October Housing Stats

(ORLANDO, FL) — According to the Orlando Regional Realtor Association (ORRA), sales of existing single-family homes in October 2011 jumped 18% over last October’s home sales pace, marking the year’s greatest month-over-month increase in sales of this home type.

In addition to the 18.16 percent increase in existing single-family home sales, Orlando’s overall home sales (homes, condos and townhomes) for October have increased by 5.89 percent.

“October marks the first time since March that overall sales have indicated a month-over-month improvement,” says ORRA Chairman Mike McGraw, McGraw Real Estate Services, PL. “This additional activity can be attributed to a multitude of local factors — such as low interest rates, a higher percentage of “normal” sales, and a steady incline in median price — that are encouraging buyers to take advantage of today extraordinary market conditions.” [Read more]

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Orlando Property Among Cheapest in World

We all knew that American real estate was cheap but in fact, it is the cheapest in the world, according a new report from Credit Sesame. The diagram, which aims to put US property into a global perspective, shows that America is significantly cheaper than other countries in terms of price per square foot. This  explains why interest from overseas investors has increased sharply this year. Many of those cheaper properties are in Florida of course and a great deal of that real estate is in Orlando.

The number of repossessed and discounted houses makes America a far more affordable place to invest than other countries. Even real estate in Manhattan, the most expensive US city at $1,068 per square foot, is three times cheaper than Paris, where property is priced at $3,287 per square foot.

It turns out that Paris, the French capital is the most expensive in the world, while London ranks between Paris and New York at $1,590 per square foot, just above the real estate value in Dubai. Out of the 34 cities analysed (using data between 2011 and 2009), the median market is, perhaps surprisingly, Athens, where Greek property has a cost of $890 per square foot. At the other end of the international scale, Chile boasts property at the lowest global cost of $160 per square foot in Santiago - still over triple that of Houston’s mere $54.

Inventory in Orlando is dropping radpidly however as the influx of overseas investors is mopping up the extra real estate as it comes out of the banks, turning the buyers market into a seller’s market in the under $100K price range. It’s not unusual to see a dozen or more contracts these days for each bank owned condo foreclosure that pops up on the MLS.

For more information and details on how to buy and sell Orlando real estate in this market, contact the Orlando real estate Pros at: Info@OrlandoRealEstatePros.com or call 407-290-3408. For MetroWest, see http://MyMetroWestRealty.com and for downtown Orlando condos see: http://OrlandoCondosDowntown.com

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Couple Foreclose on Bank!

ST. PETERSBURG, Florida — Months after Bank of America wrongly foreclosed on a house Warren and Maureen Nyerges had already paid for, they were still fighting to get reimbursed for the court battle.

So on Friday, their attorney showed up at a branch office in Naples with a moving truck and sheriff’s deputies who had a judge’s permission to seize the furniture if necessary. An hour later, the bank had written a check for $5,772.88.

“The branch manager was visibly shaken,” attorney Todd Allen said Monday, recalling the visit to the bank last week. “At that point I was willing to take the desk and the chair he was sitting in.”

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Orlando No. 1 Travel Destination

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Orlando - Top Ten Affordable Towns!

You better believe it - the housing market is back. It’s time to buy again, and here are the 10 cities with the most affordable homes, according to a new report from Deutsche Bank. Orlando real estate is right there, and no wonder with prices a fraction of what they were 5 years ago.

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Orlando Real Estate Pros To Go Mobile

Good news: Our MLS search provider DS Search Agent, will soon be releasing a mobile version making your Orlando real estate / home search on the fly that much easier. Stay tuned for full release info!

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My Name’s Fawrest. Fawrest Gump.

Orlando Real Estate Broker & Realtor Marcus Burke was interviewed in today’s Orlando Business Journal.

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MetroWest Foreclosures

The MetroWest subdivision of Orlando currently has about 100 distressed single family homes for sale on the Orlando MLS. 

