June 25, 2011
With Summer just a few days old the local real estate market will be closing watched the next few months to see if the recovery continues and improves on the postive trends the past 6 months. |
April 1, 2011
Spring is here and so is the the Central Florida real estate market. It's been a long time since we have seen this kind of real estate activity going into a new year.
Looking back we now know the bottom of the market was the first quarter of 2009, the highest in regards to inventory and no one purchasing. We also know the decline started in mid year 2006 with homes starting to lose value, that's five years of declining home values.
If anyone thought this was going to go on much longer, must of been watching the main street media, they same people that said the boom was going to last until 2013.
Value is showing its face and buyers that are financially sound should be actively looking to purchase the first half of 2011 rather then waiting. One thing we know for sure as soon as the market starts to go forward at a steady pace interest rates will increase as well. I was talking to someone the other day and they were complaining about a 5% interest rate they received, that's still cheap money.
Don't wait to long, the home prices and interest rates will not be combined in a nice little package like this for many years.
Always here to help you,
Robert Schott
TeamConnect Realty
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October 1, 2010
First off can you believe it's October! I'm not sure where the year has gone but if I didn't know better I would think I got ripped off a couple of months. Maybe I should lift my head up from the grindstone once in a while. Anyway let's see what the real estate market is up to lately. . .
The local real estate market Dr Phillips, Windermere, Winter Garden the the southwest Orlando region has been relatively quiet this past month with 792 single family homes sold in Orange county from September 1st to this morning. Compare that number to the previous month's total of 1,029 and that's a decrease of 23 percent. That's a big number jumping out, almost a quarter less in sales but one would also have to take into consideration the time of the year. September is typically a slower month with schools starting and families getting back to a more regimented schedule, no time for house hunting and a large number of people plan on staying put until the next break, Spring.
This is not great news for sellers but if you are a buyer that is in a situation where you can purchase in the next few months you are sitting nice. Don't expect a huge increase of homes coming on the market but there are still enough existing homes to look at.
I'm sure you have heard the latest news in regards to a few major banks. Bank of America along with JP Morgan Chase and GMAC all put mortgage foreclosures on hold because of procedures that are being up held in the courts. GMAC was the first bank two weeks ago followed by JP Morgan and Bank of America this week all delaying foreclosures in 23 states including Florida, there could be more lenders to follow. Frankly what happen is banks did not staff properly, and had employees attest to documents they did not read. I'm sure they are looking at procedures to make sure they are following them to the tee.
Many banks have abused and treated homeowners like criminals in a rush to foreclose and now are being investigated them self. If you are a homeowner you need to have an attorney look at your papers to see if you have any rights. It will be interesting to see how this all unfolds. The market is cleaning up the real estate market and our government and people are tired of the good ole boys club and banks that in the past have gotten a pass.
What if you are holding a mortgage by one of these banks and in the foreclosure process? You may be able to negotiate a quicker short sale or hold on to your home a little longer. Again talk to an attorney to see what your options are. In the end the foreclosures will continue.
September 1, 2010
So how about the real estate market? Orlando's real estate market had more normal trends in 2010 which we haven't seen in years. This Summer's real estate market showed nice signs of recovery, homes that were priced correctly were selling, along with buyers but there is still work to be done. We knew home values would stabilize and ascend sooner or later, especially in some of Central Florida's sought out communities like Dr Phillips real estate, Windermere and Winter Park. Areas and communities that were in high demand before the downturn in the real estate market should be the first ones to come back.
Hitting any bottom from a big drop similar to the real estate market the past four years would leave anyone a little dazed. Buyers are taking their time looking through a large number of homes on the market. Bank owned and distress properties are still very prevalent and some economists predict a double dip in the market and more foreclosures on the horizon.
If you're thinking of putting your home on the market you will be jumping into shark filled waters, many of these sellers HAVE TO SELL. That's why knowing where to price your home is never more important, it's where everything starts. This is also true for buyers preparing to make initial offer on a home.
