What the heck is going on in the Orlando real estate market? (My Rant)

So today I am going to be sharing a little bit about what is going on in the real estate market. OK, we have had a crazy amount of inventory issues in Orlando, and I know we’ve seen this throughout the entire United States, but really, Orlando has taken a huge hit. We’ve had a lot of people coming from the northeast and the West Coast, relocating to Florida and making it really difficult for Floridians to purchase a home in their own backyard.

I wanted to go over a few stats that have happened just from Friday till today. CNBC reported actually that in the US there were nearly half as many homes for sale at the end of February compared with a year earlier, according to a new calculation by Realtor.com. Now, a pullback from sellers resulted in roughly 207,000 less homes that were newly listed for sale in the first two months of 2021a compared with the average the same period over the last four years.

That’s a big chunk of inventory that’s missing from our market. Now, in January, prices were up just over 10 percent year over year. Now, that’s according to CoreLogic. So let me give you an idea what this looks like. We have yet to see a price dip or decrease in the last 11 years. That’s not normal because of real estate cycle typically is about seven to nine years and then it kind of shifts. We haven’t seen that downturn, which we’re hoping the market, which it does, will correct itself sooner rather than later.

We don’t see a bubble of sorts… It’s not going to look anything like it did in 2008. It’s just not going to happen in that same way. We don’t have the same elements that were going on back then. That’s not what’s happening here. It’s people just aren’t moving. I’ve lived in the same house for eight years in August. That’s crazy. I have never lived in a house longer than two years in my entire life, which I know is not the norm.

It’s not the usual. However, my age demographic typically was the one that would be we were forecasted to be hopping from house to house in the tiny home kind of community, basically just not staying still, which ironically has flipped the script because our generation is showing that while traditionally you would see people resell within five to seven years, we’ve seen that number increase from seven to 10 years and some even higher. So it’s very interesting to see that people are staying put longer, especially in this market.

I mean, come on, even if you purchased a few years ago and you have equity, where are you going to go? There’s no inventory. Homes are crazy expensive. So even if you wanted to, are you really ready to take on a mortgage that’s double what you have now or almost like starting all over, even if you have a good down payment and you’ve got equity in your current home? People just don’t want to take that risk and then potentially go into a property that the bubble is going to pop or something’s going to happen where they’re going to lose equity.

So those are issues for real that are going on now. Higher mortgage rates are going to be cutting further into affordability and could mean fewer bidding wars as a spring market progresses, according to the MLS here in Orlando. I looked this up literally today, 2,514 homes in all of Orange and Seminole County are for sale. I don’t know if you guys understand how few home those how few homes those are, but that’s crazy. So Orange County, for those of you that aren’t from Orlando and don’t know, Orange County is where Disney, Universal, SeaWorld…etc.

That’s the hub of Orlando; downtown Orlando is there. And Seminole County is a smaller county right northeast of Orange County it pretty much hugs the northern side of Orange County. And it is just north of UCF area and it goes across all the way to the Apopka side being east Orange now with this county.

We have those two counties combined over twenty five hundred homes, which makes it very difficult for the influx of north, east, north and west coast people that we have coming in, including those that have been renting for a few years, saving up money to try to buy the first home that live here in central Florida. So it’s really difficult. Now, what I did was I looked at where I live in Oviedo, Chuluota, because we share a zip code with for part of Oviedo and all of it.

We don’t really we have 45 homes for sale. Now, those are just homes. Those are condos and townhouses. That’s it. And that can range anywhere from the smallest minimum to over two, three, four million. I think the most expensive was like four million. So that’s the gamut. By the way, there’s only like one four million dollar house in all of Oviedo and Chuluota, so that’s not the average. The average price point in Oviedo is $350,000, which is really high for an entry level first time homebuyer.

It really has increased. It has increased over one hundred thousand in the last few years, which is a huge jump. According to GoBanking Rate and MSA from the Consumer Financial Protection Bureau, they were stating that some cities, including Orlando, are actually going to be vulnerable to a housing downturn more than others. So they did a poll with 40 different cities and what they realized was Orlando was one of them. I’m going to give you the stats on Orlando.

