Tag: Orlando Realtors

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

Outer Edges of Orlando Enjoys Strongest Recovery in Home Prices

Posted on by Jenny Zamora

Residential property prices at the edge of central Orlando have revived the most, according to listing agents in Orlando. Pockets of growth are being seen in Paisley, Montverde, and Eustis. All three come under Lake County and have exhibited price gains of up to 30 percent since February 2013. A few localities of St. Cloud and rural regions of the southern part of Osceola County also showed an uptick in prices.

Maximum gains in a few areas

The total increase in value of all the four counties in the metropolitan area of Orlando was 20 percent in the same period. Lawrence Bellido, an agent of Keller Williams, one of Orlando’s real estate companies, said that the above-mentioned areas are showing the maximum recovery since they were hit the hardest. He specifically mentioned Montverde’s Bella Collina and Harmony, where not a single property was sold at one point in time.

Gains not equal

Orlando has exhibited unequal gains in price when one community is compared with another. To give an example, the growth areas located in the southern borders of St. Cloud have exhibited gains of approximately 30 percent in 2013. In contrast, prices have risen only half of that number in older localities of St. Cloud, where a few homes were constructed in the 1920s.

Similarly, older localities of Kissimmee, Oviedo, and Casselberry saw an appreciation in price by approximately 15 percent in 2013. The numbers reveal an excellent recovery by a majority of standards but are still trailing behind the region’s other parts. Prices in Apopka and Mount Dora areas escalated by 11 percent. In contrast, home values in the Winter Park locality rose 8 percent in the same period.

Foreclosures

A possible reason for prices getting increased quicker in a few neighborhoods might be foreclosures. The foreclosure phenomena hit hardest in areas that are newly developed as the house owners in 2007 had negligible or no home equity. These owners were more prone to enduring short sales. Lenders incur short sales when they give their assent to sales prices that are lower than the mortgage. Values plunged to the maximum in these foreclosure-scarred neighborhoods, so they bounce-backed quite rapidly.

According to Mike Timmeran, President, MJT Realty Economic Advisers, the markets where prices rose the most were also those that fell severely. Buyers, however, can be very confused about these wide swings, presently. It will be very difficult for them to assess the correct market value of a property.

 

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

Pitfalls Of Pocket Listings

Posted on by Jenny Zamora

The idea of getting your house sold without ever having to list it on the MLS for the whole world to see can be attractive to many. It’s kind of like if you found the perfect house for you by just driving around and all you had to do was knock on the door and hand the owners a check.

Sellers take a huge financial risk by choosing to sell their homes to be sold via “pocket listing” as opposed to a normal listing. 

The term “pocket listing” refers to an arrangement between the homeowner and their Brokerage in which the Realtor markets the property without the use of the multiple listing service. Instead, the property is advertised through the realtor’s own network which basically means “word of mouth”.

I completely understand someone wanting to be discreet about the sale of their home especially with nosy neighbors lurking about, but not to the point where it can hurt them financially.

 

Sellers Should Beware Of Losing Money On A Pocket Listing 

The home may sell for less than market value.  If the home isn’t exposed to as many potential buyers as possible, how can a seller feel confident that they received the best sale price?… They can’t. Only homes listed on the MLS get enough exposure and have a chance to be involved in bidding wars with multiple offers.

A pocket listing, much like homes that are for sale by the owner, will never get the amount of exposure that a traditionally listed home will. An estimated 47% of homebuyers in 2013 found their home through an internet search, not through a real estate agent.

Small concerns may become big concerns. Just like in a traditional listing scenario, pocket listing sellers may have to make certain repairs or concessions in order to make the deal go through. The big difference is that in a competitive environment a seller has more options. Repair issues, as well as appraiser problems and other issues, can be negotiated or even ignored when there are multiple interested buyers.

Buyers Should Always Use A Realtor

Buyers shouldn’t even think about making an offer on a pocket listing without the proper representation of a buyer’s agent. With a pocket listing, the agent represents the seller and will put the best interest of the seller first. By using an experienced buyer’s agent in a pocket listing transaction, you can have peace of mind that the seller’s agent hasn’t overpriced the house. A buyer’s agent will also be able to help navigate an interested buyer through the contract making sure that there’s plenty of time for inspections, etc.

Buyers should also do their best to try and remove emotion from the transaction. Especially when an interested buyer approaches the homeowner directly or tells their realtor to canvas a specific area looking for homeowners that are interested in selling. By showing too much interest in a home, the buyer automatically puts themselves in a position of perceived weakness. The seller now knows that they have something that the buyer really wants.