Central Florida's huge decline in home values starting in 2006 through 2009 was the real hurt but as you can see we're not quite out of it yet. The mid term elections will be over the next month which should balance the power in Washington and March 2011 will be the 3rd Spring real estate market since the dreaded 1st quarter of 2009.
One thing we know for sure the real estate market changes and it has been doing just that the past couple of years. 2005 was marked as the peak of the market and then right into September 2006 and the start of the decline. 2007 through the first months of 2009 saw the most dramatic decline in home values. Recovering doesn't usually start with a sprint but rather a brisk walk working up to a jog. Keep it up Florida we're almost there.
July 1, 2010
Ok so you're thinking of selling your home this Summer. If you haven't already started the process of talking to a Realtor (someone with local experience in your neighborhood please), de-cluttering, depersonalizing along with fixing and sprucing up your home, you're already behind the eight ball.
I've talked about it in the past but it's worth bringing up again. These sought after areas like Dr Phillips, Windermere and now Winter Garden are getting increased activity and showings but it's not going to last forever. We are headed toward a more normal real estate cycle which picks up during the Spring and then Summer months and starts to slow down once school starts in September.
Summer's here so you have about 60 days to take advantage of this activity before school starts. Don't get me wrong it's not gang busters out here but there are buyers making offers and purchasing homes that are priced correctly in today's market, and yes you can still find an accurate list price.
The second thing you want are buyers imagining themselves in your home. It's hard for some buyers to do this when sellers have their personal taste stamped throughout the home. Your taste may be trendy and hip but we want a depersonalized home because we don't know what type of buyer will be looking.
When conversing with real estate agents, you will often find that when they talk to you about buying real estate, they will refer to your purchase as a "home." Yet if you are selling property, they will often refer to it as a "house." There is a reason for this. Buying real estate is often an emotional decision, but when selling real estate you need to remove emotion from the equation.
You need to think of your house as a marketable commodity. Property. Real estate. Your goal is to get others to see it as their potential home, not yours. If you do not consciously make this decision, you can inadvertently create a situation where it takes longer to sell your property.
The first step in getting your home ready to sell is to "de-personalize" it.
You still have some time here to put your home on the market, good luck and remember, have some fun with it!
June 1, 2010
Summer is right around the corner and that will bring more buyers into the already steady stream of activity in Central Florida real estate market. Florida hasn't turned the corner yet but you could say we have "rolled over" and are headed toward a more normal real estate market, something Central Florida has not seen in years.
When you hit the bottom of any fall you are a little dizzy and I guess you could say the same thing about Central Florida's market. Bank owned (REO) properties are still hot buys with asking prices that make them very attractive to many buyers. Should this be the route you choose when buying, don't be surprised if you get wrapped up in a multiple offer situation with many other offers from other buyers being submitted at the same time on one of these good deals.
"Short sales" are finding their footing with many banks finally realizing that they have to get some of the homes off their books. If you are looking at "Short sales," you could also be competing with other buyers.
Don't get me wrong, we have a way to go digging out of the past real estate mess but early indications are promising and the rising median home price in Central Florida shows signs of improvement.
Working with Realtors experienced in the local market is very important. Local knowledge can help to make sure that you are not overpaying for a home and experience in how to make an offer look the most attractive to a seller.
May, 2010
The attractive interest rates buyers have become accustomed to in the past few years may soon be seeing increases if some economist have their way. More and more economists are saying that its time for the Federal Reserve to raise interest rates. West coast economist and chair of the University of California Fisher Center for Real Estate Ken Rosen says the financial crisis is over and short-term rates today should be 2 to 3 percent. By keeping rates so low, "We are encouraging asset bubbles in the stock market, bond markets, and global real estate". Rosen says.
Demand for housing will increase as employers hire more workers, Rosen adds.
Looking at our local real estate market, new homes will remain well below the norm. Builders cannot complete with the distressed properties that still remain and will continue to be some of the better deals throughout 2010.
Central Florida buyers are finding themselves in multiple offer situations because of these deals. Taking the time in the beginning to write a good offer will help with the competition. Call TeamConnect for some tips or if you are looking for distressed properties.
