Centerline Building More Communities

Centerline Homes, a 15-year-old Coral Springs-based home builder that has been more active than ever in the Orlando area in recent years, is preparing to open two more communities in west Orange County.

One is called Preston Square, in Windermere. The other is Summerlake, in the big master-planned development near Winter Garden known as Horizon West. Click here for more information

Tax Break for taking a Mortgage

The break, called the qualified mortgage insurance deduction, lets taxpayers with an adjusted gross income of less than $100,000 write off the full cost of mortgage insurance. Folks who earn less than $109,000 can take a write-off for part of it.
Full Articles, please click here.

Morrison New Build Incentives

New-home sales are slower than builders would like, but discounts and deals and heavy marketing are beginning to show results, some builders report.

Taylor Morrison, the home builder and community developer created from the merger of Morrison Homes and Taylor Woodrow, for example, reports that its Central Florida sales in October and November were stronger than expected as incentives tap into pent-up demand.

Taylor Morrison builds single-family and town homes in 15 Orlando-area communities.
The various incentive packages now include a "Home for the Holidays" bonus worth $2,500 off the price of any new Taylor Morrison built home in any of the builder's Orlando-area subdivisions.

Maitland is the company's regional headquarters. Morrison had been considering making Maitland its national headquarters, with a move from the Atlanta area, until the merger took place and Taylor gained control.

Nemours Children's Hospital Moving

Nemour Children's Hospital was to be with the cluster of hospital to make up "Medical City" in Orlando near Lake Nona, has decided to purchase 118 acre tract of land near Boggy Creek Road instead. The CEO decide that this new location will give them much more needed land, than the 37 acre land at Lake Nona.

New Developement in Minneola

Minneola, a small town located just north of Clermont, and about 45-50 minutes from downtown Orlando is getting a new 700 home community spread called Minneola Ridge, to go along with other new development of Hills of Minneola a 4,000 home community next to Sugar Loaf Mountain a 2,000 home community. Commercial growth, and schools will occur with the residential developments.

Orlando Real Estate Comparison with Florida

Orlando recorded more single-family existing-home sales during the third quarter than any of Florida's other metropolitan areas except the far-larger Tampa-St. Petersburg market, an industry report showed Wednesday.

Sales in Orlando's four-county metro area were still down 39 percent from a year ago, when the market was cooling but still far hotter than it is now, the Florida Association of Realtors reported. But the 4,005 homes sold by Realtors in Metro Orlando bested all other metro areas except Tampa-St. Petersburg, which recorded 5,913 resales of single-family homes. Click Here for full story. http://www.orlandosentinel.com/business/orl-homesales2207nov22,0,3513721.story

Blue Rose Condo-Hotel

Construction was supposed to begin this year on the Blue Rose, a massive condominium hotel planned for Universal Boulevard near the Orange County Convention Center. But plans are on hold for now. The developers are no longer writing sales contracts for units, priced at $350,000 or more. Instead, they are taking reservations that can be converted into contracts in the future. The project doesn't have a date for breaking ground, either. A project sales executive acknowledges the slump in the condo-hotel market but says the delays are largely due to internal issues and changing plans. She said pre-sales activity would resume when a firmer schedule is approved. The 1,600-room, three-tower project won't open until late 2011 at the earliest -- two years later than originally announced. Orlando is noted to have the 3 largest condo-hotel market.

Star Tower Condomimum

Star Towner Condominum another completed addition to Downtown Orlando Real Estate. This 100 unit condo tower is 80% sold out and ready for closing and resident move in. This building is located at 260 Osceola Avenue, and developers believe it well positioned for success with location and amount of residential and job growth increasing.

New Movie Theater In Downtown Orlando

As part of downtown Orlando's new multibillion dollar makeover, AMC Entertainment will be opening a new 12 screen movie theater on Orange Avenue, much needed thing for downtown's growing residential population. It goes along with the redevelopment of adding a Publix grocery store, new performing arts center, and renovated Citrus Bowl will make residential living an attractive option.

October Real Estate Market Statistics

Orlando Regional Realtor Association complied the latest October 2007 statistics.

• Average mortgage rate 6.21%
• Inventory: 26,330
• New Listings: 4,958
• New Contracts: 1,304
• Under Contract: 1,923
• Back on the Market: 310 Days
• Expired: 1,969
• Withdrawn: 2,181
• Sales Closed: 1,034
• Average Days on Market: 112

For historical statistics please click here: http://www.orlrealtor.com/Pages/marketpulse/MarketPulse1107.pdf

Florida Economic Forecasts

Florida Econmist came together to discuss forecasts although no hard numbers were presented.

Econmist indicates they do not expect the housing market to further weaken, but will take time into 2009 for full recovery.

State toursim industry indicates that tourism has been flat during 2007, and steady due to the strong value for Europeans and Canadians. High oil prices have held back domestic tourism.

Governor Charlie Crist predict the homestead portability proposal change will stimulate the housing market. Although other experts predict it to have a marginal positive impact.

Mercedes Homes Offering New Concept

Mercedes homes is building a new townhome community off Airport Blvd. in Sanford called Windsor Lakes will be opening a new swimming pool, cabana, and pushing an amenities center which will be featured in all town home communities throughout Central Florida. Windsor Lakes will be 203 townhome community.

Orlando Real Estate Doing Better than Others

Despite the slow down in real estate sales Orlando is still attactive to buyers. Based on number of sales Orlando is second best behind Tampa in September. Orlando sold twice as many homes in September than Miami and Ft. Lauderdale.

40 Million American Moved in 2006

The Census Bureau is reporting 14% of the popluation or 39.8 million people moved between 2005-2006. Here are some of the results:

• 18.4 Million or nearly half moved because they wanted a bigger or smaller home
• West US had the highest moving rate at 16%, followed by South at 15%, the Midwest at 13% and Northeast at 10%
• 30% of renters moved from another rental and 7% of owner occupied moved
• 62% moved within the same county, and 20% moved to a different county, 14% moved to a different state, and 3% moved abroad

Orlando Unemployment Rate

Orlando's Unemployment Rate is 4.0 percent in September, holding steady from August at 4.0 percent. This means 373,000 more jobless out of 9,270,000 work force. The nations unemployment rate is 4.7 percent. Orlando added 22,700 jobs in the past year. Florida has one of the lowest unemployment rates.

Lake Nona Room to Grow & Growing

The Lake Nona development in southeast Orlando is on solid ground financially, owned as it is by British billionaire Joe Lewis and controlled by his Tavistock Group Inc. in Windermere.

Just as importantly, it has plenty of real ground.

"We have more land mass than Winter Park," said Robert Adams, vice president of marketing for Lake Nona Golf & Country Club. The club is the crown jewel of the 7,000-acre spread, but it's just a tiny piece in the treasure chest of Lake Nona, now 21 years old.

These are slower times for local builders and developers, so the backing of a billionaire helps ensure Lake Nona's long-term success.

Many residential developers are scrambling for customers, cutting home prices and giving away cruises to get people to tour their empty models. Lake Nona, by contrast, is preparing the ground for a medical school, a veterans hospital, the Burnham Institute for Medical Research, a town center, and a 500-acre science-and-technology office park. Plus lots of homes.

There's room for about 20,000 people, in addition to the 1,000 homes already occupied, most of them since Tavistock took control in 1997.

The company-owned community has so much land, it recently donated 334 acres to Orlando for a city park.

That's eight times bigger than Lake Eola Park, at 43 acres, and 11 percent larger than the city's previous largest public playground, the 300-acre Turkey Lake Park on the southwest side of town."

All roads lead to Lake Nona," said Adams, speaking last week at the National Association of Industrial & Office Properties' monthly meeting at the Sheraton Downtown Orlando. "That's because all roads lead to the [Orlando International] Airport. And we're right next to the airport."

That doesn't hurt.

