventory

Available inventory on May 1, 2017 consisted of 7,571 units, an increase of 11% over May 1, 2016.  This represents 7.7 months of supply based on current absorption rates.
During the 12 months ending April 30, 2017, a total of 19,826 new listing were added to the market, approximately the same as the prior 12 months ending April 30, 2016.

Average and Median Sales Price

Year-to-date average sales price for the area remained approximately the same as prior year at $568,638, up less than 2%.
Average sales price during the month of April was static with prior year (up less than 2%), while median price for the month increased 3% over April 2016.

Closed Sales

During the 12 months ending April 30, 2017, the Marco Island area had 907 closings, up 3.3% from the same period last year when there were 878 closings.
The number of closed sales year-to-date increased 24% over prior year to 335 vs. 271 in 2016.

  • Marco Island

  • Closed Sales
  • During the 12 months ending April 30, 2017, the Marco Island area had 907 closings, up 3.3% from the same period last year when there were 878 closings.

  • New Listings/Inventory

    Available inventory on May 1, 2017 for the Marco Island market consisted of a total of 765 units compared to 797 units last month. This represents 9.4 months of supply for condominiums and 10.75 months of supply for single family homes.
    During the 12 months ending April 30, 2017 there were a total of 1,446 new listings added to the Marco Island market. This is unchanged from the same period last year when there were 1,449 new listings added.

    Average and Median Sales Price

    Average price of closed sales during the month of April was unchanged year over year, while the median price was up 8.3%.The twelve month average sales price rose 7.1% over the prior 12 months, from $711,138 to $761,745.

    *Marco Island statistics are obtained from the Marco Island MLS system and include only those sales and current listings on Marco Island and Key Marco

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FIRST QUARTER MARKET REVIEW FOR 2017

Naples / Bonita Springs / Estero / Marco Island Market Area

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NAPLES

Single Family Homes

  •   The quarterly median sales price for single family homes remained consistent with the first quarter of 2016, while the average sales price increased 4% to $793,030.
  •   There were 1,078 closings in the first quarter compared to 988 in the same period last year.
  •   Months-of-supply at the end of Q1 stands at 8.7 months vs. 7.5 months for the same period last year. This is a year-over-year increase of 16%.

Condominiums

  •   The Q1 median sales price for condominiums climbed 4% over the first quarter of 2016. Average sales price is up from $425,790 in the first quarter of 2016 to $435,439 in Q1 2017.
  •   There were 1,178 condominium closings in the first quarter, a 16% increase over Q1 2016.
  •   Months-of-supply rose from 6.2 months at the end of the first quarter in 2016 to 8.4 months at the end of Q1 2017.

 

BONITA SPRINGS AND ESTERO

 

Single Family Homes

  •   The Q1 median sales price remained approximately the same as prior year, while the average sales price fell 8% to $524,572.
  •   Closings increased 16% during the first quarter to 353, up from 305 in Q1 2016.
  •   Months-of-supply at the end of the first quarter stands at 7.1 months vs. 6.7 months for the same period last year, a 6% increase year-over-year.

Condominiums

  •   Median sales price fell 2% over the first quarter of 2016, while the average sales price declined from $323,676 to $315,601 in Q1 2017.
  •   The number of condominium closings in the first quarter increased 14% from 341 in Q1 2016 to 390 in 2017.
  •   Months-of-supply at the end of the first quarter increased to 7.6 months, up from 5.5 months for the same period last year.

 

MARCO ISLAND

 

Single Family Homes

  •   The quarterly median sales price increased 6% in Q1 and average sales price increased 10% over the same period last year. The median price escalated to $873,617 while the average was $1,007,720.
  •   There were 94 single family closings in the quarter, an increase of 29% over Q1 2017.
  •   Months-of-supply at the end of the first quarter stands at 12.3 months, down from 13.8 months for the same period last year.

Condominiums

  •   The Q1 median sales price rose 5% over the first quarter of 2016, while the average sales price increased 10% from $488,133 in the first quarter of 2016 to $537,116 in the current quarter.
  •   The number of closings jumped 24% over the prior year to 140, up from 113 a year ago.
  •   Months-of-supply at the end of the first quarter stands at 9.6 months vs. 8.1 months for the same period last year.
 Source:  John R. Wood Properties
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MONTHLY MARKET REPORT FOR FEBRUARY 2017

Naples / Bonita Springs / Estero / Marco Island Market Area

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NAPLES, BONITA SPRINGS AND ESTERO

Closed Sales

  •   During the 12 months ending February 28, 2017, the Naples, Bonita Springs and Estero market had a total of 11,689 closings, 9% lower than the prior 12-month period.
  •   The number of closed sales year-to-date increased 7% over 2016 with 1,653 closings vs. 1,546 in 2016.
  •   During the first two months of 2017, closings for properties priced above $2 million were down 10% from the same period a year ago. During the past 12 months, the number of closings in this price category were down 22%.