So Orlando, the total housing units in all of Orlando is one hundred and thirty eight thousand four hundred fifty six. Now, the percentage of mortgages in Orlando that are delinquent between 30 and 89 days is 2.1%. So two percent of all of those hundred thirty eight thousand homes are delinquent between a month and three months. Now, the next percentage is even sadder. So over 90 days delinquent, we have one percent.

Three point one percent of homeowners are delinquent in Orlando on their mortgage. They’re waiting for foreclosure because foreclosures have been unable to happen because of Covid and all of the delays, because of legislation that’s in place and regulation title has not been able to transfer to the banks and banks have not been able to foreclose. Those continue to accumulate because there’s going to come a point where banks have to foreclose. They’re losing every single minute that these are delinquent and there’s delinquent ones that I’m not even counting into the mix of this, that whatever the bank has worked out with those individuals, families, et cetera, aren’t in this mix.

These are ones that are basically waiting for foreclosure. That translates to one in every six thousand four hundred eighty one homes are in foreclosure or will be in foreclosure. So the homeowner vacancy is six percent. While finding a home right now seems like an impossible proposition to buyers, there may be more possibilities in the future. The condition of those homes uncertain. Typically, foreclosed homes are they are distressed homes. We just don’t know what level of distress they’re in, but they are going to be more opportunities for buyers in the future.

It’s a rough market out there. It’s really challenging for buyers that are trying to look for their very first home. And I wish them well in their search. Appraisals are coming back pretty steady, but many of them are coming back a little bit lower. Where we have seen a challenge is in VA loans. That’s the only place that our brokerage has actually seen issues with the appraisal. But outside of that, cash offers don’t need it and conventional, we’re not seeing as many, but I have heard from lenders and other Realtor friends that they are seeing a dip in the appraisals.

Appraisals are coming lower. We’re in a very weird market where traditionally a seller will lower the purchase price to match the appraised value. But because there’s multiple offers, what a lot of them are doing and we’ve done this in the past as well, because we work for the seller when we take a listing, is that we make the buyers pay out of pocket a percentage or X amount to meet up either in the middle or cover what the appraised value is to the purchase price.

It’s not to the benefit of the buyer because they are paying above above the appraised value of a home. But in this market, it really is difficult, especially people who need to move, have been dying to move or for whatever reason, just really want that house.

That’s what we’re seeing. If homes are on the market longer than a week or two, be careful because homes are flying off the market.

Within the first two weeks, 55% of homes are being sold. They’re under contract within two weeks. In Orlando, it’s actually much shorter. We are seeing that houses are flying off within three or four days. If you see on the market for six days, I will tell you it’s only because they’re waiting for the multiple offers situation and they’re kind of reviewing all of the offers together. That’s what’s happening. This is what the market looks like.

I try to keep people updated as much as possible. Inventory still low. So it is what it is as we continue, as we see legislation change, foreclosures start coming on the market, we’re going to see a little bit more of an ebb and flow in the market. But right now the demand is incredibly high, supply is drastically low, so that’s where we’re at right now. If you guys have any questions ever about the market, you can always give us a call at 407-801-9914.

You can visit our website at WaypointeRealty.com. You can comment on YouTube and we will respond to your questions, concerns, request anything you want to talk about. But please continue stay tuned and we will be doing a first time home seminar just to kind of give people understanding of what the process looks like in this market and in any market, really like what it looks like to purchase a home from beginning to end so we can always be educating our consumers every chance we get.

 

Orlando Housing Market Snapshot- October 2018

Orlando home prices, sales rise as inventory continues to slip in September

One year after Hurricane Irma threw a wrench into the Orlando housing market, data from the Orlando Regional REALTOR Association shows positive September-to-September comparisons for both sales and median price. Inventory, however, stayed on its year-over-year downward slide.
The good news, points out ORRA President Lou Nimkoff, is that in September the actual number of homes available for purchase reached its highest point this year. The month-to-month increase in inventory, combined with the traditional autumn lull in sales, is an opportunity for those buyers who struggled with competition during the summer. In addition, fall home shoppers can also enjoy a bit more attention from REALTORS, lenders, and other service providers who typically do not have quite as many clients to attend.

