Monday, May 27, 2013
Friday, April 15, 2011
Orlando Sales figures
Orlando home prices rise; inventory shrinks
By Mary Shanklin, Orlando Sentinel
11:37 a.m. EDT, April 14, 2011
Existing home prices in Orlando edged up in March for the second straight month with distress sales continuing to dominate the market, according to a report released Thursday by the Orlando Regional Realtor Association.
The median price for an existing home in Orlando, mostly Orange and Seminole counties, during March was $103,000 - up 2 percent from a month earlier. Compared to a year earlier, prices were down 6 percent.
More than 70 percent of the 2,485 homes sold during March were foreclosures or houses selling for less than the mortgage, down from 75 percent in February.
"Short sales and foreclosures continue to dominate and account for 70.5 percent of sales in March," said Mike McGraw, chairman of the board for the association and broker for McGraw Real Estate Services. "A consistently high percentage of these sales types is something that we want to see; the sooner they flush through the system the sooner we can get back to a market based on normal sales."
Some reporting groups have estimated that about half of local sales are distress, possibly reflecting that they consider a larger area with Osceola and Lake in addition to Orange and Seminole. Differences may also take into account that the association only reports on member sales.
The uptick in prices reported by the association may be partly due to the 28 percent monthly increase amount of "normal" sales, which fetch higher prices that debt-laden properties. The median prices in March included: traditional sales, $152,500; bank-owned properties, $80,000; and short sales, $102,500.
Homes spent an average 103 days on the market before landing a sales contract _ the longest period in more than two years. The average sales price was 95.4 percent less than the list price - the highest level since last summer.
Buyers had 23 percent fewer homes to select from in March than they did a year earlier. With 3,690 houses listed for sale, the current pace of sales translates into five months of supply, which is the shortest amount since December 2005.
mshanklin@tribune.com or 407-420-5538
By Mary Shanklin, Orlando Sentinel
11:37 a.m. EDT, April 14, 2011
Existing home prices in Orlando edged up in March for the second straight month with distress sales continuing to dominate the market, according to a report released Thursday by the Orlando Regional Realtor Association.
The median price for an existing home in Orlando, mostly Orange and Seminole counties, during March was $103,000 - up 2 percent from a month earlier. Compared to a year earlier, prices were down 6 percent.
More than 70 percent of the 2,485 homes sold during March were foreclosures or houses selling for less than the mortgage, down from 75 percent in February.
"Short sales and foreclosures continue to dominate and account for 70.5 percent of sales in March," said Mike McGraw, chairman of the board for the association and broker for McGraw Real Estate Services. "A consistently high percentage of these sales types is something that we want to see; the sooner they flush through the system the sooner we can get back to a market based on normal sales."
Some reporting groups have estimated that about half of local sales are distress, possibly reflecting that they consider a larger area with Osceola and Lake in addition to Orange and Seminole. Differences may also take into account that the association only reports on member sales.
The uptick in prices reported by the association may be partly due to the 28 percent monthly increase amount of "normal" sales, which fetch higher prices that debt-laden properties. The median prices in March included: traditional sales, $152,500; bank-owned properties, $80,000; and short sales, $102,500.
Homes spent an average 103 days on the market before landing a sales contract _ the longest period in more than two years. The average sales price was 95.4 percent less than the list price - the highest level since last summer.
Buyers had 23 percent fewer homes to select from in March than they did a year earlier. With 3,690 houses listed for sale, the current pace of sales translates into five months of supply, which is the shortest amount since December 2005.
mshanklin@tribune.com or 407-420-5538
Friday, March 18, 2011
The market is turning.....
This is the latest press release from Orlando Regional Realtors Association, confirming my experience of the real estate market over the past few months. Although there are still many properties available, the number of buyers has increased dramatically and the inventory is shrinking. This is good news for sellers. For buyers, many properties are still at pre-boom prices but those 'bargains' are disappearing............
" Market Statistics
--------------------------------------------------------------------------------
Buyer selection declines as Orlando inventory slips to post-boom levels
(March 14, 2011 – Orlando, FL) Members of the Orlando Regional REALTOR® Association reported a 5.68 percent year-over-year increase in the number (2,085) of home sales completed in February, helping to whittle Orlando’s inventory of unsold homes down to its lowest point since March 2006. The fast-flying condo market alone has 43.40 percent less inventory than this time last year.
“A downward slip in inventory means a downward slip in the number of choices available to homebuyers,” explains ORRA Chairman of the Board Mike McGraw, McGraw Real Estate Services, PL. “Nevertheless there is still a wide selection of homes on the market, and the weekend of March 26 -27 is a great time to explore the options. Orlando’s REALTORS® will be celebrating the Florida Open House Weekend by opening scores of their listings to visitors.”
Buyers should look for blue balloons with the REALTOR® “R” trademark in white to find participating open homes. Many homes scheduled to be open March 26 – 27 will also be tagged within the “Property Search” function on www.myfloridahomesmls.com, the consumer website of the Orlando area’s multiple listing service.
Potential buyers should also consider the current level of median home prices in Orlando, a level that was last seen in 1997. The $96,000 overall median price of all existing Orlando area homes sold in February increased a fraction (1.16 percent) from last month, but is 8.57 percent below the February 2010 median price of $105,000.
The lower median prices of bank-owned and short sales, which accounted for 73.48 percent of all sales in February, do continue to exert a downward influence on the overall median price (as do the sales of low-priced condos). The median price for bank-owned sales in February is $74,000 and the median price for short sales is $98,000. The median price for “normal” existing homes – i.e., those that are neither a short sale nor a foreclosure – sold in February is $155,000.
The number (9,223) of homes under contract for purchase in February is a decrease of (2.53 percent) compared to those awaiting closing in February 2010. However, there are (5.08) percent more homes currently under contract than were last month (8,777).
The Orlando affordability index decreased to a still-rocking 274.55 percent in February from January 2011. (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 $53,561 can qualify to purchase one of 7,929 homes in Orange and Seminole counties currently listed in the local multiple listing service for $263,567 or less.
First-time homebuyer affordability in February decreased to 195.23 percent from last month’s 197.98 percent, which can be attributed in part to February’s slight rise in median price. First-time buyers who earn the reported median income of $36,421 can qualify to purchase one of 5,643 homes in Orange and Seminole counties currently listed in the local multiple listing service for $159,312 or less.
Homes of all types spent an average of 99 days on the market before coming under contract in February 2011, and the average home sold for 94.47 percent of its listing price. In February 2010 those numbers were 91 days and 94.87 percent, respectively.
The area’s average interest rate increased in February 2011 to 4.88 percent, from the 4.84 percent posted in January 2011.
Inventory
There are 13,480 homes currently available for purchase through the MLS, which is 2,571 homes (16.02 percent) less than were available in February 2010. The current pace of sales translates into 6.47 months of supply; February 2010 recorded 8.14 months of supply.
There are 10,889 single-family homes currently listed in the MLS, a number that is 8.65 percent less than the 11,920 single-family homes listed in February of last year. Condos make up 1,544 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,047. Orlando’s condo inventory is 43.40 percent lower than it was in February 2010.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area increased by 2.14 percent in February when compared to February of 2010 and decreased by 10.00 percent compared to January of 2011.
The most (263) condos in a single price category that changed hands in February were yet again in the $1 - $50,000 price range and accounts for 55.14 percent of all condo sales. The next greatest range, representing 10.69 percent of the month’s condo sales, is the $50,000 - $60,000 category.
Orlando homebuyers purchased 225 duplexes, town homes, and villas in February 2011, which is a 39.75 percent increase from February 2010, when 161 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 February were up by 10.50 percent when compared to February of 2010. Throughout the MSA, 2,653 homes were sold in February 2011 compared with 2,401 in February 2010. To date, sales in the MSA are up 14.43 percent.
Each individual county’s sales comparisons are as follows:
Lake: 9.50 percent below February 2010 (305 homes sold in February 2011 compared to 337 in February 2010);
Orange: 10.31 percent above February 2010 (1,370 homes sold in February 2011 compared to 1,242 in February 2010);
Osceola: 20.82 percent above February 2010 (528 homes sold in February 2011 compared to 437 in January 2010); and
Seminole: 16.88 percent above February 2010 (450 sold in February 2011 compared to 385 in February 2010).
