|
| |
The bookmarks below will take you to Real Estate related news articles, that are recent and
pertinent to the metro-Orlando area:
West Orange Times Online
Orlando
housing market continues to record sales gains
Orlando Area Association of Realtors (Sales Report)
August 10, 2010 – Orlando, FL
Nine tips to sell your home in 2010
Florida Association of Realtor Web Site
March 3, 2010 -- Washington, D.C.
>>>
Orlando Metro
Home Value Levels -- a 9 year History <<<
Home values comparison from 2001 to 2008
Updated January 19, 2010
Short sales now a viable option for buyers and sellers
Clark Howard Show (excerpt, show notes)
October 22, 2009
Mortgage
problems are walloping Americans' credit scores
WASHINGTON - Baltimoresun.com Washington Post Writers
Group, by Kenneth R. Harney
September 20, 2009
Orlando housing
market continues to record sales gains
Orlando Area Association of Realtors (Sales Report)
August 10, 2010 – Orlando, FL
Members of the Orlando Regional REALTOR® Association reported completed sales
on 2,387 homes in July, which is a 3.83 percent increase over the July
2009 mark of 2,299. To date, Orlando area home sales are up 39.54 percent
over this time in 2009.
“Sales closed after the homebuyer tax credit are expected to be lower compared
to the credit-induced spring surge,” explains ORRA Chairman of the Board
Kathleen Gallagher McIver, RE/MAX Town & Country Realty, “yet total annual home
sales are rising above 2009 and we’re looking for overall gains again this
year.”
“Conditions have become more balanced in Orlando, which is good for both
buyers and sellers. However, consumers find it even more challenging to
navigate the transaction process, especially for distressed properties, which
only underscores the value REALTORS® bring to buyers and sellers in this
market.”
The number of new contracts filed in July 2010 (3,793) represents an increase of
2.62 percent more than were filed in July 2009 (3,696). The area’s pending sales
statistic — also an indicator of future sales activity – is likewise remaining
at a record high with 18.41 percent more homes (9,133) under contract and
awaiting closing in July of this year than in July of last year (7,713).
The median price of all existing homes combined sold in July 2010 decreased
17.37 percent to $109,900 from the $133,000 recorded in July 2009. July
2010’s median price is a decrease of 4.43 percent compared to June 2010’s median
of $115,000.
The median price for “normal” sales is $179,138 (up 4.15 percent from last
month’s $172,000).
The median
price for bank-owned sales is $73,999 (down 4.52 percent from last month’s
$77,500), and the median price for short sales is $115,000 (steady from last
month’s $115,000).
“Distressed properties, which accounted for almost 70 percent of sales in July,
continue to downwardly distort the median price because they generally sell at a
discount relative to traditional homes in the same area,” explains Gallagher
McIver.
Of the 2,387 sales in July,
740
“normal” sales accounted for 31.00 percent of all sales,
while 1,133 bank-owned and 514 short sales made up 69.00 percent.
The Orlando affordability index increased to 243.74 percent in July. (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.) Buyers who earn the reported median income of $53,162 can
qualify to purchase one of 9,812 homes in Orange and Seminole counties currently
listed in the local multiple listing service for $267,866 or less.
First-time homebuyer affordability in July increased to 173.32 percent.
First-time buyers who earn the reported median income of $36,150 can qualify to
purchase one of 6,837 homes in Orange and Seminole counties currently listed in
the local multiple listing service for $161,910 or less.
Homes of all types spent an average of 85 days on the market before coming under
contract in July 2010, and the average home sold for 94.89 percent of its
listing price. In July 2009 those numbers were 101 and 94.04 percent,
respectively. The area’s average interest rate decreased in July to 4.67
percent.
Inventory
There are currently 16,563 homes available for purchase through the MLS.
Inventory increased by 259 homes from June 2010, which means that 259 more homes
entered the market than left the market. The July 2010 inventory level is 3.88
percent lower than it was in July 2009 (17,231). The current pace of sales
translates into 6.94 months of supply; July 2009 recorded 7.49 months of
supply.
