Monday Market Report – Why Buy?

Well it turns out I forgot to hit publish on this post yesterday – better late than never!

As you may have read in my previous post, Market Report – Bidding War, the Orlando real estate market has shifted.  Long gone are the days of 26,000 listings to choose from and offering $100,000 less than asking price. If you are a buyer in today’s market times are tough. That doesn’t mean it’s not a great time to buy.  It just means the strategy for offering has changed.

You might wonder why things are so tough for buyers.  Well…the listing inventory has declined about 17% since this time last year.  And it hasn’t been this low since the boom days of 2005.  The demand is extremely high, especially for homes in good condition or location.  If the level of demand we are seeing in certain Downtown Orlando neighborhoods keeps up, this strong sellers market could go on for a while longer.  It’s not just cash investors out there buying up homes - although there are many of those.  There  are mainly three types of buyers:

1.  The buyers who have been looming for the past 2 or 3 years
thinking they were going to wait until the prices hit bottom have now
realized they missed that opportunity and are rushing to get in before
prices rise much more.

2.  Investors – prices are still affordable and they are eating up
much of the inventory in good locations anticipating a high return in
the future.

3.  Regular buyers – those who are just now in a position to buy and
ready/willing/able.  Perhaps they finally have equity to sell their
home and move up or they finally have a strong job history.

So why buy in Orlando?  Even with the lack of inventory and multiple offer situations,  interest rates are still amazing and you really can’t complain about getting a 30 year loan for under 4%.  On top of that, the rental market is very strong and with increasing rental prices it can still be more affordable to buy than rent.  The housing affordability in the Orlando area is still at around 220%!  An affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.

The key to buying in every market is to not get emotionally attached.  It’s very difficult because most of us make decisions based on emotions rather than logic.   Just remember the home you’re falling in love with…well so is everyone else.  Take a step back, be patient and be willing to offer above asking price when it is appropriate. You will eventually have a place to call home.

I don’t want to share all of my secrets; but one of my strategies lately is to look for houses that have been on the market longer than 30 days.  Those listings might be overpriced.  Get in and make an offer before the seller drops the price and then you’re in another bidding war!  Contact me today to learn more about finding a home in this challenging market.

*Stats from Orlando Regional Realtor Association

 

Monday Market Report – A Difficult Situation

The Orlando real estate market has really shifted over the last year and although we are seeing multiple offers in many situations and prices increasing slightly, there are still issues at hand.

Due to the extreme shift, appraisals in some cases can’t keep up with the active and pending prices.  Appraisers typically pull comparable sales from the last few months.  Things have moved so quickly that homes sold in the last 3-6 months may not match the listing prices and the sometimes higher than asking price offers.

This creates a situation where a buyer may have to pay over appraised value to get the home that they want because if they don’t there is probably someone else who is willing and able.  This isn’t true in every situation but it is starting to feel like the boom years and I’m not sure it’s a good thing.

All in all, we do sort of expect this high demand/low inventory scenario to keep up through the end of the year as large investor groups will continue to buy up homes and compete with primary home buyers.  Then it will probably start to fade a little as prices rise to levels where investors are no longer comfortable.

Once that happens, things will maybe return to a normal or equal market for a while.  We do still have a lot of pent up demand and inventory that will creep onto the market probably at a pretty similar rate in the future.

Don’t get me wrong I love quick offers and higher sales prices, but I think we have seen that  cannot sustain for too long before things level off or shift again.  Have you experience increasing home values in your neighborhood?  If you have been thinking of selling, now is a nice window of opportunity where you have little competition and very solid sales prices.

Contact me today for more info at 407-494-2820 or visit ThinkLiveBe.com to get a quick market analysis for free.

 

Market Report – Back on Track

I am super excited to be hosting an event this Thursday morning for the business members of the Mills 50 District at our office on Colonial Dr.   Mills 50 is a city of Orlando  Main Street district which supports local businesses in the area.   I live and work in the Mills 50 district so I support it to the fullest extent and am extremely excited to be hosting an event to discuss the Mills 50 real estate market in the area.

We presented to the group in September of 2011 when we started to see some signs of recovery for home values.  It’s been a bumpy road for the industry for the past 7 years or so; but things are looking up these days!  There are several signs that the recovery is on track and I will be discussing these things this Thursday.

You may have started to hear the buzz about prices being on the rise or low inventory levels; but we will dig a little deeper into why the market is shifting on a local level.   After all, what is happening in our neighborhood is much more important than what’s happening in the entire state of Florida or the entire United States for that matter.

