Monday Market Report


Lately a lot of people have been asking me “How is the market in Orlando?”.  I think the news of rising prices and overall positive real estate news in the national media has people wondering – are things better now?

Let’s take a look at the market now compared with the lowest point of the market crash.  Bear with me here, this isn’t super exciting sexy stuff, but it’s important to know where we have been to know where we are going in the real estate market!

The real estate boom is said to have taken place in 2005 and as you can see from the chart below the rising prices continued into 2006 and 2007.  The effects of the “hot” market drove the market behavior over the next few years.  When the market shifts, it takes a little time before things catch up with it.  From 2006-2008…within two years, the median sales prices in the Orlando real estate market had been cut in half!  By 2009 the market in Orlando had officially crashed and the absolute low was finally felt when the median sales price hit $94,900 in January of 2011.

Capture_median

What is important to note is the number of new listings that came on the market had a direct correlation to how the market performed.  I know, I know – supply and demand at work – it’s so simple and yet so many people missed the signs!  As word of the real estate market boom in Orlando spread, the prices rose in 2005-2006.  That led even more sellers to jump into the market to sell their homes for extraordinary prices!  By the end of 2006, there were almost 30,000 new listings on the market compared to the previous year!  That’s a lot of inventory.  So of course, with all of that new competition and no new demand the market tanked!  Over the next couple of years, the days on the market increased as all of these listings sat.

Capture_NewListings

So what’s been driving up our prices in the last few years?  Well it is supply and demand of course!  If you take another look at the number of new listings in 2011 – 2012 you’ll notice that the number of homes for sale in Orlando and number of new listings hit a low.  That in turn caused a shortage in our market and drove the median price back up to where we are today.  New listings are on the rise, but we are still at a healthy level for now.

As you can see we are nowhere near the median home values that topped the market in 2006-2007, and the rising inventory will keep us in a nice happy balanced market for now.  Until it gets too high and can’t support the number of home-buyers in our area.  Where will we be in another year?   Check out my other post to see the top things to watch in 2015.

Do you need to make a move?  Love where you live and get started with your home search today.

The Orlando real estate market median price is 4% higher than it was this time last year!  All of this positive real estate news may have you con considering selling your home in Orlando.  And the first thing you probably want to know is how much it is worth.  homevalueThe main questions when selling a house are:

  1. Does it make sense to sell now?
  2. Will I make a profit or will I be under water?
  3. Will I be able to use my proceeds to buy the next house that I need or want?

All of these are excellent questions and can be answered by truly understanding the value of your home.  The problem is that many of the computer generated home values are inaccurate and can really throw your plans off track if you need or want to sell.

If a third party site tells you your home is worth 30% more or less, that could mean you are either jumping into the market too soon or you are missing out on a great opportunity to sell.

So how does one avoid this? 

Get a valuation from me… someone who actually works in your market daily and understands the difference between original oak floors and laminate….someone who understands what value original molding adds in your 1920s Downtown Orlando bungalow.

The market is expected to improve another 3-5% according to all major real estate industry news across the country. This will likely be the case in the desirable Downtown Orlando neighborhoods as well; and that means more people will continue to list their homes as they realize they have equity to move on to the next house.  So do the right thing, hire a local real estate professional like myself to represent you and help you determine the proper price.

Do you love where you live?  If you don’t, learn more about how 3rd party sites get it wrong and how I can help at my website RealOrlandoHomeValue.com  

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I am currently attending our company’s annual real estate conference. Yesterday we had what is called the Vision speech. This is a look at the trends and forces that will drive the real estate market in 2015. And all of the signs point to it being an amazing time to be buying or selling. It is a balanced market – right where you want to be to make wise real estate decisions and opportunity for all. So my question is where do you want to move this year? You should love where you live and there are opportunities to break into a neighborhood you didn’t think was possible by selling and moving up!

If you could move anywhere in Orlando where would it be? I love my neighborhood but here are some of my other favorites right now and why.

Lake Formosa – (Take Our NEW Neighborhood Video Tour)  home of industrial warehouses and beautiful lake views. It’s an eclectic mix and although the landscape will be changing with the upcoming The Yard project; it provides walkability, history and views. Originally established in 1911 you can see the charming bungalows throughout and feel the history along the railroad. And the Orlando Urban Trail is literally in your back yard to take you anywhere your little bike-riding heart desires.

Lake Como – always a favorite of mine.  This neighborhood is truly a community. The location just southeast of the Central Business District of Downtown Orlando makes it convenient and the neighbors make it a perfect place to call home. The home styles are a nice mix of homes with history and charm all circling around the park and lake where walking your dog and chatting your neighbors is what makes it so special.

Lancaster Park – this neighborhood is full of huge oak trees. All of the Downtown Orlando neighborhoods are known for their oak trees and brick streets, but the main entrance to Lancaster Park is just the perfectly shaded old Florida spot! Located near the ever-growing Orlando Regional Medical Center (ORMC) it is convenient but it feels so secluded and private – not to mention the pride in ownership is evident at every turn. And did I mention the lake views?! Walking the dog is an enjoyable task in this neighborhood!

 Do you love where you live? Find your dream home today.

I don’t know about you but I love living in Orlando.  There is something special about watching a city grow around you.  I love the Downtown Orlando neighborhoods that are full of history and the juxtaposition with an ever growing cityscape.  I love seeing a new coffee shop or restaurant pop up in my neighborhood making it walk-able and making that city lifestyle so accessible even a few miles from the city center.