Median Price

The overall median price of Orlando homes (all types combined) sold in September is $233,000, which is 3.6 percent above the September 2017 median price of $225,000 and 1.3 percent above the August 2018 median price of $230,000. The median price for single-family homes that changed hands in September increased 3.8 percent over September 2017 and is now $254,250. The median price for condos increased 6.4 percent to $125,500.

Sales and Inventory

Sales of single-family homes (2,096) in September 2018 increased by 7.6 percent compared to September 2017, while condo sales (390) increased 23.4 percent year over year. Sales of distressed homes (foreclosures and short sales) reached 124 in September and are 3.1 percent less than the 128 distressed sales in September 2017. Distressed sales made up just 4.5 percent of all Orlando-area transactions last month. The overall inventory of homes that were available for purchase in September (8,092) represents a decrease of 6.4 percent when compared to September 2017, and a 3.6 percent increase compared to last month. There were 5.6 percent fewer single-family homes and 2.6 more condos, year over year. Current inventory combined with the current pace of sales created a 2.9-month supply of homes in Orlando for September. There was a 2.3-month supply in August 2018 and a 3.4-month supply in September 2017. The average interest rate paid by Orlando homebuyers in September was 4.66, up from 4.57 percent the month prior. Homes that closed in September took an average of 48 days to move from listing to pending and took an average of 84 days from listing to closing.

Buyers

This is a great time where we see buyers coming out of hiding because inventory and pricing has stabilized. At Waypointe, you have access to properties not listed publicly as well as get properties before they come on the market. Buyers need the assistance of REALTORS to help them compete against other buyers, for example by crafting attractive offers that take into consideration current appraisal issues and advising on contingencies, in addition to assistance through the many traditional functions that a buyers’ agent performs. Ready to start the homebuying process? We can help! Contact us today.

Sellers

Inventory and pricing has stabilized. If you’re looking to sell, we can help you get the MOST money from the sale of your home. Looking to relocate, move up to a larger home, purchase your first home or sell your rental? We can help. Contact us today!

Orlando Housing Market Snapshot- September 2018

Orlando housing market september

Orlando median home price continues to gain amid sales slowdown

The year-over-year median price for Orlando homes sold during the month of August continued on its years-long upward trajectory, albeit at a slower pace as dwindling inventory takes its toll on sales.

“Like across much of the country, sales are sliding in Orlando as would-be buyers are either priced out of the market or are deciding to postpone their search until more homes come on the market,” explains ORRA President Lou Nimkoff.

“Fortunately for us, our housing market is bolstered by a healthy economy, prices that compare favorably to other major cities, and a quality of life that attracts an influx of new residents by the thousands each year. In addition, our market benefits from international homebuyers who look to Orlando for investment and vacation properties.”

The overall median price of Orlando homes (all types combined) sold in August is $231,000, which is 2.7 percent above the August 2017 median price of $225,000 and 1.7 percent below the July 2018 median price of $235,000.

Year-over-year increases in median price have been recorded for the past 86 consecutive months; as of August 2018, the overall median price is 100.0 percent higher than it was back in July 2011.

The median price for single-family homes that changed hands in August increased 4.9 percent over August 2017 and is now $255,000. The median price for condos increased 12.0 percent to $125,975.

Sales and Inventory

Sales of single-family homes (2,583) in August 2018 decreased by 6.7 percent compared to August 2017, while condo sales (440) increased 3.3 percent year over year.

Sales of distressed homes (foreclosures and short sales) reached 121 in August and are 40.7 percent less than the 204 distressed sales in August 2017. Distressed sales made up just 3.6 percent of all Orlando-area transactions last month.