For detailed statistical reports, please visit www.orlrealtor.com and click on “Housing Statistics” on the top menu bar. This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the My Florida Regional Multiple Listing Service. Neither the association nor MFRMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or MFRMLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.
ORRA REALTOR® sales, referred to as the core market, represent all sales by members of the Orlando Regional REALTOR® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.
Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA."
" Market Statistics
--------------------------------------------------------------------------------
Buyer selection declines as Orlando inventory slips to post-boom levels
(March 14, 2011 – Orlando, FL) Members of the Orlando Regional REALTOR® Association reported a 5.68 percent year-over-year increase in the number (2,085) of home sales completed in February, helping to whittle Orlando’s inventory of unsold homes down to its lowest point since March 2006. The fast-flying condo market alone has 43.40 percent less inventory than this time last year.
“A downward slip in inventory means a downward slip in the number of choices available to homebuyers,” explains ORRA Chairman of the Board Mike McGraw, McGraw Real Estate Services, PL. “Nevertheless there is still a wide selection of homes on the market, and the weekend of March 26 -27 is a great time to explore the options. Orlando’s REALTORS® will be celebrating the Florida Open House Weekend by opening scores of their listings to visitors.”
Buyers should look for blue balloons with the REALTOR® “R” trademark in white to find participating open homes. Many homes scheduled to be open March 26 – 27 will also be tagged within the “Property Search” function on www.myfloridahomesmls.com, the consumer website of the Orlando area’s multiple listing service.
Potential buyers should also consider the current level of median home prices in Orlando, a level that was last seen in 1997. The $96,000 overall median price of all existing Orlando area homes sold in February increased a fraction (1.16 percent) from last month, but is 8.57 percent below the February 2010 median price of $105,000.
The lower median prices of bank-owned and short sales, which accounted for 73.48 percent of all sales in February, do continue to exert a downward influence on the overall median price (as do the sales of low-priced condos). The median price for bank-owned sales in February is $74,000 and the median price for short sales is $98,000. The median price for “normal” existing homes – i.e., those that are neither a short sale nor a foreclosure – sold in February is $155,000.
The number (9,223) of homes under contract for purchase in February is a decrease of (2.53 percent) compared to those awaiting closing in February 2010. However, there are (5.08) percent more homes currently under contract than were last month (8,777).
The Orlando affordability index decreased to a still-rocking 274.55 percent in February from January 2011. (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 $53,561 can qualify to purchase one of 7,929 homes in Orange and Seminole counties currently listed in the local multiple listing service for $263,567 or less.
First-time homebuyer affordability in February decreased to 195.23 percent from last month’s 197.98 percent, which can be attributed in part to February’s slight rise in median price. First-time buyers who earn the reported median income of $36,421 can qualify to purchase one of 5,643 homes in Orange and Seminole counties currently listed in the local multiple listing service for $159,312 or less.
Homes of all types spent an average of 99 days on the market before coming under contract in February 2011, and the average home sold for 94.47 percent of its listing price. In February 2010 those numbers were 91 days and 94.87 percent, respectively.
The area’s average interest rate increased in February 2011 to 4.88 percent, from the 4.84 percent posted in January 2011.
Inventory
There are 13,480 homes currently available for purchase through the MLS, which is 2,571 homes (16.02 percent) less than were available in February 2010. The current pace of sales translates into 6.47 months of supply; February 2010 recorded 8.14 months of supply.
There are 10,889 single-family homes currently listed in the MLS, a number that is 8.65 percent less than the 11,920 single-family homes listed in February of last year. Condos make up 1,544 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,047. Orlando’s condo inventory is 43.40 percent lower than it was in February 2010.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area increased by 2.14 percent in February when compared to February of 2010 and decreased by 10.00 percent compared to January of 2011.
The most (263) condos in a single price category that changed hands in February were yet again in the $1 - $50,000 price range and accounts for 55.14 percent of all condo sales. The next greatest range, representing 10.69 percent of the month’s condo sales, is the $50,000 - $60,000 category.
Orlando homebuyers purchased 225 duplexes, town homes, and villas in February 2011, which is a 39.75 percent increase from February 2010, when 161 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 February were up by 10.50 percent when compared to February of 2010. Throughout the MSA, 2,653 homes were sold in February 2011 compared with 2,401 in February 2010. To date, sales in the MSA are up 14.43 percent.
Each individual county’s sales comparisons are as follows:
Lake: 9.50 percent below February 2010 (305 homes sold in February 2011 compared to 337 in February 2010);
Orange: 10.31 percent above February 2010 (1,370 homes sold in February 2011 compared to 1,242 in February 2010);
Osceola: 20.82 percent above February 2010 (528 homes sold in February 2011 compared to 437 in January 2010); and
Seminole: 16.88 percent above February 2010 (450 sold in February 2011 compared to 385 in February 2010).
For detailed statistical reports, please visit www.orlrealtor.com and click on “Housing Statistics” on the top menu bar. This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the My Florida Regional Multiple Listing Service. Neither the association nor MFRMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or MFRMLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.
ORRA REALTOR® sales, referred to as the core market, represent all sales by members of the Orlando Regional REALTOR® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.
Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA."
Wednesday, February 9, 2011
For Sale By Owner
The following article, from Real Estate News, reflects another area of the real estate market:
Real estate Web site BuyOwner.com, once considered the nation’s largest for-sale-by-owner company, has been sold for $1 million.
Since 2008, the company has faced a sharp decrease in revenue--from more than $28 million to less than $250,000 in July 2010.
Utah entrepreneur Jonathan Holbrook purchased the site and has plans to hire additional sales and customer service agents for its headquarters office in Deerfield Beach, Fla., and its Chicago office.
The proceeds from the $1 million sale will go to pay the company's creditors.
Source: “BuyOwner.com Sold for $1 Million to Pay Creditors; Company Revenues Fall Sharply After 2008,” Associated Press Newswires (Feb. 8, 2011)
With an estimated 8 months inventory of available homes, it seems that buyers are no longer interested in For Sale By Owner properties. Once so prevalent in the boom years, owners can no longer rely on just placing a sign in the yard and waiting for buyers. Marketing is the key to selling in this market and the MLS is being heavily used by internet savvy buyers.
Short sales and foreclosures complicate nearly every neighborhood, making most buyers rely on a realtor to help guide them through their options.
To understand your options in the current market, call me 407 470 0231
Real estate Web site BuyOwner.com, once considered the nation’s largest for-sale-by-owner company, has been sold for $1 million.
Since 2008, the company has faced a sharp decrease in revenue--from more than $28 million to less than $250,000 in July 2010.
Utah entrepreneur Jonathan Holbrook purchased the site and has plans to hire additional sales and customer service agents for its headquarters office in Deerfield Beach, Fla., and its Chicago office.
The proceeds from the $1 million sale will go to pay the company's creditors.
Source: “BuyOwner.com Sold for $1 Million to Pay Creditors; Company Revenues Fall Sharply After 2008,” Associated Press Newswires (Feb. 8, 2011)
With an estimated 8 months inventory of available homes, it seems that buyers are no longer interested in For Sale By Owner properties. Once so prevalent in the boom years, owners can no longer rely on just placing a sign in the yard and waiting for buyers. Marketing is the key to selling in this market and the MLS is being heavily used by internet savvy buyers.
Short sales and foreclosures complicate nearly every neighborhood, making most buyers rely on a realtor to help guide them through their options.
To understand your options in the current market, call me 407 470 0231
Friday, January 14, 2011
Tuesday, December 7, 2010
Sunday, December 5, 2010
Wednesday, September 29, 2010
Theme Park Visits
For everyone that asks for advice.........
September 29, 2010
How to get the most out of a Disney/Universal theme park visit
By Jayne Clark, USA TODAY
A hot-off-the-presses copy of The Unofficial Guide to Walt Disney World 2011 arrived in the mail the other day, which seemed like a good excuse to ring up author Bob Sehlinger for a refresher course on how to squeeze the most out of a Disney/Universal theme park visit. With single-day admissions recently hiked to $82 at both, time really is money at these Orlando parks.