There are 12,708 single-family homes currently listed in the MLS, a number that
is 185 (1.48 percent) more than in July of last year. Condos currently make up
2,457 offerings in the MLS, while duplexes/town homes/villas make up the
remaining 1,398.
Condos
and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area increased by 35.64 percent in July when
compared to July of 2009 and decreased by 16.21 percent compared to June of this
year. To date, condo sales are up 78.15 percent (3,921 condos sold to date in
2010, compared to 2,201 by this time in 2009).
The most (285) condos in a single price category that changed hands in July were
yet again in the $1 - $50,000 price range, which accounted for 52.01 percent of
all condo sales.
Orlando homebuyers purchased 232 duplexes, town homes, and villas in July 2010,
which is a 27.47 percent increase from July 2009 when 182 of these alternative
housing types were purchased.
MSA
Numbers
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola,
and Seminole counties) in July were down by 5.94 percent when compared to July
of 2009. Throughout the MSA, 2,770 homes were sold in July 2010 compared with
2,945 in July 2009.
To date, sales throughout the MSA are 31.72 percent above this time in 2009 with
20,978 homes exchanging hands compared to 15,926. Each individual county’s
year-to-date sales comparisons are as follows:
-
Lake:
16.41 percent above 2009 (2,589 homes sold to date in 2010 compared to 2,224
in 2009);
-
Orange: 35.19 percent above 2009 (11,361 homes sold to date in 2010 compared
to 8,404 in 2009);
-
Osceola: 18.52 percent above 2009 (3,609 homes sold to date in 2010 compared
to 3,045 in 2009); and
Seminole: 51.75 percent above 2009 (3,419 sold to date in 2010 compared to 2,253
in 2009).
Top of Page
Nine tips to sell your home in 2010
Florida Association of Realtor Web Site
WASHINGTON – March 3, 2010
Signs of a recovery in the real estate market indicate this may
not be the “Winter of your Discount Tent.” Home sales, value and mortgage
applications have risen slightly as mortgage rates stand at a historic low.
This slight glimmer of positive news is offset by estimates that about 48
percent of all U.S. mortgages will be underwater by 2011. Foreclosures and
short sales continue to plague the market, keeping a lid on home prices. As a
result, 2010 will continue to be a buyer’s market.
That doesn’t mean, however, that all hope is lost of selling your home this
year. Here are nine tips to sell your home in 2010.
1. Don’t wait for a
recovery
Home values aren’t likely to rebound to previous highs for several years,
perhaps even a decade. While you may face a loss by selling now, that negative
figure may only be a paper loss, particularly if you’ve owned your home for some
time.
2. Make improvements
If you have access to credit, invest in improving and repairing your home before
placing it on the market, rather than trying to go for a quick as-is sale.
Rehabs are more affordable now, thanks to the availability of low financing,
reduced construction materials costs and lower contractor charges. Focus on
upgrades to kitchens and bathrooms, especially counters and cabinets, as these
yield the highest returns. Get three different estimates from contractors and
add another 10 percent for unexpected costs.
4. Hire professionals
You need professionals, not friends or relatives, to repair, upgrade and sell
the biggest investment you’ll likely own. Ask for credentials, references and a
history of recent performance. Your appraiser should have at least five years
experience with an appropriate license or certification. The same applies to
hiring a home inspector. Talk to at least two or three appraisers and inspectors
before selecting one.
5. Get down payment
assistance
Federal and local governments offer several down payment assistance programs for
first-time home buyers. Look for other city, county and state programs that will
piggyback on federal programs for assistance. Search for “downpayment assistance
programs” with the name of your region.
6. Take Uncle Sam’s help
The $8,000 first-time homebuyer tax credit program that helped jump-start the
real estate market in 2009 has been extended into 2010 and expanded. First-time
homebuyers qualify if they sign a binding contract to buy a home by April 30 and
close by June 30. The program’s maximum income limits have jumped from $75,000
to $125,000 for individuals and from $150,000 to $225,000 for couples.
