October 24, 2005

Eric Sain
Corcoran Group
340 Royal Poinciana Plaza, #320
Palm Beach, FL 33480

Dear Eric,

Congratulations and thank you for your commitment to the future of the Florida Association of REALTORS!

I am proud and honored that you have agreed to be part of our 2006 leadership team as Vice Chairman of the Land Use, Property Rights & Environment. We have much to do. FAR's membership has grown by leaps and bounds - a direct reflection of the industry itself. This means that governmental, political and environmental issues will be affecting our daily business lives, now more than ever. We must work to earn and keep our members turst - and I know that will happen with you as part of our team.

I look forward to getting to know you better at the Leadership Orientation here in Orlando on November 29th! We've planned a dynamic, helpful program that will give you a "running start" on preparing for your first committee meeting in January. And, at that meeting, you'll receive a CD roster listing your new committee members.

Please know that I will endeavor to be a good captain, following my mantra which is: Listen, Learn and Lead. I will listen to you, learn from you and together we will lead F.A.R. to new and great destinations!

Sincerely,

Michael Dooley
President-Elect
Florida Assocation of Realtors

FAR Leadership Appointment



Rising interest rates are supposed to be an economic sedative, but the hyperactive real estate market has retained its vigor even as the prime lending rate has climbed to a nearly four-year high.

One of the biggest reasons for real estate's unusual behavior is that home mortgages are less expensive than they were 14 months ago when the Federal Reserve Board began to push up the short-term cost to borrow money.

That inflation-fighting effort has raised the prime rate from 4 percent in June 2004 to 6.5 percent today, making it more costly to buy cars, appliances and almost anything else on credit.

Meanwhile, home mortgages have remained a relative bargain. The average rate for a 30-year fixed-rate mortgage stood at 6.05 percent through Thursday, down from 6.41 percent during the first week of June 2004, according to HSH Associates, an industry research firm.

Those low financing costs mean home buyers can qualify for larger loans - a major factor why real estate prices have continued their steady ascent in neighborhoods scattered across the country.

The trend troubles Federal Reserve Chairman Alan Greenspan and many other economists, who worry cheap mortgage money is contributing to a real estate pricing bubble that could trigger a traumatic recession.

"It's very hard to understand the psychology of any market," said UCLA economics professor Edward Leamer. "But it's fundamentally clear that the housing market is in a fragile and dangerous situation."

The risks of a real estate meltdown aren't the same across the country because mortgages aren't the sole factor influencing home prices. Other key considerations include an area's desirability, the supply of available housing and the strength of the local job market.

The housing markets most susceptible to a sharp downturn in prices are in California, Massachusetts and New York, according to PMI Group Inc., a mortgage insurance provider based in Walnut Creek, Calif.

Based on a recently completed analysis, PMI predicted six major metropolitan areas face at least a 50 percent chance of enduring a drop in home prices within the next two years: Boston-Quincy, Mass.; Nassau-Suffolk, NY; San Diego County, Calif.; Santa Clara County, Calif.; Orange County, Calif.; and a two-county area east of San Francisco.

In the nation's 50 biggest markets, the average risk of a price decline during the next two years stands at 21 percent, PMI said.

After years of rapid price appreciation, things appear to be slowing down in some markets like San Diego County, where a mid-priced home sold for $493,000 in June, more than doubling from $232,000 five years ago, according to DataQuick Information Systems.

But San Diego home prices have gained just 6 percent during the past year, tapering off from the double-digit growth that had prevailed since early 2000, said DataQuick analyst John Karevoll. "We are monitoring San Diego very carefully because that appears to be where other markets might be heading," he said.

Apparently convinced that Boston's real estate market is nearing its peak, more homeowners there are putting their property up for sale, said real estate agent Alla Iokhes.

Homeowners are "probably afraid that it's going to get worse next year," she said. "It used to be a seller's market. Now it's gotten to be a buyer's market."

But the double-digit gains in home prices in many other areas continue to fuel demand among buyers looking to make a quick buck. For instance, Florida real estate agent Eric Sain said an owner who bought a West Palm Beach home for $429,000 six months ago just struck a deal to sell it for more than $570,000.

"The rates on the 30-year mortgage are still good and that's what's propelled home sales," Sain said.