Sehlinger started the Unofficial Guide franchise back in 1985 when he told Disney honchos he was going to write a guidebook about their theme parks and they replied, "You can't do that," Sehlinger recalls.
Turns out he could. And he did.
Today, the series has six Disney-related titles, three of which are updated annually by a team of 30 or so including data collectors, dining critics, hotel inspectors and two child psychologists. He even has a patent-pending algorithm used to create touring plans that weighs variables such as ride capacity, traffic flow and mechanical reliability.
"(The plans) will absolutely save you up to four hours of waiting in queues over the day," Sehlinger declares.
This year's 800-pound gorilla of the theme park world is The Wizarding World of Harry Potter attraction at Universal Orlando's Islands of Adventure theme park. It debuted last summer to raves and interminable lines -- up to seven hours in the first weeks after opening, Sehlinger says. (And yes, apparently it's the sort of thing a hard-core fan dressed in a Hogwarts school uniform will happily endure.)
Crowd control at the attraction has improved and the crowds aren't quite as daunting, he adds. But here's a tip for the Wizarding World bound: Wait until 3 or 4 p.m. to go. It'll still be busy, but the early throngs will have cycled through. Better yet, if the park is open late, wait until 6-ish to queue up. "Things are winding down, with cooler temperatures and a vastly smaller crowd," Sehlinger advises. "And you'll have the added benefit of being able to seeing Wizarding World with its lights. It's magical."
Some of Sehlinger's favorite tips for tackling the theme parks:
-- Plan, plan, plan.
Not only should you buy tickets in advance so you're not wasting time at the ticket window, but you should have a touring plan (this is where the Unofficial Guide comes in). "It's the best way to experience the most attractions in the least amount of time," Sehlinger says. "We can tell which families have a plan to see the park, because they're doing stuff. Without a plan, people are like chickens in a thunderstorm clucking over a map."
-- Besides having a logistical plan, you should prepare physically. Sehlinger figures the typical theme park attendee walks eight miles in a single day. "People who aren't accustomed to that or the crowds or the heat fall apart," he says.
-- Arrive at the park early to get a jump on the masses. (If you're staying at a Universal or Disney-owned lodging, take advantage of exclusive guest-only time in the parks.)
-- You can't avoid the hefty entrance fees, but you can save on lodging and food.
You'll always save money staying in a non Disney/Universal hotel. And given the economy, there are some incredible hotel deals in the Orlando area, Sehlinger says. Do a broad Internet search (he likes Kayak.com) and when you find something, call the hotel directly to ask about specials or other ways to sweeten the deal with a room upgrade, for instance. (Avoid timing your visit when there's a big convention in town, which drives up rates. You can check the schedule on the Orlando/Orange County Convention & Visitors Bureau website.)
-- If you're driving, pack a cooler. If not, buy a Styrofoam one when you arrive. Stock it with breakfast fixings and snacks, which you can take with you to the parks to avoid dropping a bundle on expensive vendor food.
-- Another benefit of staying off-property is that you'll have access to less expensive eateries than those in the parks. (Check the brochure racks at your lodging for discount coupons.)
-- Don't try to do it all. This goes double for families with children 12 and younger. "Take a mid-day break," Sehlinger says. "Go back to the hotel for lunch, a nap and swim. In summer, with longer park hours, you can go back at night."
Enjoy!
September 29, 2010
How to get the most out of a Disney/Universal theme park visit
By Jayne Clark, USA TODAY
A hot-off-the-presses copy of The Unofficial Guide to Walt Disney World 2011 arrived in the mail the other day, which seemed like a good excuse to ring up author Bob Sehlinger for a refresher course on how to squeeze the most out of a Disney/Universal theme park visit. With single-day admissions recently hiked to $82 at both, time really is money at these Orlando parks.
Sehlinger started the Unofficial Guide franchise back in 1985 when he told Disney honchos he was going to write a guidebook about their theme parks and they replied, "You can't do that," Sehlinger recalls.
Turns out he could. And he did.
Today, the series has six Disney-related titles, three of which are updated annually by a team of 30 or so including data collectors, dining critics, hotel inspectors and two child psychologists. He even has a patent-pending algorithm used to create touring plans that weighs variables such as ride capacity, traffic flow and mechanical reliability.
"(The plans) will absolutely save you up to four hours of waiting in queues over the day," Sehlinger declares.
This year's 800-pound gorilla of the theme park world is The Wizarding World of Harry Potter attraction at Universal Orlando's Islands of Adventure theme park. It debuted last summer to raves and interminable lines -- up to seven hours in the first weeks after opening, Sehlinger says. (And yes, apparently it's the sort of thing a hard-core fan dressed in a Hogwarts school uniform will happily endure.)
Crowd control at the attraction has improved and the crowds aren't quite as daunting, he adds. But here's a tip for the Wizarding World bound: Wait until 3 or 4 p.m. to go. It'll still be busy, but the early throngs will have cycled through. Better yet, if the park is open late, wait until 6-ish to queue up. "Things are winding down, with cooler temperatures and a vastly smaller crowd," Sehlinger advises. "And you'll have the added benefit of being able to seeing Wizarding World with its lights. It's magical."
Some of Sehlinger's favorite tips for tackling the theme parks:
-- Plan, plan, plan.
Not only should you buy tickets in advance so you're not wasting time at the ticket window, but you should have a touring plan (this is where the Unofficial Guide comes in). "It's the best way to experience the most attractions in the least amount of time," Sehlinger says. "We can tell which families have a plan to see the park, because they're doing stuff. Without a plan, people are like chickens in a thunderstorm clucking over a map."
-- Besides having a logistical plan, you should prepare physically. Sehlinger figures the typical theme park attendee walks eight miles in a single day. "People who aren't accustomed to that or the crowds or the heat fall apart," he says.
-- Arrive at the park early to get a jump on the masses. (If you're staying at a Universal or Disney-owned lodging, take advantage of exclusive guest-only time in the parks.)
-- You can't avoid the hefty entrance fees, but you can save on lodging and food.
You'll always save money staying in a non Disney/Universal hotel. And given the economy, there are some incredible hotel deals in the Orlando area, Sehlinger says. Do a broad Internet search (he likes Kayak.com) and when you find something, call the hotel directly to ask about specials or other ways to sweeten the deal with a room upgrade, for instance. (Avoid timing your visit when there's a big convention in town, which drives up rates. You can check the schedule on the Orlando/Orange County Convention & Visitors Bureau website.)
-- If you're driving, pack a cooler. If not, buy a Styrofoam one when you arrive. Stock it with breakfast fixings and snacks, which you can take with you to the parks to avoid dropping a bundle on expensive vendor food.
-- Another benefit of staying off-property is that you'll have access to less expensive eateries than those in the parks. (Check the brochure racks at your lodging for discount coupons.)
-- Don't try to do it all. This goes double for families with children 12 and younger. "Take a mid-day break," Sehlinger says. "Go back to the hotel for lunch, a nap and swim. In summer, with longer park hours, you can go back at night."
Enjoy!
Thursday, September 16, 2010
Thinking of a second home?
From today's US News & World Report:
How to Find a Second Home Bargain in the US
For boomers with disposable income, now may well be a good time to buy
By EUGENE L. MEYER
September 15, 2010
In much of Florida, homes have become dramatically more affordable since 2005, attracting new buyers who couldn't have made a purchase "in the peak years," says Rei Mesa, president and CEO of Prudential Florida Realty. In Nevada, buyers are snatching up $200,000 properties that just a few years ago would have been listed at twice that price, says Bryan Drakulich, president and CEO of DoMore Real Estate in Reno.
The housing market reflects a paradox of the Great Recession: While some baby boomers are struggling to prevent their primary residences from sliding into foreclosure, others are realizing their dream of purchasing a vacation getaway. Many people "still have a lot of money that sits on the sidelines waiting," says Michael Saunders, a Sarasota, Fla., broker active in the second home market. "I think the wait is over for them. Anywhere you look, you are going to find prices we haven't seen since 2001," largely because of foreclosures and short sales (homes sold for less than what's owed on them).
