Existing-home sales surge in Orlando

From Staff reports December 29, 2005, 4:34 PM EST

WASHINGTON -- In Central Florida, the number of homes available for resale surged again in November to reach its highest level in more than nine years. Still, existing-home sales through November remained on pace in Metropolitan Orlando to set a 13th consecutive annual record, according to the Orlando Regional Realtor Association.

November existing-home sales in the four-county area were up more than 20 percent, the Realtors said, compared with November 2004, when the area was still recovering from a series of hurricanes in August and September.

Inventory in the metro area's core market (primarily Orange and Seminole counties) totaled 9,685 homes at the close of November -- its highest level since July 1996, the local association said.

The median price of the homes sold in November rose to $249,900 -- up more than 37 percent from a year earlier but only 1.3 percent higher than in October.

The Orlando area's median home price, on a tear from December through July, has risen just 2 percent since then.

Growth angers some residents of College Park

Condo projects lead to the formation of a group pushing for sensible development.

Nancy N. GlickSpecial to the Sentinel December 29, 2005 Orlando Sentinel

The growth of College Park is changing the appearance of Edgewater Drive. Side streets are now cut-throughs, traffic has increased, parking is a problem and another condo high-rise is proposed for the Orlando community's retail strip.

Many residents and merchants are banding together to try to preserve the quiet neighborhood as a close, sleepy 80-year-old residential and commercial mini-suburb of Orlando. Please click link for full story.

Ski-High Returns

Commercial real-estate sales post impressive gains

Jack SnyderSentinel Staff Writer December 28, 2005 Orlando Sentinel

Impressed by the rising value of your home in Central Florida's red-hot housing market? This has also been a dream year for many commercial developers, real-estate investors, and the brokers who help them select the right properties. Click Link for full details.

Cadillac prize is sign of a braking market


Jack SnyderSentinel Staff Writer December 26, 2005 Orlando Sentinel

Want more signs of a cooling Central Florida housing market besides growing inventory, longer times to sell properties and scattered price reductions?

How about incentives?

Realtors say new home builders didn't have much need for them when the market was super hot and waiting lists and lotteries were common in new communities.

Things have changed. Builders are again actively courting Realtors to bring their clients by to shop their properties. And some developers are sweetening the pot beyond sales commissions.

Paramount Cos. of Florida is offering a 2006 Cadillac CTS to the salesperson or broker who completes the most condominium sales at Regency Park Lake by March 31. The developer said the retail value of the bonus prize is $33,800. The condominiums are at 733 Secret Harbor Lane in Lake Mary.

Orlando Condos at April 2005 Prices

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Orlando Home sales still setting records

Jack SnyderSentinel Staff Writer December 21, 2005, 11:07 AM EST Orlando Sentinel

Orlando-area existing-home sales continued on a record setting pace in November, though the month-to-month increase in the median price has slowed considerably and inventory is now the highest in more than nine years, the Orlando Regional Realtor Association reported today.

The median price of homes sold in November was $249,000, up only 1.3 percent from October but a 37 percent increase from November 2004.

The pool of homes for sale last month reached 9,685, a 163 percent increase over November of last year and the highest level since July 1996. Brokers say the market is entering a slower paced phase, thus the growing inventory, but sales are still strong.

The 2,336 homes sold last month were a 23.1 percent increase over November of last year. Sales for the year are expected to set a record for the 13th consecutive year.

10 biggest mistakes of novice investors

By Pat Curry • Bankrate.com

Real estate has become the tech stock of the 2000s, the darling investment that everyone seems to think will be his ticket to easy wealth. And why shouldn't investors be snapping up cute little cottages? After all, mortgage rates are low and the housing market is hot. How hard could it be? Slap on a new coat of paint, put some flowers in pots by the front door, put a "For Rent" sign in the yard, and start counting the cash. Click on link for full details.

As prices soar, so does amount you can borrow

Forget jumbo loans: The conventional limit rises to $417,000 next year, matching the 16 percent increase in home values across the country.

Jim DebothSpecial to the Sentinel December 18, 2005 Orlando Sentinel

The 2006 conventional loan limit, which is the most mortgage money you can borrow without having to get a higher-cost jumbo loan, will take a giant hike to $417,000 -- up 15.9 percent from this year.