Homeowners who have capitalized on the housing boom by borrowing against their properties are starting to get squeezed by the steady increase in short-term rates. Most home equity loans carry adjustable rates tied to the prime rate, which is widely expected to surpass 7 percent by year's end as the Federal Reserve continues to clamp down on the economy.

The average rate on a home equity loan is expected to reach 7.04 percent by the end of this month, up from 4.68 percent in June 2004, according to HSH Associates.

That change is stretching more household budgets because more debt has been shifting to home equity lines of credit as the real estate boom creates more wealth. Through March, home equity borrowing totaled $911.4 billion, up 28 percent from $714.7 billion the previous year, according to Federal Reserve statistics.

The average loan balance outstanding on home equity lines of credit is about $36,500, according to the most recent statistics released by the Consumers Bankers Association. A borrower owing that much would pay about $70 more per month in interest costs because of the increase in short-term rates since June 2004.

Many home-purchase mortgages also adjust with short-term rates, but some of those changes might not happen until next year - or even beyond. That's because more home buyers have been relying on exotic mortgage loans that lock in a low rate for anywhere from three to seven years and only require interest payments - another phenomenon helping to drive up prices and increasing the risk of a sharp downturn.

Last year, nearly 50 percent of the homes in California and Georgia were bought with interest-only loans, according to LoanPerformance, a mortgage research firm.

Unlike short-term rates, the Federal Reserve doesn't have direct control over long-term rates, which is why mortgage costs haven't climbed along with the prime rate.

Mortgage rates are tied to the 10-year Treasury bond, whose pricing is determined by investors.

Unlike the Fed, bond investors haven't been as concerned about the nation's current pace of economic growth stoking inflation so long-term rates have remained relatively low, although they have increased from an average of 5.72 percent for a 30-year fixed rate in early July.

It's difficult to predict how high mortgage rates will have to rise before home prices are hurt, but industry observers like Karevoll believe the tipping point is somewhere between 7 and 8 percent.

Meanwhile, current mortgage rates remain enticing, especially to buyers who remember when rates were still above 10 percent in the 1990s, said Denver-area real estate agent Bill Kosena.

"Interest rates are extremely low," he said. "I don't know how it gets any better than it is."

-Business Week, August 14, 2005

Real Estate Strong Despite Higher Interest Rates



Sunday, February 20, 2005

Change of address-Eric Sain has joined The Corcoran Group Palm Beach as a sales associate. He has been selling real estate in the Palm Beaches since 1999 and has a Graduate Realtors Institute designation.

Sain specializes in revitalized oceanfront and Intracoastal Waterway homes and new construction throughout Palm Beach County.

"Eric's knowledge of the real estate market and extensive community involvement make him a perfect addition to our team," said Wade Shavell, regional vice president.

The Realtors Association of the Palm Beaches named Sain "Rookie of the Year" in 2000, and he is on its board of directors. He is a member of the West palm Beach Development Authority Advisory Council and the Palm Beach County Historical Society.

By Stephanie Murphy, Daily News Business and Real Estate Editor
Palm Beach Daily News

Change of Address



For Eric Sain, the old song "You've Got To Have Friends" should carry extra significance.

That's because he holds those closest to him largely responsible for inspiring him to be where he is today.

As he explained, "After constant suggestions from friends that I would be an excellent realtor, I decided to earn my license. I began my real estate career in 1999."

Sain believes that one of his most important functions is "to set expectations for my clients. I want them to be fully informed throughout the transaction, so that we can avoid as many surprises as possible."

A graduate of the University of North Carolina with a degree in communications, Sain puts his education to good use in the real estate world: "I try to make the buying and selling experience as pleasurable and stress-free for my clients as I can." To that end, he offers plenty of sound advise, such as, "For sellers, less is more. Anything that you don't use on a regular basis should be stored away when you're showing your home." He's also a big believer in the importance of curb appeal, stressing that "the front of your home should be inviting, with a good balance of scale and color." And, as you'd probably expect of Sain, he does his best to become, and remain, friends with all his clients.

Article by:
Steve Dorfman
The Palm Beach Post
Residences Advertising Section
January 30, 2005

Profile of the Week



Eric Sain has joined Corcoran Group Palm Beach as a sales associate. Sain was a sales associate at Coldwell Banker in West Palm Beach.