However, boomers without disposable income should steer clear of the second home market, even if they believe they can get financing, advises Christine Hrib Karpinski, author of How to Rent Vacation Properties by Owner (2009). "Don't get yourself caught up in the mess millions of Americans are in right now," she cautions. "Don't over-leverage. If you are already retired or close to retirement, that's not a risk I would take."
Conversely, for the fortunate who are flush with cash, have high credit scores, and possess sufficient disposable income to make down payments of 20 or 30 percent, now may be the time to jump into the market. Sharply reduced prices and the lowest interest rates in decades have combined to create a buyer's market. Moreover, with the stock market in the doldrums, some boomers are finding that purchasing a second home can be a worthwhile long-term investment.
Island life. Marleen and Scott Karns, who live near Harrisburg, Pa., cashed in stock last December to buy a condo with relatives on St. Croix, in the U.S. Virgin Islands, for $310,000. This was well below the original asking price of $390,000. "It's our 'CD' in St. Croix" is how Marleen puts it.
After incurring some significant start-up costs, including interior decorating and the purchase of a flat screen TV, the Karnses now rent out the property when they are not using it themselves as a vacation home. "We feel like we've kind of landed in our dream come true," Marleen says.
What is unclear is how many couples have the ability to capitalize on the market as the Karnses have. In 2009, the typical second home buyer was 46 years old with a median household income of $87,500 (down from $99,100 in 2007), according to surveys by the National Association of Realtors. And while income has gone down, second home prices rose 12.7 percent in 2009, the NAR notes. While these factors have closed the market for some, the simultaneous increased demand for rentals of vacation and weekend properties has made these purchases more feasible for others. If you are a prospective buyer, you need to consider three key issues:
1. Can the property generate enough rental income to cover carrying costs (mortgage plus maintenance, insurance, utilities, and property taxes)?
2. Will the rates you charge, especially for the most expensive properties, attract a pool of renters that is both sufficiently large and sustainable (particularly during economic downturns)?
3. If you intend to use the second home more than you will rent it, do you have the means to carry two mortgages and to pay associated costs?
These three criteria did not deter Catherine Mettey, 50, a state transportation engineer. Mettey paid $200,000 in August 2008 for a 1928 waterfront cottage, listed for $300,000, near the Maine coastal town of Lubec. She put down 20 percent, financed the rest, and rents the cottage for $800 or more a week. "Everybody wants to rent in July and August," she says. In 2009, she received $11,600 in rental income, which covered about half of her annual costs for maintenance, insurance, mortgage payments, and property taxes.
"I didn't buy it as an income property, but as a retirement home," she explains. "I have always wanted a home on the ocean and knew that if I waited any longer, I wouldn't be able to afford it. My plan is to pay off the mortgage in 15 years-by the time I retire. Renting it just helps pay some of the expenses. Plus, having it as a business, I get to claim my losses on my taxes. Maybe my accountant would have said, 'You are crazy!' But, I love being there!"
Some boomers, who bought second homes at their peak price, now find themselves alarmingly underwater on their mortgages, which means they owe more than the property is worth. For these owners, Karpinski recommends renting to cover expenses and waiting out the market to give the properties a chance to appreciate.
New buyers, however, "can purchase a vacation home and have it break even from rental revenue . . . because the prices of properties are lower," she says. "If in 2005, you bought for $500,000 and the rental market was $1,500 a week, you'd be hard-pressed to break even." But with a property today at $300,000, "you can indeed break even. The rental rates have not gone down."
Saunders, the Florida broker, says many sophisticated boomers are searching not for home equity but for "lifestyle equity." They care more about their environment than rising property values. Saunders promotes the Sarasota area as the "Culture Coast," offering opera, theater, lectures, and other amenities.
That "absolutely compelling lifestyle" is what attracted Vic and Sandy Motto. The couple's primary residence is in California's Napa Valley, which Vic says is suffering from a "very depressed" real estate market. In contrast, Sarasota offers "good values" and "mortgage interest rates which are at an all-time low." The Mottos-he's 71, she's 62-paid $1.085 million in April for a 2005 contemporary with a 47-foot swimming pool that was listed at $1.23 million. When prices plummeted during the recent downturn, "all the bells went off," explains Vic, a wine industry investment banker. "We said, 'This is it. Let's jump on a plane and do something about it.' "
In Arizona, second homes are available at fire-sale prices, having plunged as much as 70 percent from their highs in some areas. Foreclosures and short sales have driven prices down, says Phoenix-area agent Debora Nichols. Most of her clients are out-of-staters and Canadians, who are able to obtain lines of credit. "They feel they need to buy now when prices are so low" so "they'll have something to retire in," she says.
For many prospective second home owners, "the difficult part is financing," says Tom Kelly, coauthor of How a Second Home Can Be Your Best Investment (2004). "Lenders are even tougher with second homes than with primary residences." In some instances, Kelly says, when a buyer cannot obtain traditional financing, the seller may be willing to hold the mortgage, acting in effect as a banker. "Go in there and ask what's possible," he advises.
Saunders still sees real estate as a good long-term investment. Those who dream of a second home should consider this, Saunders says: "If you look at return on investment from 2000 to 2009, even though real estate has lost a lot of that [price] run-up we saw, it was still a better investment than the Dow, Standard & Poor's, and NASDAQ" stock indexes.
How to Find a Second Home Bargain in the US
For boomers with disposable income, now may well be a good time to buy
By EUGENE L. MEYER
September 15, 2010
In much of Florida, homes have become dramatically more affordable since 2005, attracting new buyers who couldn't have made a purchase "in the peak years," says Rei Mesa, president and CEO of Prudential Florida Realty. In Nevada, buyers are snatching up $200,000 properties that just a few years ago would have been listed at twice that price, says Bryan Drakulich, president and CEO of DoMore Real Estate in Reno.
The housing market reflects a paradox of the Great Recession: While some baby boomers are struggling to prevent their primary residences from sliding into foreclosure, others are realizing their dream of purchasing a vacation getaway. Many people "still have a lot of money that sits on the sidelines waiting," says Michael Saunders, a Sarasota, Fla., broker active in the second home market. "I think the wait is over for them. Anywhere you look, you are going to find prices we haven't seen since 2001," largely because of foreclosures and short sales (homes sold for less than what's owed on them).
However, boomers without disposable income should steer clear of the second home market, even if they believe they can get financing, advises Christine Hrib Karpinski, author of How to Rent Vacation Properties by Owner (2009). "Don't get yourself caught up in the mess millions of Americans are in right now," she cautions. "Don't over-leverage. If you are already retired or close to retirement, that's not a risk I would take."
Conversely, for the fortunate who are flush with cash, have high credit scores, and possess sufficient disposable income to make down payments of 20 or 30 percent, now may be the time to jump into the market. Sharply reduced prices and the lowest interest rates in decades have combined to create a buyer's market. Moreover, with the stock market in the doldrums, some boomers are finding that purchasing a second home can be a worthwhile long-term investment.
Island life. Marleen and Scott Karns, who live near Harrisburg, Pa., cashed in stock last December to buy a condo with relatives on St. Croix, in the U.S. Virgin Islands, for $310,000. This was well below the original asking price of $390,000. "It's our 'CD' in St. Croix" is how Marleen puts it.
After incurring some significant start-up costs, including interior decorating and the purchase of a flat screen TV, the Karnses now rent out the property when they are not using it themselves as a vacation home. "We feel like we've kind of landed in our dream come true," Marleen says.
What is unclear is how many couples have the ability to capitalize on the market as the Karnses have. In 2009, the typical second home buyer was 46 years old with a median household income of $87,500 (down from $99,100 in 2007), according to surveys by the National Association of Realtors. And while income has gone down, second home prices rose 12.7 percent in 2009, the NAR notes. While these factors have closed the market for some, the simultaneous increased demand for rentals of vacation and weekend properties has made these purchases more feasible for others. If you are a prospective buyer, you need to consider three key issues:
1. Can the property generate enough rental income to cover carrying costs (mortgage plus maintenance, insurance, utilities, and property taxes)?
2. Will the rates you charge, especially for the most expensive properties, attract a pool of renters that is both sufficiently large and sustainable (particularly during economic downturns)?
