Orlando Real Estate Update: Jan 2009

For those that still need convincing that it’s time to make that Orlando real estate purchase, comes some interesting data from the Orlando Regional Realtor Association (ORRA).

The average price of an Orlando home sold in January 2009 ($148,274) decreased by 33.06% compared to January 2008 – on top of that, the area’s average interest rate dropped to its lowest point since May of 2005, creating a perfect storm for would-be home buyers. 

Home sales are up, with over 17.71% more homes in January of this year than January of last year. And the number of pending sales, considered by housing economists to be a good predicator of future sales activity, continued upward to 3,830 with 121.25% more homes under contract in January 2009 than compared to January 2008.

The decrease in median price drove the area’s affordability index to another record high of 165.27%. An affordability index of 99% means that buyers earning the state-reported median income are 1% 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. ORRA notes: “Buyers who earn the reported median income of $52,136 can qualify to purchase one of 12,122 homes in Orange and Seminole counties… for $245,046 or less.”

The majority of Orlando single-family homes that changed hands in January 2009 were sold in the $200,000 - $250,000 price range. On the far ends of the scale, 13 homes were sold for $1 million or more while 52 homes sold for less than $50,000.

There are currently 22,613 Orlando homes available for purchase through the MLS. Compared to last year, the January 2009 inventory level is 12.09% lower than it was in January 2008 (25,724).

Average days on market? 104.

website translation

$1,599,000 (Reduced $400,000!) Sanctuary Penthouse Condo, Downtown Orlando

“Sanctuary Downtown” set the standard for luxury condominiums in Downtown Orlando.

Sitting high in the Orlando sky this elegant corner end unit offers panoramic Lake Eola views of the rapidly growing Orlando Skyline. With 4,050 sq ft of space, amenities include two balconies, 2 master suites, one guest bedroom, large theatre or entertaining room and great views! Upscale appliances such as Bosch and Wolf included, as well as built in entertainment center with plasma TV and a fireplace.

This luxury condo boasts wood and marble flooring throughout, granite and stainless steel appliances, custom built-in cabinets, storage unit and 2 assigned parking places. This is the only unit available in this floor plan and is a must see! The Sanctuary offers resort-style amenities such as infinity heated pool, spa, large fitness center, 24 hour security and concierge and 3 high end restaurants.

Call 407-290-3408 to schedule a private showing.

This listing has been sampled from the mid Florida region MLS.

website translation

Orlando’s Real Estate Turnaround on Horizon

Signs of a real estate turnaround are finally on the horizon. And now, even some of the country’s previously most-bearish economists are beginning to agree.

Last week, Dr. Mark Zandi, chief economist for Moody’s Economy.com, surprised analysts by announcing that “the bottom of the housing downturn is in sight for the nation.”

Days later, the Wall Street Journal - among the most pessimistic of major U.S. newspapers - ran a prominent article with this headline: “For some, it’s finally time to dive into the housing market.”

The Journal quoted one Phoenix buyer who had just picked up a bargain-priced first home as saying, “six months ago, I didn’t think I would ever own a home. Now I do. It’s so perfect.”

Mortgage rates continue to hover near historic lows. According to the Mortgage Bankers Association, thirty year fixed rates last week averaged 5.2 percent, down from 5.3 percent the week before. Fifteen year rates average a flat five percent.

website translation

Orlando America’s Fourth Favorite City

Orlando ranks fourth among America’s most popular big cities, according to a national survey released today.

The survey by the Pew Research Center’s Social and Demographic Trends project puts Orlando behind Denver, San Diego and Seattle as the city most respondents would like to live. Orlando ties for fourth place with San Francisco and Tampa. Detroit, Cleveland and Cincinnati ranked at the bottom of the list.

See Orlando Sentinel for full story.

website translation

Move it - or lose it…

If you’re trying to time bottom I don’t blame you. But you risk losing out just like the Brits who failed to move quickly enough last year when they had over two dollars to the UK pound. I’m already hearing the “if only we’d bought then” refrain. Brits now get less than a dollar fifty - and have thus just added 25% to the price of their Orlando vacation home.

And why are we quibbling over a half point on interest rates when prices are so low it doesn’t even matter? If interest rates were to rise to 8 percent they’d still be low. Those of you who were around in the 80’s might recall interest rates as high as 17 percent (I was still playing Duran Duran records). Now that’s something to worry about - not the Duran Duran, the interest rates. If you need convincing take a look at at this table and start looking at the big picture.

 

In addition, Orlando’s total inventory is already down by over 3000 units from it’s high last year. And sales are up. Prices are low, interest rates are low and there’s a lot to choose from. It’s the perfect storm. And just because experts think we may still have some way to go before we hit bottom remember, that is an average national picture. Remember, real estate is a local phenomenon and bottom in central Florida will not occur at the same time as it does in other states. Experts have noted that we were first to take the hit, we took the hardest hit - and it looks as if we’ll be first out of the gate to recovery.

So if you’re waiting for the media to tell you we’ve hit bottom and it’s time to start buying again I can guarantee you one thing. You’ll miss the party.

website translation

Orlando Real Estate A Steal

The value of homes in the Orlando area has fallen 20.7 percent from the previous year. The numbers released by the Zillow report (released February 3, 2009) confirms that there has not been a better time in the last 5 years to pick up a deal on Orlando real estate.

The report shows the current value for all homes in the Orlando area was $172,188 by the end of the 2008. Single-family home values were down 20.7 percent to $177,625 and condo values declined 16.2 percent to $130,047.

About 39.8 percent of the homes purchased in 2008 had negative equity and 94.5 percent of homes in the market lost value over the last 12 months, based on Zillow values. The report estimated that 35.5 percent of homes sold in the Orlando area were sold for a loss.

Nationwide, home values fell for the eighth straight quarter, dropping 11.6 percent to $192,119. That means homeowners lost $3.3 trillion in home values during 2008, with much of it coming in the fourth quarter.

website translation