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.