3. If you intend to use the second home more than you will rent it, do you have the means to carry two mortgages and to pay associated costs?
These three criteria did not deter Catherine Mettey, 50, a state transportation engineer. Mettey paid $200,000 in August 2008 for a 1928 waterfront cottage, listed for $300,000, near the Maine coastal town of Lubec. She put down 20 percent, financed the rest, and rents the cottage for $800 or more a week. "Everybody wants to rent in July and August," she says. In 2009, she received $11,600 in rental income, which covered about half of her annual costs for maintenance, insurance, mortgage payments, and property taxes.
"I didn't buy it as an income property, but as a retirement home," she explains. "I have always wanted a home on the ocean and knew that if I waited any longer, I wouldn't be able to afford it. My plan is to pay off the mortgage in 15 years-by the time I retire. Renting it just helps pay some of the expenses. Plus, having it as a business, I get to claim my losses on my taxes. Maybe my accountant would have said, 'You are crazy!' But, I love being there!"
Some boomers, who bought second homes at their peak price, now find themselves alarmingly underwater on their mortgages, which means they owe more than the property is worth. For these owners, Karpinski recommends renting to cover expenses and waiting out the market to give the properties a chance to appreciate.
New buyers, however, "can purchase a vacation home and have it break even from rental revenue . . . because the prices of properties are lower," she says. "If in 2005, you bought for $500,000 and the rental market was $1,500 a week, you'd be hard-pressed to break even." But with a property today at $300,000, "you can indeed break even. The rental rates have not gone down."
Saunders, the Florida broker, says many sophisticated boomers are searching not for home equity but for "lifestyle equity." They care more about their environment than rising property values. Saunders promotes the Sarasota area as the "Culture Coast," offering opera, theater, lectures, and other amenities.
That "absolutely compelling lifestyle" is what attracted Vic and Sandy Motto. The couple's primary residence is in California's Napa Valley, which Vic says is suffering from a "very depressed" real estate market. In contrast, Sarasota offers "good values" and "mortgage interest rates which are at an all-time low." The Mottos-he's 71, she's 62-paid $1.085 million in April for a 2005 contemporary with a 47-foot swimming pool that was listed at $1.23 million. When prices plummeted during the recent downturn, "all the bells went off," explains Vic, a wine industry investment banker. "We said, 'This is it. Let's jump on a plane and do something about it.' "
In Arizona, second homes are available at fire-sale prices, having plunged as much as 70 percent from their highs in some areas. Foreclosures and short sales have driven prices down, says Phoenix-area agent Debora Nichols. Most of her clients are out-of-staters and Canadians, who are able to obtain lines of credit. "They feel they need to buy now when prices are so low" so "they'll have something to retire in," she says.
For many prospective second home owners, "the difficult part is financing," says Tom Kelly, coauthor of How a Second Home Can Be Your Best Investment (2004). "Lenders are even tougher with second homes than with primary residences." In some instances, Kelly says, when a buyer cannot obtain traditional financing, the seller may be willing to hold the mortgage, acting in effect as a banker. "Go in there and ask what's possible," he advises.
Saunders still sees real estate as a good long-term investment. Those who dream of a second home should consider this, Saunders says: "If you look at return on investment from 2000 to 2009, even though real estate has lost a lot of that [price] run-up we saw, it was still a better investment than the Dow, Standard & Poor's, and NASDAQ" stock indexes.
Tuesday, June 29, 2010
Wednesday, June 23, 2010
The dream continues
From today's:
ORLANDO BUSINESS JOURNAL
By Anjali Fluker
Wednesday, June 23, 2010, 12:20pm EDT
Disney selling new dreams - homes
Walt Disney Parks and Resorts announced June 23 it will sell 30 single-family luxury home lots this year in a new residential community on Disney property near the Four Seasons Resort Orlando.
Homes at Golden Oak, a 450-home gated residential resort development, will be priced from $1.5 million to $8 million, said a news release. Three types of homes will be available: village homes on one-fourth-acre lots, estate homes on half-acre lots and grand estate homes on three-fourths-acre lots, the release said. The first homes are expected to be completed in 2011.
The resort community will include a private clubhouse, concierge services and Walt Disney World Resort benefits, the release said. It also features conservation areas taking up almost half of the development's 980-acre footprint.
"Golden Oak is something totally new: a residential resort community, right in the heart of the magic," said Matt Kelly, vice president of Disney Resort Real Estate Development, in a prepared statement.
Disney Resort Real Estate Development began site work nearly two years ago on the site and the main road and gatehouse have been completed, said Marilyn Waters, spokeswoman for Walt Disney Parks & Resorts Business Development. Disney is finalizing its list of custom homebuilders for the community, which will be made up of seven experienced builders from Florida, Waters said.
Home construction could begin later this year, depending on how quickly buyers are able to work with builders and architects on designing their homes, Waters said.
Golden Oak also will include the previously-announced 445-room Four Seasons Hotel Resort at Walt Disney World Resort. Community residents will likely be offered access to select Four Seasons' future amenities, such as the spa, restaurants, golf course and event space, the release said.
The development isn't the first residential real estate development for Disney (NYSE: DIS) in Central Florida. The company developed Celebration in the mid-1990s, a town that is now home to more than 9,000 residents.
Those wanting to purchase homes must pay a $25,000 refundable deposit and sign a lot release priority agreement to secure a spot on the community's priority reservation list, the release said.
ORLANDO BUSINESS JOURNAL
By Anjali Fluker
Wednesday, June 23, 2010, 12:20pm EDT
Disney selling new dreams - homes
Walt Disney Parks and Resorts announced June 23 it will sell 30 single-family luxury home lots this year in a new residential community on Disney property near the Four Seasons Resort Orlando.
Homes at Golden Oak, a 450-home gated residential resort development, will be priced from $1.5 million to $8 million, said a news release. Three types of homes will be available: village homes on one-fourth-acre lots, estate homes on half-acre lots and grand estate homes on three-fourths-acre lots, the release said. The first homes are expected to be completed in 2011.
The resort community will include a private clubhouse, concierge services and Walt Disney World Resort benefits, the release said. It also features conservation areas taking up almost half of the development's 980-acre footprint.
"Golden Oak is something totally new: a residential resort community, right in the heart of the magic," said Matt Kelly, vice president of Disney Resort Real Estate Development, in a prepared statement.
Disney Resort Real Estate Development began site work nearly two years ago on the site and the main road and gatehouse have been completed, said Marilyn Waters, spokeswoman for Walt Disney Parks & Resorts Business Development. Disney is finalizing its list of custom homebuilders for the community, which will be made up of seven experienced builders from Florida, Waters said.
Home construction could begin later this year, depending on how quickly buyers are able to work with builders and architects on designing their homes, Waters said.
Golden Oak also will include the previously-announced 445-room Four Seasons Hotel Resort at Walt Disney World Resort. Community residents will likely be offered access to select Four Seasons' future amenities, such as the spa, restaurants, golf course and event space, the release said.
The development isn't the first residential real estate development for Disney (NYSE: DIS) in Central Florida. The company developed Celebration in the mid-1990s, a town that is now home to more than 9,000 residents.
Those wanting to purchase homes must pay a $25,000 refundable deposit and sign a lot release priority agreement to secure a spot on the community's priority reservation list, the release said.
Friday, June 11, 2010
Tuesday, May 11, 2010
It's a great time to buy
From Today's Orlando Sentinel:
It's a great time to buy: Homes more affordable than ever
By Mary Shanklin
11:00 p.m. EDT, May 10, 2010
Central Florida home prices are so low that buyers earning the median household income can now afford two mid-priced houses.
While prices have been cut in half during the past three years - from a peak of $250,000 in mid-2007 to $110,000 in March - wages have not dropped off at all, reports show. While those freefalling prices have left 48 percent of Florida's mortgage holders underwater on their home loans, about 11,000 Orlando-area buyers have benefited in the past five months by purchasing during record levels of affordability, which is measured by comparing prices and wages.
Freelance artist Richard Minino, who bought a three-bedroom house last month in Orlando's Audubon Park neighborhood, said that, while his wages have held steady for years, the dramatic price drops made a big difference in what he could afford.
