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Jeff Singletary

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ORLANDO MEDIAN PRICE CLIMBS 20%

Friday, April 26, 2013

by Jeff Singletary

The median price of existing homes sold in Orlando during the month of March jumped more than 20 percent over March of last year, caused in part by a nearly 50 percent increase in the number of non-distressed "normal” home sales, reports the Orlando Regional REALTOR® Association.

The March 2013 overall median price of $140,000 is 21.74 percent above that of March 2012 ($115,000) and 5.26 percent above that of February 2013 ($133,000). Orlando’s median price has risen almost 30 percent in the 15 months since January of 2012.

"Normal sales traditionally carry a higher price tag than foreclosures and short sales,” explains ORRA Chairman Steve Merchant, broker-owner of Global Realty International. "For example, in March the median price for normal sales is $173,590 while the median for foreclosures is $96,000 and for short sales is $110,000.”

In addition to the overall median increase, each individual sales type experienced a year-to-year median price increase in March, with foreclosures leading the way with a 15.73 percent jump. The median price of short sales increased 7.84 percent; normal sales increased 11.99 percent.

Completed Sales

Members of ORRA participated in the sales of 2,605 homes (all types combined) that closed in March 2013, an increase of 6.98 percent compared to March 2012 and an increase of 12.43 percent compared to February 2013.

Single-family home sales increased 9.20 percent in March 2013 compared to March 2012, while condo sales increased 4.29 percent.

Compared to March of 2012, the number of short sales (566) decreased 29.86 percent and the number of foreclosures (556) decreased 12.30 percent. The number of completed traditional sales (1,483), however, is a 49.20 percent increase compared to last year.

In March, short sales and foreclosures made up 43.07 percent of the entire sales pie, while normal sales made up 56.93 percent. Last year in March, those percentages were 59.18 percent and 40.82 percent, respectively.

Homes of all types spent an average of 80 days on the market before coming under contract in March 2013, and the average home sold for 95.96 percent of its listing price. In March 2012 those numbers were 97 days and 94.94 percent, respectively.

The average interest rate paid by Orlando homebuyers in March, 3.65 percent, marks the first increase since April 2012. Last month, homebuyers paid an average interest rate of 3.21 percent; this month last year, homebuyers paid an average interest rate of 3.65.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 8,799. The number of pending sales in March 2013 is 9.74 percent lower than it was in March 2012 (9,748) and 0.29 percent lower than it was in February 2013 (8,825).

Short sales, which take much longer to process from contract to close, made up 60.67 percent of pending sales in March 2013. Normal properties accounted for 26.92 percent of pendings, while bank-owned properties accounted for 12.41 percent.

Inventory

The number of existing homes (all types combined) available for purchase in Orlando is continuing a steady tumble that began back in July 2010 at 16,563 and now rests at 6,937. In March 2013, inventory was 19.95 percent less than it was in March 2012.

The inventory of single-family homes is down by 22.53 percent when compared to March of 2012, while condo inventory has decreased by 7.29 percent.

Current inventory combined with the current pace of sales created a 2.66-month supply of homes in Orlando in March. There was a 3.56-month supply in March 2012 and a 3.10-month supply last month.

Affordability

The March affordability index is 223.58 percent, a decrease of 25 percentage points from February’s index of 248.38 that is attributed in part to this month’s jump in both the median price and the interest rate. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.)

Buyers who earn the reported median income of $54,986 can qualify to purchase one of 3,594 homes in Orange and Seminole counties currently listed in the local multiple listing service for $313,017 or less.

First-time homebuyer affordability in March decreased to 158.99 percent from last month’s 176.63 percent. First-time buyers who earn the reported median income of $37,390 can qualify to purchase one of the 2,529 homes in Orange and Seminole counties currently listed in the local multiple listing service for $189,202 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando were up 4.29 percent in March, with 413 sales recorded in March 2013 compared to 396 in March 2012.

The most (115) condos in a single price category that changed hands in March were yet again in the $1 - $50,000 price range and accounted for 27.85 percent of all condo sales.

Orlando homebuyers purchased 234 duplexes, town homes, and villas in March 2013, which is a 4.88 percent decrease compared to March 2012. Most (31) fell within the $160,000 - $180,000 price range category.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in March were up by 1.41 percent when compared to March of 2012. Throughout the MSA, 3,174 homes were sold in March 2013 compared with 3,130 in March 2012. To date, sales throughout the MSA are 7.59 percent above this time last year.

