Selling Your Orlando Condo in a Soften Market

Orlando has been one of the busiest condo markets in the nation from newly built units to renovated condo conversions. With the soften market with slow sales and high volume of investors needing to sell, the amount of condos for sale are mounting. Selling condos are challenging when your competition has the same floor plan or same model. How to differientate yourself from other sellers. Here are some tips Mark Nash a real estate broker and author of "1001 Tips for Buying and Selling a Home".

• Make sure the price is right: Do not overshoot the price if there are many units for sale and more condos available in immediate area.
• Have more "brokers open": This is a time to gather broker for food and entertainment to get more showings.
• Develop a "resource list": Materials or brochures of what is offered in the community to target a certain audience, whether shopping areas, day care centers etc.
• Add glitz to the kitchen and bathrooms: Many condos have small galley style kitchen, consider spending a few thousand dollars to give it some pizzazz.
• Consider incentives: Advertise giving away a TV or gift certificate.
  Courtesy Planet Realtor 8/30/06.
  

Hurricane Construction Program Popular

My Safe Florida Home Program launched 11 days has had an overwhelming response. This program is designed to lessen hurricane damage and help homeowners get lower insurance rates. State of Florida has been the first state to offer such a program. The State of Florida launched free home inspections to home steaded residents to offering a report to make their home hurricane resistant. Certain homes owners could qualify for grants to get their homes repaired. 61,000 homeowners have applied, mostly in the Tampa area and South Florida. There is $250 million for grants up to $5k per home will be allocated to 50,000 residents over a three year period. Low income homes will receive the money outright. It is unclear whether there will be enough grant money to cover 61,000 applicants. Inspections are expected to be completed by mid-November. They will reevaluate the program if they run out of money. Courtesy of Planet Realtor.

Burnham Institute Coming to Orlando

Burnham Instititue Medical Research annouced yesterday its plan to have a bio tech research facility in Lake Nona area located southeast Orlando. The research facility will part of Innovation Way a technological center expected to bring corporations and along with anticpated 37,000 homes by 2020 to this area. This is huge accomplishment in Orlando economy after Lockheed Martin and Disney called Orlando their home. UCF Medical School, VA Hospital, and University of Florida Research facility will be built within this corridor, bringing many jobs to the area. Burnham choose Orlando or Port St. Lucie, because Orlando offered various lifestyles, public venues, arts, and sporting events. Burnham Institute and its scientist will granted $310 million in perks to bring them to the area, which will include money from State and local government, human tissue donation from Orlando Regional Healthcare System worth $30 million, $500K valued home for visiting scientists, interest free loans for employees, country club memberships to recruit scientists, and TV commercials during Tavistock golf tournment. The institute will be completed within 2 years. Courtesy of Orlando Sentinel 8/24/06.

Home Sales Drop Nationwide

Nationwide July homes sales drop to the lowest level in 2.5 years, sign the market has softened. This latest statistics is weaker than economist predicted, which was sale to drop to 6.55 million. The median price of a home is up .9% to $230K. The inventory of unsold existing homes rose to 3.86 million which represents 7.3 months of back log homes on the market. This volume represents the largest inventory since the spring of 1993. Regionally sales dropped in teh Northeast by 5.4%, Midwest 5.9%, South 1.2%, and 6.4% in the West. Consumers have tighten their spending for homes due to rising mortgage rates and energy prices. The Federal Reserve is cautious about raising interest rates, but has to do so to keep hold off inflation. Home values are not going up as much now as double digit gains seen in past few years. With sellers feeling the pressure, prices are being reduced, buyers are getting better terms, and have more of a selection of homes. Courtesy Orlando Sentinel 8/23/06.

Downtown Orlando Condo Market

Condominiums are changing Orlando's skyline with 30 announced or started, survival of these projects is the question with the lack of buyers and rising construction costs many construction projects have been halted or many have rethought about going forward with the projects. Two years ago developers would have no problems attracting buyers for contracts, but with rising mortgage rates and softened market have made viable projects take a different direction. Condos in the city center is been attractive to buyers across the nation, but without buyers many will not qualify for construction loans. Courtesy of Orlando Sentinel 8/20/06.