Adams said Tavistock Managing Director Rasesh Thakkar, Lewis' right-hand man in Orlando, had been scheduled to speak at the association meeting but was asked at the last minute by University of Central Florida President John Hitt to accompany him to the state capital to meet with lawmakers about UCF projects at Lake Nona. Courtesy Orlando Sentinel 10/1/07.

New Development by Mercedes Homes

In the Orlando area, Shingle Creek is known as the small, southerly stream where hotelier Harris Rosen recently opened his lavish Rosen Shingle Creek Resort. Elsewhere in Florida, Shingle Creek is recognized as part of the northernmost headwaters for rainwater flowing south from Orange and Osceola counties to the Everglades.

Now Central Florida-based Mercedes Homes has started work on a 104-home subdivision near the slow-moving creek. Shingle Creek Reserve at The Oaks is located off John Young Parkway and Pleasant Hill Road in Kissimmee.

This morning, Cristina Quintana, the recently appointed president of the Brevard County-based builder's Orlando division, said that a Jacqueline Bay model home has been built and is now open for public inspection.

She said two more models will be opened by mid-October.Homes in the development will range from 1,978 square feet to 4,295 square feet, and will be priced from the $290,000s, which is well below the region's average sale price for production-built subdivisions last year, according to industry surveys. Merecedes Home is the nations 28th largest builder. Courtesy of Orlando Sentinel 9/20/07.

Brokerage Firm Auction off $100 million in Real Estate

Orlando-based brokerage IDX Realty will auction off an estimated $100 million in property early next month in one of the largest local auctions of its kind in the slumping real estate sales market.

This auction, scheduled for Oct. 6, will be conducted both in person at an Orlando hotel as well as online for potential buyers who cannot attend in person or perhaps prefer the newer technique involving a few clicks of a computer keyboard.

IDX broker Christopher Sampson said he has lined up sellers from Florida and four other states who want to unload their properties fast in a mega-sized, one-day sale.

The event will take place from 11 a.m. to 6 p.m. in the Double Tree Suites Hotel in Orlando, and online at the same time at idxpa.com.

Sampson said there have been lots of real estate auctions in the past and more announced every day because of the anemic sales environment, "but very few, if any, to this degree and magnitude involving so many properties at one time." The properties for sale run from vacant land and commercial buildings to multimillion-dollar estate homes.

The more than 60 properties in Florida, Georgia, North Carolina and New Jersey are being sold by investors, builders with too much inventory, lenders with foreclosed property, Realtors and regular homeowners who need to liquidate assets.

The IDX web site lists many of the properties so buyers can perform their due diligence analysis in advance. Most properties have a video, virtual tour or a slide show, as well as satellite map imaging to show the home's exact location. All listed properties have been appraised and the various home and termite inspections have been completed.

All registered bidders will be eligible to bid during the auction. Typical auction purchase contracts limit the contingencies a seller allows a buyer, although many sellers are providing incentives such as paying closing costs. Buyers are required to pay a deposit of 10 percent of the final sale price at the end of the auction, with closings generally set 30 to 45 days after the auction. Courtesy of Orlando Sentinel 9/20/07.

Subrime Lenders Yank Popular Loan

Lenders have abruptly stopped offering the most popular type of subprime mortgage. Credit-challenged borrowers suddenly have fewer options.

"Many borrowers are not going to be able to refinance," says Deborah Goldstein, executive vice president of the Center for Responsible Lending. The consumer watchdog group has criticized loose standards for subprime mortgages, which are home loans for people with problem credit -- generally, with credit scores below 620.

Over the past few years, the most common type of subprime loan has been an adjustable-rate mortgage known as the 2/28 ARM. Since mid-July, five of the six biggest subprime mortgage lenders stopped offering 2/28 ARMs. Suddenly, there's a shortage of the type of mortgage preferred by about 60 percent of subprime borrowers.

For more details and information on refinancing options for subprime loans, click http://www.bankrate.com/baw/news/mortgages/subprime_20070726_a1.asp

Builders Offering New Incentives to Buy

One of the holdups for many new-home sales these days is that the buyers may be stuck trying to sell their current homes. Now one major local builder is trying to get around that with a "no-payment-for-six-months plan."Mercedes Homes, through its mortgage subsidiary MHi Mortgage, will pay a home buyer's new mortgage for as long as six months while the buyer completes the sale of an existing property. The program differs from more limited ones in that Mercedes Homes, based in Melbourne, will pay all four parts: principal, interest, taxes and insurance.Loan amounts can range as high as $417,000, and for owner-occupied deals as much as 95 percent financing is available, along with other seller incentives, according to Sue Stewart, president of MHi Mortgage.Buyers must have a minimum credit score of 660 to be eligible. Courtesy of Orlando Sentinel.

Orlando Real Estate July Statistics

Orlando Regional Realtor Association real estate market statistics are:

• Average Mortgage Rate: 6.5%
• Inventory of Homes: 26,018
• New Listings: 5,404,
• New Contracts: 1,717
• Under Contract: 2,571
• Back on Market: 329
• Expired Listings: 1,786
• Withdrawn Listings: 2,206
• Sales Closed: 1,354
• Average Days on Market: 100

To view previous months, please click: http://www.orlrealtor.com/Pages/marketpulse/Market-Pulse-8-07.pdf

Condo Hotels

Orlando ranked the third largest in condo hotel market is fading out, after a sizzling real estate market just one year ago. Lexington at Orlando City Place in downtown Orlando just claim bankruptcy and sales are dismal for other condo hotels that have yet to break ground. Developers are wondering how long the market will adjust back to normal sales pace. Condo Hotels are units that someone owns, but operate like hotel with hotel services, the owner can opt to rent it out to other vacationers. Condo hotels have been deemed a risky product, and lenders think the same as borrowers financing requirements are much different as opposed to buying a traditional condo unit.

Orlando Median Price of Homes Up

The median price of a home purchased in the Orlando area in June increased to $253,000, up 1.61 percent from June 2006, but sales fell nearly 50 percent from the same month a year ago, the Orlando regional Realtor Association said this morning.One sign of some stability though: The inventory of homes for sale through the local Multiple Listing Service rose by only 460 homes in June, compared with the heftier 1,028 increase in May.The total inventory of 25,923 is yet another record, though, and a 40.6 percent increase over June 2006's total of 18,437 homes for sale. It would take 18.12 months to sell all those homes and condos at the current, sluggish sales pace.

Orlando's Fastest Growing Area

Just east of the airport and considered Southeast Orlando, now home to Lake Nona area, is one of the fastest growing areas of Orlando. This area soon to be the next bio tech hub of the nation and technological sector built along "innovation way". By 2020, this area is expected to house 37,000 residents, but right now there is much land and developments underway along 417 and 528 Expressway. To learn more about the business growth in this area see, http://www.orlandosentinel.com/business/orl-biomed2107jun21,0,119751,print.story?coll=orl_tab03_layout. Courtesy Orlando Sentinel 6/21/07.

Florida FCAT Scores

Florida FCAT score determine school grades and what parents look for in evaluating schools and buying properties in certain school districts. These school grades will be released next week for 2008-2009 school year.

Buyers Market in Orlando

Existing-home sales in Florida and across the nation continued to fall in April, and industry analysts said the subprime-mortgage market meltdown could foreshadow further weakness.

Florida's home sales plunged 26 percent to 12,016, and the median sales price slipped 3 percent from the same time a year ago to $237,800, the Florida Association of Realtors reported Friday.

Metro Orlando sales were off 35 percent and the median price dipped 5 percent to $250,300. Condo sales for the four-county region plummeted 57 percent to 207, and the median price slipped 7 percent to $166,100.

Statewide, condo sales were off 19 percent. But the median sales price showed some firming, rising 3 percent to $215,500.Nationally, existing-home sales in April fell 2.6 percent from March to a seasonally adjusted annual rate of 5.99 million, the National Association of Realtors said in a separate report. That was a 10.7 percent drop from April 2006.

