Tag: Orlando housing market

Orlando Real Estate’s Perfect Storm

Posted on by Jenny Zamora

In 2014, the Orlando real estate market recovered significantly. Home sale prices rose and continue to rise and at the same time, mortgage interest rates remain relatively low. These conditions created the perfect storm of opportunities for those looking to buy or sell Orlando real estate.

Different real estate markets across the nation are typically labeled as being either a “buyer’s market” or a “seller’s market”, which is what makes the Orlando real estate market so special right now. It’s both a buyer’s and seller’s market! More and more buyers are being attracted to the market yet the number of Orlando homes for sale remains low compared to the demand. The low-interest rates allow homes to remain affordable while the supply and demand still help sellers to get top dollar for their homes.

New Homes Expected To Drive Down Prices of Older Homes

The bad news is that these market conditions won’t last forever. Moving into 2015 more and more Orlando homeowners are expected to put their homes on the market and home builders are busy developing brand new neighborhoods throughout Orlando and Kissimmee. These new homes will create a lot of competition for homeowners that have older homes thus driving prices downward, especially when builders/developers reveal the incentives they will offer buyers to move into one of their brand new homes. Given a choice of buying brand new or used, I can’t think of anyone that would prefer to buy a used home or anything else for that matter, especially when the homes are in the same price range.


No matter what your situation has been over the past few years, chances are that it’s changed. Lately, when I’m asked to provide a potential seller with a free home valuation report, they become both shocked and happy when I show them how much I can sell their Orlando home for. I also express to them how the real estate market is ever-changing and home values can drop just as easily as they can rise.

My advice to homeowners that are serious about selling is that they should explore their options sooner than later. Homeowners should beware of trying to convince themselves of holding off on selling a home solely because they believe that their home’s value will continue to go up.

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

Orlando Real Estate Still On The Upswing

Posted on by Jenny Zamora

Although Orlando real estate still has one of the more affordable housing markets in the US, it’s evident that the price of residential real estate in “The City Beautiful” is steadily on the rise.

In the month of May, home buyers in Orlando spent an astounding 18% to 20% of their income on the mortgage payment. I don’t know about you, but this sounds really high to me. Especially, when you consider that at the height of Orlando’s low point in 2010 [after the big crash of 2007] buyers were only spending 10% to 12% of their income on the mortgage payment. What’s wrong with people??!!

Have you ever heard the joke about how Johnny’s dad wouldn’t buy him a $200 bike because of an $80,000.00 mortgage. Although it would be perfect to include in this post, I can’t write about it here because of the adult content that it contains, but if you’re over 18, you should Google it!

There’s nothing wrong with people [for the most part] per say. It’s that they have no choice but to do what needs to be done in order to provide food and shelter for their families. If that means having to spend a nice chunk of their income to keep a roof over their heads, then so be it! We can only do what the market permits us to do.

Check out these numbers; the median home price in Orlando back in 2010 was $1000,000 and just 2 months ago [June 2014] it was up to $165,000. I’m not sure what that exactly means but… Holy Cow! That’s a big increase! 

Orlando Real Estate Market Keeps On Growing and it Shows No Signs Of Slowing.

Even with this huge increase, affordability levels are still relatively low when you look at historical averages. This means that we’re not done growing yet, even if mortgage rates go up a point. Here’s how it works; If mortgage interest rates would go up a point, let’s say from 4% to 5% on a thirty-year mortgage, it would mean that homeowners instead of spending 18% to 20% of their income on a mortgage payment, they would be spending 20% to 22% on their mortgage. According to RealtyTrac this also includes property taxes.

Consider Renting Over Buying

Orlando is said to have one of the most affordable housing rates for buyers in the nation. However, for renters it’s ranked as one of the LEAST affordable places to live in the US… Hold on to your hats! Renters in Orlando spend an average of 34% of their income on paying the rent! Now that’s crazy right?…  Not always.

There are many advantages to renting as opposed to buying a home in Orlando. Here are a couple of advantages of renting over buying.

You don’t have to qualify for a mortgage- Probably the worst part of buying a home is qualifying for it. Unless you have impeccable credit and have never missed a payment in your lifetime, chances are whatever lender you try to get a mortgage with will make you jump through more hoops than a show dog with no guarantees that you get approved. If you rent a home, this is a non-issue and you don’t have to worry about plopping down 20% at the closing table

There’s no commitment- When you commit to a mortgage, you agreed in writing to pay back the entire amount of the loan to the lender or they reserve the right to foreclose on you putting your credit and probably your spouse’s credit at risk. When you rent, you’re only committing to the term of the lease and you can easily pack up and move on. This is why renting is especially attractive to people who are uncertain of there future because of a new job or some other circumstance that would cause them to have to move.


Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

Fewer Number of Orlando Multifamily Units in Market

Posted on by Jenny Zamora

Multifamily properties, a mix of condominiums and townhomes, available in the market went down by 14 percent in Orlando compared to the same quarter in 2013. This fact was revealed in the report published by Charles Wayne Consulting, a trusted source of knowledge among Orlando Realtors.

Reduced number of available units

The research firm, known for its specialist real estate focus, reported that about 459 such units were listed in the first quarter. This was less compared to 531 units recorded a year ago. According to Orlando real estate agents, the average price per unit increased 14 percent to touch $214,200 in that period of time.

According to Jim Lewis, President, of Charles Wayne Consulting, the multifamily segment in the Orlando real estate market has undergone a significant transition during the last 10 years. The residential construction of the area has gotten back to its normal mix of approximately two-thirds single-family and one-third multifamily units after a distinct trend towards condos and town-homes when the Orlando real estate market was at its peak.

Lewis is of the opinion that in a few submarkets, noticeably in the Greater Orlando area, multifamily unit availability is quite less. More and more Orlando realtors are going back to their drawing boards and proceeding with further actions to make the planned projects fruitful.

Trends

The first quarter of the year saw construction begin on 2,617 residential houses in the area. Closings of single-family homes were up by 40 percent compared to 2013’s first quarter.

The Crescent Gateway project is being developed by Crescent Communities. It is a mixed-use development spread over 80 acres of property. It is expected to be functional from the 2015 summer in Altamonte Springs at State Road 434 and Maitland Boulevard.

The apartment site itself will be spread over 8 acres and will consist of 294 units. Crescent Multifamily Construction is the general contractor for the project. Charlan Brock and Associates is its architectural firm.

A $10.3 million priced property located at the southeast corner of Harmon and Binion roads was purchased by GoGrowth One LLC. The buyer was represented by Rick Gonzalez of Crosby & Associates and by Jerry McGratty, a broker working with Westhampton Realty. The property was formerly the site of the Driftwood Gardens Nursery. The site comes under the enterprise zone, which is being planned to be developed as a research park.

 

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields