Orlando Real Estate Update: Feb 2009

The Orlando housing market continued to show signs of strength in February. Orlando Realtors filed 58.36% more contracts in the month of February than in February 2008. Overall, pending sales - considered to be a reliable indicator of future sales - continued its upward trend in February to 4,348. There are twice as many more homes under contract in February 2009 than compared to February 2008.

The median price of Orlando homes sold in February ($145,500) decreased by 34.75% compared to February 2008 while the area’s average interest rate dropped yet again to 5.25%, its lowest point since May of 2005 which is great news.

The decrease in median price drove the area’s affordability index to yet another record high of 169.17%. The first-time homebuyer affordability has increased to 120.30%. (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. This means that buyers who earn the reported median income of $52,193 can qualify to purchase one of 11,976 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $246,140 or less.

The majority of single-family homes that changed hands in February 2009 were sold in the $200,000 - $250,000 price range, while local new-home builders reported 122 new-home sales for the month of February, with a median price of $234,950.

There are currently 22,168 homes available for purchase through the MLS. Inventory decreased by 445 homes from January 2009. Compared to last year, the February 2009 inventory level is 14.68% lower than it was in February 2008 (25,984). The inventory level reflects an 18.19-month supply at the current pace of sales, which is down from the 21.54-month supply recorded in January 2009 and down from the 27.32-month supply recorded in February 2008. There are 16,057 single-family homes currently listed in the MLS, a number that is 3,474 (17.79%) less than this time last year.

Average days on the market? 102.

See this link for January’s Orlando Real Estate analysis.

See the Condo Metropolis blog for Orlando’s condo information.

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Orlando Asbestos Prevention & Healthy Alternatives for Homeowners

The journey to purchasing a home is one of many joyous experiences for you and your family. Quite frankly, it is the investment of a life time. It is also one that will bring additional responsibilities into your life. The real-estate world is a fast paced industry where decisions need to be made in a quick and orderly fashion.

Many homes will require further repairs or renovations, especially if located in an area that is susceptible to natural disasters. Many structures continue to harvest older methods of construction and can pose many problems for home owners. Asbestos has appeared as insulation, piping, roof shingles and flooring.

Potential buyers of Orlando real estate or those remodeling older homes should be aware that homes built before 1980 may still contain asbestos. It should be stated that asbestos exposure is easily preventable by taking simple precautions. There are now a number of alternative forms of insulation which replace the need for asbestos entirely.

If any asbestos materials are suspected, professionals advise to leave it un-disturbed. Asbestos in good condition may not pose any health risks. Once asbestos becomes damaged or friable, its fibers could become airborne. Rare form of asbestos lung cancer known as mesothelioma is caused only through exposure. Accounting for three percent of cancer diagnoses in the United States, there is no mesothelioma cure.  Although advances have been made with mesothelioma treatments, many variables affect how patients respond to them. These include age of diagnosis, latency period and cigarette smoking.

It is recommended for home owners or remodelers to hire professional inspectors who can determine the legitimacy of danger if any asbestos materials are present. If removal is deemed necessary, it must be performed by a licensed abatement contractor who is licensed in dealing with hazardous materials. The Florida Department of Air Resource Management administers an asbestos removal program in order to prevent the release of airborne asbestos fibers in places of work, public facilities and homes. [Read more]

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Orlando Real Estate Genie: Your Wish Is My Command!

For those that still need convincing that it’s time to make that Orlando home purchase, comes some interesting date from the Orlando Regional Realtor Association (ORRA). The average price of an Orlando house 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.

Think about it. As a buyer, what would make conditions perfect for buying? In an ideal buyer’s market, what FOUR wishes (that’s a good start) could the Real Estate Genie possibly grant you as an incentive to buy? How about:

• Large inventory; over supply, massive choice;
• Low interest rates;
• An $8000 non-repayable government loan for first-time buyers might be nice;
• Silly prices, not only reversing the gains of the last few years but going beyond that and taking us back to pre-2005 pricing. Fifty cents on the dollar, twenty-five cents on the dollar… whatever.
   

“Yes, yes! That’s exactly what I want!” you exclaim to your Real Estate Genie. “One couldn’t hope for a better market than that. Give it to me now baby!”

Then, Poof!

“You got it!” says the Genie. “Now go snap up a deal while you can!”

“Um,” you say, “Well, um, actually, I’m just not convinced the time is right yet. I mean… you know…”

Now if I were a Real Estate Genie, whose only personal real estate consisted of an over-priced, cramped, misshapen, green bottle, I would smack you upside the head with said bottle, before taking back my wishes and offering them to a more realistic buyer. Hrumph!

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Orlando’s Top Ten Real Estate Deals

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