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North Salem NY Realtor

Mortgage rates drop for third week | North Salem Real Estate

Mortgage rates remained unchanged in the week ending 28th February. The stall in the downward trend came off the back of 3 consecutive weeks of decline. 30-year fixed rates remained unchanged at 4.35%, holding at the lowest level since 7th February’s 4.32%. The figures were released by Freddie Mac.

30-year fixed rates have fallen by 59 basis points since mid-November of last year, the most recent peak.

The pause in rates came as concerns over the global and U.S economic outlook continued to linger. Mixed sentiment towards progress on trade talks between the U.S and China led to a mid-week hiccup. The North Korea Summit also ended abruptly, which was not the outcome that the markets were looking for.

Economic Data from the Week

Economic data released through the week included December housing sector numbers and consumer confidence figures on Tuesday. December factory orders and January pending home sales on Wednesday that came ahead of 4th quarter GDP numbers on Thursday.

On the housing front, house price growth slowed further in December, according to the S&P / CS HPI Composite figures. Coupled with falling mortgage rates, the slower growth in house prices will be welcomed news for prospective home buyers.

Building permits continued its upward trend in December, following a 5% jump in November. In contrast, housing starts slumped by 11.2%, though this could be more to do with the weather than market conditions.

The good news was a combined jump in consumer confidence and pending home sales. Activity in the spring could deliver a much-needed boost to the sector.

Finally, the 4th quarter GDP numbers were in line with expectations. While growth was significantly slower than the 3rd quarter, it could have been far worse. Nonetheless, slower growth and FED Chair Powell’s testimony contributed to the steady mortgage rate figures.

Freddie Mac Rates

The weekly average rates for new mortgages as of 28th February were quoted by Freddie Mac to be:

  • 30-year fixed rates held steady at 4.35% in the week. Rates were down from 4.43% from a year ago. The average fee also remained unchanged at 0.5 points.
  • 15-year fixed rates fell by 1 basis points to 3.77% in the week. Rates were down from 3.90% from a year ago. The average fee increased from 0.4 points to 0.5 points.
  • 5-year fixed rates also remained unchanged at 3.84% in the week. Rates increased by 22 basis points from last year’s 3.62%. The average fee held steady at 0.3 points.

Mortgage Bankers’ Association Rates

For the week ending 22nd February, rates were quoted to be:

  • Average interest rates for 30-year fixed, backed by the FHA, decreased from 4.68% to 4.64%. Points decreased from 0.58 to 0.48 (incl. origination fee) for 80% LTV loans.
  • Average interest rates for 30-year fixed with conforming loan balances decreased from 4.66% to 4.65%. Points remained unchanged at 0.42 (incl. origination fee) for 80% LTV loans.
  • Average 30-year rates for jumbo loan balances decreased from 4.56% to 4.40%, the lowest level since January 2018. Points increased from 0.23 to 0.29 (incl. origination fee) for 80% LTV loans.

Weekly figures released by the Mortgage Bankers Association showed that the Market Composite Index, which is a measure of mortgage loan application volume, surged by 5.3% in the week ending 22nd February. The increase follows on from a 3.6% rise from the previous week.

The Refinance Index rose by 5% in the week ending 22nd February. The rise follows on from a 6% jump in the previous week.

The share of refinance mortgages decreased from 41.7% to 40.4%, following a fall from 41.8% to 41.7% in the week prior.

According to the MBA, home buyers responded favorably to the shift in the mortgage rate environment. Purchase applications for both conventional and government loans were reported to have risen in the reporting week. The upward trend in refinance application volume saw the index hit its highest level in a month.

For the week ahead

It’s a particularly busy week ahead. On the data front, February’s service sector PMI and December new home sales figures will provide direction on Tuesday. Service sector activity will need to impress to ease any immediate concerns over the economic outlook.

Trade figures and February’s ADP nonfarm employment change figures will influence Treasury yields on Wednesday.

Economic data out of the U.S on Thursday includes 4th quarter nonfarm productivity and unit labor costs, which will be released alongside the weekly jobless claims figures. Barring a material deviation from forecast, the numbers will unlikely have a material impact.