Each individual county’s monthly sales comparisons are as follows:

Lake: 13.96 percent above March 2012 (506 homes sold in March 2013 compared to 444 in March 2012);
Orange: 0.51 percent above March 2012 (1,589 homes sold in March 2013 compared to 1,581 in March 2012);
Osceola: 14.36 percent below March 2012 (501 homes sold in March 2013 compared to 585 in March 2012); and
Seminole: 11.15 percent above March 2012 (578 sold in March 2013 compared to 520 in March 2012).

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NEW CONSTRUCTION IS UP

Tuesday, February 28, 2012

by Jeff Singletary

Housing Starts Rise More Than Expected in January

Housing starts rose 1.5 percent to a 699,000-unit pace in January, the highest level since the wake of the Lehman Brothers collapse. Another positive for today’s report was the cumulative upward revision of 49,000 units to December and November starts. Much of the gain was concentrated in multifamily, which increased 8.5 percent to a 191,000-unit pace. Some of the increase in multifamily starts is likely payback from the significant retracement of 27.9 percent in December. However, while multifamily starts can be volatile on a monthly basis, the trend remains encouraging. New construction on multifamily units are up 89.5 percent on a year-ago basis. The upward momentum in multifamily construction continues to illustrate the solid recovery in the apartment market.

Apartment demand continues to benefit from the housing slump and modestly increasing household formation. This improvement has helped drive the apartment vacancy rate down to 5.2 percent in the fourth quarter from a high of 8.0 percent in early 2010. Apartment fundamentals continue to improve, with effective rent growth now positive for eight consecutive quarters and net absorption still far outpacing completions. We could begin to see a modest slowdown in the pace of new construction and rent growth for class B and C properties, however, due to the GSE REO-to-rental conversion program, which will increase the supply of rentals. That said, the labor market continues to show improvement and demographics appear favorable. Multifamily permits are up 55.0 percent on a year-ago basis and we continue to expect further gains in the coming quarters.

Single-Family Construction Pulls Back

Single-family starts fell 1.0 percent in January, the first decline in four months. The oversupply of existing homes continues to compete with new construction and we still have a long way to go to whittle down the excess supply. The latest data suggest the inventory of existing homes is around 2.4 million units and a conservative estimate for shadow inventory is about 1.6 million units.

Builder confidence, however, is showing a glimmer of hope for new construction. According to the NAHB/Wells Fargo Housing Market Index, builder confidence rose for the fifth consecutive month. Prospective buyer traffic is also trending higher and builders’ expectations for future sales also continue to improve. Another encouraging sign for single-family starts is building permits. Single-family building permits have risen in each of the past four months and are up 6.2 percent on a year-ago basis. We continue to expect further improvement in single-family starts, but the level is still well below the long-run average. As we have stated on numerous occasions, any recovery in housing will be long and slow.

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Median Price Of Homes Jumps 12%

Saturday, January 28, 2012

by Jeff Singletary

Median price jumps 12 percent in December and lifts 2011 over 2010

A median price spike in December was enough to nudge the 2011 cumulative year-end median 1.29 percent above that of 2010 and end the year in the black. The cumulative year-end median in 2011 was $109,900; the cumulative year-end median price in 2010 was $108,500.

The median price of homes sold in Orlando during December 2011 ($118,000) was 12.38 percent higher than the median price in December 2010 ($105,000). During 2011, Orlando’s median price climbed 24.34 percent from a low of $94,900 in January to a high of $118,000 in December.

The median price of "normal” sales that closed in December 2011 was $159,900 (representing a decrease of 0.06 percent compared to December 2010). The median price for short sales in December 2011 was $105,000 (an increase of 10.53 percent compared to December 2010), and the median price for bank-owned sales in December was $80,000 (an increase of 6.67 percent compared to December 2010).

Members of the Orlando Regional REALTOR® Association participated in 13.86 percent less home sales in December of this year than in December of 2010: 2,125 and 2,467, respectively. At year’s end, the number of sales for all of 2011 (27,703) was 3.48 less than in all of 2010 (28,701).