The overall inventory of homes that were available for purchase in August (7,808) represents a decrease of 11.6 percent when compared to August 2017, and a 3.8 percent increase compared to last month. There were 10.2 percent fewer single-family homes and 8.5 percent fewer condos.

Current inventory combined with the current pace of sales created a 2.3-month supply of homes in Orlando for August. There was a 2.2-month supply in July 2018 and a 2.5-month supply in August 2017.

The average interest rate paid by Orlando homebuyers in August was 4.57, down from 4.59 percent the month prior.

Homes that closed in August took an average of 49 days to move from listing to pending, and took an average of 85 days from listing to closing.

Pending sales in August are down 21.4 percent compared to August of last year and are down 6.1 percent compared to last month.

Buyers

This continues to be a challenging time for buyers in a market where prices are high and options are low. At Waypointe, you have access to properties not listed publicly as well as get properties before they come on the market. Buyers need the assistance of REALTORS to help them compete against other buyers, for example by crafting attractive offers that take into consideration current appraisal issues and advising on contingencies, in addition to assistance through the many traditional functions that a buyers’ agent performs. Ready to start the home buying process? We can help! Contact us today.

Sellers

Inventory continues to drop and prices are steady, it’s a great time to sell, while being realistic with the value of your property! However, sellers should be aware that while selling their home is likely to be quick (particularly in the lower price categories) securing a new residence could be a challenge and requires the assistance of a REALTOR. Those seeking to move up into larger, more expensive homes will have more choices and less competition than those seeking to downsize. If you would like to know the value of your home, we would love to help. Contact us today!

Orlando Housing Market Snapshot- August 2018

Decline in Orlando’s sales, inventory help stabilize home-price growth

Prospective homebuyers will be excited to learn that the rocketing rise in prices Orlando has seen over the past years stabilized this summer in the healthy single-digits. For the last three months, the year-over-year median price has increased between 6 and 7 percent. The deceleration will help maintain a healthy housing market and protect Orlando’s affordability, especially as it compares to other cities around the country where prices are rising beyond the reach of buyers, explains ORRA President Lou Nimkoff:
In addition, while prices have been rising steadily over the past seven years they have not yet reached pre-recession peak prices. Orlando homes purchased now still have room for normal appreciation, which makes a house a good investment.
The overall median price of Orlando homes (all types combined) sold July is $235,000, which is 6.8 percent above the July 2017 median price of $220,000 and 1.3 percent below the June 2018 median price of $238,000. The median price for single-family homes that changed hands in July increased 6.3 percent over July 2017 and is now $255,000. The first-time homebuyers affordability index increased to 90.28 percent, from 88.80 percent last month.

Sales and Inventory

Members of ORRA participated in 3,383 sales of all home types combined in July, which is 0.1 percent more than the 3,381 sales in July 2017 and 2.3 percent less than the 3,461 sales in June 2018. Sales of single-family homes (2,653) in July 2018 decreased by 0.2 percent compared to July 2017, while condo sales (398) increased 2.6 percent year over year. Sales of distressed homes (foreclosures and short sales) reached 121 in July and are 42.1 percent less than the 209 distressed sales in July 2017. Distressed sales made up just 3.6 percent of all Orlando-area transactions last month. The overall inventory of homes that were available for purchase in July (7,525) represents a decrease of 16.9 percent when compared to July 2017, and a 0.4 percent decrease compared to last month. There were 15.3 percent fewer single-family homes and 14.8 percent fewer condos. Current inventory combined with the current pace of sales created a 2.2-month supply of homes in Orlando for July. There was a 2.2-month supply in June 2018 and a 2.7-month supply in July 2017. The average interest rate paid by Orlando homebuyers in July was 4.59, down from 4.61 percent the month prior.

Buyers

This continues to be a challenging time for buyers in a market where prices are high and options are low. At Waypointe, you have access to properties not listed publicly as well as get properties before they come on the market. Buyers need the assistance of REALTORS to help them compete against other buyers, for example by crafting attractive offers that take into consideration current appraisal issues and advising on contingencies, in addition to assistance through the many traditional functions that a buyers’ agent performs. Ready to start the homebuying process? We can help! Contact us today.