Outside of the numbers, there are plenty of factors that will influence Treasury yields and ultimately mortgage rates. Trade talks between China and the U.S, Brexit, and China’s trade data are just a number of drivers ahead of Freddie Mac’s mortgage rates, which will be released on Thursday.

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https://www.fxempire.com/news/article/u-s-mortgages-mortgage-rates-hold-as-applications-continue-to-climb-555590

The Federal Reserve Board’s big mistake | North Salem Real Estate

September 24, 2018

The Federal Reserve’s main interest rate will likely vault over their preferred inflation gauge this week

The Federal Reserve’s main interest rate will jump past the central bank’s preferred inflation measure for the first time in a decade this week, when policymakers announce a widely expected rise in interest rates.

The Fed funds rate– the cost of borrowing “excess” Fed reserves overnight, unsecured by collateral by banks and other financial institutions – will rise above the central bank’s favorite measure of the US economy’s inflation rate, the “personal consumption expenditure” index, for the first time since September 2008.

The Fed and central banks around the world slashed interest rates in the wake of the crisis, with some even introducing negative interest rates for the first time in history. But with the economic recovery gaining ground, the Fed started raising interest rates in 2015, and other central banks are now following in tightening monetary policy.

“The question is what rate is high enough to slow the economy,” said Anne Mathias, a senior strategist at Vanguard. “We’ll hopefully know it when we see it.”

The US central bank has increased its interest rate target range twice already this year, to 1.75-2 per cent. That has raised the Fed funds rate – the primary target it attempts to move with its interest rate corridor – to a 10-year high of 1.92 per cent. 

Fed raises rates despite trade war concerns The Fed is widely expected to lift its corridor by another quarter percentage points when it meets on Wednesday, and that will probably in tandem lift the Fed funds rate to about 2.17 per cent. 

That means that the “real”, inflation-adjusted US interest rate will be in positive territory again, and investors and analysts are now questioning how much further the Fed will raise interest rates. 

Indeed, another rate increase in December is widely expected, which will probably lift the Fed funds rate above the ‘core’ inflation rate that excludes food and energy costs. However, opinions differ significantly on how much the central bank will tighten policy in 2019.

“This is the riddle they will have to solve in 2019,” said Jim Caron, a bond fund manager at Morgan Stanley Investment Management. “There’s little danger of an inflationary breakout, so why keep hiking?”

Markets are starting to price in the possibility of two more quarter-point increases in the Fed’s interest rate in 2019. The Fed has indicated that it will raise rates three times, while Goldman Sachs’ economists predict the central bank will have to lift rates four times to prevent the economy from overheating. 

The US stock market bet the Fed killed the economy through the October-December 2018 quarter. The real estate economy is contracting because of this.

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https://www.ft.com/content/9be4f6a4-bdd7-11e8-8274-55b72926558f

Pending home sales down 10 months in a row as rates rise | North Salem Real Estate

Pending home sales declined slightly in October in all regions but the Northeast, according to the National Association of Realtors®.

The Pending Home Sales Index,* www.nar.realtor/pending-home-sales, a forward-looking indicator based on contract signings, decreased 2.6 percent to 102.1 in October, down from 104.8 in September. However, year-over-year contract signings dropped 6.7 percent, making this the tenth straight month of annual decreases.

Lawrence Yun, NAR chief economist, said that ten straight months of decline certainly isn’t favorable news for the housing sector. “The recent rise in mortgage rates have reduced the pool of eligible homebuyers,” he said.

Yun notes that a similar period of decline occurred during the 2013 Taper Tantrum when interest rates jumped from 3.5 percent to 4.5 percent. After 11 months – November 2013 to September 2014 – sales finally rebounded when rates decreased. “But this time, interests rates are not going down, in fact, they are probably going to increase even further,” Yun noted.

While the short-term outlook is uncertain, Yun stressed that he is very optimistic about the long-term outlook. The current home sales level matches sales in 2000. “However, mortgage rates are much lower today compared to earlier this century, when mortgage rates averaged 8 percent. Additionally, there are more jobs today than there were two decades ago,” said Yun. “So, while the long-term prospects look solid, we just have to get through this short-term period of uncertainty.”