Median prices dipped 0.8 percent from the same time a year ago to $220,900, the ninth straight decline.Real estate analyst Mike Larson, with Weiss Research Inc. in Jupiter in South Florida, said the state, which saw "spectacular gains in sales and prices on the way up," is now seeing prices and sales fall faster than the nation overall.

Larson said excess supply, overextended borrowers and rising foreclosures are some of the reasons for slack demand. But Larson and National Association of Realtors Senior Economist Lawrence Yun pointed to tighter lending standards as a factor.

Mortgage lenders, prodded by federal regulators, are making it harder for borrowers with weak credit to get a home loan.Subprime loans are higher-interest loans for borrowers who cannot get the best rates for various reasons, typically younger families, first-time buyers and people with past credit problems.Many borrowers who took out those loans in recent years are now defaulting, dumping homes on the market or losing them to foreclosure.

The core Orlando area's April sales -- mainly in Orange and Seminole counties -- were reported earlier this month, and showed the median price for homes and condos falling 3.1 percent, the first year-over-year decline since February 2002. Sales were down more than 40 percent from a year earlier.

The Orlando Regional Realtor Association, which for decades has tracked sales in the core market, includes condos and town homes in its figures. The three Realtor groups -- national, state and local -- all use different methods for reporting sales and median prices. Courtesy Orlando Sentinel 5/26/07.

If you are buyer it is a great time to buy with many choices and better contractual terms.

Inventory Up; Its a Buyers Market

The growth in the number of homes listed by Realtors in the Orlando area slowed in April, but the median price dipped from the same month a year ago.

The Orlando Regional Realtor Association said the decrease put the median price of homes sold at $241,000, down 3.11 percent from April 2006 when the market was still hot. But that was up from $240,000 in March, when the median fell sharply.

For sellers, the growth in the inventory to a record 24,435 homes, up by another 888 listings in April, means more competition. But the dip in the median price and the large selection gives buyers even more bargaining power and reduces the pressure "to make quick decisions," said Randy Martin, president of the Orlando Realtor trade group.

Martin said the local housing market appears to be "seeking a middle ground" between buyers and sellers and noted that the growth in inventory slowed from March, when another 1,492 homes and condos posted for-sale signs.

The 30-year mortgage loan rate average also remained below 6 percent during the month, at 5.93 percent, another helpful factor, Martin said.

The number of homes sold in metro Orlando ? Lake, Orange, Osceola and Seminole ? fell 41.4 percent from April, 2006, and year-to-date sales were down 35.1 percent. Orange County sales were off 44.4 percent, Seminole's fell 36.6 percent, Lake was down 30.3 percent and Osceola fell the most, at 47 percent. Courtesy of Orlando Sentinel 5/10/07.

17-92 Way Down the Road to Be Wider

Preliminary studies on widening 17-92 from Lake Mary Blvd to Airport Blvd will take a long time to plan and execute. Widening is expected for 3.65 to begin 2010 and completed 2014. Initial planning will cover concerns of environmental impact, rising costs of construction materials and real estate. This highway will be more user friendly by offering better look to the area and bicycle lanes as well.

Young Home Buyer with Money

Keep an eye on the young-with-money set — 18-to-35-year-olds with household incomes of $100,000 or more. They’ll be good prospects, particularly for upscale homes, says Bob Jordan, president of International Demographics.

The demographic represents 26.6 percent (6.2 million) of the 23.2 million adults with household incomes over $100,000 in the 87 metros regularly surveyed by The Media Audit, part of International Demographics.

The number of young with money also eclipses the age 55 and over bracket. “There are more — by both percent and actual number — adults with six-figure incomes under the age of 35 than there are over the age of 54,” says Jordan.

An analysis of Federal Reserve data by the National Association of Home builders bears this out: Median income for 55-plus households is somewhat lower than it is for younger households.

Better educated women, wealthier men

Fifty-six percent of the women in the young-with-money group have one or more degrees, compared with 46 percent of the men. Although younger women tend to have more degrees, more younger men, 60.9 percent, have six-figure incomes compared with 39.1 percent of women. And men get to the $100,000 income level more quickly, with 19.4 percent of 18- to 20-year-old men at or above this income compared with 15.6 percent of women.

Still, education level is key to wealth for this group, and Jordan anticipates that young adults with money, particularly those with an education, will continue to be a growing part of the marketplace.

Homeownership trends

Younger women aren’t only more likely to buy a house, but they’re also more likely to own a larger or more expensive home compared with men in the same demographic.

• 46.5 percent of women age 18 to 35 have homes valued at $300,000 or more.
• 42.2 percent of men have homes valued at $300,000 or more.
• 80.7 percent of women in this group own their home, compared with 74.3 percent of men.

Other young-with-money stats

• 63.2 percent of the “young with money” are 25-34
• 58.3 percent are Caucasian
• 9.7 percent are African-American
• 15.3 percent are Hispanic
• 12.7 percent are Asian
Courtesy www.FloridaRealtors.org

Church Street Station Brings Out Buyers

Church Street Station an Entertainment Complex and i-con to downtown Orlando is facing bankruptcy. The anticipated auction will be held on 4/5/07 and drawing nationwide interest. For minimum bid of $34 million, comes with 64,000 sq. ft. of commercial real estate, eight buildings at intersection of Pine and Church Street, and between I-4 and CSX rail lines. Downtown Orlando is exploding with changes from new high rise condos, office space, and retail. And new stadium and entertainment complex in discussion West of I-4. Church Station is in a great area, with lots of possibilities for new owners.

Inflation and Housing Market

A fresh batch of data Thursday signaling rising inflation, combined with ongoing concerns about the nationwide slump in home sales, has sharpened the debate over whether the weakness in housing will spill into the broader economy and spark a recession.

The U.S. Labor Department's Producer Price Index for February jumped by 1.3 percent, above the market estimate of 0.5 percent, with a big increase in energy prices and the largest rise in food costs in more than three years.

Even excluding food and energy, the core wholesale index rose 0.4 percent, double what analysts were predicting.

Worries about the ripple effect of problems in the subprime-mortgage market also are adding to fears. The subprime-lending market is the sector serving higher-risk borrowers, with higher interest rates and far higher chances of forclosures.

"Everything is kicking the housing market while it's down," said Sean Snaith, director of the Institute for Economic Competitiveness at the University of Central Florida.

Weakness in new-home sales and the record backlog of existing homes for sale in the Orlando area and others parts of the country are problems that could now linger into 2008, Snaith said, rather than dissipate by late 2007.

But with mortgage-interest rates still low, continuing job growth, and unemployment rates that are "incredibly low," he said, "all the underpinnings for the economy are still on solid ground."
Metro Orlando also continues to look particularly healthy relative to some markets, he said.

In his latest forecast, for example, Snaith projects that employment growth in the Orlando area will slow only slightly during the third and fourth quarters, in terms of year-over-year percentage change, then begin accelerating in the first quarter of 2008 and be back to 2006 levels by the end of next year. Single-family home starts are projected to continue falling until the second quarter of 2008. Courtesy Orlando Sentinel 3/16/07.

Burnham Institute Breaks Ground Soon

The Burnham Institute plans to break ground on a state-of-the-art facility in southeast Orlando as soon as October after winning approval of the largest financial incentive package in Central Florida history Monday.The La Jolla, Calif.-based nonprofit biomedical-research institute is already recruiting scientists to work in Orlando. They will move into temporary laboratories at Florida's Blood Centers in June until a permanent facility opens in 2009.

Members of the Orlando City Council called it a historic day when they approved the city's share of the $367.2 million incentive package. Burnham agreed to bring at least 303 high-paying jobs here during the next 10 years, in exchange for incentives that amount to roughly one job for every $1.2 million.