A separate $6,500 tax credit has been added for those who have owned their homes
for at least five years and want to upgrade. Homeowners drowning in their
present real estate loans are eligible for a loan-modification program with
their current mortgage company or loan service through the Making Home
Affordable Program (http://makinghomeaffordable.gov/).
7. Price accordingly
Listings move when a property is appropriately priced. Others gather dust
because the owners haven’t adjusted their expectations to the present market.
This doesn’t mean, however, you should severely drop your price on a
well-maintained home to avoid extended problems. Research your market and price
accordingly.
8. Energy tax credits
Through Dec. 31, homeowners who buy and install specific energy-efficient
windows, insulation, roofs, doors and heating and air-conditioning equipment can
apply for a 30-percent tax credit of up to $1,500 of their costs on each
product.
Go one step further and earn a 30-percent tax credit through 2016 (without a
spending limit) when you purchase such energy-saving products as solar energy
systems, geothermal heat pumps, small wind systems, residential fuel cells and
micro-turbine systems. Visit EnergyStar’s Federal Tax Credits for Energy
Efficiency (http://www.energystar.gov/index.cfm?ctax-credits.tx-index)
for a complete summary.
9. It’s not personal
Buyers want to imagine themselves in your house for years to come. Excess decor
and knick-knacks distract from this vision. Ask your Realtor’s advice or hire a
home stager to bring your house back to zero before beginning to show it. A
general rule of thumb is to eliminate or store at least half the items in every
room.
Don’t get defensive about colors, design patterns or flooring you installed.
Just grit your teeth and think of the closing check while your agent serves as a
buffer. Remember the customer is always right, unless, of course, they’re
low-balling you.
Top of Page
Orlando Metro
Home Value Levels -- a 8 year History
Home values comparison from 2001 to 2009
Updated December 10, 2008
The
following are changes in the Orlando MSA "median price"; half of homes selling
above, and half of homes of selling above. The Orlando MSA includes
Orange, Seminole, Osceola and Lake counties:
Month/Year Median Price % Increase or
Decrease
Available Inventory
Nov 2001 125,846
-- --
Nov 2002 138,663
11%
increase from Nov 2001 7,880 homes
Nov 2003 153,567
11%
increase from Nov 2002 6,712 homes
Nov 2004 182,300
19%
increase from Nov 2003 3,681 homes
Nov 2005 249,900
37%
increase from Nov 2004 9,685
homes (highest level since late 1990s)
Nov 2006 250,000
00% decrease from Nov 2005
21,324 homes (new record -- 1yr supply of homes)
Nov 2007 234,900
04% decrease from Nov 2006
26,172 homes (new record -- 2yr supply of homes)
Nov 2008
166,000
29% decrease from Nov 2007
24,408 homes (total inventory down 7% from peak of Nov 2007)
Nov 2009
123,000
26% decrease from Nov 2008
16,002 homes (total inventory down 34% from Nov 2008)
Local property values are driven, like they are
in most markets, by the simple law of "supply and demand".
Inventory shrunk to it's lowest levels between 2004 and late 2005, and prices
rose sharply. Inventory levels were at record high levels between
2006-2008 and prices fell sharply. Now that inventory levels are back at
what they were prior to the run up in values, some experts predict prices/values
will begin a gradual stabilization.
As of November 2009 it is still a BUYER'S MARKET,
with a 7-month supply of homes on the market. The "median sales
price" is down from peak levels by about 51%. Sales in some
areas however, are below this level. The median sales price is back to what
is was in Fall 2001, before the previous seller's market began.
Some experts predict that values will likely rise again soon after
2010,
when the vast foreclosure market lessens. For now, prices continue to fall
due to the downward pressures created by the vast foreclosure and duress sale
markets (short sales).
Article written by Frank Plesko, Watson Realty
Compiled from Orlando Regional Realtor Association's Monthly Sales & Inventory
Reports
Top of Page
Short sales are gaining traction
among lenders because of a new federal incentive. In essence, the government has
agreed to absorb a part of the loss that a bank sustains whenever they do a
short sale.
