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.