"I'm just extremely glad I waited to buy, because the house I just bought is twice the size of what I could have afforded in 2007, and it's in a way better area, too," said Minino, who had been renting for years.
During Orlando's real-estate price peak in 2007, the area was less affordable than three-fourths of the more than 200 cities studied in a joint report by the National Association of Home Builders and Wells Fargo & Co. By last summer, though, that situation had basically reversed itself, two years into the tumble, and by the end of last year Orlando was generally in the middle of the pack for housing affordability.
Rajia Ackley, broker for Coldwell Banker's Ackley Realty in Kissimmee, said sales prices for homes handled by her agency have dropped from $200,000 two years ago to $121,000 last year and $94,000 most recently. The company's sales volume, meanwhile, was up 46 percent last year to $170 million compared with the previous year, she said, thanks to a rush of buyers that's 60 percent investors and 40 percent local buyers.
"Buyers are taking advantage of the market," she said Friday. "On each property we've listed, we've had from two to 47 multiple offers, and most buyers are paying more than the list price."
Yet affordability has remained high, allowing wage earners to stretch their housing dollars further than anytime in at least 15 years, because lagging consumer confidence and difficulties in obtaining mortgages are holding back many buyers, said Rose Quint, a research executive with the National Association of Home Builders.
"With this level of affordability you would have expected that home sales would have gone through the roof, but there are no loans, no consumer confidence," Quint said. "People are reluctant to buy a house because they are afraid they're going to lose their jobs - they're afraid their 401(k)s are in the tank."
But the biggest factor behind the area's high affordability readings, according to University of Central Florida finance professor Stan Smith, is the high number of distress sales. And those foreclosures and "short" sales not only define the market, he said, they hide the fact that many of the properties involved require additional cash after the sale to bring them up to current standards.
Another reason house shoppers may be reluctant to take advantage of their unprecedented buying power: Living in a region with a 12 percent unemployment rate, many of them have wiped out their savings and have no down payment, Smith added.
Melina Duggal, senior principal in Orlando for real estate adviser Robert Charles Lesser & Co., said prices likely will increase and affordability likely will lessen now that the federal tax credit - primarily for first-time home buyers - has disappeared. The number of distress sales also will likely decline, and that will push up median prices more.
"As the state becomes more affordable, it brings more growth, which has been highly linked to our economy," she said. "Chances are we're not going to stay super-affordable forever."
It's a great time to buy: Homes more affordable than ever
By Mary Shanklin
11:00 p.m. EDT, May 10, 2010
Central Florida home prices are so low that buyers earning the median household income can now afford two mid-priced houses.
While prices have been cut in half during the past three years - from a peak of $250,000 in mid-2007 to $110,000 in March - wages have not dropped off at all, reports show. While those freefalling prices have left 48 percent of Florida's mortgage holders underwater on their home loans, about 11,000 Orlando-area buyers have benefited in the past five months by purchasing during record levels of affordability, which is measured by comparing prices and wages.
Freelance artist Richard Minino, who bought a three-bedroom house last month in Orlando's Audubon Park neighborhood, said that, while his wages have held steady for years, the dramatic price drops made a big difference in what he could afford.
"I'm just extremely glad I waited to buy, because the house I just bought is twice the size of what I could have afforded in 2007, and it's in a way better area, too," said Minino, who had been renting for years.
During Orlando's real-estate price peak in 2007, the area was less affordable than three-fourths of the more than 200 cities studied in a joint report by the National Association of Home Builders and Wells Fargo & Co. By last summer, though, that situation had basically reversed itself, two years into the tumble, and by the end of last year Orlando was generally in the middle of the pack for housing affordability.
Rajia Ackley, broker for Coldwell Banker's Ackley Realty in Kissimmee, said sales prices for homes handled by her agency have dropped from $200,000 two years ago to $121,000 last year and $94,000 most recently. The company's sales volume, meanwhile, was up 46 percent last year to $170 million compared with the previous year, she said, thanks to a rush of buyers that's 60 percent investors and 40 percent local buyers.
"Buyers are taking advantage of the market," she said Friday. "On each property we've listed, we've had from two to 47 multiple offers, and most buyers are paying more than the list price."
Yet affordability has remained high, allowing wage earners to stretch their housing dollars further than anytime in at least 15 years, because lagging consumer confidence and difficulties in obtaining mortgages are holding back many buyers, said Rose Quint, a research executive with the National Association of Home Builders.
"With this level of affordability you would have expected that home sales would have gone through the roof, but there are no loans, no consumer confidence," Quint said. "People are reluctant to buy a house because they are afraid they're going to lose their jobs - they're afraid their 401(k)s are in the tank."
But the biggest factor behind the area's high affordability readings, according to University of Central Florida finance professor Stan Smith, is the high number of distress sales. And those foreclosures and "short" sales not only define the market, he said, they hide the fact that many of the properties involved require additional cash after the sale to bring them up to current standards.
Another reason house shoppers may be reluctant to take advantage of their unprecedented buying power: Living in a region with a 12 percent unemployment rate, many of them have wiped out their savings and have no down payment, Smith added.
Melina Duggal, senior principal in Orlando for real estate adviser Robert Charles Lesser & Co., said prices likely will increase and affordability likely will lessen now that the federal tax credit - primarily for first-time home buyers - has disappeared. The number of distress sales also will likely decline, and that will push up median prices more.
"As the state becomes more affordable, it brings more growth, which has been highly linked to our economy," she said. "Chances are we're not going to stay super-affordable forever."
Thursday, April 29, 2010
Florida Real Estate Market
UF: Florida real estate market has hit bottom
GAINESVILLE, Fla. – April 29, 2010 – Florida real estate markets show the first tentative signs of recovering from the most painful recession in the state's history, according to the latest University of Florida (UF) report.
"Results of our first quarter survey indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," says Timothy Becker, director of UF's Bergstrom Center for Real Estate Studies.
But while most of the survey respondents report the market probably won't get any worse, few say it has actually begun to improve yet, Becker says. "One of our respondents summed it up by stating that 'if anything, we will get less bad.'"
On the positive side, private capital – both foreign and domestic – is continuing to enter the state in search of quality investment deals. As banks start to deal with their problem assets, more deals will come to market.
Another good sign: Life insurance companies have started to re-invest in commercial properties after backing off for the last year and a half, Becker says. Because these companies use premiums from life insurance policies to make investments, they are not deterred by the lack of available bank financing.
"(Life insurance companies) see the fundamentals of the economy stabilizing and they see the opportunity to get quality assets at a good price," Becker says. "So if they think things aren't going to get worse and they may actually get better, it follows that they're going to want to start investing again."
On the negative side, unemployment continues to be one of the state's biggest problems, edging up to 12.3 percent in March, its highest level since the state began keeping count in the 1970s. Florida has lost more than 880,000 jobs since 2007.
Although there is a potential for job growth later in the year, even under the most optimistic assumptions it will take three to four years to return to 2006 levels, Becker says.
Also of concern is the continued reluctance of commercial banks to lend money because of pressure from regulators to manage risks along with depressed values that make it difficult to refinance mortgages.
The retail and office markets are the worst off, Becker says. "Until there is an increase in job growth, there is no need for more office space, and people aren't spending as much money as they used to."
Apartments continue to be the best market in the state due to high demand from people moving out of foreclosed homes. "More people are going to be living in temporary spaces than trying to buy homes just because it's gotten a lot more difficult to buy homes from a financing perspective," Becker says.
Statewide, Florida's new housing market will continue to be slow, a result of more foreclosed homes becoming available. "That competition makes it very difficult for new homes to get built and purchased because buyers can often get an equal or nicer home for a much cheaper price on the foreclosure market," Becker says.
One of the strongest areas of the state is South Florida, especially Miami-Dade and Broward counties, with their diverse economies, steady migration and influx of foreign capital. "The glut of condos in South Florida is actually starting to change hands – they're beginning to rent them – and I think there is more life in downtown Miami than there has been in a long time," Becker says.