Sellers

Inventory continues to drop and prices are steady, it’s a great time to sell, while being realistic with the value of your property! However, sellers should be aware that while selling their home is likely to be quick (particularly in the lower price categories) securing a new residence could be a challenge and requires the assistance of a REALTOR. Those seeking to move up into larger, more expensive homes will have more choices and less competition than those seeking to downsize. If you would like to know the value of your home, we would love to help. Contact us today!

Orlando Housing Market Snapshot- May 2018

Orlando home sales and median price both rise last month

Orlando’s median home price jumped more than 10 percent in April when compared to April of last year while sales likewise saw an increase of more than 8 percent, reports the Orlando Regional REALTOR Association. Inventory declined by nearly 11 percent compared to this time last year.

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Orlando Housing Market Snapshot- March 2018

 

Orlando median home continues upward trend with 10 percent increase in February

Orlando’s median home price rose 10 percent in February when compared to February of last year while sales held steady with a 1 percent increase, reports the Orlando Regional REALTOR Association. Inventory declined by nearly 9 percent compared to this time last year.

The overall median price of Orlando homes (all types combined) sold in February is $228,000, which is 10.4 percent above the February 2017 median price of $206,500 and 1.3 percent above the January 2018 median price of $225,000.

Year-over-year increases in median price have been recorded for the past 80 consecutive months; as of February 2018, the overall median price is 97.4 percent higher than it was back in July 2011.

The median price for single-family homes that changed hands in February increased 11.3 percent over February 2017 and is now $249,250. The median price for condos increased 22.2 percent to $120,950.

The Orlando housing affordability index for February is 133.18 percent, down from 140.10 last month. (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.)

The first-time homebuyers affordability index decreased to 94.71 percent, from 99.62 percent last month.

Sales and Inventory

Sales of single-family homes (1,886) in February 2018 decreased by 1.0 percent compared to February 2017, while condo sales (316) decreased 7.3 percent.

Sales of distressed homes (foreclosures and short sales) reached only 139 in February and is 41.4 percent less than the 237 distressed sales in February 2017. Distressed sales made up 5.6 percent of all Orlando-area transactions last month.

The overall inventory of homes that were available for purchase in February (7,706) represents a decrease of 8.9 percent when compared to February 2017, and a 1.3 percent increase compared to last month. There were 4.3 percent fewer single-family homes and 25.1 percent fewer condos.

“As we head into peak homebuying season, those buyers who are best prepared to deal with the challenges of low inventory are in the better position to secure a home”, explains ORRA President Lou Nimkoff, Brio Real Estate Services. “Buyers should be ready to move quickly on a home they want by, for example, having a mortgage pre-approval letter in hand and having pre-determined with their REALTOR, which concessions and contingencies they are willing and able to eliminate from their purchase offers.”

Current inventory combined with the current pace of sales created a 3.09-month supply of homes in Orlando for February. There was a 3.41-month supply in February 2017 and a 3.38-month supply last month.

The Orlando Housing Market for January 2018

Orlando home sales completed during 2017 finished out at 37,198, which according to the Orlando Regional REALTOR Association is 3.8 percent above the cumulative sales total of 35,829 for 2016. By comparison, annual sales in 2016 were 1.9 percent greater than in 2015. In addition, Orlando’s annual median home price ($220,000) is 10% higher than the 2016 annual median price ($200,000) thanks to another 12 consecutive months of year-over-year price increases. “Median price was driven during 2017 primarily by a combination of strong buyer demand and very low inventory levels,” explains 2018 ORRA President Lou Nimkoff, Brio Real Estate Services LLC. “REALTORS expect prices to continue their upward trend in 2018, albeit at a slower rate.” “We also expect low inventory to continue to exert its influence on the market in 2018, especially in the highly desired lower-priced categories,” says Nimkoff. “In fact, the lack of affordable housing in Orlando is a concern that REALTORS anticipate will be at the forefront of community discussion in 2018.”

