Monday Market Report


new signCan you believe it is almost October?!  This year is going by  so quickly, but there is still time to move this year and get into a NEW home!

Here are a few things to consider if you want to sell your Orlando home before January 1st:

1.  First things first, the Fall is a good time to list your home.  Many people may decide not to list during the holidays.  And that is good news for you because that means there is less competition!  Another perk for listing during the holiday season is that most buyers that are searching are as serious as you about moving.  (Also check out the 5 Reasons to sell your home this fall)

2.  The average days on the market currently is about 70.  That means if you want to close before January 1st, you’ll want to list by very soon.  Most transactions take about 30-45 days to close once you are under contract.  To get to contract could take on average 70 days!  So it’s super important to price right from the beginning to ensure a successful sale by the end of the year.

3.  Beware of overpricing.    You may have heard that the real estate market prices are up 6% from this time last year!  That’s great news and yet the number of sales is down 16% and the prices are down month to month as well.  We are in what is considered a stable market with supply and demand being pretty equal.

The Orlando real estate market is cyclical and shifts.  In the last two years we’ve seen heavy demand as buyers have been trying to take advantage of the low prices and low interest rates.  That heavy demand and lack of listings caused the prices to rise.  That’s great news for you as you intend on selling!  But as prices rise, many other homeowners have the same idea leading to more supply.  Many New Listings have hit the market for now.  Some will sell over the next few months and other homeowners will take their homes off the market during the holiday season. Yet serious buyers will continue to search for their home!

Preparing to list?

The main issue I see as we continue into the next coming months is overpricing.  The market has improved drastically over the last few
years, but I have noticed some sellers future pricing, meaning they are pricing their homes in what they perceive the prices to be in a few months.  Yet those are the listings that are sitting on the market and not selling.  List your home fairly within the market range and you will sell before the end of the year and have a nice fresh start to 2015!

If you’re serious about selling your home before the new year, get started with a free consultation.

 

Image credit:  Land for sale by Crinity via Everystock – Creative Commons License

In the last 6 months the number of homes for sale in Orlando has continued to increase.  This time last year there were about 34% less homes on the market than there are now.  In the current market, about 25-30% of the listings are selling monthly on average.  With added competition comes longer days on the market and more expired listings.  As buyers have more options, they may decide to skip your listing for the one down the street.  There are a variety of reasons that they might choose another home over yours.  Find out the top 5 Reasons by watching the video below and download the full report at my website ExpiredListingClub.com.

The expired listing club is the one club where you do not want to be a member.  If you had a plan to move and your home did not sell or you are just thinking about selling – you don’t want to make these mistakes.  Find out why your home didn’t sell and let’s get together to get it sold!

Call me today at 407-494-2820 or visit the website for the full report with a detailed analysis of the 5 Reasons your home didn’t sell!  Did you have problems selling your home?

Young Woman Laptop StockSometimes it is fun to daydream about moving into a new home.  Maybe something a little larger, with a pool, or maybe a more walkable neighborhood?!  It’s fun to think about these things, but it can be a reality too.  Moving is all about timing and when it makes sense to sell your current home and find a new place.

If you’ve been daydreaming about moving in Orlando, why not make it a reality?  Start searching for Downtown Orlando homes today!  Or download my app and sync it to me to search while you are on the go!  (**don’t forget to register your info or if you contact me I won’t be able to answer any questions when you inquire!)

Reasons to Move Now:

1. You may finally be in a position of equity since the listing prices in Orlando are up about 13% since last year.  That might be just enough to get you moving into a bigger or better place.

2. And although the prices are up, the interest rates are still extremely affordable.

3.  The number of listings is up about 14% since last year, meaning you have more options to choose from when shopping.

Things to consider – since you will have more options to choose from – so will buyers for your current home.   So, as with any market, you need to price appropriately and competitively to actually get a contract.  We’re heading into Summer selling season.  Summer is notoriously the busiest time of year – get your home listed asap to take advantage of the pool of buyers that are looking to move over the summer months. They’re typically motivated by timing and the need to get into a new house before school starts or while they have vacation time planned – which is an advantage as a home seller.

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So let’s talk numbers – if you could sell your home for _______________ (fill in the blank), you would sell today?  Give me a call to see if it’s time 407-494-2820.

summerIf you’re considering purchasing a home in Orlando this summer, here are a few tips to consider!

1. Start now.  If you want to close by August you should give us a call now 407-494-2820.  It can take a little time to find the right fit, and then an additional 30-45 days to close once you’re under contract.

2.  It’s hot outside!  Florida weather is amazing, but it can get pretty hot during the summer months.  It can be especially heated if you’re visiting a few vacant houses that have no utilities.  If you’re home shopping all day be sure to bring water, keep the car AC running, and dress comfortably!

3.  Avoid short sales.  Short sales are not short.  (See what a short sale is here) They can take an average of 3-6 months just to have a response from the seller’s mortgage servicer.  At that rate you’ll be closing by the end of the year if they approve the sale at all.  A topic for another time!

4.  Join the club and have a strategy!  Summer is a peak selling season in many parts of the country because people have time off from work or want to move while the kids are out of school.  Keep this in mind when making an offer.  You’re probably not the only one who wants the house.  We can help guide you on a strong offer that will not be overlooked!

5.  Be prepared.  If you’re taking a summer vacation while under contract on a home, be prepared!  Send in every piece of information your lender might need for a loan before you leave town.  Be sure you will have access to internet and phone while you’re away.  Also – just to be safe – make sure you have access to a printer and fax machine.  We use electronic signatures, but not every agent does.  If you aren’t working with us – then you might need access to a printer and fax machine.  There are inevitably always little things that ave to be signed throughout the process.

Get started now by calling me at 497-494-2820 (ask for Kathryn)
Or fill out this simple form and I’ll get in touch shortly.