"In May, the Treasury Department said it would offer a streamlined framework for
short sales and incentive payments of $1,500 to homeowners, $1,000 to loan
servicers and $1,000 to second-lien holders,"
The San Francisco Chronicle reports.
Just 18 months ago, the term "short sale" was not widely known. Today, it's
gaining some currency as more and more short sales get done, but it's still a
misunderstood concept.
Short sales are when you need to get out of a house and you get the lender to
agree to take market value on the sale -- instead of what you actually owe on
it. You'll take a hit of about 120 or 130 points on your credit score for
doing one.
Are banks doing this as a charity effort? No, it's cheaper for them to do a
short sale versus a foreclosure. Some of the biggest lenders now have "war
rooms" with specialists to process short sales. Certain lenders even take
requests for short sales electronically nowadays.
Our associate producer Joel started looking to buy a home last winter. He
immediately began honing in on short sales, much to Clark's dismay. The consumer
champ knew that banks were notoriously incompetent when it came to processing
short sales.
Naturally, Clark urged Joel to steer clear of them. But being a young man, Joel
completely ignored Clark! So much of the market was short sales that it would
have been very hard to ignore them in his search.
Joel was right in this case; he bought a short sale for $89,000 with a 15-year
loan at 4.375 percent. The property had last sold for $155,000. So his patience
was rewarded, but it took the better part of a year. And that's now made Clark
himself reconsider the short sale as a viable option for struggling homeowners.
It's for real this time!
Top of Page
Mortgage
problems are walloping Americans' credit scores
WASHINGTON - Baltimoresun.com Washington Post Writers
Group, by Kenneth R. Harney
September 20, 2009
When you do a short sale of a house, or modify
the mortgage, is there much of an effect on your credit score? What if you walk
away from the mortgage altogether?
A scoring company created by the three national credit bureaus - Equifax,
Experian and TransUnion - has some eye-opening numbers. VantageScore Solutions,
whose risk-prediction scores are now being used by some of the largest mortgage
companies and banks, has found that the way consumers handle their mortgage
problems can profoundly affect credit scores.
For example, loan modifications that roll late payments and penalties into
the principal debt owed on the house can actually increase borrowers' scores
modestly. Refinancings of underwater, negative-equity mortgages - which the
Obama administration's Making Home Affordable program offers through
government-controlled Fannie Mae and Freddie Mac - may have little or no
negative effect on scores, even though the homeowners might have been tottering
on the edge of serious delinquency before refinancing.
The Vantage credit score, the primary competitor to the long-dominant FICO
credit score, rates borrowers on a scale range of 501 (subprime, the highest
risk) to 990 (super-prime, the lowest risk). Unlike Fair Isaac Corp.'s FICO
scoring system, whose scores can vary by 50 to 100 points based on which bureau
supplied the underlying credit data, Vantage scores are about the same for each
consumer.
When homeowners negotiate a short sale with lenders, they sometimes assume that
there will be relatively little effect on their scores. After all, the loan was
successfully paid off, there was no foreclosure, and the lender voluntarily
agreed to accept a lower balance than was owed.
But according to VantageScore researchers, short sales can trigger big drops
in credit scores. Sarah Davies, senior vice president of analytics, said a
homeowner with an excellent score of 862 might plummet 120 to 130 points after a
short sale.
Although it's true the lender may lose less money through a short sale compared
with a foreclosure, "it's still a derogatory event," Davies said. The full debt
was not repaid and the lender lost money.
What happens when borrowers walk away from their mortgage debts altogether -
the so-called strategic defaults that have become commonplace in some large
markets such as in California? They should expect 140- to 150-point hits
to their scores, plus negative marks on their credit bureau files for as long as
seven years.
People who file for bankruptcy protection covering all their debts
(mortgage, credit cards, auto loans, etc.) will get hit with an average 355-
to 365-point drop in their scores. Bankruptcies remain on borrowers'
credit bureau files for 10 years.
Copyright © 2009,
The Baltimore Sun
Top of Page
|