"I am pleased to see a year-end sales tally that is very similar to 2010, which offered the homebuyer tax credit incentives to stimulate sales,” says ORRA Chairman Stephen Baker, RE/MAX Central Realty. "Buyers are taking note of Orlando’s historic affordability conditions, consistent increases in prices, and dramatically declining inventory and taking action. In addition, I expect to see even more sales activity once the problem of contract failures – estimated by the National Association of REALTORS® to be as much as 33 percent nationwide – is resolved by an easing of unnecessarily restrictive lending standards.”

In month-over-month comparisons, sales of foreclosed homes declined 56.29 percent in December 2011 compared to December 2010. Short sales and "normal” sales both increased (by 24.41 percent and 14.15 percent, respectively) in December 2011 compared to December 2010.

Normal sales (871) accounted for 40.99 percent of all transactions in December 2011, while short sales (785) accounted for 36.94 percent and bank-owned sales (469) made up the remaining 22.07.

The Orlando average interest has dropped to a new low once again. Buyers who purchased an Orlando area home in December paid an average interest rate of 3.99 percent, which is the lowest since the Orlando Regional REALTOR® Association began tracking the statistic in January of 1995.

Homes of all types spent an average of 103 days on the market before coming under contract in December 2011, and the average home sold for 92.40 percent of its listing price. In December 2010 those numbers were 97 days and 94.45 percent, respectively.

Pendings

Pending sales – those under contract and awaiting closing – are currently at 8,095. The number of pending sales in December 2011 is 9.14 percent lower than it was in November 2011 (8,909) and 3.2 percent lower than it was December 2010 (8,363).

Short sales — which take much longer to process from contract to close — made up 75.26 percent of pending sales in December 2011. "Normal” properties accounted for 12.87 percent of pendings, while bank-owned properties accounted for 11.87 percent. In December 2010, short sales were 64 percent of all pendings while normal properties were 14 percent and bank-owned properties were 23 percent of the total.

Inventory

Current overall inventory is down 35.09 percent compared to December 2010, and down 3.99 percent compared to November 2011. Single-family home inventory is down 34.50 compared to December 2010, while current condo inventory is down 32.14 percent compared to December 2010.

At the current pace of sales, there is a 4.58-month supply of homes in Orlando’s inventory (down from a 5.00-month supply in November 2011 and down from a 6.08-month supply in December 2010).

Affordability

The Orlando affordability index decreased three percentage points in December, to 250.44 percent, as a result of the increase in median price. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.)

Buyers who earn the reported median income of $54,131 can qualify to purchase one of 5,703 homes in Orange and Seminole counties currently listed in the local multiple listing service for $295,519 or less. First-time homebuyer affordability in December decreased to 178.09 percent from last month’s 180.21 percent.

First-time buyers who earn the reported median income of $36,809 can qualify to purchase one of the 4,223 homes in Orange and Seminole counties currently listed in the local multiple listing service for $178,625 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area (338) decreased by 35.62 percent in December when compared to December of 2010 (525).

The most (129) condos in a single price category that changed hands in December were yet again in the $1 - $50,000 price range and account for 38.17 percent of all condo sales. While low-price condos still dominate closings, the number of sold units in this price category have steadily declined from a high of 288 in January.

Orlando homebuyers purchased 211 duplexes, town homes, and villas in December 2011, which a 9.44 percent decrease compared to December 2010. Most (39) fell within the $100,000 - $120,000 price range.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in December were down by 10.30 percent when compared to December of 2010. Throughout the MSA, 2,717 homes were sold in December 2011 compared with 3,029 in December 2010. For all of 2011, sales in the MSA are down 1.34 percent.

Each individual county’s monthly sales comparisons are as follows:

Lake: 4.63 percent above December 2010 (384 homes sold in December 2011 compared to 367 in December 2010);
Orange: 14.96 percent below December 2010 (1,359 homes sold in December 2011 compared to 1,598 in December 2010);
Osceola: 12.87 percent below December 2010 (467 homes sold in December 2011 compared to 536 in December 2010); and
Seminole: 3.98 percent below December 2010 (507 sold in December 2011 compared to 528 in December 2010).

2011 Year-end Recap

Overall sales in 2011 were down by 3.48 percent over 2010. A total of 27,703 homes were sold in 2011 compared to 28,701 the previous year.

