A forward-looking indicator based on pending home sales shows the housing market could edge down but appears to be in the process of leveling off, according to the NATIONAL ASSOCIATION OF REALTORS^®.

The Pending Home Sales Index, based on contracts signed in April, stood at 101.4, down 3.2 percent from an upwardly revised March reading of 104.8. The index is 10.2 percent lower than April 2006 when it registered 112.9. The revised March index was 10 percent below a year earlier.

Lawrence Yun, NAR senior economist, says the current index appears to be a fair representation of overall housing market conditions. “It looks like we may be leaving a period of market disruptions,” Yun says. “For the past two months the pending home sales index has been similar in year-ago comparisons, which means home sales might ease but should be fairly stable in the months ahead.”

Will Sales Bounce Back?

In April, existing-home sales declined in part because some subprime lenders went out of business and disrupted the market, Yun says.

“But the impact appears to be diminishing and mortgage applications have risen in the last month,” he notes. “This tells us that some borrowers who originally planned to finance with subprime mortgages are finding suitable loans in the conventional market, which will help to stabilize home sales.”

On the other hand, Yun says psychological factors seem to be holding buyers back as they look for clear signs that the market has bottomed. That varies from one area to another, he adds.

Across the Region

The index is 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. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Here’s what the index indicated by region:

• Midwest: rose 2.3 percent in April to 98.1, but was 4.4 percent below a year ago.

• South: increased 0.7 percent from March to 116, but was 10.4 percent below April 2006.

• West: fell 10.2 percent in April to 91.4, and was 11.7 percent lower than a year ago.

• Northeast: dropped 10.4 percent from March to 89.3, and was 15.4 percent below April 2006.

Mortgage lenders are tightening standards in ways that can make it much more difficult for potential borrowers to get approval for loans.

The new standards fall into the following areas, according to Wells Fargo & Co. and other large lenders:

• Ability to repay. Buyers are no longer being qualified at the low initial rate. They must qualify for the loan payments at rates equal to what the loan would be if it reset at a higher rate.

• Down payment. Lenders want buyers to put some money down, even as little as 5 percent or 10 percent. Loans for 100 percent of the price are very hard to get.

• Credit score. Credit scores range from the high 300s to the low 800s. Borrowers with a credit score above 680 are likely to qualify for a reasonable deal. Between 660 and 680, they may qualify, but the deal could be pricey. Potential borrowers with a score of 620 or less need to raise their scores before they can qualify.

• Income and income verification. Producing proof that a borrower has a job is key; “stated income” loans are much more difficult to get. Also lenders are unlikely to approve a loan in which the home buyer will spend more than 45 percent of his gross income paying off debt, including paying the mortgage.

Wondering what the highest residential sales of 2006 were? From multi-acre bayfront estates to oceanfront getaways, there was something for everyone. Here are the top ten highest priced closed sales that took place in the Upper Keys in 2006, as found in the Florida Keys Multiple listing service.

Click here to view the properties

Wondering what the highest residential sales of 2006 were? From multi-acre bayfront estates to oceanfront getaways, there was something for everyone. Here are the top ten highest priced closed sales that took place in the Upper Keys in 2006, as found in the Florida Keys Multiple listing service.

Click here to view the properties

Looking to start 2007 living in the lap of luxury? Here are the ten most expensive residential properties currently on the market in the upper Florida Keys. From beachside estates to multiple family compounds, you’re sure to find something you’ll like here. Be sure to bring the sunscreen, as all of these homes are located on the open water and promote outdoor living with features such as pools, boating access and dockage, and white sandy beaches. Follow the link below to view the properties. Call or email our offices to make arrangements to see any of these spectacular homes.

Click here to start living in luxury

Looking to start 2007 living in the lap of luxury? Here are the ten most expensive residential properties currently on the market in the upper Florida Keys. From beachside estates to multiple family compounds, you’re sure to find something you’ll like here. Be sure to bring the sunscreen, as all of these homes are located on the open water and promote outdoor living with features such as pools, boating access and dockage, and white sandy beaches. Follow the link below to view the properties. Call or email our offices to make arrangements to see any of these spectacular homes.

Click here to start living in luxury

ISLAMORADA — Plans are in the works to spruce up Islamorada’s only fixture on the National Register of Historic Places.

And with any luck, work on the grounds surrounding the 1935 Florida Keys Hurricane Memorial could begin by this summer, said Zully Hemeyer, the village’s public works director.