New Listings/Inventory

  •   Available inventory on March 1, 2017 for the combined Naples, Bonita Springs and Estero market consisted of 8,099 units, an increase of 18% over the prior year.
  •   During the 12 months ending February 28, 2017, there were a total of 20,173 new listings added to the market, representing a 4% increase over the same period in 2016.

Average and Median Sales Price

    •   Average price of closed sales during February 2017 was 3% lower year-over-year, while the median price was relatively stable, posting a 1% decline.
    •  Average sales price year-to-date is $538,275, a decrease of 8% from the same period in 2016. Median sales price remained stable with less than a 2% increase ($319,000 vs. $325,000

 

MARCO ISLAND

Closed Sales

 During the 12 months ending February 28, 2017, the Marco Island area had 857 closings, down 9% from the prior year.  Year-to-date closings are up 12% from 2016 with 133 closed sales vs. 119 for the same period in 2016.

New Listings/Inventory

    •   Available inventory on March 1, 2017 increased by 25 units over February supply (808 units vs. 783).
    •   During the 12 months ending February 28, 2017 there were a total of 1,428 new listings added to the Marco Island market. The supply of new listings is unchanged from the same period last year when there were 1,452 new listings added.

Average and Median Sales Price

    •   The average sales price of February 2017 closings increased 3% over February 2016, and median price was up almost 4% for the period.
    •   Average sales price year-to-date through February increased slightly to $842,000 up from $750,500 in 2016.
      *Marco Island statistics are obtained from the Marco Island MLS system and include only those sales and current listings on Marco Island and Key Marco.
 Source:  John R. Wood Properties
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Southwest Florida Real Estate Update

 

 

 

 

Productive Outcomes Expected
Economic and political factors may have contributed to the ups and downs we saw in January, but inventory levels continue to be a dynamic factor. Buyers have many choices and sellers are being faced with the reality that price adjustments are in order if attracting buyer attention is the goal. The demand is certainly there and remains strong for Southwest Florida properties leading us to anticipate a very productive outcome for the remaining weeks of season and beyond.


NAPLES, BONITA SPRINGS/ESTERO

Closed Sales

During January 2017, there were 774 closed sales in the Naples, Bonita Springs and Estero market vs. 798 in January 2016. The number of closed sales priced above $2 million year-to-date fell 34% when compared to the same period in 2016, and during the past 12 months, are down 26% (364 vs. 493).

New Listings/Inventory

Available inventory on February 1, 2017 for the combined Naples, Bonita Springs and Estero market consisted of 8,091 units, up from 7,281 units last month, showing an increase of 34% year-over-year. During the 12 months ending January 31, 2017 there were a total of 20,393 new listings added to the market, which indicates a 7% increase over the same period in 2016.

Average and Median Sales Price

The average price of closed sales in the Naples, Bonita Springs and Estero market during the month of January was $540,941, down 11% from January 2016, while the median closed sales price is down 5%. Meanwhile, the average price of sales above $2 million fell 2.4% over the past 12 months, from $3,832,508 to $3,740,781.

MARCO ISLAND

Closed Sales

During the 12 months ending January 31, 2017, the Marco Island area had 854 closings, down 11.9% from the same period last year when there were 970 closings. The number of closed sales for Marco Island during the month of January declined 18% from January 2016 (50 vs. 61), while sales volume was up 22% over January 2016. It should be noted that since this represents only one month, it is not indicative of a market trend.

New Listings/Inventory

Available inventory on February 1, 2017 for the Marco Island market consisted of 796 total units compared to 755 units last month and 712 on February 1, 2016. This represents an increase to an 11-month supply, up from 8.8 in 2016.

Average and Median Sales Price

The average price of closed sales in January 2017 rose a modest 2.6% over January 2016, while the median price was up 5.2% from the same period last year.

*Marco Island statistics are obtained from the Marco Island MLS system and include only those sales and current listings on Marco Island and Key Marco.

 

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Are You Getting the Home Tax Deductions You’re Entitled To?

Are You Getting the Home Tax Deductions You’re Entitled To?

Owning a home can pay off at tax time.

 

Take advantage of these home ownership-related tax deductions and strategies to lower your tax bill:

Mortgage Interest Deduction

One of the neatest deductions itemizing homeowners can take advantage of is the mortgage interest deduction, which you claim on Schedule A. To get the mortgage interest deduction, your mortgage must be secured by your home — and your home can be a house, trailer, or boat, as long as you can sleep in it, cook in it, and it has a toilet.

Interest you pay on a mortgage of up to $1 million — or $500,000 if you’re married filing separately — is deductible when you use the loan to buy, build, or improve your home.

If you take on another mortgage (including a second mortgage, home equity loan, or home equity line of credit) to improve your home or to buy or build a second home, that counts towards the $1 million limit.

If you use loans secured by your home for other things — like sending your kid to college — you can still deduct the interest on loans up $100,000 ($50,000 for married filing separately) because your home secures the loan.

