New Air Conditioning Rules

If  you are considering the purchase of a new air conditioning, you need to keep this new rule in mind ...

The Environmental Protection Agency (EPA) is phasing out production of R-22 refrigerant (AKA: Freon).  This will dramatically increase the cost of this refrigerant nationwide in the coming months.  It is estimated that Freon will increase in price from about $50 per pound today to over $100 per pound by the end of this summer.

So, instead of buying a new AC system with a Freon-based refrigerant, property owners today need to purchase systems that have R-410a (aka: Puron)  refrigeration systems.  Such systems are available now.

So, why am I bringing this up in a blog site that is usually only about real estate issues?  Because frankly, having the new kind of AC system is one of those items that will help increase the desirability of your property if you should decide to sell it.  It should help your property sell faster and for a higher price than a property with the old Freon-based cooling system.

-30-

Maybe Section 8 Housing Assistance Should Not Be Cut So Deeply

I'm probably not going to spell this word correctly, but the federal government's sequestration program is going to deal a massive blow to the Section 8 rental assistance program.

This program allows low income tenants to receive federal financial help in making monthly rental payments.  For some people, Section 8 is the difference between living in an apartment with running water and heat or living on the street or your public park.  It's an important program, especially for families with children and those who are physically and mentally challenged. 

Section 8 also allows landlords to rent properties at current market rates even though the tenant may not otherwise be able to afford such rent.

So, Section 8 is good for both tenants and landlords.

If the program is cut as deeply as predicted, it is estimated that hundreds of thousands of people will likely lose their rental assistance and be out on the street by summer's end.  Particularly hard hit will be cities where the majority of residents are renters, like Los Angeles, New Orleans, New York City and Chicago.  In these cities, estimates are that upwards of 60% of current residents are renters and many of them rely on Section 8 assistance.  In the Tampa Bay area, many people receive help in the form of Section 8 rent subsidies; I don't know the exact number, but it is significant.

Should you be a landlord who participates in the Section 8 housing program, you may find yourself with an increase in vacancy rates, or you may be forced to accept less than current market rent from your existing tenants.  Either way, Section 8 landlords will  likely suffer some form of financial loss from the cuts in this national program.  The country is also likely to see an increase in homelessness and the resulting social and criminal unrest that such a situation seems to foster.

You know, just because the Federal government can cut a program doesn't mean it should cut a program.  Perhaps Section 8 is one of those programs that needs to maintain it's funding level.

Just a thought.

-30-

Fewer Homes Underwater Nationwide, But Tampa Bay Still Is The National Leader

Real estate continues its comeback nationally with fewer and fewer home owners finding themselves underwater on their mortgage.  Of those that still are underwater, however, Tampa Bay leads the nation.

Of the 25 largest metro areas in the U.S., Tampa Bay maintains the highest percentage of mortgaged properties that have negative equity.  Some 44% of the mortgaged homes in Tampa/St. Petersburg/Clearwater and the surrounding area are still underwater.

Miami has the dubious distinction of being ranked second in negative equity with just over 40% of mortgaged homes underwater.  The Atlanta metroplex is third with just over 38%, followed closely by Phoenix at 36%, and Riverside/San Bernardina (CA) at 35%.

Data from Core Logic, who tracks all this kind of stuff, shows that homes at the higher end of the price/value spectrum are in the best financial shape, while those in the lower end of the value scale are most likely to be underwater.  According to Core Logic, 86% of homes valued at $200,000 or more have some amount of positive equity while only 72% of homes valued at less than $200,000 have positive equity.

Just so you know, it is estimated that some 200,000 mortgaged homes returned to positive equity in the 4th quarter of 2012.  This reflects the increase in value of real estate nationally ... that's a good thing!

What this all means is that things are improving ... even here in Tampa Bay.  So, if you are thinking about buying or selling a home, this is the time.

-30-