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.