April, 2010
Now is the time, if you've been waiting to sell or buy, be ahead of the curve and get prepared for this years spring market. Home prices are still affordable and interest rates are still low. Orlando's real estate market won't stand still for long, so don't wait any longer to purchase your dream home in the most desirable part of our country.
Members of the Orlando Regional REALTOR Association filed 4,043 new sales contracts in the month of February, the greatest monthly tally since the organization began recording the statistic in 2005 at the height of Orlando's red-hot market. The number represents a jump of 66.11 percent more new contracts filed in February 2010 than in February 2009 (2,434).
According to ORRA, The median price of all existing homes combined sold in February 2010 increased 7.06 percent to $109,200 from the $102,000 recorded in January 2010. February 2010s median price is a decrease of 26.71 percent compared to February 2009s median of $149,000.
There is still time to put a home under contract before the April 30th, 2010 deadline for the $8,000 federal tax credit expires. |
MARCH 2010
According to the Orlando Regional Realtor Association, There are 11,756 single-family homes currently listed in the Mid-Florida MLS; a number that is 28.33 percent less than the same time last year. The January 2010 inventory level was 29.61 percent lower than it was in January 2009. The current pace of sales translates into 9.13 months of supply whereas January 2009 recorded 21.54 months of supply. Homes of all types spent an average of 90 days on the market before coming under contract in January 2010 and the average home sold for 93.63 percent of its listing price. In January 2009 those numbers were 103 and 92.63 percent respectively.
The Dr. Phillips real estate market is no exception to these improvements. 78 homes sold this year already in Dr. Phillips compared to the 60 homes sold during the same time frame last year.
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February 1, 2010
Our 2010 real estate market at least in the Dr Phillips and surrounding communities is showing a promising start. Remember the real estate Spring market starts right around the Super Bowl and is usually the best time to put your home on the market. We have seen an increase of activity for homes that are priced correctly and they are going pending and selling.
Interest rates are at all time lows and the Fed just decided this past week to leave they as is but you know once we get on a roll which I see we will coming this Spring and Summer those beautiful interest rates will go up.
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December 2009
If buying a new home is on your holiday wish list, then expect to get the gift that keeps on giving. The home buyer tax credit has been extended until April 2010 and also expanded to reach more buyers. The Board of Realtors and members felt that this expansion was much needed since studies have shown that home buyer home buyer tax credit has been working toward a positive momentum in home sales activity and a decline in housing inventory.
According to the Orlando Regional Realtor Association, this new law will extend the $8,000 tax credit for first home home buyers home buyers to homes under a sales contract by April 30, 2010 (home purchases under contract must be closed by June 30, 2010). If you have not owned a home within the past three years, you qualify as a first home buyer home buyer homebuyer. In addition, the tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied their primary residence for five consecutive years out of the last eight.
The Income eligibility limits to claim the full credit for both home buyers home buyers buyers homebuyers have been increased. Individual tax filers who earn up to $125,000 are eligible for the total credit amount and joint filers are eligible with earnings up to $225,000. The purchase price of the home should not exceed $800,000.
The benefit of this tax credit is that its a dollar-for-dollar tax reduction and if your liability is less than your credit, the tax credit is refundable on your income tax return. So, next year when you are settled into your new home, your next holiday wish list will be easily afforded.
November 2009
Going into the Winter months buyers will have an opportunity to purchase properties without the competition of this past Summer. Make know mistake there was not a frenzy of buyers running around but we did see multiple offers on homes and an increase in sales and decrease in inventory levels.
The good news is Pending home sales rose again, marking eight consecutive monthly gains the longest streak since measurement began in 2001, according to the National Association of Realtors (NAR).
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in September, rose 6.1 percent to 110.1 from a reading of 103.8 in August, and is 21.2 percent higher than September 2008 when it stood at 90.9. The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8.
Lawrence Yun, NAR chief economist, said the momentum is understandable. What were witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month, he says. Home values will stabilize sooner rather than over-correcting. That, in turn, will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery.
