Tag: Orlando Real Estate

Value of Orlando Homes Predicted to Increase by 7.3% in 2015

Posted on by Jenny Zamora

Orlando Homes On The Upswing

It is an excellent time for homeowners in the Orlando area. The value of homes in the Orlando metropolitan area is predicted to increase by 7.3 percent in 2015. According to the Real Estate Market Report published by Zillow, this rise easily beats the national prediction of 2.9 percent.

Other predictions

Other than the predicted increase in home values, there are a number of other predictions about the Orlando real estate residential market embedded in the report:

* The average Orlando real estate home value will increase by 15 percent every year. The value has increased to about $161,300. In the other facet, values also decreased in short term and dipped by 1.1 percent in the period between April and May. According to Orlando realtors, home values in the Orlando metropolitan area are now back to the levels witnessed from 2004 to 2007.
* The average rental value increased by 4.4 percent every year to reach $1,296.
* The inventory of total listed for sale residences increased 36.5 percent every year and increased by 4.4 percent every month in May.

When considered all over the United States, the listed for-sale home inventory increased in May and jumped 11.8 percent. Another fact that should be considered here is that a majority of these gains were achieved among residences that are priced in top one-third and middle home values. According to Orlando Realtors, the sale of homes in affordable Orlando real estate – the kind of property favored by people who are buying their homes for the first time – decreased every year in 28 of the country’s biggest metro jurisdictions. These findings came up when the numbers were crunched by Zillow.

Rents

All over the US, rents fell a little in May compared to April. It was a reduction of 0.1 percent and the median rent was calculated as $1,310. National rents (year on year basis) increased to 2.3 percent in the previous month (May).

In May, value of homes all over the US increased by 0.1 percent as compared to April and touched $172,300. This marked its consecutive rise in 28 months when considered year over year. In May, the value of homes increased in Orlando by 5.4 percent. This yearly appreciation in values is the slowest when considered for more than one year. Average rate of interest paid by purchasers decreased to touch 4.39 percent in April.

 

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Average Home Price in Orlando Rises to $165K

Posted on by Jenny Zamora

The average price of houses in Orlando rose in May, making it the fourth successive month to touch $165,000. According to Orlando realtors, this has been a peak period since 2008.

According to reports published by Orlando Regional Realtors Association, prices inched up about 1.5 percent in April and about 13.7 percent in May compared to the rates of last year. The report of the association mainly reflects the sales which occurred in Seminole and Orange counties.

The previous time prices of homes were this high, was in December 2008. At that time the prices were $167,500 – a sharp dip from a high of $264,436 achieved in July 2007.

The statistics

Members of the Orlando Regional Realtors Association closed approximately 2,651 sales in the month of May. Sales were down approximately 1 percent in the period starting from April, standing at approximately 11 percent. The available inventory rose from about 3.9 months during April to about 4.1 months during May. This is quite below the six-month level but is adjudged normally.

Probable causes

Zola Szerences, the Association Chairman, said that sales decline can be partly attributed to investor decline. The investors went away from Orlando real estate market as the prices increased. While foreclosures add sorely required inventory injections, they are responsible for slowing the sales. Like Orlando’s short sales, transactions due to foreclosures take more time to process compared to standard transactions.

After many years of shrinking proportions, foreclosures rose about 15 percent in May this year compared to the same period of 2013. Normal sale of homes lowered a little but still comprised approximately two-thirds of total sales. Orlando short sales went down by 62 percent in the period between May 2013 and May 2014. The highest decrease was recorded in the sales of Orlando’s condo market, which fell by 24 percent from last year.

Immediate future

According to Moe Musleem of Re/MAX Legacy, the reason for such an occurrence is that a number of foreclosures are now appearing in the market as the loans are being acquired by a number of loan servicers. He added that the construction of residences has quenched a little of the demand, but not their prices. Musleem is hopeful that a greater number of foreclosures will appear in the market. Since a lot of construction projects are coming up in Seminole and Orange, a large number of properties will sit out in the market.

 

 

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Value of Lake Properties Driven by Residential Construction

Posted on by Jenny Zamora

A substantial increase in residential and business construction rolled in 3.5 percent more to Lake County’s tax map. This is the second consecutive year of rising in values after a number of years when the economy was in depression.

Higher tax collections

According to Carey Baker, a property appraiser, this is the first instance when the values of single-family residential homes in Lake cities increased. Orlando realtors have calculated that new residential, as well as business construction, added an excess of $295 million when it comes to taxable values. This equals a variation of 89 percent compared to 2013. In 2014, the county witnessed a rise of 1,500 new properties earmarked for residential use.

The biggest single construction in the new category was the Chet Lemon commissioned by The Big House. The 162,000 square foot built-up area in Tavares was funded by the former baseball player and contributed a massive $7.6 million in taxes.

Gigi Lemon, the wife of Chet Lemon, said that the Lane Park Cutoff facility attracts a substantial number of visitors with tournaments and youth events. The Big House opened its gates in February 2013. Lemon is surprised by the response. She believes that people are impressed by the facility.

Near all-around growth

All the Lake cities with the exception of Leesburg saw a rise in their taxable values. Maximum growth was seen in the south Lake region. The group was led by Groveland, with a 14 percent rise, trailed by Minneola which rose 9 percent. Clermont followed third with 7 percent.