Orlando, Tampa and Jacksonville also are picking up. "Florida's big cities – those four areas – are less bad off than the rest of the state, and they're going to recover quicker than other places," Becker says.
Jacksonville, in particular, is in a good position because its housing market never got as hot as other markets; and, as a result, it doesn't have as many foreclosures. "I think Jacksonville is primed to really take off, and with the expansion of the port is going to have a lot of jobs coming into the marketplace," Becker says.
A positive note overall is that survey respondents' confidence in their own business has risen for the fifth consecutive quarter. In previous breakdowns by profession, developers and lenders had extremely low expectations for their own businesses, and that has grown substantially in the last few surveys.
"It's always a good sign for us that the lenders think their business is going to get better," Becker says. "Maybe it means there is some light at the end of the tunnel, even though we're still not at a great spot."
© 2010 Florida Realtors®
GAINESVILLE, Fla. – April 29, 2010 – Florida real estate markets show the first tentative signs of recovering from the most painful recession in the state's history, according to the latest University of Florida (UF) report.
"Results of our first quarter survey indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," says Timothy Becker, director of UF's Bergstrom Center for Real Estate Studies.
But while most of the survey respondents report the market probably won't get any worse, few say it has actually begun to improve yet, Becker says. "One of our respondents summed it up by stating that 'if anything, we will get less bad.'"
On the positive side, private capital – both foreign and domestic – is continuing to enter the state in search of quality investment deals. As banks start to deal with their problem assets, more deals will come to market.
Another good sign: Life insurance companies have started to re-invest in commercial properties after backing off for the last year and a half, Becker says. Because these companies use premiums from life insurance policies to make investments, they are not deterred by the lack of available bank financing.
"(Life insurance companies) see the fundamentals of the economy stabilizing and they see the opportunity to get quality assets at a good price," Becker says. "So if they think things aren't going to get worse and they may actually get better, it follows that they're going to want to start investing again."
On the negative side, unemployment continues to be one of the state's biggest problems, edging up to 12.3 percent in March, its highest level since the state began keeping count in the 1970s. Florida has lost more than 880,000 jobs since 2007.
Although there is a potential for job growth later in the year, even under the most optimistic assumptions it will take three to four years to return to 2006 levels, Becker says.
Also of concern is the continued reluctance of commercial banks to lend money because of pressure from regulators to manage risks along with depressed values that make it difficult to refinance mortgages.
The retail and office markets are the worst off, Becker says. "Until there is an increase in job growth, there is no need for more office space, and people aren't spending as much money as they used to."
Apartments continue to be the best market in the state due to high demand from people moving out of foreclosed homes. "More people are going to be living in temporary spaces than trying to buy homes just because it's gotten a lot more difficult to buy homes from a financing perspective," Becker says.
Statewide, Florida's new housing market will continue to be slow, a result of more foreclosed homes becoming available. "That competition makes it very difficult for new homes to get built and purchased because buyers can often get an equal or nicer home for a much cheaper price on the foreclosure market," Becker says.
One of the strongest areas of the state is South Florida, especially Miami-Dade and Broward counties, with their diverse economies, steady migration and influx of foreign capital. "The glut of condos in South Florida is actually starting to change hands – they're beginning to rent them – and I think there is more life in downtown Miami than there has been in a long time," Becker says.
Orlando, Tampa and Jacksonville also are picking up. "Florida's big cities – those four areas – are less bad off than the rest of the state, and they're going to recover quicker than other places," Becker says.
Jacksonville, in particular, is in a good position because its housing market never got as hot as other markets; and, as a result, it doesn't have as many foreclosures. "I think Jacksonville is primed to really take off, and with the expansion of the port is going to have a lot of jobs coming into the marketplace," Becker says.
A positive note overall is that survey respondents' confidence in their own business has risen for the fifth consecutive quarter. In previous breakdowns by profession, developers and lenders had extremely low expectations for their own businesses, and that has grown substantially in the last few surveys.
"It's always a good sign for us that the lenders think their business is going to get better," Becker says. "Maybe it means there is some light at the end of the tunnel, even though we're still not at a great spot."
© 2010 Florida Realtors®
Thursday, April 22, 2010
Orlando home sales increase
April 22, 2010
From today's ORLANDO BUSINESS JOURNAL
Orlando home, condo sales up in March
Existing home sales in Florida rose 24 percent in March, with 16,294 homes sold statewide compared to 13,090 homes sold in March 2009, said Florida Realtors.
In addition, while March's statewide existing-home median price of $137,000 was down 3 percent from $141,300 a year ago, it was 4.3 percent higher than February's statewide existing-home median price.
Florida Realtors also reported a 63 percent increase in statewide sales of existing condos in March compared to the previous year's sales figure, with 7,148 units sold compared to 4,387 in March 2009.
March's statewide existing-condo median price of $96,900 was down 11 percent compared to the year-ago figure of $108,500, but it was 5.1 percent higher than February's statewide existing-condo median price.
In metro Orlando, 2,489 existing home sales took place in March, a 36 percent increase over 1,828 in March 2009.
The median price for homes in March 2010 was $132,200 in the metro area, a 12.7 percent decrease from $151,500 in the year-ago period.
Meanwhile, 790 condo units sold in March compared with 364 a year ago, a 117 percent increase. However, the median price fell 11 percent to $49,700 compared with $55,700 a year ago.
From today's ORLANDO BUSINESS JOURNAL
Orlando home, condo sales up in March
Existing home sales in Florida rose 24 percent in March, with 16,294 homes sold statewide compared to 13,090 homes sold in March 2009, said Florida Realtors.
In addition, while March's statewide existing-home median price of $137,000 was down 3 percent from $141,300 a year ago, it was 4.3 percent higher than February's statewide existing-home median price.
Florida Realtors also reported a 63 percent increase in statewide sales of existing condos in March compared to the previous year's sales figure, with 7,148 units sold compared to 4,387 in March 2009.
March's statewide existing-condo median price of $96,900 was down 11 percent compared to the year-ago figure of $108,500, but it was 5.1 percent higher than February's statewide existing-condo median price.
In metro Orlando, 2,489 existing home sales took place in March, a 36 percent increase over 1,828 in March 2009.
The median price for homes in March 2010 was $132,200 in the metro area, a 12.7 percent decrease from $151,500 in the year-ago period.
Meanwhile, 790 condo units sold in March compared with 364 a year ago, a 117 percent increase. However, the median price fell 11 percent to $49,700 compared with $55,700 a year ago.
Monday, April 19, 2010
Delinquent Mortgage Numbers Decline
Daily Real Estate News | April 19, 2010 |
Number of Delinquent Mortgages Declines
The number of delinquent mortgages declined 8.6 percent in March, says LPS Applied Analytics, which tracks the performance of loans for investors. Totals also declined in February.
The biggest decline was in loans more than 30 days past due, which are now at about the same level as they were in spring 2008.
"We're not out of the woods, but this appears to be a turning point," says LPS Applied Analytics President Ted Jadlos. "This is the first time we've seen improvement across all stages of mortgage delinquency."
Source: The Wall Street Journal, Ruth Simon (04/19/2010)
Number of Delinquent Mortgages Declines
The number of delinquent mortgages declined 8.6 percent in March, says LPS Applied Analytics, which tracks the performance of loans for investors. Totals also declined in February.
The biggest decline was in loans more than 30 days past due, which are now at about the same level as they were in spring 2008.
"We're not out of the woods, but this appears to be a turning point," says LPS Applied Analytics President Ted Jadlos. "This is the first time we've seen improvement across all stages of mortgage delinquency."
Source: The Wall Street Journal, Ruth Simon (04/19/2010)
Friday, April 16, 2010
7 Cities with Great Real Estate Deals
April 16, 2010
From today's Forbes' Investopedia:
7 U.S. Cities With Great Real Estate Deals
Bobbi Dempsey
You've probably heard it a million times recently: it's a buyer's market right now in real estate. That's actually a big understatement - it's a huge buyer's market. That's bad news for sellers, but good news for you if you're in the market for a new house (and can get financing). While there are attractive deals to be had nationwide, certain areas have a big inventory of affordable homes available now. You can see a full list of such places on HousingTracker.net, but here are some cities our experts have cited as being especially good choices for bargain-minded buyers.