A few details of the hurricane monument upgrade are still a moving target, but the basic design is in place. The plans do not call for any changes to the monument proper — even a proposed handicapped access ramp has been nixed by the state’s historic review bureau, Hemeyer said.

But the patch of yard that separates the back of the monument from the adjacent Matecumbe United Methodist Church property will be transformed into a contemplative area, complete with benches, a historical story board and possibly, two collection pools.

A parking area, benches in front of the monument and new landscaping are also in store.

The main features of the landscaping changes, said Phyllis Mitchell, a member of the village’s Landscape Advisory Committee, will be more native plants and less foliage density.

“We are getting the deepest purple bougainvillea that was ever created,” she said.

Reducing density will improve site lines to the monument itself, said Rod Halenza, chair of the landscape committee.

“Our intent is to create a more inviting place so that people won’t just stand at a distance and look at it, so people will walk up and realize what it is, that it actually is a tomb for a goodly number of people,” Halenza said.

The hurricane monument, located between the Overseas Highway and the Old Highway near mile marker 82, was constructed out of coral rock in 1937. Entombed beneath the memorial are the ashes of more than 300 civilians and veterans who died in the Labor Day storm of two years earlier. Among them are numerous members of Islamorada’s prominent founding families: the Russells, Pinders and Parkers, said local historian Irving Eyster.

Eyster said the historical story board to be placed in the planned contemplative area will be very simple. Its only text, he said, will be a list of all the people who are known to have perished during the storm. Officially, 423 people were killed by the Labor Day hurricane’s estimated 150 to 200 mph winds and massive storm surge of approximately 17 feet. But Eyster says the actual death toll was likely between 500 and 600. Bodies were found as far away as Flamingo and Cape Sable on the Florida mainland.

Islamorada has budgeted $88,000 for the monument upgrade, all of it during the present fiscal year. Last June the landscape committee requested $100,000 for the project.

The tight budget, Hemeyer said, could mean the collection pools, one of which would feature a small waterfall, might have to be cut from the plan.

“Groups have to evaluate the cost of each element and the water features may be a significant expense,” she said.

Hemeyer said she would like to present final plans to the Village Council by March.

rsilk@keysnews.com

ISLAMORADA — Plans are in the works to spruce up Islamorada’s only fixture on the National Register of Historic Places.

And with any luck, work on the grounds surrounding the 1935 Florida Keys Hurricane Memorial could begin by this summer, said Zully Hemeyer, the village’s public works director.

A few details of the hurricane monument upgrade are still a moving target, but the basic design is in place. The plans do not call for any changes to the monument proper — even a proposed handicapped access ramp has been nixed by the state’s historic review bureau, Hemeyer said.

But the patch of yard that separates the back of the monument from the adjacent Matecumbe United Methodist Church property will be transformed into a contemplative area, complete with benches, a historical story board and possibly, two collection pools.

A parking area, benches in front of the monument and new landscaping are also in store.

The main features of the landscaping changes, said Phyllis Mitchell, a member of the village’s Landscape Advisory Committee, will be more native plants and less foliage density.

“We are getting the deepest purple bougainvillea that was ever created,” she said.

Reducing density will improve site lines to the monument itself, said Rod Halenza, chair of the landscape committee.

“Our intent is to create a more inviting place so that people won’t just stand at a distance and look at it, so people will walk up and realize what it is, that it actually is a tomb for a goodly number of people,” Halenza said.

The hurricane monument, located between the Overseas Highway and the Old Highway near mile marker 82, was constructed out of coral rock in 1937. Entombed beneath the memorial are the ashes of more than 300 civilians and veterans who died in the Labor Day storm of two years earlier. Among them are numerous members of Islamorada’s prominent founding families: the Russells, Pinders and Parkers, said local historian Irving Eyster.

Eyster said the historical story board to be placed in the planned contemplative area will be very simple. Its only text, he said, will be a list of all the people who are known to have perished during the storm. Officially, 423 people were killed by the Labor Day hurricane’s estimated 150 to 200 mph winds and massive storm surge of approximately 17 feet. But Eyster says the actual death toll was likely between 500 and 600. Bodies were found as far away as Flamingo and Cape Sable on the Florida mainland.

Islamorada has budgeted $88,000 for the monument upgrade, all of it during the present fiscal year. Last June the landscape committee requested $100,000 for the project.

The tight budget, Hemeyer said, could mean the collection pools, one of which would feature a small waterfall, might have to be cut from the plan.

“Groups have to evaluate the cost of each element and the water features may be a significant expense,” she said.

Hemeyer said she would like to present final plans to the Village Council by March.

rsilk@keysnews.com