 

Home affordability in Orlando is still very high in the Central Florida area but it is declining.  The affordability is declining due to rising interest rates and rising prices.  However, if you have money to put down, you can still find quite a few options!  Downtown Orlando neighborhoods are particularly desirable so even the “affordable” homes need a little work.  The key is to be realistic with the type of home you can purchase and set aside money for some repairs/improvements.

According to the Orlando Regional Realtor Association, buyers who earn the Orlando median income ($55,670/year) have about 5,180 options to choose in Orange and Seminole counties.  Buyers earning the reported median income can afford approximately $288,418 (*with money to put down).  So let’s see what that $289k price tag gets you in the Downtown Orlando real estate market!

In and around Downtown Orlando there are 133 actively homes for sale at or below what the median income can buy you in Orlando.  These homes range in price from  $82,500-$289,000. The average “affordable” home is about 1400 sq. ft. with 3 bedrooms and 2 bathrooms and will cost you about $207,000.  At this price, you probably have a little work to do to make it your own.

snapshotmap Affordability

If you have the ability to put 20% down and can go up to the top of the affordability scale into the $280,000 range, there are some lovely options for sale in Downtown Orlando – Just NOT that many!

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If you are a first time home buyer earning the reported median income of $37,856/year; you have about 3,079 options in the same area.  First time buyers earning the median reported income can qualify for homes around $174,332 or less.  If you’re a first time buyer earning around this income you’ll have only about 35 homes to choose from in and around Downtown Orlando.  The average “affordable” home under $175,000 is about 1179 sq. ft. with 3 bedrooms and 1 bathroom.   The median price of homes that fall into this affordable category is about $142,000.  And with that you’ll need to bring your tools and make some needed repairs!

 Start searching homes in Downtown Orlando today!  Or find out what you can afford by using our simple mortgage calculator.

Image of roadIf you can believe it, it is almost May.  That means it’s time to look back at the first quarter numbers for 2014 and see how things are going in the Orlando real estate market and where the road will lead for the rest of this year.  The general word on the street is that real estate market in Orlando is back.  I agree that the market has had a huge turn around since the lows of 2010; but some people are getting a little ahead of themselves.

The median sales price in Orlando is up about 14% since last year at the same time. That’s a great increase as an average market only goes up about 3-5% per year.  The problem I’ve been seeing lately is that sellers believe that the market has increased by much larger numbers.  If you were under water a year ago, you may in fact have enough equity to sell, but you won’t
have enough to make a sweeping profit.

We are in what is called a normal market at the moment.  Meaning there is a balanced number of buyers and sellers in the Orlando housing market.  I realize that over the last 10 years no one has seen this type of market and this new (normal) market confuses people.  Over the last 10 years we’ve seen a bubble burst, a huge downturn with epic declining home values, and a shift back to a sellers market and multiple offers in what seemed like the blink of an eye.  Now we’re finally to an pretty stable market and this is a good thing for now.  

Things to Watch:

1.  How many new listings come on the market?  We have more listings and more competition since last year.  In fact, the number of listings since last year is up 40% – that’s almost double!  That’s a lot more competition and as the prices go up and the competition goes up that can make things more difficult to sell.  If we are flooded with new listings, we will quickly see a shift back to a buyers market and possible flat-line.

2.  How many pending sales are in motion?  Pending sales are an indicator of future sales and how the market will do in coming months.  The number of pending sales was on the decline towards the end of 2013 but they are back on the rise from January as we enter into the busier season.

Where do you think the real estate market will be at the end of 2014?  Need help navigating the real estate world?  Call us today 407-494-2820

 

Image credit:  “Darwin’s Shot” by Scott Robinson via Flickr and Creative Commons

April is historically the best month of the year to sell your home.  As you proceed through the process of selling your Orlando house; you’ve made the decision to sell, interviewed agents and asked the right questions, and determined which agent is right for the job.  Now we have reached the 4th and final part of the Selling Your Home Series and we must settle on a price.

Most of the time you will select a price at the time you hire the agent.  We bring all the facts and figures to our appointments so we can get things going as soon as possible.  Ultimately the listing price is up to you as the seller…it is your house after all.  But you are hiring an agent (hopefully us!) to guide you and get your home sold.

A HUGE part of whether or not your home will sell is determined by the price you choose.   As a Downtown Orlando real estate professional, I deal with pricing homes and negotiating offers on a daily basis.  I know what price will cause a home to sell and it may not always be the number you want to hear.  Don’t hire someone just because they tell you the price you want to hear.   As I stated before, hire the right agent for the job and listen to their advice and have them explain their analysis.

PriceitrightIf you overprice your home, it will sit on the market until you reduce the price.  Many sellers think buyers will just make an offer if they like it.  But the fact is, if they feel it is overpriced, they will look for something else.


 

Here’s an example:

Let’s say the agent suggest a price of $250,000 because the market range is between $230-$250k but your home has some features and we feel it could sell for the top of the market.  (Read more about how I price homes at the post titled The Art of Pricing a Home)

But you elect to price the house at $275,000.

That means you’re potentially 16% above the other houses for sale or that have recently sold in the area.  You have to ask yourself – if you were buying a home would you pay 16% more for the same type of house? 

*And a normal housing market appreciation is about 3-5% per year.  If you’re 16% overpriced, and you don’t want to reduce the price, you’ll likely be trying to sell for years.


 

Consider this; a marketing plan consists of 4 points, Product, Place, Promotion, and Price.   In real estate, Product and Place often times cannot be changed.  If you hire a good agent like me, promotion will be done properly!  BUT it’s up to you and the agent to determine the right price to get the home sold.

Spring is a great time of year to make a move.  Call us today to learn more about how we sell homes 407-494-2820!

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