This is the largest single increase in the ceiling since the Office of Federal Housing Enterprise Oversight, the federal agency that keeps track of home prices, established an annual limit in 1980.

Whether the increase will affect your plans or finances depends on the sort of home you want to buy and where it is.

Sometimes referred to as a conforming loan, a conventional loan is the sort that most of us get when we buy a house. It also is the type of loan that most lenders link to their "best" interest rate. A lender advertising a 6 percent interest rate, for example, is normally referring to a standard 30-year, fixed-rate mortgage.

The 2005 conventional loan limit on a single-family home was $359,650, and anyone borrowing more than that would have to pay an extra quarter point or more in interest for a jumbo loan. As of Jan. 1, however, home buyers can borrow up to $417,000 without triggering the higher rates charged for jumbo loan amounts.

Though the new limits are important to the mortgage industry, the only buyers who benefit are those shopping at the upper end of the limits spectrum. Fannie Mae and Freddie Mac, the two biggest mortgage buyers in the country, estimate that this will help roughly 500,000 families in high-priced areas and hot real estate markets such as New York City, Los Angeles, Chicago and Seattle.

In some areas, a $417,000 mortgage, coupled with a good down payment, can get you a starter house or a fixer upper without a jumbo mortgage rate.

"The 2006 limit is based on the average price of homes across the nation," says Frank Nothaft, vice president and chief economist for Freddie Mac, "and is consistent with house-price appreciation.''

A National Association of Realtors study found the median price for an existing home rose 16 percent from October 2004 to October 2005. So the loan limit increase reflects that rise in the median, or middle, and the average price of houses nationwide.

"So, just as house prices grow year after year, so do the loan limits. We've had five years of very strong house prices," and the annual price increases show that. "It certainly helps make mortgages and home ownership that much more affordable."

The 15.9 percent increase applies to multifamily units, too. The new limit for a duplex is $533,850. It's $645,300 for a triplex and $801,950 for a four-plex. The new limit also affects second mortgages, putting the new limit at $208,500.

The limits are 50 percent higher in Alaska, Hawaii, the Virgin Islands and Guam, which are designated "high-cost areas." This means that if your credit and income are good enough, you can get a $1.2 million mortgage for a four-plex in Hawaii, for instance, and have it treated as a "conventional" loan.

Nothaft says that the difference between a conventional and a jumbo loan can be half a percent in a 30-year conventional loan, or even more depending upon your credit, the size of your down payment and the type of loan you get. At $417,000, even a half-percentage point can make a major difference.

If your credit is less than perfect, or if you don't have a big enough down payment, you could wind up with a nonconforming loan and have to pay more in interest because these types of loans are considered riskier. Typically, the riskier the loan is for the lender, the more expensive it is for the borrower.

10 Biggest Home Buying Mistakes

David Weekley, CEO of Houston-based David Weekley Homes, is one of the country's largest home builders and also the author of a new book, "How to Buy a Home Without Getting Hammered." Click link for full details.

When home sellers lie

From a leaky faucet to a big remodel without a permit, uncompleted repairs or undisclosed problems can mean big headaches for home buyers. Please click link for full details.

Vacation Homes: Not Just for the Rich and Famous

You, too, can own a vacation home, even if you're not rich. The trick is in avoiding the property-management middleman. Click the link for full details on how.

Hot Properties: High Tech Condos

Before buying a new condominium, prospective buyers should check into their high-tech amenities to ensure a high resale value. Click link for more details.