This area will be the catalyst for other companies moving to the area, such as Neimours Childrens Hospital, UCF Medical School, and VA Hospital. Courtesy 3/6/07 Orlando Sentinel.

Maitland Condos

Maitland at 17-92 and Horatio is being revitalized with new store fronts and new downtown center look and more projects expected to start construction. Just north of this area along 17-92 will be the new condo community called The Trevi, with pricing starting at $350K for these luxury condos. And sales have begun at 711 N. Orange Ave. in Maitland for its luxury condo development at U.S. Highways 17-92 and Sybelia Parkway in Maitland. First phase will offer 59 condos. Look for future updates on this areas improvements.

Consumer Real Estate Survey

National Association of Realtor surveyed 7,500 buyers and sellers around the country and the results indicated about the home search & purchase:

• 85% of home buyers used a real estate agent during thier home search
• 64% of buyers who use a agent utilize the services of a buyers agent
• 75% of buyers viewed the internet as very useful too in their home search
• A majority of buyers searched for eight week before purchasing a home
• 1 in 5 homes purchased were newly built home
• 75% of buyers purchase a single family detached home
• Neighborhood quality was the most important factor for buyers selection a location
• The typical buyer purchased a home slightly larger than 1,800 sq. ft.

Courtesy of Orlando Realtor Publication.

Martha Stewart Home Community In Orlando

New Martha Stewart inspired community is coming to Central Florida. This community called Avellino will be located in southwest Windermere over 31 acres. The architectual style of homes will be themed after Martha Stewarts own homes.

KB homes expects homes to be sold out in 12-14 months based her reputation. These homes will be different from the first Stewart community in North Carolina, as this will have local landscape and tastes. These homes will feature front porches, rear access garages, smaller lots with community spaces and side walks to encourage people to mingle. This community will not have retail space or town center.

Stewart has 4 other communities on the horizon in Texas, California, Georgia, and another in North Carolina. Courtesy of Orlando Sentinel 1/5/07.

The Carisle Project May Not Happen

The Carisle Project is projected condo, retail, and new post office location west of Central park covering a few acres, was approved by the city, then disapproved, and brought much controversy amongst Winter Park residents. Recently, Mayor of Winter Park has had private discussions with the Carisle developer to reach an agreement. It is proposed the Mayor would buy out the development project for $18 million. Financing this would be very strategic. The Mayor would contribute $100,000 from his own pocket and raise 1/3 more. In addition, the Winter Park Library would be sold for around $13 million and be moved to alternative location. Because the post office was part of the Carisle project it would have to bought for $5.5 million and the post office has verbally agreed and would be moved to west of Winter Park Village. The current location of the Carisle project will remain an extension of Central Park. The commissioners are scheduled to review this proposal next month. Local down town Winter Park residents are pleased with the compromise, and plan to contribute to the cause. Courtesy of Orlando Sentinel 12/19/06

Orlando Real Estate for November 2006

• 25,371 homes and condos have sold in metro Orlando this year, which is the second best year on record after 2005 totaled 31,230.
• Resales for the month of November has slipped 34% in Orlando core area compared to Novemeber 2005, while condo sales have slipped 44%
• Median price of home still hovering around $250K
• Novembers inventory of homes at historical high sit 21,122 for November representing 13 months of inventory. A local realtor indicates 6 months is ideal.
• Average number of days a home sits on the market is 74 and slowly increasing
• Demand is still strong due to interest rates are still historical low and Orlando job market is strong and could be strong if property taxes and insurance rates did rise so sharply.
• In November Seminole county market has held the best with 3.6% decline compared to Orange county 8.7%, Osceola couty 12.7%, and Lake county 21.4%
• A local realtor indicates that market correction is coming to an end and price reductions will be slowing down.
• Orlando is doing better than other metro Florida cities.
  Courtesy of Orlando Sentinel 12/13/06.
  

Orlando Real Estate Values Remain Strong

Despite record-high inventory and slowing sales, home prices in Metro Orlando are not collapsing under the pressure so far, a University of Central Florida economics professor says.

In his latest analysis for the Mortgage Bankers Association of Central Florida, professor Stanley D. Smith concludes that "the current numbers suggest that in general Central Florida housing markets are currently experiencing the soft landing that many had hoped for."

But his December report, released this week, repeats the cautionary language of his previous studies, noting that, "as we watch the effects of higher inventories and discounts on new homes, it is possible that the situation may change."

Smith examined the most recent numbers from the Orlando Regional Realtor Association, reflecting its members' October existing-home sales, as well as statewide Realtor sales and a housing-price index favored by many economists. That index, by the Office of Federal Housing Oversight, is based on repeat sales of the same single-family homes over time, all financed or refinanced with conventional loans. That approach removes some of the variables that make Realtor sales reports more volatile.

The federal index showed that, in the third quarter, Metro Orlando's home prices still rose 1.6 percent -- down sharply from the 8.5 percent appreciation rate of last year's third quarter, just after the market peaked, but still in positive territory.Metro Orlando's third-quarter rate was slightly better than the statewide growth rate of 1.2 percent. Also, the index revised upward Orlando's price appreciation rate for the second quarter from 3.7 percent to 3.8 percent, and the state's from 2.5 percent to 2.6 percent.

But east Central Florida's coastal metro areas were far weaker in the third quarter. The index showed that the Brevard County metro area posted no home-price appreciation during the three months that ended Sept. 30, while Volusia's resale prices rose just 0.8 percent. Metro Orlando comprises Orange, Seminole, Lake and Osceola counties. Courtesy Orlando Sentinel 12/2/06.

Orlando Real Estate

Although Orlando homes sales have dropped 24% since last year, the median price of a home rose 5.3% to $259,900 and the average price of a home just topped $320,000 for the first time in October. With the large inventory of homes climbing to 21,134 sellers are getting desperate to sell, and new home construction are delivering lots of incentives which is putting competition on the resale market. With November and December historically slow months, experts believe the cooling of sales will occur for another year. Forclosures are expected to rise as adjustable interest rates increase. Local realtors indicate the value in Central Florida is strong and expected to rebound sooner that other areas of the country. Year to date sales of 23,581 for both Seminole and Orange County has been the second best year ever. Courtesy of Orlando Sentinel 11/18/06.

Orlando Apartment Vacancy rate Low

The Orlando apartment vacancy rate fell to 4.7 percent in the third quarter, a level not seen since year-end 2000, according to Marcus & Millichap Real Estate Investment Brokerage Co.'s Orlando Apartment Research Report.

Marcus & Millichap attributes the decline to a significant inventory reduction, strong tenant demand due to job and population growth, and declining housing affordability.

Condo converters took 17,000 apartment units out of Orlando's inventory over the last 12 months, but some of these units could return to the market as rentals if the housing market keeps weakening, the report says.

Meanwhile, the area expanded by 54,000 jobs last year and will add another 34,000 jobs in 2006, a 3.2 percent increase. Courtesy Planet Realtor.

The decline in vacancy rates has allowed owners to raise rents, says Gregory Matus, regional manager of Encino, Calif.-based Marcus & Millichap's Orlando office, in a release.

Asking rents will rise 6.8 percent this year to an average of $875 per month over 2005, the report says.

The report further predicts that apartment completions will fall to 1,200 units this year, down from 2,500 units in 2005.In addition, the report says the vacancy rate will fall 20 basis points to 4.6 percent by year-end 2006 from 4.8 percent at year-end 2005. Courtesy of Planet Realtor.