All four major regions saw a decline when compared to a year ago, with the West seeing the most pronounced drop. Yun said that decline is not at all surprising. “The West region experienced the fastest run-up in home prices in a short time and therefore, has essentially priced out many consumers,” Yun said.

Yun suggests that the Federal Reserve should be less aggressive in raising rates. He cites the collapse in oil prices and the decrease in gasoline prices. “The inflationary pressure is all but disappearing. Given that condition, there is less of a need to aggressively raise interest rates. Looking at the broader economy and keeping in mind that the housing sector is a great contributor to the economy, it would be wise for the Federal Reserve to slow the raising of rates to see how inflation develops.”

Yun pointed to year-over-year increases in active listings from data at realtor.com® to illustrate a potential rise in inventory. Denver-Aurora-Lakewood, Colo., Seattle-Tacoma-Bellevue, Wash., Columbus, Ohio, San Francisco-Oakland-Hayward, Calif. and San Diego-Carlsbad, Calif. saw the largest increase in active listings in October compared to a year ago.

Yun expects existing-home sales this year to decrease 3.1 percent to 5.34 million, and the national median existing-home price to increase 4.7 percent. Looking ahead to next year, existing sales are forecast to decline 0.4 percent and home prices to drop roughly 2.5 percent.

October Pending Home Sales Regional Breakdown

The PHSI in the Northeast rose 0.7 percent to 92.9 in October, and is now 2.9 percent below a year ago. In the Midwest, the index fell 1.8 percent to 100.4 in October and is 4.9 percent lower than October 2017.

Pending home sales in the South fell 1.1 percent to an index of 118.9 in October, which is 4.6 percent lower than a year ago. The index in the West decreased 8.9 percent in October to 84.8 and fell 15.3 percent below a year ago.

The National Association of Realtors® is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.

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*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

NOTE: NAR’s November Housing Minute video will be released on November 30, Existing-Home Sales for November will be reported December 19, and the next Pending Home Sales Index will be December 28; all release times are 10:00 a.m. ET.

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https://www.nar.realtor/newsroom/pending-home-sales-slip-2-6-percent-in-october

Baby Boomers won’t downsize homes anytime soon | North Salem Real Estate

Spring house

Baby Boomers are staying put and their kids are sticking with them.

A study released Thursday by Trulia examined the housing situations of homeowners 65 and older and compared it with a decade ago.

It uncovered a 3.4% jump in the number of seniors working in 2016 compared with 2005, and a 1.7% increase in the number living with younger generations.

It also showed that seniors appear to be holding off on downsizing just the same as they were 10 years prior.

Only 5.5% of seniors moved,according to Trulia, and of those who did, the split was pretty even between single-family and multifamily residences.

But Trulia analyst Alexandra Lee points out that while the percentage of downsizers hasn’t changed, the number of those moving actually has.

“Because the Boomer generation is so much larger than previous generations, that 5.5% moving rate translates into very different raw numbers across the years,” Lee wrote. “There were about 7 million more senior households in 2016 than 2005, meaning 386,000 more senior households moved in 2016.”

The age at which seniors decide to downsize has also shifted. The survey revealed that in 2005, seniors were moving into multifamily residences by age 75. By 2016, this had moved to 80.

The study sought to examine whether Baby Boomers holding onto their homes was driving up home prices. In looking at the nation’s top 100 metros, it determined that Boomers were not eroding affordability.

“Like the general population, seniors in expensive and unaffordable metros rent at much higher rates,” Lee wrote. “The higher the income required to purchase the median home, the lower the proportion of senior households that could downsize.”

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https://www.housingwire.com/articles/46757-baby-boomers-wont-downsize-homes-anytime-soon?utm_campaign=Newsletter%20-%20HousingWire%20Daily&utm_source=hs_email&utm_medium=email&utm_content=65785845&_hsenc=p2ANqtz-8DJkz26bVvBlKjbpqVtwDRlTZEW2huOUt-knTDcKEEdq4EO-a-n_9-htcpsaznU7v7J7YkAGQyY0DPwieutdTFa6lf3Q&_hsmi=65785845

Single-Family Construction Up | North Salem Real Estate

NAHB analysis of Census Construction Spending data shows that total private residential construction spending fell 0.7% in November to a seasonally adjusted annual rate of $462.9 billion.