Orlando Real Estate Update

July Statistics from Orlando Regional Realtor Association.

• Orlando Unemployment Rate 3.1%
• Average Mortgage Rate 6.53%
• Inventory of Homes 19,827
• New Listings 6,862
• Pending Sales 2,505
• Homes Back on the Market 364
• Expired Listings 1,066
• Homes Withdrawn off the Market 2,353
• Homes Sold 2,113
• Average Time on the Market 61 days
  

Nationwide Real Estate Sales Status

According to National Association of Realtor home sales are down 7% for secondo quarter compared to second quarter 2005. 28 states have declines sales with the leading states that experienced the real estate boom last year.

• State Sales decline: Arizona (26.9%), Florida(26.7%), California (25.3%), Virigina (23.9%), and Nevada (23.5%).
• States that have seen gains this year are Arkansas (17.9%), Texas (11.3%) , North Carolina (11%), and Vermont (9.1%).
• Cities that have seen gains are Baton Rouge, La (27.3%), Ocala, Fla (25.3%) and Virigina Beach (23.6%).Courtesy of Orlando Sentinel 8/15/06.

What's up with Condo Hotels?

Condo hotels are the hottest thing in the hospitality industry right now, but a market study indicated investor demand may drop and many projects planned will not be built. Condo hotel are newly built or converted hotels. These buildings operate like hotels, but units are sold as condos but are rented out like hotel rooms, owners have the option not to rent it out. These condo hotels are in the hotel business, and will follow the supply and demands of hotel rooms. Orlando condo hotel market is expected to soften which means projects may not be executed. This study showed 103 condo hotels with 76 under construction. 56% of the condo hotels reside in 4 cities Las Vegas, Orlando, Miami, and Fort Lauderdale. Orlando has 47 condo hotel projects underway two located in tourist areas, and two in downtown Orlando. Right now the hotel business is looking good. Courtesy of Orlando Sentinel 8/15/06.

New Construction Homes in Orlando

Orlando housing market still active compared to other areas of the country despite rising interest rates. Orlando strong job growth and low unemployments keeps real estate moving. New home inventory representing a 9 month supply of vacant built homes represents 23,539 units. Courtesy Orlando Sentinel 8/12/06.

Buyers Market on the Horizon

Real estate sales of new and resale homes have slowed, but median prices of homes are still increasing. These gains have been smaller than previous years. As record level of unsold homes sit on the market is causing greater pressure on pricing in coming months. David Lereah, chief economist at National Association of Realtors predicts the sales slowdown has hit rock bottom. Stubborn home owners are starting to realize they need to lower the price to attract buyers. We are helding from a sellers market to a buyers market. It is a great time to buy with plenty of homes to chose from. Courtesy Orlando Sentinel 8/9/06.

Projections in the Real Estate Market

David Berson, chief economist for mortgage giant Fannie Mae gave some projections about the real estate market nationwide.

• Average home price apprecition which had been in double digit are expected to decline to 3 percent or below by the end of the year (other colleagues predict 4 to 6 pecent).
• If speculators continue to dump rentals or second homes pushing inventories and appreciation to drop to 1-1.5 percent not seen since recession in early 1990's.
• The condo market will be vulnerable to price declines and investor dumping.
• There will not be widespread decline of property values part of current down cycle. Only in markets where speculation was rampant in 2003-2005 and where job and population growth are low.
• Mortgage rates will not rise significantly higher than today's rates which are still historically low.
• In flatten markets sellers need to become more creative by offering holding second notes or concessions to push the sale, or buy down the purchasers interest rate to lower monthly payments.
• Buyers should acquire real estate at prices and terms that were unthinkable a few years ago and do go out to do that.
  Courtesy Planet Realtor.
  

Can You Sell Your Home Through a Statue?