Orlando Real Estate Home Values

Home values in Metro Orlando and two other Florida markets were among the nation's fastest growing in the third quarter, according to an analysis by an online real estate research company. Zillow.com estimated that Orlando-area existing-home values in the quarter rose 17.6 percent from the previous year, trailing only Jacksonville, at 19.1 percent, and Portland-Salem, Ore., at 17.9 percent. The Richmond-Petersburg, Va., area was fourth at 16.2 percent and Tampa-St. Petersburg fifth at 15.9 percent. Zillow.com uses a proprietary method for its analysis. The Seattle-based company said that despite a decline in values in many regions during the quarter, home values were up 4.8 percent year-over-year in the 36 regions it studies. Declines were noted for Boston; Hartford, Conn.; Cincinnati; Minneapolis; San Diego; and Sacramento, Calif. Courtesy of Orlando Sentinel 11/8/06.

Curb Appeal Needed to Attract Buyers

With many properties on the market and sellers care coming up short when making changes to their home and ready for sale. Curb appeal is one item being overlooked, it the property is not maintained from the outside, buyers are immediately turned off from the property. This can include of landscape to condition of the roof. Depending on the condition of the home, a seller may spend a few hundred dollars to a few thousand dollars to bring the exterior up to competitive appearence. Other homes may need significant investment to overcome eyesores that might give buyers cold feet are new windows, siding, or roof which accounts for 40-60% of the exterior of the home. Here are some other ideas.

• Paint. Especially important if your home color is dated or out of style. Don't forget fresh coats on trim and around windows.
• Clean. Power wash walls, driveways and sidewalks to remove debris and cobwebs. Clean windows.
• Clean up the landscape. Trim bushes below window height. Tidy up flowers and keep the lawn mowed and edged. Store toys and equipment out of sight.
• Repair. Fix lighting, fill cracks in driveways, secure screen doors and railings, replace cracked window panes. Remove and replace loose shingles. Reattach sagging gutters and downspouts.
• Add color. Potted plants, fresh flowers are inviting and add visual appeal

Courtesy of Planet Realtor.

Winter Park Langford Property up for Sale

Downtown Winter Park has been growing with luxury condos around Park Avenue. Investors of recent built luxury condos owns 3.5 acres next door. These investors were going to build a 5 star hotel and allow residents of Residences at Interlachen access to hotel services. However, negotiation with a hotel operated did not work and the investors have decided to sell this 3.5 acres as this land had appreciated and this is not their business. This parcel is zoned for a hotel up to 230 rooms. Courtesy of Orlando Sentinel 11/7/06.

Modular Homes Increasing Popularity

Modular home are becoming more popular choice people looking to build a home, which has been a small part of the residential market. Traditionally, these homes have been purchased in the north, because of the winter weather, and short growing season. These modular homes are built in doors in climate controlled conditions, with adequate labor, and with popular designs. Modular homes come with high ceilings, wood flooring, and granite counter tops to get a custom look. Once built they require small amount of labor to connect, so onsite building does not take months and months. The construction quality competes with traditional construction. For these reasons they are becoming more popular in the Southern US, such as Florida. A recent Orlando resident purchased a half duplex 3 bedroom and 2.5 bath with 1,400 sq. ft. for $338,000 including all the interior upgrades.

Orlando New Construction Homes

Orlando, Florida a prospering city for real estate, has many new construction projects and home sales that have slowed down from last year. The orders for new home sales have slowed and new inventory homes remain vacant, pushing inventory numbers to 22,794 units. Despite slowdown, here are some developments that remain active during 2006:

• Solivita 743 homes
• Timber Springs 489 homes
• Lakes of Windermere 482 homes
• Spring Isle 476 homes
• Summerport 391 homes
• Avalon Park 385 homes
• Moss Park 350 homes
• Legacy Park 354 homes
• Plantation at Leesburg 324 homes
• Lake Ashton in Polk 304 homes

Many builders are offering various incentives to lure buyers to contracts. Such as TV, cash incentives, and home decor. Courtesy of Orlando Sentinel 11/1/06.

I-Drive Plans for Redevelopment

International Drive, a popular tourist area, has had stiff competition from shops along Sandlake and Millenia Mall. Unicorp National Development, the company that created Baldwin Park Village Center, has accumulated about 30 acres on International Drive for a billion dollar project including hotels, restaurants, and upscale shops, that would be along the lines of Rodeo Drive in California.

The Goodings Plaza was just purchased for $22 million will incorporated into the original planned development adjacent to Mercado Mediterreanean Village shopping, which was previously purchased by Unicorp for $20 million. Gooding Plaza tenants include Ripleys Believe it or Not attraction, Charleys Steak House, Goodings Supermarket and the Crab House, will be incorporated into the new design, but Ripley would stay exactly the same. Orlando Sentinel 10/26/06.

Downtown Orlando Entertainment Complex

Mayor Buddy Dyer and city commissioners have agreed to purchase a new location for the new Orlando Area and Entertainment complex for $35.5 million. This will be 9.4 acre site which runs south from the southwest corner of West Church Street and Hughey Avenue, and tucked in the corner of I-4 and East-West Expressway.

This is the largest project in Dyers career, which will encompass a new arena, performing arts center, and renovated citrus bowl with total project costing $1.04 billion. Dyer believes these venues will have an impact on the community not just 10 years, but for the next 50 years.

There is opposition to the project concerning not any public input, agreement with Orlando Magic, or sufficient information about the site. Courtesy of Orlando Sentinel 10/17/06.

Vacation Home Market Orlando, Florida

Vacation homes have been a popular option for investors and vacationers alike in areas close to Disney such as Kissimmee, Davenport, and South Clermont.

Due to rising land and constructions costs builders are constucting high density developements such as condos and townhomes. This is a more affordable option and the trend is attached homes such as townhomes with lots of amenities and resort feel. KB homes is building a townhome community called Crestwynd Bay starting at $260K.

With rising prices with single family homes, rent owners are having difficulty covering mortgage and carrying costs. However, although demand is slowed single family home rentals with lots of amenities are still popular with British vacationers. For instance, Lexon homes is building two single family home developements priced $350,000 to $460,000. There will be onsite rental operation to help owners maximize rents and occupancy. KB Bella Toscana in Polk County single family homes start at $320K.

Real Estate agents feel the slowed vacation market will once again bounce back. Courtesy of Orlando Sentinel. 10/10/06.

Signs Real Estate Market Stabilizing

Pending home sales are up according to National Association of Realtors (NAR). The Pending Home Sales Index in August rose 4.3% from July, but still low compared to August 2005. Pending index is sales of existing homes when a contract has been signed but the transaction has not closed, until finalized within one to two months of signing. David Lereah, NAR's chief economist indicates the index is a hopeful sign, that sales should stabilize over the next two months, although a minor decline is possible. With fewer new listings coming on the market we should see draw down on inventory early next year and prices will rise, but at a slower pace than historic norms. Courtesy of Planet Realtor 10/3/06.

Addresses Changing in Central Florida

The US census indicates 60% of Central Florida Residents changed addresses since 2000. 460,000 residents moved into an apartment or home during the real estate boom. Home to work commutes exceed national averages in 26 minutes in Seminole County, 27.7 minutes in Lake County, and 31 minutes in Osceola County. One resident states he used to live in a condo in downtown Orlando with a 12 minute commute now traded to have 2,000 square feet in Winter Garden with a 30 minute commute. Real estate agents indicate buyers are willing to increase their commute for a bigger home if they have access to highways such as State Road 417 and 408. Buyers from New York and California are buying real estate in Ocoee and Winter Garden for half the cost with a larger home. Courtesy of Orlando Sentinel 10/3/06.

Oralndo Price of Homes Remain Strong

Nationwide home sales have fell for 5th straight month, pushing median price down by 1.7%, which represents first decline in 11 yearts. Nationwide inventory of unsold homes to 3.92 million.

In Florida, single family home sales plunged by 34% in August compared to last year, but median price of home remains at $250K up 9% from last year.

Orlando Real Estate home sales fell by the same amount as State of Florida and the median prices of a home is $261K which is up 5% from August 2005. While Orlando median price of a home remains stable, other Florida cities have seen double digit declines such as Sarasota-Bradenton, Panama City, Melbourne, Titsville, and Fort Walton. Double digit median price increases are occuring in Gainsville, Ocala, Tampa, St. Petersburg, and Clearwater.

