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 – What’s the Value in Going Green?

Recently I had a listing which was appraised at less than the sales price. This isn’t completely uncommon in a shifting market. I recently wrote a post about what causes this discrepancy as we shift from a buyer’s market to a seller’s market. Regardless of the reason for the appraisal variances common in today’s market, one of the issues I had with this particular report was that there was no value given for the variety of Green features this home has. This energy efficient home in Orlando is rare for the area of Downtown Orlando where older homes are notorious for high electric bills!

Green technologies in a home can make a huge impact in the long term energy use and footprint a home and it’s owners have on our planet. However, the appraiser either didn’t notice the list I provided or did not associate any value to them. Going Green in your home has not completely caught on in the Orlando area as much as cities in the Northwest; but to assume there is no value is simply not accurate. More and more buyers are looking for these features in a home and are willing to pay a premium for them.

In fact, appraisers have just been provided a special addendum to accurately note the energy efficient features and add the appropriate value to the appraisal report. Yet so many real estate professionals and appraisers alike aren’t familiar with this addendum. Be sure when you’re listing your energy efficient home in Orlando that you contact an agent familiar with these Green Features and can assist you in getting all the value you can out of them!

As you consider adding energy efficient systems to your home, research cost versus value and be sure to keep all the paperwork for improvements you make so if you do decide to sell in the future you can be sure all are accounted for in an appraisal. Your home is your biggest asset – choose an expert that understands the value.

Contact me Today to learn about Energy efficient options and what they can add to your home’s value.

407-494-2820

Kathryn@ThinkLiveBe.com
Search Orlando Homes Today

 

Image credit: Leslie Science Center Nature House via Everystock via Creative Commons License

 

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 – Bidding War

Can you believe it is already almost April?!  This year has flown by so far.  In the real estate business we will start to look at the first quarter and compare the activity to last year.  Are we headed in the right direction?

It seems that we are.  I recently did a presentation for the Mills 50 mainstreet district about the top reasons that we are headed in the right direction.  I left one thing out from the 5 factors that I discussed.  Heavy competition!

I haven’t put an offer in on a house in Orlando this year where there weren’t multiple offers.  That is huge!  Multiple offers means that the seller has the negotiating power.  I touched on the low inventory in my recent presentation to Mills 50 which is largely the cause behind increasing prices; but bidding drives prices up further.

No one has really mentioned that it is truly a sellers market in Orlando now.  Unless the listing is greatly overpriced or there is a functional issue, homes are selling very quickly and often times with multiple offers.  In many cases buyers are offering above listing price to ensure they get the house and are the winning bid.

This is a huge change from a few years ago.  For the buyers who wanted to “wait” until the prices hit bottom.  Sorry to tell you it’s too late.  The lowest median price was actually in around January and February of 2011.  When the market shifts it seems to happen in the blink of an eye and you cannot time it perfectly.  However, the market is still ripe with opportunities for buyers!   Don’t delay while the interest rates are still at historically low rates.  The average interest rate last month was 3.21%!!

Looking to find a home in Downtown Orlando, College Park, or Winter Park?  Search all the listings at ThinkDowntownHomes.com

Image Credit:  ”Getting in the Mix” from Everystock via Creative Commons License

 

Monday Market Report – Audubon Park Values on the Rise

This is part three of the series about increasing values throughout Downtown Orlando neighborhoods.  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.

This week I’m going to talk about the ever popular Audubon Park.  This trendy neighborhood full of retro Florida ranch homes has  increased in value from 2011 to 2012.  There were actually more homes that sold in 2012 in this neighborhood than in 2011.  Currently there are only about 3 homes for sale in this highly sought after neighborhood and people keep asking when will there be more to choose from!  This lack of inventory will continue to drive up the values.

The median price increased in 2012 by just under 10% to about $160,000.  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 holding steady.

What does all this mean? 

You may finally have equity in your Audubon Park home!  Don’t miss your chance to sell.  Contact us today to sell your Audubon Park property.   Search for nearby Audubon Park homes for sale at our website.