What I said back in 2011 still remains true, there are big factors that affect overall consumer confidence or interest rates, etc.  However, your home value is largely determined by what’s happening within a mile from your home – a street over from your home – or even right next door.

To get a brief look at your “local” data, visit our website ThinkDowntownHomes.com and become a Market Insider.  When you enter your zip code you are provided with a ton of information about your personal real estate market and that’s how you determine if now is the right time to sell or buy!

Mills 50 members please  RSVP to director@mills50.org and don’t forget parking is in the back on Hillcrest St!

 

Go Local Wednesdays – Hammered in Ivanhoe Village

I tried to post this last week after I visited the new bar in Ivanhoe Village last week; but I got busy with selling homes.  The blog takes the back seat sometimes.

The new hot spot in Ivanhoe Village is called The Hammered Lamb.  They had a soft opening early last week and then officially opened the doors on Friday.  The location is perfect with beautiful views of  Lake Ivanhoe from the large outdoor patio bar.  Inside there are video games, tons of TVs, plenty of spots to sit and chat or listen to the awesome 90′s set-list.  It’s a relaxed neighborhood bar vibe that is just right for the area.

They will be serving light dishes in the future but for now it’s a great place to have a drink and enjoy the Florida weather on the outdoor patio.

Thinking of moving to the area?  Search nearby homes for sale in Lake Highland, Colonialtown North , Eola Heights, and College Park or call me to learn more about Downtown Orlando real estate at 407-494-2820.

 

Image Credit:  from window from Hammered Lamb instagram

 

 

Monday Market Report – Eola Heights Home Values on the Rise

As I mentioned last week, in 2012 there were over 2000 single home sales that took place within 5 miles of Downtown Orlando.  The median sales price of these homes increased from 2011 – 2012 and it seems the trend is continuing into the new year.  Each week for the next few weeks I’m going to show you how the  median price is on the rise in some of our favorite Downtown Orlando neighborhoods!

This week I’m going to show you how Lake Eola Heights has increased from 2011 to 2012.  There were actually more homes that sold in 2012 in this neighborhood than in 2011 – almost double.  This increase in activity and demand has brought the values up quite a bit.

The median price increased in 2012 by over 20% to $275,000.  If the trend continues it will be on the rise in 2013 as well.   The median listing price for active and pending homes in this neighborhood is currently about $319,000.  That’s a huge increase over the last two years for this area.

The downside is that as the home values increased the average time on the market did as well. This is mainly because there are less home buyers searching at these higher price points and therefore it takes a little longer to sell.

What does all this mean? 

You may finally have equity in your Lake Eola Heights home!  Don’t miss your chance to sell.  Contact us today to sell your Eola Heights property.

Kathryn@ThinkLiveBe.com

407-494-2820 direct

*This information is based on personal data I have gathered from the local MyFloridaRegional MLS system.  It is deemed reliable but not guaranteed. 

Image: Personal of flowers near Downtown Orlando 

 

Market Report – The Case of the Shrinking Shadow Inventory

The “shadow inventory” has been a term used in the last few years to describe homes that are in foreclosure or delinquent and not yet sold or listing on the market.  It has been looming over us for several years and caused much uncertainty for home sellers and buyers.  Sellers have been unsure when to list their homes and buyers held off on buying because they felt the market may still drop farther.

Well for the buyers that waited – sorry to tell you but the bottom of the real estate market in Orlando has come and gone.  The good news is at least you can still get record low interest rates and the affordability is still top notch!

For home sellers, now is the time to list.  The inventory has declined to a level that is in line with the number of buyers and in many price ranges it is considered a seller’s market.  This shift is largely due to the fact that this shadow inventory is shrinking.  The number of homeowners who are delinquent on their mortgages (the delinquency rate) has dropped to 5.41% in the last quarter of 2012.  Most economists expect it will continue to drop slowly in 2013.  This slowing of the delinquencies lends to a little more confidence that the foreclosure gap is closing up and the market will return to some normalcy in years to come.

Don’t expect sweeping increases in values just yet.  Although some neighborhoods have seen increasing values in the last few months, Florida was one of the hardest hit with foreclosures and still is one of five states making up 45% of the total number of distressed properties.  Real estate is local so check with us to see if now is the right time for you to list.

You can reach us at 407-494-2820 or Kathryn@ThinkLiveBe.com.   We specialize in Downtown Orlando, College Park, and Winter Park homes for sale.