Sales have slowed sharply due to rising mortgage rates and slowing economy. It is still a great time to buy with volume of choices for buyers and more favorable terms for buyers. Courtesy of Orlando Sentinel 9/26/06.

Home Buyers Buying Young

Tomorrows home buyers are under age 25, are tech savy and searching the internet for homes. Many these home buyers are purchasing homes at a younger age than their older brothers and sisters as well as their baby boomer parents. Many young home buyers see purchasing real estate as a good long-term investment and no longer waiting for a long term relationship or getting married to make a purchase. The percentage of young home buyers have increased from 11% in 2001 to 14% in 2005. The trend of single female home buyers has increased from 14% in 2001 to 21% in 2006. Courtesy of Planet Realtor 9/25/06.

Central Florida Plans for Future Growth

At Daytona Beach community college 50 elected officials around the area came together with residents and representative from www.myregion.org to plan for Central Florida growth. It is estimated by 2050 Central Florida's population is expected to grow to 7.2 million. Ten years ago the average housing density was 1.5 acre per home, now it is 1 acre per home. Team got together to view Volusia county region via lap tops to divise ways to implement public services such as roads, water, emergency services, and public transportation to plan for the growth, while preserving land for wildlife. Courtesy of Orlando Sentinel 9/25/06.

Flipping Homes Not So Profitable

The real estate boom has brought investors from all walks of life and occupation to purchase real estate in the hopes of making a profit since the past few years. Today with the market softened investors are faced with the possibility of having no or little profit from their venture. Nearly 1 in 5 flippers who sold from April to June lost money on the deal, which is the highest level in 2.5 years according to HomeSmartReports.com. This report will be released an show flipping activity in 147 metro areas. With speculators pulling out of the market, it is accelarating the decline in home sales this year. Life has become hard for sellers, while buyers have more choices and incentives, as sellers cut prices. However, there are sellers holding onto their high price tag, with dreams of making a profit. The four hottest real estate markets such as California, Florida, Arizona, and Nevada has hit the hardest with slow sales for flippers. Nationally, the level of real estate flipping declined to 4.7% in a quarter, down from a high 6.4% in first quarter of 2005. With the number of speculators bailing, the number of inventory of homes has hit an all time high in the US.

Orlando Flipping Statistics:

• 5.3% of homes flipped in past 5 years
• 6.0% of homes flipped in 2nd quarter 2006
• $33,750 profit flipped homes in 2nd quarter 2006
• 11.7% flippers lost money 2nd quarter 2006
• $17,150 lost money in 2nd quarter 2006

Courtesy of Planet Realtor and HomeSmartReport.

Historic Home Auctioned In Downtown Orlando

A Victorian era home built in 1887, and called the O'Neal house, will be auctioned off on 10/7/06 to the highest bidder, which is located on Lake Cherokee in the heart of downtown Orlando. This home has been updated through the years an offers polished wood floors, fireplace with ornate carvings, upgraded kitchen, pool, 5 bedrooms, and 4.5 baths. This home is two of surviving six homes located on once called "Honeymoon Row" because prominent newly weds lived here at once called Lake Minnie rather than Lake Cherokee. This home is a historic landmark and comes with restrictions that require the owner to obtain permission to make any changes. Four of the original homes have been torn down, but regulations require as much preservation as possible.

There will be no minimum bid. The bidder must put down $25K in cash or cashiers check and 10% due on day of auction and remaining balance within 30 days. This property is estimating to be sold from $1-2 million. Courtesy of Orlando Sentinel 9/21/06.

Status of Orlando Real Estate

The number of homes sold in the core market of Orlando dropped 34% compared to August 2005. August 2005 noted to be the single busiest month in history of Orlando Regional Realtor Association. The median price of a home increased by 2% over August 2005 which is at $249,900. Buyers are holding back due to increasing insurance rates and taxes, leaving the number of inventory homes over 20,000. This represents a 10 month back log supply. In addition, the number of new construction homes being sold through the realtors are rising which has not been seen in the past. As a result of the slow down, sellers are having to slash prices, to get any activity. Surrounding Orlando counties are feeling the same slow down, but Brevard county and coastal communities have builder cutting back on construction and buyers walking away from their deposits. Mortgage rates have been steadily rising, but recently the average rate went from 6.53% to 6.20%. Courtesy of Orlando Sentinel 9/15/06.

College Park More Development to Come

College Park located just on the west of Interstate 4 near downtown Orlando offers a quaint town center along with historic homes. A 50 year mobile home park located at the corner of Edgewater Drive and Maury Road home to many elderly residents has just delivered 6 month eviction notices. This mobile home park along with 9 acres south, which is still in negotiations with Orange County Public Schools, will be redeveloped with office, retail, and homes. Many elderly residents cannot afford to rent for $225/month. The builder indicates it will help residents to move their mobile up to $3000.00, if new enough and up to building codes, or compensate $1375.00 to $2750.00 depending on home size. Still residents do want to move 30 miles away or can afford to pay $10,000.00 needed to anchor the mobile down. Courtesy of Orlando Sentinel 9/13/06.

Good Luck Finding an Orlando Apartment

Orlando occupancy rates of 97.5% the highest since 1987 combined with rising rent prices are causing difficulty in finding affordable apartments. Orlando ranked 8th in the nation for increased rent prices by 7.7% in past year. Short supply of apartments has occurred as because of the condo conversions (converting apartments to condos). Orlando has been the second leader in nation for condo conversions. New supply of apartment complexes will be built, but not fast enough because of rising construction costs and opposing from residential areas. Rent prices are starting to stablize. With low employment rate, generation of jobs, continue to draw people to the region. Courtesy of Orlando Sentinel 9/10/06.

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.

Upscale Bella Collina Apopka Florida

Bella Collina, a development by the Ginn Corporation, located just west of downtown Orlando in the small town of Montverde, is starting to build mammoth homes along Lake Apopka. Lake Apopka has had a massive clean up effort for its polluted waters will be home for several millions dollar homes slated to be built. Bella Collina sold most of the its lots during 2004 to international investors with big pockets with the hope of flipping the property. Although, the Lake County property appraiser indicates the housing market is on a down turn, Patrik Kelly VP of sales for Bella Collina believe during the slow down the amenities will draw people to the area and home building will pick up. The homes being built are around 9,500 sq. ft. priced at $7 million. These homes have raised property values in Montverde in the millions. Builders are building 8 model homes estimating prices from $4 million to $7 million. 1,900 acres have been cleared for a Nick Faldo designed golf course and 800 homes. They are also building two club houses, 50,000 sq. ft. Italian inspired design with 3 resturants, spa and pool. Also a 10,000 sq. ft. sports and esquestrian center which will include a sports field and indoor dressage arena. Bella Collina will be part of the street of dreams October 14, to November 26, 2006. Courtesy of Orlando Sentinel 7/29/06.

Cost Interrupt Road Plans for Innovation Way

Innovation way a technological corridor in Southeast Orlando is the fastest growing region in Orlando. This area will be home also to UCF new medical schools and potential VA hospital. 52,000 residents will be part of this area by 2025. Because of escalating construction cost the Expressway authority has cut back on projects two of them being the interchange at State Road 528 and State Road 417 which is need to accomodate growth. Developers comments this delay will not too bad as the final designs have not been approved. The agency is looking at funding alternatives. Other projects that cannot be started because of lack of funding is an interchange at Moss Park Road and State Road 417, widening of State Road 408 both east and west ends, Maitland Blvd extension to U.S. Highway 441, and interchange State Road 417 at Boggy Creek and Florida Turnpike. Orange county schools are also caught up in high land, labor, and construction cost to build 68 new schools by 2016 to accomodate Orlando's growth. Courtesy Orlando Sentinel 7/27/06.