Homebuyers What's In & What's Out 2006

What's In

• Smaller square footage homes. After years of sprawl, new construction buyers want less space with better finishes.
• Quality kitchen cabinets. With the kitchen/greatroom the center of family living, buyers today are looking at furniture style cabinets.
  Bamboo wood floors. It could overtake maple as the favorite light-colored wood flooring in 2006.
• Wall space for flat screen TV's. Specify power and cable boxes close to locations where homebuyers want to place the latest in visual technology. The popular location for installation in new construction is over the fireplace.
• Multiple and high-powered phone lines. With modems, dsl, wi-fi moving into mainstream use, tech-savvy homebuyers want "wired" homes.
• Separate shower stalls and bathtubs in master bathrooms. The growing divide among "soakers" and "showers" is increasing. Not having one of each in a master bath could quelch a purchase.
• Built-in home stereo systems are a must-have for many audiophiles. Wireless hasn't quite made the pre-wired audio system home obsolete, at least not in 2006.
• Balconies and decks wider than 3 feet. Homebuyers want usable outdoor space. Big enough for a bistro table and chairs and a couple of pots for container gardening.
• Guest parking. With the rise in condominiums, lofts and zero-lot line subdivisions, homebuyers want their guests to have a hassle-free experience when they arrive at their new home. Buy or lease an extra space for family or friends.
• Dog Parks. Dogs and home ownership go hand-in-hand. The new way to meet neighbors in the hood is to interact with them at the dog park. Before buying a home, check out the nearest one.
• Ranch or one level homes. The baby-boomers are discovering their utility in droves.
  Second Homes. The baby-boomers are also keeping this market segment strong. Demand for second homes was still on the upside in 2005, but if primary home demand weakens, the second home market will historically follow.
• Seller give-backs. With a more balanced market in most metro markets, requests by buyers to pay closing costs have increased, and some sellers are paying them.
  Carbon Monoxide detectors. Home inspectors red flag homes that have only smoke detectors. Inexpensive and lifesaving, install one on every floor of a home before opening to homebuyers.
  

What's Out

• The real estate bubble. It's a correction with a soft decline in prices.
  Ebony-stained hardwood floors. You're better off tearing it out than trying to sand the ebony out to refinish.
• Single-rod closets. Buyers want the most storage in the least amount of space. Organizers accomplish this.
• Dark rooms with small windows. Natural light can overrule a lot of other problems in a home.
• Wallpaper. Buyers never have the same taste as decorators. Take it down (carefully) and paint.
• Builder grade light fixtures and interior fixtures used outside. The right fixtures say quality to buyers.
• Mid-century awnings on exterior windows and doors. Buyers want to let the sun shine in.
  Mirrored backsplash's in kitchens and everywhere else. Mirrored walls and ceilings say 1980's hedonism.
• Commitment (strong, bold trendy) colors. They look great in magazines, but as one buyer said to me "I don't live in a magazine".
• Gas grills that need their own tank. Buyers prefer the gas piped from the house so they don't have to replace tanks.
• Dropped ceilings. It might have updated a bungalow in the 1950's, but buyers want as much vertical space as possible.
• Flipping. Increasing inventories of unsold homes is increasing, signaling weakening demand by all buyers. If you are holding properties to flip, prepare to place them on market after the holidays.

On the Way Out

• Stainless steel appliances. Word-of-mouth says the cleaning requirements aren't for everyone.
• Laminate flooring that looks like hardwood. Not only can buyers tell it's not wood, the noise it makes with high-heel shoes is the deal killer during property showings.
  
  About the Author: Mark Nash's fourth real estate book "1001 Tips for Buying and Selling a Home" (2005) and a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on CBS The Early Show, Bloomberg TV, Fidelity Investor’s Weekly, Dow Jones Market Watch, MSNBC.com, The New York Times, Universal Press Syndicate and USA Today.

Osceola County Home to Disney is Booming

Osceola County led the four-county Metro Orlando area in the growth for existing homes sales in October-a 52 percent increase over the same month one year ago. Please click link for the full story.

New Vacation Hot Spot on the Horizon in Kissimmee

A developer will break ground today on a $4 billion resort development in Osceola County. Legacy Resort will include hotels, retail, condos, vacation rentals and a golf course. Please click on link for details.

Study says Orlando Condo Conversion the Busiest

According to Orlando Sentinel, "Orlando turned out to be the busiest of the 20 big condo-conversion markets studied by the company -- bigger than Miami, bigger than Manhattan." See link for full story details.

http://www.orlandosentinel.com/orl-condos0205dec02,0,2785745,print.story?coll=orl-sports-headlines-knights

Irish investor snaps up lots in Parramore

The buyer isn't discussing plans, but officials say he wants to mix retail, office or residential space.