More and more people are selling their home through a 200 year old tradition, by burying a St. Joseph statue. When sellers bury the statue in their yard, it brings appeal for sale of their home. St. Joseph was successful at moving to different places quickly between Nazareth to Bethlehem then permanently in Egypt. With real estate market coming off 5 year fast track resulting in slow down in sales, seller are putting their faith in St. Joseph. The tradition works like this. St. Joseph should be buried with the feet facing heaven, and the head of the statue facing the home. It should be placed in the backyard or near the for sale sign. When the house sells, the seller should go to the home near closing date, retrieve the statue and say a prayer of thanks. Consequently, more statue are selling like never before. Courtesy of Planet Realtor.

Florida Property Insurance Rising

Since, Hurricane Andrew, Florida has been in property insurance mess despite legislators attempts to fix it. With home and condo insurance soaring, with customers being dropped or coverage being slashed, many Florida's are wondering if they can afford to stay in Florida. $715 million in tax money has been allocated toward the $1.7 billion deficit at state run Citizens Property Insurance, Florida largest insurance company. Florida homeowners will be on the hook to pick up the rest of almost $1 billion. Legislators have allowed 10% increase in insurance premium without state approval which has cleared the way for drastic price increases for Citizen's customers. During the next 12 months people will see their homeowners-insurance bills more than double. There is a debate about how long will legislators bail out the insurance companies. Many people think the insurance companies need to take a loss, since, this is the business they are in. To read more about "Coverage Costs Soar Out of Reach", please visit Orlando Sentinel.

Florida Real Estate Update

A top housing industry economist warned home builders at a meeting with Southeast Building conference that the building industry will remain weak through 2006 and 2007 and possibly 2008. With rising interest rates and affordability has caused the market to slow. Many Florida has advantages over most states due to the strong job growth and could population of in-migration of residents. These strengths have remained in place for both new construction and resale homes. The property insurance crisis and affordability are negative aspects to deal with. Florida average home price appreciation is about 15% per year in past 5 years, which economist say is unsustainable. Economist also mentioned if oil prices continue to rise and another shock hits US ecomony such as a bird flu attack could tip us into a recession. Courtesy of Orlando Sentinel 8/3/06.

Central Florida Commuter Rail

A commuter rail train is coming to Central Florida to relieve one of the nation's most congested areas. The train from Debary to Downtown Orlando will be completed by 2009. Most funding, construction and designs issues have been worked out. Governor Jeb Bush is expected to announce the nearly $500 million deal today. Funding is coming from all levels Federal (50%), State (25%), and County (25%) contribution. FDOT will oversee design, construction and operation of the rail system. Jeb Bush is expected to annouce the deal with CSX transportation which own 61 miles of track. The state is going to buy the tracks in exchange for improvment with greater capacity for CSX. The rail from Debary to Downtown Orlando already exist, there is future plans to build rails in Volusia and Osceola counties. Nearly 30,000 residents commute from Volusia county to Orlando. This will not only create transportation alternatives for Central Florida residents, but create new possibilites for housing and retail development around transit stations in Volusia, Seminole, Orange, and Osceola counties. New commuter rail cars will be on display today at the downtown Orlando Lynx bus station. Courtesy of Orlando Sentinel 8/2/06.

Insurance Crisis for Condos

Rising insurance rates have been media news since the rash of hurricanes in 2004. Not only are insurers not writing for the state of Florida, but rates are increasing especially for condo owners. Lake Villas condo, in Altamonte Springs Florida, insurer, Nationwide, did not renew its policy. The condo association signed on with Citizens Insurance, the state backed insurance of last resort. Citizens insures when others will not, but coverage is less for the money. Lake Villas insurance bill changed from $33,902 to $197,276 and deductible changing from $500 per building to $26,000 per building. These increases will be passed along to the home owners. This would mean increases of $200 per month to home owners. This insurance covers exterior building of the condos, and interior insurance rates are also going up. Many home owners feel they will have to sell, as once their condo was an affordable option. This is occuring in condos across the state from the coast to central Florida.

When buying a condo, your real estate agent, should obtain information on whether the condo association is considering a "special assessment" or increasing condo fees to owners to adjust for insurance hikes. Courtesy of Orlando Sentinel 8/1/06.