January, 2005

Business People on the Move



WEST PALM BEACH Florida

POPULATION: 82,103
SECOND HOMES: 5%
MEDIAN HOME PRICE: $260,339
AIRPORT: Palm Beach
WHY BUY? Affordable; high growth and resale potential


BOOMERS AND SNOWBIRDS ARE flocking to the bohemian seaside community of West Palm Beach, which was initially colonized by the staff of the mansions in Palm Beach, across Lake Worth. In the last ten years, thanks to heavy investment by the local government in the downtown, it has become the toast of South Florida, with a new cultural scene that includes art institutes (the Norton Museum of Art just reopened after a renovation and the addition of a wing), bars, restaurants around Clematis Street, and antiques shops along Dixie Highway.

According to broker Eric Sain, real estate prices have increased 23 percent since last year, although they are generally still about 50 percent less than their Palm Beach equivalent. “Get in sooner rather than later – the prices should continue to be aggressive for the next five years,” predicts Burt Minkoff, a broker with McCann, Coyner, Clarke Real Estate. “With the new popularity, prices have increased but not to the point of being off-putting,” says John Loring, the design director of Tiffany & Co., who in the last two years has bought five houses that he plans to renovate and perhaps to resell eventually. “There are still hundreds of places where the price is a surprise. You can find extraordinarily attractive properties for between two hundred fifty thousand dollars and four hundred thousand dollars.”

WHERE TO LOOK The best deals are in Pineapple Park, west of Flamingo Park, with Key West-style cottages in the low $200,000s; Vedado Park, near the airport, with prices also in the low $200,000s; and Northwood Hills, an up-an-coming neighborhood with Spanish-style houses starting at about $250,000.

BROKERS At Coldwell Banker, Eric Sain (561-758-3959; ericsain.com; coldwellbanker.com); at McCann, Coyner, Clarke Real Estate, Burt Minkoff (561-512-8978; mccpalmbeach.com).

Conde Nast Traveler
Special Section - EXTRA
October 2004

"Where to Buy Now" The Skinny on Six Desirable Destinations in Americas



When Eric Sain got his first taste of Florida in the summer of 1974 at the age of five, he never thought that one day he would be living in the Sunshine State selling multi-millions in real estate and belong to the largest trade organization in the country. But it is true! "Growing up in the Blue Ridge Mountains of North Carolina, my family summer vacation was always the coast. No matter what age, I longed for that annual beach trip. Now, I get to help others enjoy my childhood dream by being an ambassador for Florida's climate and coastline."

Eric has lived in West Palm Beach for seven years and has been an active Realtor since getting his real estate license in 1999. He was RAPBs Rookie of the Year in 2000 and served on the Awards Committee that year, but that is only the beginning. His diligent work ethic, Realtor Education, and contribution to the real estate profession help train Eric to be a leader in the South Florida real estate market. "I've always been active in the community where I live," Eric said, "whether it is serving on the home owners association board, charity events, or government." That is obvious from his involvement as RAPBs Government Affairs Chairman for 2002-2004, LEAP (Leadership Education for Association Progress) Graduate, volunteer efforts at RPAC events, GRI (Graduate of Realtor Institute) Graduate, and FAR Director.

This year, in addition to Eric's other duties, he became a Sterling R by contributing in excess of $1000 to help RPAC reach its $100,000 goal. "Get involved and show your support for the profession you've chosen," says Eric. "It doesn't mean that you have to donate tons of money. RPAC needs volunteers. Bring a donation from a neighborhood vendor to the RPAC auction. Participate in an RPAC event like the Bartender's Challenge or the Golf Tournament. Walk your neighborhood for an RPAC supported legislature candidate. It is really a lot of fun and you meet interesting people, which is also a great networking tool."

RPAC is the machine that fuels the real estate industry by making it possible to drive unnecessary legislation, pointless additional fees, and those that support them out of our profession. "Through RPAC funds, we have been able to provide intensive studies on school concurrency, repeal sign ordinances, defeat Amendment Five (tax on real estate commissions), and help elect state legislators that are sensitive to real estate issures. What else needs to be said?"

This is outstanding advice coming from someone who knows first hand the level of committment it takes to be successful. Likewise, the success of RPAC is measured by the hours of preparation for RPAC events, committee meetings, and legislative events. These victories would not be possible without the devotion of RAPB staff, members of the association, and volunteers. Wouldn't you like to be a part of this thrilling process? For more information or to contribute to RPAC, contact Lee Suah at (561) 585-4544 ext. 25.

-Intouch Newletter, October 2004

RPAC Spotlights Eric Sain