The Florida Association of Realtors posted July’s performance numbers last week. Here are my thoughts,opinions and observations about them.
Now before I freak you out with my headline, here is what Daren Blomquist, VP with RealtyTrac, said about the Orlando real estate market in a recent article:
“There’s not bad news there for Orlando,” Blomquist said. “The affordability levels are still below their historical average, and that indicates there’s still room for price growth, even if interest rates go up a point.”-Daren Blomquist, VP of RealtyTrac
That’s right! The Orlando area is still one of the most affordable areas in the country to purchase a home (yeah!) BUT one of the LEAST affordable areas for renters (boo!).
Now not everyone seems to be paying attention: (Name is withheld to protect the guilty) in a local news article in June: “I think in the next 12 months, we’re going to be pretty much flat,” said real-estate agent. “With some good things happening in the Orlando area, we could see prices increase 3 percent, but we will likely see the median price soften at the end of the summer.”
Now July posted numbers tied for the highest median price ($171,000) for the year, almost a 13% increase from this past January and the highest average price ($214,000) for the year which is an 8% increase from January. Interest rates were at 4.17%. Twelve months earlier they were 4.51%.
Another article I read said that sales are sliding too. Hmmm, if my math is right, which a teller at my bank is smirking right now, 1,889 sales in January to 2,431 in July is a 22% increase. Now did sales slide from this time last year? Yes, of course. It’s called market recovery. The big boy cash buyers like Blackstone, Colony Capital and Waypoint are slowing their (cash)roll due to pricing themselves out of their ROI and meeting their saturation levels. Did they shut out mom and pop investors and first time home buyers during this spend? Yes…BUT…they also helped increase market value. Sellers, you’re welcome!
So to answer my article title, no, the end is not nigh or tomorrow nigh or next month. Will the big investors be missed? Sort of. Are lending restrictions too tight right now? Please, I’m a real estate broker! That’s like asking Willy Wonka if the world needs more candy? Seriously though, maybe they could lighten up a little, but programs are there for first time home buyers and qualified home buyers. And another thing, don’t think doom and gloom if you did a short sale on your last home or had a bankruptcy discharged. There are recovery programs and lending options that you will be qualified for quicker than you think AND you may even qualify for them now. E-mail me if you’d like to discuss this more.
So what’s my predictions for Orlando real estate? Continued recovery through the “slow and steady wins the race” method. Hiccups here and there but Orlando, in my humble but biased opinion, is the place to be. Just look around at all the new and future building plans and community projects.
Buyers just need to understand that the $50,000 almost new homes have gone the way of the Yugo (remember those?). Communities are stabilizing, new construction can be seen in once abandoned shell communities. Home values are rising but the quality of life and community is improving as well. More conventional sellers with well cared for homes are listing their homes for sale now. Which, in turn, creates a larger pool of qualified buyers. So getting a ‘deal’ is more of a change in paradigm than it is a thing of the past me thinks! Now finding a deal, making a deal and closing a deal…well…those are the things that require trained,proven and experienced professional on your side. They’re called Realtors and I happen to be one. Just sayin’.
But enough about my opinion. What do you think?
Thanks for reading! Stop by my website: www.SimplicityRE.com and say hi or hit me up on Facebook,Twitter, Pinterest, Tumblr, Active Rain, Word Press, Swarm, Google Plus, Instagram or LinkedIn. Wow! I need to get out more. 🙂
Simplicity 