This past year some markets have started to bottom out, the Dr Phillips and Windermere communities to name a few compared to 2008 when Central Florida and the country for that matter hit rock bottom. The slow start of 2009 during the first quarter picked up steam going into Summer and started our slow climb out of a declining real estate market.
All markets don't come back at the same time but rather real estate communities that were sought out before a decline tend to come back first. Although this is typically the slower months in real estate business homes that are priced attractive are closing. This past month TeamConnect had two homes go at or over list price with multiple offers.
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October, 2009
Florida's existing home sales rose in August marking a full calendar year (12 months) that sales activity increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors.
Existing home sales rose 28 percent last month with a total of 13,850 homes sold statewide compared to 10,813 homes sold in August 2008, according to Florida Realtors. The state association also reported a 45 percent increase in last months statewide sales of existing condos compared to the previous years sales figure.
Sixteen of Florida's metropolitan statistical areas (MSAs) reported increased existing home sales in August; 18 MSAs also showed gains in condo sales. A majority of the states MSAs have reported increased sales for 14 consecutive months.
For a year now, statewide sales of existing single-family homes in Florida have increased each month compared to the year-ago figures, says 2009 Florida Realtors President Cynthia Shelton, CCIM, CRE, a broker and director of investment sales with Colliers Arnold in Orlando. (CCIM stands for Certified Commercial Investment Member and CRE is the Counselor of Real Estate designation). This is encouraging news, and while it shows the beginnings of recovery, the housing market still needs time to continue its gradual absorption of housing inventory that will help stabilize home prices. That is why it is critical for Congress to extend the first-time home buyer tax credit into 2010. And, because its now taking longer to finalize a home sale, first-time buyers who want to take advantage of the $8,000 federal tax credit need to act quickly, or they may miss the closing deadline of Nov. 30, 2009.
Florida's median sales price for existing homes last month was $147,400; a year ago, it was $188,500 for a 22 percent decrease. Housing industry analysts with the National Association of Realtors (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in July 2009 was $178,300, down 14.6 percent from a year earlier, according to NAR. In Massachusetts, the statewide median resales price was $310,000 in July; in California, it was $285,480; in Maryland, it was $273,769; and in New York, it was $205,000.
Signs point toward continued positive momentum in the housing sector, according to NARs latest industry outlook. NAR Chief Economist Lawrence Yun predicts existing home sales will rise through the fourth quarter. Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year, he said. However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010. The buyer psychology may be shifting from, Why buy now when I can purchase later, to I don't dint to miss out on a recovery.
In Florida's Florida's-to-year comparison for condos, 4,674 units sold statewide compared to 3,222 units in August 2008 for a 45 percent increase. The statewide existing condo median sales price last month was $107,500; in August 2008 it was $158,100 for a 32 percent decrease. The national median existing condo price was $178,800 in July 2009, according to NAR.
Interest rates for a 30-year fixed-rate mortgage averaged 5.19 percent last month, down significantly from the average rate of 6.48 percent in August 2008, according to Freddie Mac. FARs sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Among the states larger markets, the Daytona Beach MSA reported a total of 686 homes sold in August compared to 573 homes a year earlier for a 20 percent increase. The markets existing home median sales price last month was $132,700; a year ago it was $164,200 for a 19 percent decrease. A total of 135 condos sold in the MSA in August, up 27 percent over the 106 units sold in August 2008. The existing condo median price last month remained level compared to a year ago at $184,300.
2009 Florida Realtors
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September, 2009
It definitely is playing out like the Spring and Summer of 2009 will be looked at in the future as the bottom of the real estate market we have all been waiting on. Sure home prices will still see some declines, the bottom of anything is where there is a little confusion but make no mistake investors have landed in the Central Florida real estate market and have been purchasing properties the past six months.
Since the start of 2009 the real estate market has been stop and go which is typical of a recovering market. The first quarter of 2009 was extremely slow with many people holding on to cash, even the banks stopped lending. This past April we saw the first signs of life with properties under $100,000 being picked up left and right, mostly bank owned properties. Summer turned out buyers seeing the attractive home prices and started jumping off the fence competing for the attractively priced homes. |
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