Image Credit:  CalTech from KevinHasaCamera via Creative Commons License

 

Monday Market Report – Housing Prices Go Up to 11

The median home price in the nation has gone up 11% over last year.  The housing industry is heating up this fall as the number of homes for sale declines.  The low supply of homes for sale is causing the prices of homes to rise.  In the Orlando housing market, the median price has gone up over 9% from this time last year.

Not only are the prices increasing but the average time on the market is declining.   In fact, homes are going under contract 25% faster than this time last year according to the Orlando Regional Realtor Association.  This kind of activity hasn’t been seen in about 6 or 7 years.

All of this activity is leading towards an even greater gift this holiday season, home equity.  According to the National Association of Realtors, “rising home prices have created $760 Billion growth in home equity during the last year.”  And they expect that growth to rise more in 2013.  This is excellent news if you have been unable to sell in Orlando but need to in the next year.  Contact us today for information on how quickly your home might sell in this market.  Kathryn@ThinkLiveBe.com or 1-800-859-5714 ext. 0

 

Image Credit:  Oven by _gee_via Attribution License on Everystock

 

Who Says There’s Nothing to do in Orlando? – From Mills 50 to Winter Park

This Monday Orlando artist Patrick Fatica will exhibit his newest work at the Peacock Room in the Mills 50 District near Downtown Orlando.  The show starts at 8 pm and marks his 6th annual exhibition at the Peacock Room.   The work will be an exciting look into black and white with pastels and graphite.  The subject matter has a unique fun quality with works that look into the “cult” pop culture I know I love (such as a few familiar sci-fi characters and of course Bill Murray – who doesn’t love that guy)!  Stop by the night of the show when the artist will be present.  He’s a great guy – tell him I sent you!

There will be plenty of other unique items for sale that are perfect holiday gifts for any art lover. The Peacock Room is located at 1321 North Mills Avenue.

If you’re looking for something else to do this weekend Winter Park will host the annual Winter Park Harvest Festival.  The Harvest Festival features cooking demonstrations, homesteading seminars, and DIY gardening demonstrations from some of Florida’s best.  There is food, music, plenty of vendors, and a beer garden.  What a great way to spend a Saturday this Fall?!
FREE
10am-4pm Saturday Nov 17th
Central Park’s West Meadow
150 N. New York Ave, Winter Park, FL 32789

Image credit:  Patrick Fatica original artwork – permission given by the artist
Winter Park Harvest Festival screen shot from website

 

Monday Market Report – Housing Shortage the New Normal?

It seems the housing industry has taken a turn in the last year.  I’ve mentioned the changes in this post about closing costs and  this post about listing shortage in Orlando.  I have urged buyers sitting on the sidelines to take advantage of the interest rates and home prices in Orlando before it was too late.  Well the bottom of the market is in the rear view mirror now. 

After years of excessive inventory and plummeting values we are now suddenly in a housing shortage in Orlando.  We no longer have enough housing supply to meet the needs of the buyers in the market.

That sounds like a good thing, right?  According to Lawrence Yun, the chief economist for the National Association of Realtors, this kind of sudden shortage could lead to housing values rising too quickly which could cause the affordability to decline.

The great thing about the most recent years is that housing affordability has been through the roof.  With interest rates at historic lows and housing prices low, many buyers were able to enter the market who would not have become homeowners just 6 or 7 years  ago.  Now it is very difficult to enter the market due to heavy competition from investors and homebuyers with better financing options.

The shifting dynamics does offer opportunity for some people though…home sellers.  Those folks who have wanted to sell for the last few years but were underwater or nearly underwater.  These homeowners may now have just the right amount of equity to sell and move on with their lives.

Will this demand and lack of supply be the new trend in 2013?  Or do you think this is just a mini anomaly in a slowly recovering market?

 

 

Monday Market Report – The Holiday Peak

Each year the real estate industry sees a little peak in the number of home sales in Orlando in the month of December.  December is a great time to move because a lot of people have time off from work due to the holidays.  To take advantage of the buyers who will be closing in the month of December it would be ideal to list in the next few weeks.  It takes approximately 30-45 days to close a loan.  The sales that will happen in December will come from buyers who are making their decision right now and in the coming weeks.

 

It is an especially great time to list because a lot of people actually decide not to list their home because they feel the stress of the holidays!  Less competition for you!  Be one of the few to make a smart decision and sell while inventory is low and buyers are eagerly trying to get into a home before the New Year.

Do you need to sell your home Orlando home in the next few months?  Consider listing now!  Call us today at 1-800-859-5714 ext. 0 or email us at info@ThinkLiveBe.com.