According to Orlando real estate agents, it is clear that, as was in the past, the south Lake leads the county when it comes to growth. The drivers of this growth are the people who are employed in Osceola and Polk. They are relocating to South Lake due to a number of attractive factors like a nice community and affordable housing. The icing on the cake is the quick accessibility to jobs in cities.

According to Orlando realtors, Leesburg suffered a slight drop in values-about 0.19 percent due to the relatively slower construction growth and weak values when it came to single-family homes.

There is, however, a glaring problem. Baker pointed to the $91.5 million reductions in taxable value of the tangible property which businesses pay related to equipment including machinery and computers. The county saw a tax reduction of $77.1 million due to such taxes.

 

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Higher Tax Bills to Follow Higher Property Values in Orlando

Posted on by Jenny Zamora

For Orlando residents who are trying to sell their properties, there is a cause to celebrate: residential property prices in the region went north in 2014. However, the celebration will cease to exist for people who do not plan to sell their properties. The reason is simple: a high property value comes saddled with bigger tax bills. This will hold true for all Orlando real estate, even if the government doesn’t change the tax rates.

 

The rise in property values

According to Orlando realtors, people with homestead exemptions will face a lesser blow, but their tax rate will go up anyhow. The property values in Seminole County are anticipated to increase by almost 5.5 percent in 2014 when compared to 2013. Property values in Orange County are expected to increase by approximately 6.6 percent. In Osceola, property values will spike by about 2.4 percent and Lake’s nearly 3.6 percent.

Among the cities, property values in Winter Garden are anticipated to rise to almost 13.2 percent up 2013 prices. About 14 percent appreciation is expected in Groveland and the value of properties is expected to increase in Altamonte Springs by approximately 5.5 percent. This increase in property valuation across the region for the second consecutive year is a sign of a healthy economy.

 

The economy bounces back

According to Rick Singh, a property appraiser in Orange County, the economy is slowly clawing back and with sound fundamentals. He added that both the home buyer and the investor show more prudence today than what they exhibited in the past, in a reference to a market which went ballistic and plunged the country into a Great Recession.

Orlando realtors cite a number of causes for the rise, the factor of new home construction prominent among them. To give an example, Lake County will see an extra $295 million in value from brand-new residential construction. Another important factor is that the number of employed persons is increasing and they are purchasing homes. The profile of other kinds of buyers includes investors who purchase foreclosures only to rent them out to tenants.

In totality, residential properties in Orlando are becoming rarer, leading to an increase in residential prices. Singh pointed out that the Orlando real estate agents are beginning to receive a number of offers on the same property.

In the usual sense, a property’s appraised value, which is determined by the government, is quite less than its purchase price. The market is exhibiting unmistakable improvement signs. https://orlandorealtyconsultants.com/blog/

 

 

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Home-Price Recovery in Metro-Orlando Inconsistent

Posted on by Jenny Zamora

Orlando Home Owners Could Make The Best Of The Situation

Residential real-estate property prices rose by an average of 20 percent, in the Orlando metropolitan area, from February 2013 to May 2014, says a new Orlando real-estate industry report. The report, which compared the sales of the same Central Florida residential properties over time, found price gains to be rather inconsistent over different communities. In Orlando for example, recovery has been insignificant.

Realtors in Orlando note that home prices in Orlando remain far below (approximately $100,000) the peak value. A common observation was that neighborhoods where property prices reduced the most, after the crisis of 2007, were the neighborhoods where the recovery was the highest.

Newer communities around Orlando bounce back the most

Interested in finding out the neighborhoods of Central Florida where residential real-estate property prices have recovered the most? You’ll have to look, not at Orlando but at the neighborhoods located at the periphery of the city.

Reports reveal that communities of Lake County and south Osceola County, witnessed price gains of at least 30 percent, in the period extending February 2013 to May 2014. Top Orlando realtors note that the said neighborhoods could register maximum recovery because they were hit the hardest during the housing crisis.

The Orlando short sales experts have another factor to add to the list of reasons for the inconsistent recovery – the impact of foreclosures. Newly developing communities in the Orlando metropolitan area were hit the hardest by foreclosures, primarily because owners of the homes that were constructed just before 2007, when the real-estate market crashed, possessed minimal to zero equity on their homes.

Such owners formed the lot of lenders going through short sales or through foreclosures. The rate of homes in these foreclosure-affected areas of Metro Orlando and Central Florida dropped the most. The recovery so has been more dramatic in areas that were hit hard by such foreclosures.

Impact On Buyers And Sellers

Real estate agents in Orlando note that the inconsistency in prices has made buying inconvenient and confusing for many buyers. Sellers, on the other hand, can use the confusion of the out-of-Orlando buyers to their own advantage.

When searching for a home in Orlando, prospective buyers are often coming across properties that are priced according to the sales in high-recovery neighborhoods and not the slower-rebounding communities nearby. Assessing the fair market value has become more difficult and prospective buyers are turning to the top realtors in Orlando for help.

For people hoping to sell/lease their properties, this may be a good time. When dealing with buyers from out of town, they can use inconsistency and confusion to price properties according to their own choice.

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