It’s always best to let the realtors handle the communication between buyer and seller. Experienced realtors will handle everything in a professional manner leaving emotions out of the equation.

 

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

Orlando Housing Spurs as Consumer Confidence Pick Up Speed

Posted on by Jenny Zamora

2014 was a significantly sluggish year for the Orlando real estate market. Consumer activity, as well as confidence in the industry, proved to be rather low. But things are changing nationwide and the top Orlando Realtors say “The City Beautiful” will see more consumer activity in the months that lie ahead.

Momentum expected to increase in housing

A report by the Commerce Department showed that the number of new housing projects in the nation jumped by 13.2 percent, far exceeding the forecasts made by the analysts previously. Further, permits filed for buildings nationwide rose eight percent and stood at a figure of 0.7 million more than what was previously expected.

Locally, real estate agents in Orlando explain that demands for new construction work rose because of banks easing up on borrowing costs and their strict credit conditions. Increasing job growth across the nation and the aid of federal stock markets has resulted in improving consumer confidence. All factors together, realtors say, have spurred up the housing market.

In Orlando alone, realtors say they have seen more prospective buyers enter the market in April than in the months before, further increasing the demand for builders. So, the next few months are going to be marked by increased housing momentum.

Factors responsible for the effect

An increase in housing inventory may just be one of the biggest reasons why more buyers are venturing into the market. With the U.S. housing inventory reaching a near two-month high, affordability conditions have improved for many buyers.

Listing agents in Orlando reveal that April witnessed a 16.8 percent increase in the number of previously-owned houses, up for sale. Further, improving jobs and the overall economy as well as lower costs of borrowing has enabled more people to become buyers. The rates of standard 30-year fixed mortgage averaged 4.14 percent – the lowest in close to nine months.

In April, sellers received 5.2 percent more for their existing homes, in comparison with figures from 2013. The median price of such houses was recorded as $210,700 in April 2014. Of the total number of sales closed, 17.5 percent were from properties valued under $100,000. 44 percent of the properties sold ranged from $100,000 to $250,000.

Retailers like Lowe’s Cos. and Home Depot Inc. are in fact forecasting in favor of improved sales after more consumers began making use of the spring buying season. It’s a great time for buyers as well as sellers, realtors add.

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields

Orlando Realtors Expect More Buyer Activity in the Summer

Posted on by Jenny Zamora

According to a new industry report, sales of existing homes in the US, in the month of May, have been higher than previously anticipated. The nationwide phenomenon was confirmed by realtors from most of America’s big property markets leaving the real estate industry musing on better Summer prospects.

And why not? The sale of previously owned houses rose by 1.3 percent in May – marking the very first hike in 2014. On a per-year basis, sales of previously owned properties rose to 4.65 million nationwide. Further, the number of residential properties available for sale reached levels it hadn’t touched for nearly two years now.

The Orlando real estate market is not untouched by nationwide progress

The prospects couldn’t have been better for the Orlando real estate market too. According to some of the top listing agents in Orlando, prices of residential properties in Orlando have slowed down due to increased inventory. More properties were listed in the month of April, affordability improved in the process – allowing more citizens to become homeowners.

Nation-wide, 2.29 million homes were listed in April, depicting a rise of 16.8 percent and the highest levels since August 2012. Availability is typically viewed as a dependable indicator of future sales. Bigger inventory, more listings, and improved availability suggest more sales activity in the coming months, listing agents explain.

2.29 million homes, for example, would take close to six months to sell at the current pace. When the inventory accounts for under five months of sales, the market is considered to be tight.

The spectrum of the real estate market is not all rosy but certainly better

Realtors are banking on sustained gains in employment, to increase consumer confidence and boost housing. According to 75 economists, who were surveyed by market analyst Bloomberg, sales of previously owned homes are expected to maintain a pace of 4.69 million. In March, the median pace was 4.59 – the weakest in two years.

Orlando real estate agents also confirm another national observation made in the report – the strong influence of investors. Investors bought up condominiums in large numbers, fueling the April hike in sales.

And while the housing market still has a long way to go before hitting its stride, things are definitely improving. Compared to the sales closed in 2013, sales in 2014 were down by 7.3 percent. Further, many top Orlando realtors reveal that not many first-time buyers have been a part of the increased sales activities. There’s reason to remain hopeful however as the turnaround, though slow, is happening for sure.

 

Let's Keep In Touch!

New ORC Form Lead

"*" indicates required fields