Multifamily construction spending slowed for the first time since July to a seasonally-adjusted annual rate of $61.9 billion, down 2.9% from the revised October estimate. Despite the slowdown, multifamily spending was still 10.7% higher than the rate one year prior.  In contrast, single-family construction spending increased by 1.7% over the month, posting its second consecutive gain. However, single-family construction spending still slipped down by 0.9% over November 2015. Though not as pronounced as the drop-off in multifamily construction spending, home improvements still fell by a substantial 3.5%. On a year-over-year basis, spending on home improvements increased by 6.8%.

The NAHB construction spending index shown in the graph below illustrates the recent convergence, though small, of single-family spending with that of multifamily and home improvements.

The pace of private nonresidential construction spending increased by 2.5% over the month, more than offsetting the 2.1% October decline, reaching a pace 6.4% higher than one year ago. The primary drivers of this month-over-month increase were spending on structures to be used for lodging (+6.9%) and religious (+9.8%) purposes.

 

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http://eyeonhousing.org/2017/01/single-family-construction-up-in-november/

Mortgage rates average 4.13% | North Salem Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving higher for the sixth consecutive week.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.13 percent with an average 0.5 point for the week ending December 8, 2016, up from last week when it averaged 4.08 percent. A year ago at this time, the 30-year FRM averaged 3.95 percent.
  • 15-year FRM this week averaged 3.36 percent with an average 0.5 point, up from last week when it averaged 3.34 percent. A year ago at this time, the 15-year FRM averaged 3.19 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.17 percent this week with an average 0.5 point, up from last week when it averaged 3.15 percent. A year ago, the 5-year ARM averaged 3.03 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.

“The 10-year Treasury yield dipped this week following the release of the Job Openings and Labor Turnover Survey. The 30-year mortgage rate rose another 5 basis points to 4.13 percent, starting the month 18 basis points higher than this time last year. As rates continue to climb and the year comes to a close, next week’s FOMC meeting will be the talk of the town with the markets 94 percent certain of a quarter-point-rate hike.”

Growing number of firms offering energy-efficient modular design | North Salem Real Estate

The Alfreds' net-zero residence, in Cumberland, Maine, is a modular design by BrightBuilt Home.
James R. SalomonThe Alfreds’ net-zero residence, in Cumberland, Maine, is a modular design by BrightBuilt Home.

When Shaun Alfreds and his wife decided to build a house for their family of five in Cumberland, Maine, they didn’t know if a high-performance project would be within their budget. “We aren’t wealthy by any stretch of the imagination, but we wanted an energy-efficient home,” says Alfreds, a chief operating officer at HealthInfoNet, a local health information technology company.

After some research, however, the couple realized that they achieve their dream for a nominal additional investment over the cost of a conventional house if they opted for a modular high-performance house. They chose a two-story, Cape Cod–style design from Portland, Maine–based BrightBuilt Home, and moved in last December.

At more than 3,000 square feet, the house is spacious, but its full sun exposure and a 10-kilowatt solar array of 39 photovoltaic (PV) panels should cover its energy consumption year-round. Alfreds says the house cost “almost exactly what other [builders] were bidding” for a standard, code-compliant project that was custom designed. And their small additional investment goes to building equity in the house, rather than to paying utilities.

BrightBuilt, a sister company of local firm Kaplan Thomson Architects (KTA), joins an increasing number of design companies that are expanding the market for high-performance residential projects. While KTA has custom-designed many energy-efficient houses, principal Phil Kaplan, AIA, says the firm also wanted to offer an off-the-shelf product. In 2015, it launched BrightBuilt with nine design templates. Starting at $175 to $180 per square foot, the houses bring net-zero energy to a price more people can afford. “We’re definitely seeing a lot of demand,” Kaplan says.

But some architects and builders have found ways to lower the price of net-zero housing even more.

De Verneil residence, by Deltec Homes (Ridgeline model)
Marie de VerneilDe Verneil residence, by Deltec Homes (Ridgeline model)

Marie de Verneil dreamed of building a retirement home on land she owned in central Virginia. “To me, green was very important,” she says. However, her savings from teaching French and international relations at the University of Maryland, Baltimore County, didn’t seem like enough. “It’s kind of discouraging for someone like me,” she says.