Sales of normal homes in 2011 increased 12.15 percent over 2010. Short sales increased by 20.93 percent while bank-owned sales declined by 27.35 percent.

The 2011 year-end year-to-date median price increased 1.29 percent to $109,900 compared 2010’s $108,500.

By year’s end in 2011, 34,670 homes were sold in the Orlando MSA while 35,140 homes had been sold by year’s end in 2010 (for a 1.34 percent decrease). Each county’s 2011 year-end sales comparisons are as follows:

Lake: 3.26 percent above 2010 (4,343 homes sold in 2011 compared to 4,206 in 2010);
Orange: 4.92 percent below 2010 (17,965 homes sold in 2011 compared to 18,894 in 2010);
Osceola: 1.03 percent above 2010 (6,401 homes sold in 2011 compared to 6,336 in 2010); and
Seminole: 4.51 percent above 2010 (5,961 sold in 2011 compared to 5,704 in 2010).

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ORLANDO FLORIDA TOP 10 CITIES

Tuesday, December 20, 2011

by Jeff Singletary

Top 10 cities targeted by foreign investors

ORLANDO, Fla. – Dec. 19, 2011 – From Chinese investors flocking to California to Canadian snowbirds heading to Arizona, international homebuyers are offering a growing niche for more real estate professionals.

But which places are international investors targeting in their home search? Point2Homes.com evaluated where buyers from overseas are looking online to gauge possible current and future home-purchasing patterns.

Canadian investors have a growing appetite for U.S. real estate, Point 2 finds. Canadian investors made up 91.89 percent of the overall international traffic to Arizona listings, 75.90 percent to Hawaii, 73.92 percent to Michigan, 70.55 percent to Nevada, and 65.05 percent to California.

Las Vegas had the highest overall international traffic online among U.S. cities, with Canadians serving as the leading source of traffic there at 70.47 percent, followed by 5.28 percent of the traffic coming from U.K. residents and 2.19 percent from France.

The top 10 cities for international traffic online by international buyers in the third quarter are:

1. Las Vegas, Nev.
2. Orlando, Fla.
3. Kissimmee, Fla.
4. Detroit, Mich.
5. Pompano-Beach, Fla.
6. Miami, Fla.
7. Mesa, Ariz.
8. Davenport, Fla.
9. Phoenix, Ariz.
10. Indio, Calif.

Overall, Florida emerged as the top state attracting international traffic online for the third-quarter, according to Point2.

Source: Point2

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ORLANDO FLORIDA SEPTEMBER MARKET TRENDS

Tuesday, November 01, 2011

by Jeff Singletary

Market Statistics

Orlando area "normal" and short-sales both increase as sales of foreclosures drop more than 50 percent

(October 13, 2011 – Orlando, FL) Sales of foreclosed homes declined 52.66 percent in September of this year compared to last, while “normal” sales and short-sales both increased (by 18.44 percent and 25.82 percent, respectively), reports the Orlando Regional REALTOR® Association. All together, the 2,054 sales transactions involving ORRA members in September 2011 are 13.48 percent lower than in September 2010.

ORRA’s housing activity report for the month of September follows just days after an announcement by Freddie Mac that the national average rate on a 30-year fixed mortgage had fallen below 4 percent for the first time ever, to 3.94 percent.

Locally, buyers who purchased an Orlando area home in September are paying the lowest average interest rate – 4.19 percent – since the Orlando Regional REALTOR® Association began tracking the statistic in January of 1995.

“For those who can qualify, it’s an extraordinary time to buy,” says ORRA Chairman of the Board Mike McGraw, McGraw Real Estate Services, Inc. “Although Orlando’s inventory is shrinking and the median price is rising, there are still plenty of available options and the median price is comparable to that back in 2001, when the interest rates were more than 7 percent.”

The Orlando area’s overall median price is $115,000 for the month of September, a 9.52 percent increase over September 2010. Since January of this year, Orlando’s median price has increased by 21.18 percent.

The median price of “normal” sales closing in September 2011 was $153,500, and normal sales accounted for 38.46 percent of all transactions. These two steadily improving factors have been helping to keep overall median prices hovering above those recorded in 2010.