Of those hundred, the vast majority are “short” sales (which will probably never happen) but about 20 of them are genuine bank owned foreclosures which can sell and close in about 30 days. Since they’re not condos, loans may be possible in the cases of the higher end properties.

List prices on this Orlando real estate runs from about $100K in the case of townhomes to about $600K in the case of the luxury homes behind the MetroWest golf course such as those in Palma Vista.

Competition can be stiff with foreclosures and cash is always your best bet if you have it. You will need a proof of funds and a healthy deposit in order to make your offer. Bear in mind that these homes often sell for more than their listing price, depending on how many bids they have.

Your best source for these? Head over to the new Metrowest homes for sale site at: http://MyMetroWestRealty.com

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Florida #5 for Economic Outlook

According to the Orlando Business Journal, Florida’s economic outlook ranks fifth among the 50 U.S. states. So says of an annual study by the American Legislative Exchange Council.

The 2010 “Rich States, Poor States” study presents state economic outlook rankings based on public policies that have a proven impact on growth, revealing which states have the best chance of experiencing economic recovery, and which need to re-examine their policies before they can expect to see improvement.

Utah, Colorado, Arizona and South Dakota ranked 1-4 in the study. The bottom five states include California, Illinois, New Jersey, Vermont and New York.

Although the Sunshine State has been devastated by an unemployment rate topping 10 percent for most of the past year and a half, its economic outlook actually improved since the study’s inaugural edition in 2008, moving from 16th that year to 11th in 2009.

Florida scored highest for its top marginal personal income tax rate, state minimum wage and its right-to-work status. Low scores included tax burden (No. 45) and tort litigation treatment/judicial impartiality (No. 42).

“Our research shows that states with responsible spending and competitive tax rates enjoy the best economic outlook,” said study co-author Jonathan Williams, director of ALEC’s tax and fiscal policy task force. “States do not enact changes in a vacuum - every time they increase the cost of doing business in their state, their state brand immediately loses value.”

The full report can be downloaded at www.alec.org.

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March Stats for Orlando

According to the Florida Association of Realtors, sales of existing home sales in Florida rose 24 percent in March, with 16,294 homes sold statewide compared to 13,090 homes sold in March 2009.

In addition, while March’s statewide existing-home median price of $137,000 was down 3 percent from $141,300 a year ago, it was 4.3 percent higher than February’s statewide existing-home median price.

Florida Realtors also reported a 63 percent increase in statewide sales of existing condos in March compared to the previous year’s sales figure, with 7,148 units sold compared to 4,387 in March 2009.

March’s statewide existing-condo median price of $96,900 was down 11 percent compared to the year-ago figure of $108,500, but it was 5.1 percent higher than February’s statewide existing-condo median price.

In metro Orlando, 2,489 existing home sales took place in March, a 36 percent increase over 1,828 in March 2009.

The median price for homes in March 2010 was $132,200 in the metro area, a 12.7 percent decrease from $151,500 in the year-ago period.

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Investors Pop Out Of The Woodwork

Bottom or not - a large number of folk are keen to take advantage of the low real estate prices we’re seeing.

More than 12 percent of homebuyers today plan to purchase a home as an investment, compared to less than half, only 5.6 percent, just seven months ago, according to a recent Move.com Homeownership Survey.

The survey of 1,004 consumers, conducted from October 16 to 18 this year, found:

• Foreclosure buyers are confident they will profit from discounted purchase prices, as well as healthy appreciation rates over the next five years.
• Most foreclosure buyers, 58.2 percent, expect to pay 20 percent or less than market price for a foreclosure, while 38.5 percent expect a 25 percent or greater discount.
• Expectations are high — 73 percent expect their properties to appreciate ten percent or more in five years, 28 percent expect their purchases to appreciate 20 percent or more.

Not all buyers will make the ‘right’ decisions when purchasing however, and may folk still seem to overestimate their ability to get a loan in today’s market.

For more info on Orlando foreclosures, call 407-290-3408.