Prepaid Interest Deduction

Prepaid interest (or points) you paid when you took out your mortgage is generally 100% deductible in the year you paid it along with other mortgage interest.

If you refinance your mortgage and use that money for home improvements, any points you pay are also deductible in the same year.

But if you refinance to get a better rate or shorten the length of your mortgage, or to use the money for something other than home improvements, such as college tuition, you’ll need to deduct the points over the life of your mortgage. Say you refi into a 10-year mortgage and pay $3,000 in points. You can deduct $300 per year for 10 years.

So what happens if you refi again down the road?

Example: Three years after your first refi, you refinance again. Using the $3,000 in points scenario above, you’ll have deducted $900 ($300 x 3 years) so far. That leaves $2,400, which you can deduct in full the year you complete your second refi. If you paid points for the new loan, the process starts again; you can deduct the points over the life of the loan.

Home mortgage interest and points are reported on Schedule A of IRS Form 1040.

Your lender will send you a Form 1098 that lists the points you paid. If not, you should be able to find the amount listed on the HUD-1 settlement sheet you got when you closed the purchase of your home or your refinance closing.

Property Tax Deduction

You can deduct on Schedule A the real estate property taxes you pay. If you have a mortgage with an escrow account, the amount of real estate property taxes you paid shows up on your annual escrow statement.

If you bought a house this year, check your HUD-1 settlement statement to see if you paid any property taxes when you closed the purchase of your house. Those taxes are deductible on Schedule A, too.

PMI and FHA Mortgage Insurance Premiums

You can deduct the cost of private mortgage insurance (PMI) as mortgage interest on Schedule A if you itemize your return. The change only applies to loans taken out in 2007 or later.

What’s PMI? If you have a mortgage but didn’t put down a fairly good-sized down payment (usually 20%), the lender requires the mortgage be insured. The premium on that insurance can be deducted, so long as your income is less than $100,000 (or $50,000 for married filing separately).

If your adjusted gross income is more than $100,000, your deduction is reduced by 10% for each $1,000 ($500 in the case of a married individual filing a separate return) that your adjusted gross income exceeds $100,000 ($50,000 in the case of a married individual filing a separate return). So, if you make $110,000 or more, you can’t claim the deduction (10% x 10 = 100%).

Besides private mortgage insurance, there’s government insurance from FHA, VA, and the Rural Housing Service. Some of those premiums are paid at closing, and deducting them is complicated. A tax adviser or tax software program can help you calculate this deduction. Also, the rules vary between the agencies.

Vacation Home Tax Deductions

The rules on tax deductions for vacation homes are complicated. Do yourself a favor and keep good records about how and when you use your vacation home.

If you’re the only one using your vacation home (you don’t rent it out for more than 14 days a year), you deduct mortgage interest and real estate taxes on Schedule A.

Rent your vacation home out for more than 14 days and use it yourself fewer than 15 days (or 10% of total rental days, whichever is greater), and it’s treated like a rental property. Your expenses are deducted on Schedule E.

Rent your home for part of the year and use it yourself for more than the greater of 14 days or 10% of the days you rent it and you have to keep track of income, expenses, and allocate them based on how often you used and how often you rented the house.

Homebuyer Tax Credit

This isn’t a deduction, but it’s important to keep track of if you claimed it in 2008.

There were federal first-time homebuyer tax credits in 2008, 2009, and 2010.

If you claimed the homebuyer tax credit for a purchase made after April 8, 2008, and before Jan. 1, 2009, you must repay 1/15th of the credit over 15 years, with no interest.

The IRS has a tool you can use to help figure out what you owe each year until it’s paid off. Or if the home stops being your main home, you may need to add the remaining unpaid credit amount to your income tax on your next tax return.

Generally, you don’t have to pay back the credit if you bought your home in 2009, 2010, or early 2011. The exception: You have to repay the full credit amount if you sold your house or stopped using it as primary residence within 36 months of the purchase date. Then you must repay it with your tax return for the year the home stopped being your principal residence.

The repayment rules are less rigorous for uniformed service members, Foreign Service workers, and intelligence community workers who got sent on extended duty at least 50 miles from their principal residence.

Energy-Efficiency Upgrades

The Nonbusiness Energy Tax Credit lets you claim a credit for installing energy-efficient home systems. Tax credits are especially valuable because they let you offset what you owe the IRS dollar for dollar, in this case, for up to 10% of the amount you spent on certain upgrades.

The credit carries a lifetime cap of $500 (less for some products), so if you’ve used it in years past, you’ll have to subtract prior tax credits from that $500 limit. Lucky for you, there’s no cap on how much you’ll save on utility bills thanks to your energy-efficiency upgrades.

Among the upgrades that might qualify for the credit:

  • Biomass stoves
  • Heating, ventilation, and air conditioning
  • Insulation
  • Roofs (metal and asphalt)
  • Water heaters (non-solar)
  • Windows, doors, and skylights

File IRS Form 5695 with your return.

This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.

Source:  HouseLogic.com  By: Dona DeZube

 

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