Mark SchluebSentinel Staff Writer December 1, 2005 Orlando Sentinel

An Irish hotelier and real-estate investor has been quietly buying land in Parramore, another indication that the troubled neighborhood is becoming the next frontier in downtown development.Sean McElvaney of County Kildare, Ireland, bought 20 mostly residential lots scattered throughout Parramore three weeks ago for a combined $3.2 million, records show. That follows six months of purchases totaling $1.7 million in 2003 and 2004 that left McElvaney the owner of nearly an entire block.McElvaney isn't talking about his plans, but city officials say he envisions a mix of retail and office or residential space. And like others, he may be banking on the possibility that Parramore's land values and development opportunities will climb, just as they have on the other side of Interstate 4 in downtown Orlando's central business district."It's location, location, location. We are downtown," Parramore landowner David Van Gelder said. "Everybody knows it is going to be worth a lot of money."The 1-square-mile community is Orlando's poorest, mired in crime, poverty and low rates of homeownership. Parramore has long resisted City Hall's efforts at rejuvenation, but Mayor Buddy Dyer has repeatedly said the success of his administration should be measured by the success of Parramore.Though many see Parramore's redevelopment as inevitable, it has lagged behind the booming pace just to the east. At the same time, some residents worry about the neighborhood's eventual gentrification -- and whether there will still be a place for them as land values rise.McElvaney, who owns commercial buildings in Jacksonville and Atlanta and a hotel west of Dublin, Ireland, bought the residential property, including some with run-down houses, from two corporations controlled by Parramore landlord K.D. Lewis.Because they are mostly scattered, the residential lots don't lend themselves to new development of significant size. McElvaney's attorney, Terry Delahunty of Orlando, said his client is taking a "long-term view" of his land holdings and has no plans to eject tenants."Sean is very concerned about the availability of affordable housing," Delahunty said. "Anything he does there will take that into consideration."McElvaney's commercial purchases cover most of the block bounded by Central Boulevard, Pine Street, Terry Avenue and Parramore Avenue. That land is presumably large enough to accommodate a mixed-use building, though high-rise development such as that found in downtown's core wouldn't be allowed under the zoning that covers most of Parramore."He's talked about a mixed-use development there, but there is nothing firm in the works that I'm aware of," Downtown Development Board Director Frank Billingsley said.The future of that project may also come down to location. The land is just across Central Boulevard from the Coalition for the Homeless shelter."That is a major stumbling block toward redevelopment," Billingsley said.City officials for years have pushed the coalition to move its campus out of Parramore, saying the homeless people who congregate there discourage developers from investing in the neighborhood. In 1999, the City Council adopted a policy that prohibits new social-service agencies from moving to Parramore and bars existing ones from expanding.Homeless-coalition leaders say they are willing to move, but only to a site close to the area's homeless population and the charitable services they use. The search for a new location has often left the homeless coalition at odds with City Hall and the community. Most recently, black politicians blasted an idea to move it near Jones High School.This week, five members of a real-estate advisory group who have expertise in homeless issues have come to Orlando to study the coalition's needs and identify potential sites. The Counselors of Real Estate is expected to issue a recommendation to the city and the coalition in a few weeks.Van Gelder, the Parramore landowner, said development won't take off in Parramore unless problems with the homeless and crime are solved."Until they get rid of the coalition and enforce the law and get rid of the crackheads and drug dealers and prostitutes, nothing is going to happen," he said.McElvaney met with Dyer months ago and is expected to discuss his plans Friday with city Commissioner Daisy Lynum, who represents Parramore. But he hasn't submitted any development plans.Hughes Supply, a Fortune 500 building-supply company with headquarters in Parramore since the 1920s, has also made big land purchases in the neighborhood recently. A block southeast of the homeless shelter, a Hughes holding company bought two adjacent parcels for a combined $2.5 million in May and July. The company spent an additional $3.21 million in July to buy two large tracts on Mercy Drive.City officials said the company has discussed expanding its operations in Parramore. A Hughes representative did not return a call seeking comment Wednesday.