But the lower median price of foreclosures and short sales (which combined account for 61.54 percent of all sales in September) does continue to negatively influence the overall median price.The median price for bank-owned sales in September is $82,000 and the median price for short sales is $100,000.

Homes of all types spent an average of 100 days on the market before coming under contract in September 2011, and the average home sold for 93.80 percent of its listing price. In September 2010 those numbers were 87 days and 95.19 percent, respectively.

At the current pace of sales, there is a 4.83-month supply of homes in Orlando’s inventory. The number of homes available for purchase in the Orlando area declined in September by 124 homes and now rests at 9,931. Overall inventory is down 39.29 percent from September of last year; single family home inventory is down 36.12 percent while condo inventory is down 50.16 percent.

Pending sales – those under contract and awaiting closing – are currently at 9,369. The number of pending sales in September 2011 is 7.53 percent greater than in September 2010.

Affordability

The Orlando affordability index increased to 250.11 percent in September. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.)

Buyers who earn the reported median income of $53,960 can qualify to purchase one of 5,455 homes in Orange and Seminole counties currently listed in the local multiple listing service for $287,628 or less.

First-time homebuyer affordability in September increased a bit to 177.86 percent from last month’s 176.78 percent. First-time buyers who earn the reported median income of $36,693 can qualify to purchase one of the 3,831 homes in Orange and Seminole counties currently listed in the local multiple listing service for $173,855 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area (298) decreased by 47.16 percent in September when compared to September of 2010 (564).

The most (140) condos in a single price category that changed hands in September were yet again in the $1 - $50,000 price range and account for 46.98 percent of all condo sales. Low-priced units have overwhelmingly dominated condo sales since March of 2009; this year alone, low-priced sales have made up 48.63 percent of all sales.

Orlando homebuyers purchased 220 duplexes, town homes, and villas in September 2011, which is a 5.98 percent decrease from September 2010, when 234 of these alternative housing types were purchased. Most sales (36) were between $100,000 and $120,000.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in September were down by 13.75 percent when compared to September of 2010. Throughout the MSA, 2,541 homes were sold in September 2011 compared with 2,946 in September 2010. To date, sales in the MSA are down 2.55 percent.

Each individual county’s monthly sales comparisons are as follows:

Lake: 6.77 percent above September 2010 (331 homes sold in September 2011 compared to 310 in September 2010);
Orange: 17.48 percent below September 2010 (1,317 homes sold in September 2011 compared to 1,596 in September 2010);
Osceola: 25.09 percent below September 2010 (436 homes sold in September 2011 compared to 582 in September 2010); and
Seminole: 0.22 percent below September 2010 (457 sold in September 2011 compared to 458 in September 2010).

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ORLANDO FLORIDA MARKET TRENDS

Let's take a look at some of the opportunities and positive indicators for the future of Florida's real estate market.

Wednesday, December 01, 2010

by Jeff Singletary

Let's take a look at some of the opportunities and positive indicators for the future of Florida's real estate market.

1. Great prices. Statewide, home prices have fallen about 20 percent in the past year. Florida Association of Realtors® statistics show the existing-home median sales price was $185,400 in the third quarter of 2008, compared with $233,200 in third quarter 2007. By the way, those numbers are still significantly higher than in the early years of the decade. In 2003, the third-quarter sales price was $163,700, which reflects an increase of about 13.3 percent over the five-year period. (The median is a typical market price where half the homes sold for more, half for less.)

2. The time is right. Home sales volumes are rising again -- a signal that the market recovery may be underway. In third quarter 2008, statewide sales of existing single-family homes were up 5 percent compared to the same period last year, according to FAR statistics.

3. High inventory levels. Conditions are ideal for buyers to find their dream home. Inventory is plentiful in all price ranges. But as sales volumes increase, inventory levels are likely to shrink. That reality translates into this advice for buyers: Don't wait, now is the time to buy!

4. Mortgage rates. Mortgage rates are still at the lowest levels since the 1960s. Lower rates multiply a buyer's financial power. Even half a percent can make a sizeable difference. For example, on a $200,000 home, half of 1 percent could save the homeowner about $815 a year. Buyers can get more home for the money, which is a perfect scenario for families looking to upsize.

5. Incentives to buy. Federal, state and local housing programs can help buyers make that big purchase. The American Recovery and Reinvestment Act has increased the First-Time Homebuyer Tax Credit from $7,500 to $8,000 for purchases on or after Jan. 1, 2009, and before Dec. 1, 2009. Talk to a local mortgage lender about state and federal incentive programs.