Kitchen, de Verneil residence
Marie de VerneilKitchen, de Verneil residence

Then de Verneil heard about Deltec Homes, in Asheville, N.C. The company—known for its distinctly round, prefabricated, and hurricane-resistant houses—recently launched Renew, a collection of models that use about two-thirds the energy of a conventional house and can include a PV array. De Verneil estimates she spent $250,000 on her 1,600-square-foot house (less than $160 per square foot), which includes a roof-mounted solar array. Her monthly electric bill is $30, the base fee for taxes and distribution. And when she is retired and living on a fixed income, she knows she’ll never have to say, “I can’t put the heat on.”

For those wanting to build a passive or net-zero energy house, right-sizing expectations is a crucial step to meeting one’s budget. And, as Deltec president Steve Linton adds, every project—modular or not—must be tailored to the particular site and climate. The company’s design team also conducts an energy model to evaluate site variables, solar energy capacity, building-shell size, features, and cost trade-offs.

Much of the market for high-performance housing is around single-family units in the suburbs, but the past few years have seen an uptick for multifamily dwellings and affordable housing projects in cities, including Washington, D.C., New York, and Philadelphia.

For low- and middle-income residents, in particular, an energy-efficient house can provide substantial benefits, says Orlando Velez, director of Housing Programs and Community at Habitat for Humanity of Washington, D.C.The organization recently built six passive townhouses last year in the district’s Ivy City neighborhood, whichhas a lot of air pollution. By creating a tight building envelope and filtering outside air, “you’re improving the air quality significantly,” Velez says. “It’s a healthier living environment.”

With savings from the lower utility bills, he says, residents may be able to spend more within the community. The organization plans to study those benefits over time to know whether energy efficiency is the best investment for its limited funds.

Ridgeline model in Deltec Homes' Renew Collection
Spacialists.com courtesy Deltec HomesRidgeline model in Deltec Homes’ Renew Collection
Interior rendering, Ridgeline model
Courtesy Deltec HomesInterior rendering, Ridgeline model

Living in a high-performance house can take some adjustment. Residents are often unfamiliar with high-tech HVAC equipment, such as energy recovery ventilators and solar water heaters. A tight building envelope also means that the size of the HVAC system can be decreased (fresh air supply is increased for indoor air quality purposes). The word that many residents use is “comfort”—indoor temperatures stay remarkably consistent across different areas of a house throughout the year.

 

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http://www.architectmagazine.com/technology/living-the-dream-of-a-net-zero-house_o

Custom Home Building Steady | North Salem Real Estate

NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates that the number of custom home building starts (homes built on an owner’s land, with either the owner or a builder acting as the general contractor) posted a slight increase on a year-over year basis as of the second quarter of 2016. There were 47,000 total custom starts for the quarter, compared to 45,000 for the second quarter of 2015.

Over the course of the last four quarters, there were 167,000 total custom single-family home construction starts. Note that this definition of custom home building does not include homes intended for sale, so the analysis uses a narrow definition of the sector.

As measured on a one-year moving average, the market share of custom home building in terms of total single-family starts is now 22%, down from a cycle high of 31.5% set during the second quarter of 2009.

custom 2q

The onset of the housing crisis and the Great Recession interrupted a 15-year long trend away from homes built on the eventual owner’s land. As housing production slowed in 2006 and 2007, the market share of this not-for-sale new housing increased as the number of single-family starts declined. The share increased because the credit crunch made it more difficult for builders to obtain AD&C credit, thus producing relatively greater production declines of for-sale single-family housing.

The market share for custom home building will likely experience ups and downs in the quarters ahead as the overall single-family construction market expands. Recent declines in market share are due to an acceleration in overall single-family construction.

 

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http://eyeonhousing.org/2016/08/custom-home-building-steady/

Build a Zero-Waste Homestead | North Salem Real Estate

In your permaculture design, you want to shoot for a near-zero-waste system. That doesn’t have to happen overnight, but it is definitely a primary goal. If the systems you design are wasteful, they will forever be reliant on large quantities of external inputs to keep them running. Most lawns are like this. Without chemical fertilizers, city water, and gasoline to run the mower, they would very quickly cease to look the way they do.