Median Price

*The 2017 annual median price of $220,000 is an increase of 10.0 percent when compared to 2016’s annual median price of $200,000. *The annual median price of single-family homes increased 8.2 percent to $238,000 in 2017, while the median price of condos increased 17.7 percent to $111,800. The median for duplexes, town homes, and villas increased 10.8 percent. *The 2017 annual median price of normal homes increased 7.1 percent to $225,000. The short sales median price increased by 4.2 percent and the bank-owned median price increased by 14.8 percent.

Inventory

*There are currently 7,508 homes available for purchase through the MLS. The December 2017 overall inventory level is 12.6 percent lower than it was in December 2016. *Overall inventory is down 9.5 percent compared to last month. *The inventory of normal properties decreased 10.3 percent compared to December 2016, while foreclosure inventory is down 43.1 percent and short sale inventory is down 48.0 percent. *Year-over-year single-family home inventory is down 9.4 percent; condo inventory is down 27.5 percent

Buyers:

Buyers need the assistance of REALTORS to help them compete against other buyers, for example by crafting attractive offers that take into consideration current appraisal issues and advising on contingencies, in addition to assistance through the many traditional functions that a buyers’ agent performs.

Sellers:

Inventory continues to be low and prices are up and steady, it’s a great time to sell! In addition, Orlando home values are nearing normalized, which is helping to eliminate “underwater” mortgage conditions for many sellers. However, sellers should be aware that while selling their home is likely to be quick (particularly in the lower price categories) securing a new residence could be a challenge and requires the assistance of a REALTOR. Those seeking to move up into larger, more expensive homes will have more choices and less competition than those seeking to downsize. Source of article: Orlando Realtors

Orlando Housing Market- November 2017

Sales are recovering from Hurricane Irma’s impact at a pace that is exceeding expectations, and are back on track after just one month of significant hurricane-related declines. In fact October’s numbers have helped to keep the 2017 year-to-date home sales tally in the black at 3.6 percent. *Orlando’s market currently favors sellers, particularly within the lower (under $300,000) price categories, which are in very high demand. Indicators of a seller’s market include: declining inventory, rising sales, rising prices, and a very low months-of-supply statistic.

Buyers:

Buyers need the assistance of REALTORS to help them compete against other buyers, for example by crafting attractive offers that take into consideration current appraisal issues and advising on contingencies, in addition to assistance through the many traditional functions that a buyers’ agent performs.

Sellers:

Inventory is down and prices are up, it’s a great time to sell! In addition, Orlando home values are nearing normalized, which is helping to eliminate “underwater” mortgage conditions for many sellers. However, sellers should be aware that while selling their home is likely to be quick (particularly in the lower price categories) securing a new residence could be a challenge and requires the assistance of a REALTOR. Those seeking to move up into larger, more expensive homes will have more choices and less competition than those seeking to downsize.

Housing Inventory

*There are currently 8,464 homes available for purchase through the MLS. The October 2017 overall inventory level is 15.6 percent lower than it was in October 2016. Note: When adjusted for the elimination of “Active With Contract” status homes from of the active listings category within the local multiple listing service, the October 2017 inventory is 9.9 percent lower than in October 2016. *Overall inventory is down 2.1 percent compared to last month. *The inventory of normal properties decreased 12.2 percent compared to October 2016, while foreclosure inventory is down 42.7 percent and short sale inventory is down 68.2 percent. *Year-over-year single-family home inventory is down 12.5 percent; condo inventory is down 28.2 percent. *The current pace of sales (all home types and all home types) translates into 2.9 months of inventory supply. Source of article: Orlando Realtors

Difference Between a Real Estate Agent and a Realtor

When it comes time for you to buy a house, you might want to enlist the help of a professional. Buying a house or business property is a big deal. Before you make that leap of commitment, though, there are a few clarifications that need to be made concerning the types of real estate professionals out there.
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