6. A long-term-growth state. Long-term economic and demographic trends continue to favor Florida. By 2010, economists forecast that Florida will be the third-most-populated state in the country. Florida has been one of the 10-fastest-growing states in the U.S. for each of the past seven decades, and often the state has been in the top four, according to Census data. Population growth will continue to provide a foundation for other economic development, such as new jobs and growing incomes. All of these trends are positive indicators for real estate growth.

7. A migration magnet. Even with a slowdown in economic growth nationally, projections call for Florida's population to return to more normal growth levels of about 317,000 a year between 2010 and 2020, similar to the 1980s and 1990s, said Stan Smith, director of the University of Florida's Bureau of Economic and Business Research. That's a lot of new buyers coming into the market.

8. A favored retirement destination. Over the long term, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. Demographic studies show that the Sunshine State's mild climate and outdoor amenities continue to make Florida a favorite retirement destination.

9. A diverse economy. Florida's economy, like the rest of the nation, is impacted by the recession. Some business sectors, though, appear promising for the Florida economy. The healthcare and technology sectors are quickly becoming an important economic force in South and Central Florida. The Milken Institute/Greenstreet Real Estate Partners ranked five Florida communities on its "Best Performing Cities Index 2008," which ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. Florida's business climate ranked fourth among executives and sixth overall on Site Selection magazine's 2008 Top State Business Climate rankings.

10. Investment outlook. Every quarter, the University of Florida's Bergstrom Center for Real Estate Studies conducts a survey of industry executives, market research economists, real estate scholars and other experts. In the fourth quarter 2008 survey, the investment outlook for various types of Florida properties declined from the third quarter of 2008, although it is noted that the investment outlook remains higher than it was at times in 2006 and 2007. "We have 40 pages of comments from our respondents, and although the dominant theme is the disruption of financing, perhaps the second theme, as one person put it, is people being on the sidelines with full pads and helmets just waiting to jump back in," says Director Dr. Wayne Archer, when referencing the 2008 third quarter results.

11. Homeownership has value. Realtors® believe -- and research supports the belief -- that homeownership provides a variety of tangible and intangible benefits to the community and homeowners. Studies show that home equity is still the largest single source of household wealth.

12. Greater sense of well-being. Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal self-esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.

13. Beneficial for kids. Studies show that children raised in homes owned by their families are more likely to stay in school and graduate high school. They're also shown to have a higher lifetime annual income.

14. Community involvement. People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact more with their neighbors and communities. Compared to renters, homeowners join up to 41 percent more civic and/or nonprofessional organizations, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.

15. An unsurpassed lifestyle. Finally, let's not forget the things that brought people to Florida in the first place, and will continue to attract them -- beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It's no wonder that Florida's combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put the Sunshine State in the top three of Harris Poll's "Most Desirable Places to Live"

If their is anything else we can help you with please do not hesitate to contact us. It would be our pleasure to serve you.

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Great Home Prices

Is Now A Good Time To Buy a Home?

Wednesday, November 10, 2010

by Jeff Singletary

The answer is YES!!!! Here is why…… Let's assume prices continue to drop. If you bought a $200,000 dollar home (and for the purpose of illustration obtained a $200,000 loan), and that house drops 10% in the next year the math is easy, you just lost $20,000 BUT - and this is a big BUT - if you obtained a loan today for that house at 4.25%, and if that same loan in one year costs 6% then the difference in payment is a lot LESS if you buy the house now. ($200k @ 4.25% = $984 / $200k @ 6.0% = $1,199) for a difference of $215 every month Over 30 years that difference is a whopping $77,400! One thing we have been assured of is that interest rates have to and eventually will be going up as the economy improves.

As real estate history has shown over the last 100 years prices will go up, and have always gone up, especially after a correction. We can all agree The Greater Orlando real estate market has definitely had a correction in value. In most cases at least a 50% correction in value.

Please feel free to contact me at anytime if I can be of further assistance. It would be my pleasure to serve you.

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Is Now a Good Time To Buy A Home

Should I Buy a Home Now?

Wednesday, October 20, 2010

by Jeff Singletary

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.

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