Many of the external resources we rely on every day are nonrenewable (at least in a human timescale). Once we use them, they’re gone. Relying heavily on these resources for day-to-day operations means we are more susceptible to market fluctuations and supply chains, and thus less resilient. In an emergency the lawn can just grow and become weedy, but what happens when we rely heavily on external inputs for our food, water, and heat?

This chapter focuses on where leaks often appear in systems and how we can minimize them, thus eliminating waste. The idea is to integrate those surpluses (another name for waste considered from a different perspective) back into our systems in some way. For instance, if we produce compost, apples that go bad can’t really go to waste. If we apply the principle of efficient energy planning and the concept of next highest use, we don’t really waste energy. Overall, the goal is to manage the inflows and outflows of our systems. We aren’t going to create completely closed-loop systems (where nothing enters or leaves), but we want to get a lot closer to that than where we are right now. Ultimately, we want to be very conscious of how the outflows of our systems can be used as inflows. Any outflows we do end up with should not harm the environment nor our neighbors.

Types of waste to address in your design include human waste, greywater, food and yard waste, and heat. We have already explored some ways to turn food and yard waste into compost in the earlier chapter on soil fertility. We’ll look more closely at the other topics here.

Human Waste

The topic of managing human waste, also known as humanure, is pretty much considered taboo in Western culture. You don’t talk about it in polite company. However, it is imperative that we begin to take responsibility for the humanure we produce. Unfortunately, the centralized systems upon which many of us rely and conventional home septic systems do not score that well on their ecological report card. In many parts of the world, waste collected by municipal sewer systems is dumped into the ocean or injected into the groundwater. Even the municipal systems that are ecologically kinder often have enormous energy inputs. The amount of fresh, clean water wasted by these systems is staggering. Consider, for example, that the Colorado River no longer reaches the Gulf of Mexico, thanks partly to all the flush toilets in huge desert metropolises like Las Vegas and Phoenix.

 

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http://www.motherearthnews.com/homesteading-and-livestock/self-reliance/zero-waste-homestead-ze0z1509zbay.aspx?newsletter=1&utm_source=Sailthru&utm_medium=email&utm_campaign=10.28.15%20MEN%20DIY%20eNews&utm_term=DIY%20eNews

Under Jeb Bush, housing prices fueled Florida’s boom | North Salem Real Estate

On the campaign trail, Jeb Bush has repeatedly emphasized his record overseeing Florida’s boom economy as the state’s governor. He says it’s an example of an economy that created a huge number of jobs and benefited the middle class — an example of what he could do as president. “I know how to do this,” he said in Maitland, Fla., on Monday.

But according to interviews with economists and a review of data, Florida owed a substantial portion of its growth under Bush not to any state policies but to a massive and unsustainable housing bubble — one that ultimately benefited rich investors at the expense of middle-class families.

The bubble, one of the biggest in the nation, drove up home prices and had many short-term benefits for the state, spurring construction, spending and jobs. But the collapse of the housing bubble as Bush left office in 2007, after eight years of service, sent Florida into a recession deeper than that in the rest of the country, and hundreds of thousands lost their homes.

“Who got hammered? Lower- and middle-class America,” said Marshall Sklar, a real estate investor who, like other well-off financiers operating in the state, has benefited from the wreckage.

Sklar recently won an online auction for a small stucco condominium in Boca Raton that a married couple had bought in 2004 for no money down. They borrowed against it as the state’s housing bubble inflated and then, like so many others, had to walk away heavily in debt when it burst.

After buying their busted dream, Sklar flipped it to a wealthy investor, banking a commission. His investor will probably earn a 12 percent return by renting out the condo. The value of the condo was redistributed upward, like so much of Florida’s housing wealth in recent years. “You took it out of the sheep and gave it to the wolves,” Sklar said after touring several houses he recently bought at bargain prices.

The story of this house and its owners is in many ways emblematic of much of the experience of Florida’s economy in the 2000s — a story that contrasts sharply with the record Bush recounts.

 

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http://www.washingtonpost.com/business/economy/under-jeb-bush-housing-prices-fueled-floridas-boom-then-it-all-went-bust/2015/07/27/3cb40da2-2409-11e5-b72c-2b7d516e1e0e_story.html