I must not be alone in my love for homes in Downtown Orlando.  Our very own 32801 zip code topped the most searched zip code list for 2014 on Realtor.com.  This popular Orlando zip code is home to our Central Business District, Thornton Park, and a few streets South of the 408 as well.do you love where you live

Do you love where you live?  There are so many great neighborhoods surrounding Downtown Orlando and Winter Park.  If you are craving a new home in Orlando in these walk-able and eclectic neighborhoods you have come to the right spot.

We set up a simple way to get started today.  Just visit www.HeartOrlandoHome.com and either start your search for your dream home or find out how much you have in equity in your current home to put towards the move.

Don’t forget to check out our new weekly post “Tuesday Tours”. Every Tuesday we’ll post a little something about the neighborhood along with a video so you can explore and get to know the neighborhoods surrounding downtown Orlando.

So, what’s your favorite neighborhood in Downtown Orlando?

–Kathryn

We think you should love where you live.  Why settle for a home that’s too small or doesn’t have a garage or a pool when the market is full of opportunity.  Over the last 10 years many homeowners did not have the equity to make a big move.  With the improving market the median price is up 9.61% higher than the 2013 annual median price.  You may finally have equity to sell at a profit and buy something larger with an extremely low interest rate.  It is the perfect sweet spot to make the move into your dream home.

 

And if you purchased your home in late 2010-early 2012 you’re in luck because that was the lowest point in the Orlando real estate market.  So you may have quite a bit of equity to make your Orlando dream home possible!

We set up a simple way to get started today.  Just visit www.HeartOrlandoHome.com and either start your search for your dream home or find out how much you have in equity to put towards the move.

Love where you live!  #heartorlandohome

happy new yearAs we head into the New Year it’s a good time to reflect on the housing market in 2014 and how it will drive the New Year. Let’s start at the beginning of the last year and follow the trends to see what is to come for the Orlando real estate market:

January 2014:
In January and February of 2014, the Orlando housing market saw drastic increases in value.  The median sales price was up 17-18% from 2013.  Throughout the year, as prices rose, many more homeowners began to list their homes for sale as they realized they finally had equity.  That extra supply caused prices to stabilize a bit in more recent months.

Today:
The year to year increase in values has gone down over the last year, yet there is still positive growth for Orlando home values. In fact, just last month the median price was still up 6.45% from the same time last year.

As the home prices have risen, the general home affordability in Orlando has declined.  However, the interest rates for 2014 remained historically low…in fact they have dropped recently to lower levels than this time last year.  These low rates have allowed many buyers to qualify for homes that might not have been able to if the interest rates had spiked as well.

What does that mean for 2015?

It will probably be a pretty “normal” kind of year and more of the same that we have seen recently.  Considering the last 6-7 years in the real estate industry has been a roller coaster, I think a normal market will be pretty welcome around here.

1.  Home Values will Likely Go Up:
We will likely continue to see increases in values but at a more reasonable rate as we saw last month.  A normal market typically increases at 3-5%.

2.  Rates for Now will Remain Low for Now:
Affordability is down due to the values going up over the last 2 years.  That lack of affordable housing may continue to grow if the interest rates rise.  But for now they are still historically low and have actually declined in the last few months.  The Federal government has already started to slow the purchasing bonds which held the interest rates down for so long.  It is inevitable that interest rates will go up, but for now factors outside the U.S. are keeping them below the historic range for the foreseeable future.

A few things to watch for 2015:
One of my favorite economists over at Trulia.com, Jed Kolko, has said that the housing market largely depends on Millenials AKA Generation Y.  Because of the recession it has taken longer for these kids to get jobs and thus save for a down payment.  As the economy as a whole improves and this new generation of buyers begins their lives, we may continue to see this new base of buyers increase.

We are also at an interesting point in time where homeowners who sold their homes in 2008-2012 as a short sale may actually begin qualifying for mortgages again in 2015.  That opens up a new pool of buyers that have not been qualified to buy over the last few years.

It will be interesting to see who drives the market in 2015, but one thing is for sure it is likely to be a good year with market gains at moderate rates and a nice steady flow of buyers.  We will call it “normal”…and well that sounds like a breath of fresh air to me.

What do you think will happen in the real estate industry in the New Year?  Thinking of making a move?  Now is the time to move into something larger and take advantage of the interest rates for a larger mortgage.  Contact me to get started today.  Or Search Orlando homes for sale today.

Happy New Year to you,

Kathryn

Do you love where you live?   #heartorlandohome

holiday sale imageMany people think the holiday season is not a good time to sell a home. That is a myth.

In fact, almost every year there is a slight up-tick in the number of homes sold in December.  Right now, many Orlando home sellers are withdrawing their listings or deciding to wait until January to list.  They are hesitating because of this Myth and the idea that it might be inconvenient to sell over the holidays.  But that opens up great opportunities for the serious sellers and serious buyers out there!

Why Is there an increase in sales in December?

Well, there are many reasons that buyers try to close by the end of the year

–  a variety of tax purposes
– being relocated from one place to another
– they want to move while kids are out of school on a holiday break
– lease expiring at the end of the year
– have some vacation time left and it’s a good time to move
– etc

So why List your Orlando Home Right NOW?

  1. Buyers who are moving in the holiday months are usually very motivated by the above reasons.  And these serious buyers are looking for homes right now.  It takes approximately 30-45 days to close a loan.  Therefore, most buyers are searching for that special home starting now.
  2. Because many sellers think it is too inconvenient or have heard that it’s a bad time to sell; some are beginning to withdraw their listings and “take a break” from selling. That means less competition during the next few months.  Less competition means a quicker sale and more negotiating power for the smart sellers!

So what are you waiting for?  Take advantage of the opportunities this holiday season.  Whether you are moving up, downsizing, or just trying to unload some investment property – this is the time!  If your are interested in selling a home in Orlando give us a call at 407-494-2820 or contact us below.

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