Consumer Confidence Rising

For second month in a row, consumer confidence index rose to 106.5 in July from 105.4 in June. It is a economic sign of higher incomes and more jobs increase consumer confidence, despite slowing home sales. In Florida home sales fell 29% after pressures of rising mortgage rates, inventory levels and increase insurance premiums. Approximately 18,000 Florida homes have been sold compared to 25,000 one year ago. All 20 Florida metro cities have seen a decrease, and Jacksonville has only seen the lowest at 3% drop. Orlando Real Estate sales are down 21%, but median price of a home up 10% to 266,300 from last year. Courtesy of Orlando Sentinel 7/26/06.

Orlando New Construction Impact Fees Increasing

Impact fees are new construction costs to the city for fire, sewer, water, and road resources as a result of growth. Builders are charged these impact fees which are directly passed to the buyers. Just to note closing costs on new construction homes are higher, as these extra fees are not associated with a resale home. Over the next 15 months the City of Orlando preliminary planned to raise impact fees by 18.8%. This increase would raise the current feee from $1,192 to $2,400 on 1/0/07, then to $3,600 on 10/1/07. This is lower than $6,147 which was initially recommended by consultants. Affordable housing developments are exempt. The Orlando Mayor and developers were please with a compromise and reduced increase. The Executive Director of the Orlando-based Coalition for Property Rights oppose the impact fee indicating this will continue to make Orlando Real Estate unaffordable. There is a committee implemented to review whether fees will increase again for 2008. Courtesy of Orlando Sentinel 7/25/06.

VA Hospital Coming to Lake Nona in Orlando

A new VA hospital is coming to Central Florida and will be its biggest Federal project ever. The final decision by key congressional committee to approve the site to be located in Lake Nona. Lake Nona is south of Beach Line Expressway SR 528 and just southeast of Orlando International Airport. This was good news to the UCF administration as they announced several months ago, plans to build a medical school in the same area. In Lake Nona and surrounding areas 37,000 homes are expected to be built by 2020, also a result of housing need for the creation of innovation way a technological sector for corporation. For those moving to the area and need more information, please contact http://www.orlandobuyersbroker.com/.

June Facts on Orlando Real Estate

• June Housing Inventory still at an all time high at 18,437
• Average Home on the Market 57 days
• 2,680 Homes Sold in June
• Orlando Unemployment Rate 2.8%
• Average Mortgage Rate in June 6.45%
• Foreclosures down, even Orange County one of the regions worst rates

FHA Loans Are Changing for the Better

FHA loans are government backed loans which are good for buyers with less than perfect credit and allow low down payment requirements, but they did not come without stringent requirements compared to conventional loans. As a result, these loans have negative appeal amongst real estate industry, because it almost requires a home to be in great condition and requires more work on behalf of the seller to bring the home up to FHA standards. FHA has taken several steps to move into the 21st century by making significant changes.

• To keep up with increasing home prices, the new maximum amount allowed to borrow is up to $362,790 which was a $50,000 increase. There is another proposal to increase the amount to $417,000 in certain high cost areas.
• Certain items on inspection reports were required to be fixed prior to closing even cosmetic issues. Now only structural or safety issues are require to be fixed.
• Obtain a FHA 203k loan will allow the borrower to borrow up to $35,000 in repairs to be completed after the closing. Borrowers can now replace worn-out appliances and carpet without the need for a second more costly mortgage.

It is still wise for a buyer to try to obtain conventional mortgage if they can. To learn more about FHA financing options, please contact First Choice Financial at eric@specialtymortgage.com Courtesy Orlando Sentinel 7/9/06.

Real Estate Closing Costs

Closing costs are require costs by both the buyer and the seller at the end of a real estate transaction. When you purchase a home in Orlando, it is decided in the contract who will pay for title insurance. Whoever pays for title insurance, gets to pick the title company. Title insurance, is one of the many costs, and is approximately .6% of the purchase price. Orlando Sentinel Article, http://www.orlandosentinel.com/business/orl-title1606jul16,0,1163540.story discusses that consumers are choosing their title companies due to varying costs. Allan Michaels with Title USA has straight forward fees and competent title agents which takes care of all the issues for both sellers and buyers alike. If you need an Orlando based title company, contact Title USA http://titlesourceusa.com/

Winter Park Residences No Big Development

Winter Park residences have opposed big building development in down town Winter Park stating it will take away from the charm. As in with the case of the Carisle project, which is on hold for final approval. In a commissioner meeting it was voted to move forward on a moratorium which would halt development of buildings of 10,000 sq. ft. or more, except single family homes until the city can revisit/review their building guidelines. The final vote is expected to be later this month. Courtesy Orlando Sentinel 7/11/06.

Jumbo Loan Are Big and Pricey

With rising real estate prices across the country, jumbo loans are more common. Jumbo loans are loans starting at $417,000 and above. Jumbo loans are offer in fixed rate, interest only and adjustable rate types and, also in addition to a traditional 30 year loan, it comes in 40 and 50 year loan. Jumbo loans carry a higher interest rate than a conventional loan, such as a quarter of a point higher for someone with good credit history etc. Interest rates are dependent on your individual financial history. You have to take into consideration Interest Only loans, because at some point in time the monthly payment will increase. When considering a jumbo loan you need to ask can I afford a $3,000 monthly payment. What will happen if I become sick or lose my job. Jumbo loans are pricey and can become pricer depending on these above factors.
Courtesy Orlando Sentinel 7/2/06.

Florida Termite Contract Have New Rules

State's Commissioner of Agriculture and Consumer Services announced new rules for termite contracts which were effective June 1, 2006 which holds pest control companies more accountable and avoid loop holes. 50% of homes have termite protection in other words termite insurance in which they inspect your home usually annually or upon request and treat the problem if needed. Changes that in effect are contracts are specifiying the type of termite they cover, redo treatments to be done no longer than 90 days, and specifiying where treatment is a spot or full treatment. Now Florida home buyers will know if the home was "treated" whether spot of full treatment occurred. In addition, companies can no longer deny repair of structural damage from termite infestation. These new rules are the strictest and will be changing the pest control company nationwide. Courtesy Orlando Sentinel 7/7/06.

Modular Homes Coming to Orlando

An affordable home in Orange County, the home to the City of Orlando, is anything priced under $211,500. With the gap in wages from prices of homes people are looking at other affordable options such as Modular homes. Modular home have seen a 26% increase in sales since 1995. These homes are 80% built in the factory and come with all styles such as town homes and single family homes. With computer design the styles are updated and quality is better as workers are more specialized when building these homes. Other prebuilt homes include concrete, log, modular, and panelized homes. Art in Architecture and sponsorship by Orlando Regional Realtor Association are going to have modular 2000 sq. ft. townhomes built in Holden Heights area, selling for $175-195K. These profits will go back into the program to build more modular homes. These modular homes are most popular in Midwest and Northwest where building season is shorter. These homes can withstand wind gust of 120mph and some noted on the east coast of Florida are built to withstand 140mph winds. Courtesy of Orlando Sentinel 7/2/06.

Lake Mary Delay Downtown Development

Lake Mary Commissioner approved a plan to develop downtown Lake Mary 5 years ago, but little has happened since then. The location of the new downtown would be on 74 acres located around the city hall. This would consist of one and two story town homes, apartments and retail-residential buildings. There has been one viable developer to submit their plans. The big obstacle is developing a downtown around existing neighborhoods. Many residents are opposed saying it will take away the historic character. Some homeowners will sell their lots significantly over fair market value, while others are willing to sell joint lots with their neighbors. This would be an expensive and big job, and will have improve infrastructure. Right now everything is at a stand still. There is still projects in the works, such as, a new community center, park improvements, an interactive fountain and band shell. Recent renovations to City Hall include clock tower and gazebo. Courtesy of Orlando Sentinel 6/25/06.

