Orlando’s Home Starts Increase

Residential construction activity remains low nationally, but the Orlando market is among the highest in housing starts, according to a May 2009 report by Metrostudy.

The Orlando market indicates about 12,000 buidling starts for the 12 months ending March 2009, making it  #4 nationwide. Houston led that list with 22,000 home starts during that same period, while the Dallas area posted 17,638 starts. Phoenix was #3 with 12,302 starts.

The Orlando area also was fifth in move-ins, or absorptions, with 18,423 posted for the same 12-month period. Houston also topped that list with 28,326, followed by Dallas/Fort Worth with 23,957, Phoenix with 21,838 and Atlanta with 20,007.

For more info on the Orlando market, contact the Orlando Real Estate Pros.

website translation

Tax credit becomes real cash!

The FHA will now allow lenders and government agencies to “monetize” the $8,000 federal homebuyer tax credit, providing purchasers with downpayment cash upfront, available at closing, rather than waiting for the IRS to mail them a tax credit check.

Under the bridge loan concept, an FHA-approved private lender, a state or local housing agency, or an FHA-approved nonprofit organization could advance as much as $8,000 for downpayment and closing costs — in anticipation of receipt of the $8,000 credit months or weeks down the road.

It has been estimated that half of all would-be first-time buyers lack the downpayment resources needed to complete a purchase, and therefore are unable to make use of the credit.

For more information on the program contact the Orlando Real Estate Pros or call 407-290-3408.

website translation

Orlando real estate - May update

The 1,741 completed Orlando closings in April are a 41.43 percent increase compared to April 2008 (1,231) and a 0.74 percent decrease compared to last month (1,754). Year to date, there have been 42.58 percent more sales than by this time last year (5,867 to 4,115).

The median price of all Orlando homes sold in April ($132,900) decreased by 37.01 percent compared to April 2008 while the area’s average interest rate increased to 4.86 percent, up from last month’s record low of 4.67 percent.

The area’s affordability index continues to nudge the 200 percent mark. (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 $52,307 can qualify to purchase one of 11,233 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $257,840 or less.

The first-time homebuyer affordability in Orlando is currently 137.96 percent. First-time buyers who earn the reported median income of $35,569 can qualify to purchase one of 7,027 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $155,850 or less. [Read more]

website translation