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Orlando Sales Data: November 2009

For those unconvinced that we’re now bumping along the bottom, the following data make interesting reading. Realtors are often accused of “talking up the market” - and on occasion they do - but I think these numbers speak for themselves. Click the following image to enlarge.

Orlando home sales in November 2009 were up 101.62 percent over November 2008; year-to-date sales are up 59.43 percent.

“Normal” sales made up 36.55 percent of sales in November, while 63.45 percent of sales were either bank-owned or short sales.

There are currently 8,633 pending sales, of which 3,023 were newly filed in November. There were 3,326 pending sales in November 2008.

The median price of all existing homes sold in November 2009 decreased 5.38 percent (to $123,000) when compared to October 2009 ($130,000) and decreased 25.90 percent compared to November 2008 ($166,00).

The median price for “normal” sales in November was $173,960; the median for bank-owned sales was $84,000; and the median price for short sales was $122,000.

Affordability climbed to 209.06 percent in November; first-time affordability increased to 148.66 percent.

The inventory level increased during the month of November by 259 homes to 16,002, and is currently 34.44 percent lower than November 2008. There is a 7.15-month of supply.

Year to date, Osceola County sales are up 106.84 percent; Orange is up 81.18 percent; Lake County is up 36.63 percent; and Seminole is up 28.18 percent.

Call the Orlando Real Estate Pros for more info or to view current deals on 407-290-3408.

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Good Faith Estimate Mortgage Disclosures

Changes are a-coming… On January first the federal government expects everyone to be using the new consumer-friendly Good Faith Estimate mortgage disclosures and the new settlement statements.

The issue here is important to consumers because the new paperwork provides numerous protections the old forms did not. Most importantly, they make it extremely difficult for loan officers to “low ball” the estimated fees and charges on the mortgage and then later hit homebuyers with surprise increases at closing.

Before, if the estimated fees from the lender were $2,000 but the total on the settlement sheet came to $3,000, the homebuyer would have to come up with the difference. That was abusive.

Under the new rules, starting January 1, the lender or broker will be subject to what are known as “tolerance” limits. Any charges over the limits will have to be eaten by the lender or broker - and there will be zero tolerance for increases on certain fees.

Other types of charges, such as for title insurance and settlement services, generally won’t be allowed to come in more than 10 percent above the upfront estimate.

All consumers making loan applications on or after January 1 must receive the new forms at application and at closing.

This is all good news for the consumer.

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Tax Credit - Deadline is Now

While buyers should never rush into the decision to buy a home, if the tax credit is a motivating factor, there is a deadline. Unless legislation extends the deal, you’ll have to close escrow by Nov. 30 to take advantage of the maximum $8,000 tax credit available for first time home buyers.

However, given the 30 to 45 days - or longer - it takes to close escrow - especially on some distressed properties - you can’t wait until Nov. 30 to buy a home. In fact, if you’re not under contract in the next week or so, chances are, you will miss the deadline.

The federal tax credit for 2009 is only for first-time home buyers - people who’ve had no ownership interest in a home in the three years prior to the purchase. Single and head of household tax payers can earn no more than $75,000. There’s a $150,000 ceiling for married couples filing a joint return.

A tax credit is a big deal because, unlike a tax deduction which reduces your taxable income, a tax credit reduces the taxes you owe, dollar-for-dollar.

This home buyer tax credit can also net you a rebate if the credit is more than the taxes you owe. The rebate is the difference. If you owe no taxes, your rebate can be a maximum $8,000.

So far, 1.4 million people have used the credit, including 160,000 in California, the Internal Revenue Service said Friday.

For an Orlando real estate tax credit home purchase, contact us here at the Orlando Real Estate Pros ASAP: 407-290-3408.

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Pending Home Sales on a Record Roll

According to a National Association of Realtors (NAR) press release, contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001.

The “Pending Home Sales Index”, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7. Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said.
Read the release >
View the Daily Forecast Update >
View the video >
View Pending Home Sales Index >

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