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 

 

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 – Thornton Park Home Values on the Rise

In 2012 there were over 2000 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!

There were a few less home sales in Thornton Park in 2012 as compared to 2011.  However, the prices have gone up and continue to be on the rise.  From 2011 to 2012 the median price for the entire year increased 6%!  And  It took about half as long to sell a home in 2012 in this neighborhood than in 2011.

Things are looking up for 2013 with the current active and pending listings  (homes under contract) median sales price in the $350,000 range.  The days on the market for the pending listings is only 21 days.  If this trend continues we will see a huge year to year increase in the Thornton Park home values.

What does all this mean? 

Homes are selling quicker and for more money right now!  Don’t miss your chance to sell.  Contact us today to sell your Thornton Park home.

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. 

 

Market Report – Top 5 Seller Mistakes

Today’s Orlando real estate market is changing quickly.  The market has shifted back into the seller’s hands.  The sellers have more negotiating power in most of the price points in the Orlando area.  This is due to the lack of inventory available.   As a seller listing your home during this time has great opportunities; but just a few mistakes could be costly.

 

1.  A Cluttered House:  Make sure the house is ready to show on Day one of the listing period.  Whether or not you are staging your home – you need to evaluate it from a buyer’s eyes.   Eliminate all clutter and personal items if nothing else!
2. Making it difficult to Show:  The home needs to be easily accessible for buyers.  Ask your agent to use a Supra security system.  This device will allow agents to easily come in and out while you are away and it keeps a log of who has accessed the home and at what time.
3. Being Home when the house is shown:  Selling your home can be inconvenient at times; but get out of the house when agents come to show the property.  It is extremely uncomfortable for buyers when you are there staring over their shoulders.  Buyers feel rushed and they feel they can’t speak openly.  I have experienced it time and time again – the buyers are in and out in 2 minutes in an owner occupied home.  That means they may have missed a great feature and didn’t have time to really visualize themselves living there.
4. Not Accepting the First Offer because it came too quickly:  If you have a good solid offer come in within the first two weeks and you don’t accept it – you are crazy!  Nine times out of 10 the first offer will always be the highest.  A home starts to lose its initial momentum after the first few weeks on the market.  *Side note:  If you get multiple offers in the same few days – then by all means negotiate and find the best offer.
5. Not Pricing it right from the Start:  This goes hand in hand with the above tip.  If you price the home correctly you may in fact obtain multiple offers.  This doesn’t mean that you under-priced.  That common misconception will lead to bad decisions ever time.  The home will sell for market value – what the market will bear for your unique home.  This just means now you have several to choose from so you can find the best quality buyer and terms that work for you.

Interested in possibly listing your home in 2013?  Let us help you steer clear of these common mistakes!  Contact your Downtown Orlando and Winter Park real estate specialist today at 407-494-2820 or info@ThinkLiveBe.com.

To view Downtown Orlando Homes for Sale visit us on the Web.

Image credit:  New lower price sign via rutlo and the Creative Commons License

 

Monday Market Report – The Best Holiday Gift

This weekend we received multiple offers on a few of our listings in Orlando!  This is just a great example of what I posted a few weeks ago about the holiday peak.  The real estate market in Florida doesn’t take a break during the holidays.  In fact, it is a great time to have your home on the market because so many people make the mistake of taking theirs off the market…and that means less competition for you.

So my quick tip for the day is there is still time to list and close your home this year.  There isn’t a greater holiday gift than selling your home so you can move on to the next step in your life!  Don’t hesitate to put your home on the market because it might be a little inconvenient for you.  Buyers are out there ready to buy and have time off from work to do just that!

Call us today for a consultation to see if now is the right time for you to list your Downtown Orlando home!    We also sell homes in Winter Park, College Park, Maitland, and Conway.

1-800-859-5714 ext. 0 or email me at Kathryn@ThinkLiveBe.com

 

Image via morgueFile 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