Florida Foreclosure Trends

As many buyers took out interest only loans and other creative loans, their payments are likely to increase at some point in time. Industry experts indicate we may see more foreclosures as a result. Realty Trac, an online marketplace for foreclosed property, reported that foreclosure continue to increase in May, but appear to be leveling off nationwide. In May foreclosures were up 28% than May 2005. Florida ranks 8th for the busiest foreclosure filing with one filing out of 821 households. The national rate is one filing for every 1,247 households. Courtesy Orlando Sentinel 7/1/06.

Orlando Luxury Market

Even though Orlando home inventory is at an all time high and turn over is slow, Orlando luxury home market remains brisk. A recent report from ORRA says homes priced over $ 1 million increased 270% over last 3 years. Real estate agents says they are having no trouble unloading homes and luxury builders say they cannot build fast enough. There for demand for luxury home industry experts say, people are cashing out of their northern homes before interest rates are too high, Orlando expanding job market relocating executives, and simply prices have just increased. Home priced over a million represent 3-4% of the Orlando market and are on the market an average of 60 days which is same average for a home in the state of Florida. A trend occuring in the luxury market is being seen outside of Metro Orlando. Luxury homes are now found in DeLand's Victoria Park located in Volusia County.

Orlando Real Estate Seeing Gains

Compared to the rest of Florida, Orlando real estate market remains strong with median price of homes at $267K which is a 22% increase from last year. Statewide sales slowed down by 24% while Orlando down by 21%. Orlando sales down 12.2%. Condo sales fell 31% statewide, but Metro Orlando condo sales are up 10%. Median price of Orlando condo is $163,300 compared statewide at $220,000. Nationally home sales have declined but new home sales rose 4.5%. Other areas that remain flat are Fort Lauderdale, Fort Myers-Cape Coral, Sarasota-Bradenton, and Naples. Courtesy of Orlando Sentinel 6/28/06.

Clermont Going to Expand?

Center Lake Properties wants the City of Clermont to annex 584 acres of land known as Black West located southwest of Florida's turnpike to built 1,300 homes and up tp 200,000 commercial space. This is the second time Center Lake Properties has visited this proposal as it was originally turned down by complaints of residents about crowded schools. Also Clermont is suppose to have joint planning review with Lake County on of any development outside the city. This would leave 140 acres within boundries of joint planning with the county. If approved the county could limit homes to 1,100 due to sewage capacity and schools and roads would need to be improved to handle increase in resident schools and traffic. This meeting is scheduled today to vote on this request.

Four Corners In Southwest Orlando

The Four Corners is located in southwest Orlando at the intesection of Highway 27 and I-4, just minutes from Disney. This area is unusual as it is the corner of Polk, Osceola, Lake, and Orange counties and fast growing region with more than 80 developers building homes, but what is homes without a community which is what residents are complaining of. Becuase 4 government entities make up this area, there is no clear planning and collaboration amongst the governments. There are not enough schools built, roads are not consistent (wide in one county but not the other) one county has a library to share, no parks exist, water is a shortage where north Polk county residents can only water their lawn once a week, emergency services are set up by who can get there the fastest. Residents are angry the Public Services are not more cooperative. A study by Urban Land Institute indicated that government cooperation is neither widespread or encourage despite 5 million residents moving to Florida by 2020. Courtesy Orlando Sentinel 6/26/06.

Mercedes Homes 96 Homes in 96 Hours

With the slow housing market nationwide a new home builder is trying something different. Merecedes homes is reducing the cost of their inventory to sell 96 homes in96 hours which would save a homebuyer an average of $73K per home. This event kicks off today through Sunday and occuring a Mercedes locations in Florida, Texas, North Carolina, and South Carolina. The family owned company came up with this idea after building the first Central Florida Home on Extreme Makeover TV show which took 96 hours to build the home. This home is actually located in Altamonte Springs. Builders and sellers alike are creating incentives to bring in buyers.

Metrowest Suburb of Orlando Due For Name Change

Metrowest a suburb located southwest of Downtown Orlando may get a name change. Metrowest like many other Central Florida cities is getting a new town center, retail, office and condo complex called Veranda Park. The developer of Veranda Park is the president of Metrowest Home Owners Association has gotten mixed reviews on whether to change the name or not. MetroWest to some people sounds like a industrial park where others feel Veranda Park sounds like a nursing home. The developer has improved and maintained parks and signs of MetroWest through increases in home owners dues. The developer also proposed to change the name of MetroWest Blvd. to Veranda Park Blvd. and feels the name change is needed for continued growth of the communities. For more information on housing prices and to view homes with great pictures click on the link.

Lake County More Condos to Come

Lake County Florida located West of Orlando is seeing more condos being built in Tavares, Mount Dora, and Eustis geared toward people downsizing in ages 50-60's. There are 3 builders meeting the demand which will be priced from high $300's to $500's. Lake County has had a surge of single family homes, but condos and townhomes were at short supply, but things are changing for Lake County.

Good Time to Buy Orlando Real Estate

Now is a great time for buyers to buy Orlando Real Estate compared to last year. With 18,000 properties on the market now, compared to 3,500 properties, buyers have more to choose from. Sellers are unwilling to lower their prices, lower than last years market, instead both sellers and builders are offering incentives or beefing up marketing on their home. But selling realtors advise sellers to drop their prices even if below thier expectations to move properties. Properties are staying on the market for twice as long as last year an average of 49 days, and negotiations are taking longer. The market has done a 360 turn compared to last year and moving to a buyers market. Median prices of homes are dropping in other areas such as South Florida, but Tampa and Orlando prices have remained stead, but prices did not rise degree as compared to other areas.

2006 FCAT Scores Just Released

FCAT scores for the State of Florida were released yesterday. 30 schools statewide must be restructed as they fail to meet federal academic standards. These schools are title 1 schools which receive certain federal funding, in addition, these school have failed the FCAT 5 years in row. Restructing consists of state taking over the schools with private firms running them, instead of the county. Among some Central Florida schools are Catalina, Ivey Lane, Palmetto Elementary schools in Orange county and Endeavour Elementary in Brevard. In addition, Jones Highschool in Orange county is being considered. No Orange county highschool received A rating. To see a school grades contact the counties website for more information.

Housing Market Demand Seen Again

With strong economy the housing market will rebound after excess inventory from speculators has been shaken out. The pent up demand for housing will be driven after the slow down has passed. This demand will be driven by buyers who are bidding their time waiting for better incentive or lower prices, a nation luxury home builder stated. Also, the second home market should remain strong. Courtesy of Orlando Sentinel 6/9/06.

New Multi Currency Loan for Foreign Buyers

Lloyds TSB, a banking giant in Britian and Asia has introduced its "mulit-currency mortgage" to several states in the US and countries across the world. Foreign buyers will now be able to buy and sell real estate in different currencies. Today 8,000 Britians own homes in Central Florida mostly in Polk and Osceola counties. By offering this option makes it easier for the British as well other foreign buyers to purchase real estate in Central Florida. Courtesy Orlando Sentinel 6/7/06.

Deland's Victoria Park Development

St. Joe the builder of Victoria Park is the largest residential development seen in Volusia county in past 4 decades. Deland is located 30-45 minute drive from Orlando conveniently located off Interstate 4. This master planned communities offers various types of homes for all ages from first time home buyers to retirees, although there are no assisted living on site there are facilities near by. This is the selling point is families can live in one community. It is projected to built out 4,000 homes which will be a population of 10,000. This community offers a 18 hole golf course, 55+ community, nature trails, schools, shops and retail space. The community is 25-30% sold and anticipates further growth now that road work along Interstate 4 and around community have been widened. St. Joe is building another successful development near Celebration close to Disney. Courtesy of Orlando Sentinel 6/5/06.