Phoenix
This city has one of the strongest economies in the country right now, according to our experts.
"Good universities in the area have provided a skilled and educated workforce, which has positioned Phoenix as a competitive force in business," says Bill Humphrey, senior vice president and managing director of XONEX Relocation, which provides global relocation services for transferring employees.
"Phoenix is projected to see more growth, especially since the technology, green energy and healthcare/life sciences industries have started to put down roots in the area." Humphrey says houses that were selling for $500,000 before the recession are now in the $300,000 range. (With houses going cheap, there are bound to be problems. Find out more in Avoiding Foreclosure Scams.)
Houston
"The Houston market has a very diversified economy and is home to numerous industries including technology, energy, aerospace and aviation, logistics and manufacturing," Humphrey says. Humphrey credits Houston's solid employment numbers - and the projected growth - to its business-friendly environment, adding that the city's crime rates have seen double-digit decreases over the past ten years.
"There is lots of inventory available, and prices are still very reasonable."
New Orleans
Needless to say, the Big Easy is in a rebuilding period right now, in the wake of some challenging times. The silver lining: "the city has major growth potential and is on the cusp of a big renaissance," says Humphrey. "The community has really come together to rebuild its infrastructure, pride and spirits, making it a nice place to live. Also, Louisiana has shown the greatest unemployment improvement and New Orleans has the lowest jobless rate of any other metro city in its class."
While Humphrey admits there is still some work to be done, he says the city is headed in the right direction and smart shoppers will buy now. "Prices are low and inventory is available."
Atlanta
"Prices have tumbled dramatically, and there are multiple 'mini-mansions' available at bargain prices," says Robert Eisenstein of HomeRun Homes, which operates the Lease2Buy.com site targeting rent-to-own buyers and sellers.
"Most of the properties are not in need of anything more than a little bit of cosmetic work." Inventory seems to be plentiful in this area. According to HousingTracker, there are currently 87,000 single family homes and condos available in Atlanta.
Orlando, Florida
The central Florida area has always been a hotspot for bargains, says Eisenstein, "but with the recent beating the market has taken, prices are lower than ever. There is a mix of very beautiful homes that don't need any work - and there are also homes that need some renovation, but the prices are reflective of this."
Haverhill, Massachusetts
Several experts mentioned the Boston suburbs in general as a good place for great deals, but Haverhill in particular seems to have a lot to offer - no matter what your price range is.
"You can buy a brand new mid-level executive style home in the mid $380,000 to $450,000 range or find a first time buyer move-in condition property at around $170,000," says Lisa Johnson, vice president at Coldwell Banker Residential Brokerage in Haverhill. "Condominiums can be found in the $50,000 to $60,000 range."
Johnson says the area has a lot of great perks, from a thriving bar/club scene to a downtown restaurant district that can rival those of big cities.
Philadelphia
"The MLS lists many properties selling for less than $50,000," says Diane Smith, a real estate agent and Lexicon Realty mortgage broker. "In the $100,000 range there are many houses selling for $10,000 to $20,000 under value as a result of foreclosures and other economic issues."
The Housing Bottom Line
If you're looking for a great deal - and want to explore exciting new areas - focusing on areas with high inventory and low prices can be your ticket to a fantastic bargain on your next home.
From today's Forbes' Investopedia:
7 U.S. Cities With Great Real Estate Deals
Bobbi Dempsey
You've probably heard it a million times recently: it's a buyer's market right now in real estate. That's actually a big understatement - it's a huge buyer's market. That's bad news for sellers, but good news for you if you're in the market for a new house (and can get financing). While there are attractive deals to be had nationwide, certain areas have a big inventory of affordable homes available now. You can see a full list of such places on HousingTracker.net, but here are some cities our experts have cited as being especially good choices for bargain-minded buyers.
Phoenix
This city has one of the strongest economies in the country right now, according to our experts.
"Good universities in the area have provided a skilled and educated workforce, which has positioned Phoenix as a competitive force in business," says Bill Humphrey, senior vice president and managing director of XONEX Relocation, which provides global relocation services for transferring employees.
"Phoenix is projected to see more growth, especially since the technology, green energy and healthcare/life sciences industries have started to put down roots in the area." Humphrey says houses that were selling for $500,000 before the recession are now in the $300,000 range. (With houses going cheap, there are bound to be problems. Find out more in Avoiding Foreclosure Scams.)
Houston
"The Houston market has a very diversified economy and is home to numerous industries including technology, energy, aerospace and aviation, logistics and manufacturing," Humphrey says. Humphrey credits Houston's solid employment numbers - and the projected growth - to its business-friendly environment, adding that the city's crime rates have seen double-digit decreases over the past ten years.
"There is lots of inventory available, and prices are still very reasonable."
New Orleans
Needless to say, the Big Easy is in a rebuilding period right now, in the wake of some challenging times. The silver lining: "the city has major growth potential and is on the cusp of a big renaissance," says Humphrey. "The community has really come together to rebuild its infrastructure, pride and spirits, making it a nice place to live. Also, Louisiana has shown the greatest unemployment improvement and New Orleans has the lowest jobless rate of any other metro city in its class."
While Humphrey admits there is still some work to be done, he says the city is headed in the right direction and smart shoppers will buy now. "Prices are low and inventory is available."
Atlanta
"Prices have tumbled dramatically, and there are multiple 'mini-mansions' available at bargain prices," says Robert Eisenstein of HomeRun Homes, which operates the Lease2Buy.com site targeting rent-to-own buyers and sellers.
"Most of the properties are not in need of anything more than a little bit of cosmetic work." Inventory seems to be plentiful in this area. According to HousingTracker, there are currently 87,000 single family homes and condos available in Atlanta.
Orlando, Florida
The central Florida area has always been a hotspot for bargains, says Eisenstein, "but with the recent beating the market has taken, prices are lower than ever. There is a mix of very beautiful homes that don't need any work - and there are also homes that need some renovation, but the prices are reflective of this."
Haverhill, Massachusetts
Several experts mentioned the Boston suburbs in general as a good place for great deals, but Haverhill in particular seems to have a lot to offer - no matter what your price range is.
"You can buy a brand new mid-level executive style home in the mid $380,000 to $450,000 range or find a first time buyer move-in condition property at around $170,000," says Lisa Johnson, vice president at Coldwell Banker Residential Brokerage in Haverhill. "Condominiums can be found in the $50,000 to $60,000 range."
Johnson says the area has a lot of great perks, from a thriving bar/club scene to a downtown restaurant district that can rival those of big cities.
Philadelphia
"The MLS lists many properties selling for less than $50,000," says Diane Smith, a real estate agent and Lexicon Realty mortgage broker. "In the $100,000 range there are many houses selling for $10,000 to $20,000 under value as a result of foreclosures and other economic issues."
The Housing Bottom Line
If you're looking for a great deal - and want to explore exciting new areas - focusing on areas with high inventory and low prices can be your ticket to a fantastic bargain on your next home.
Thursday, March 25, 2010
Tuesday, March 23, 2010
Monday, March 22, 2010
New Contracts
Pending sales reach all-time high; median price makes a monthly gain
(March 19, 2010 – Orlando, FL) Members of the Orlando Regional REALTOR® Association filed 4,043 new sales contracts in the month of February, the greatest monthly tally since the organization began recording the statistic in 2005 at the height of Orlando’s red-hot market. The number represents a jump of 66.11 percent more new contracts filed in February 2010 than in February 2009 (2,434).
courtesy of ORRA email
(March 19, 2010 – Orlando, FL) Members of the Orlando Regional REALTOR® Association filed 4,043 new sales contracts in the month of February, the greatest monthly tally since the organization began recording the statistic in 2005 at the height of Orlando’s red-hot market. The number represents a jump of 66.11 percent more new contracts filed in February 2010 than in February 2009 (2,434).
courtesy of ORRA email
Short sale incentives
Daily Real Estate News | March 22, 2010 | Share
Short-Sale Incentives Start April 5th
Potential buyers of short-sale homes might consider waiting until April 5th before making a formal offer.
That’s the date the federal government will begin offering lenders financial incentives to hasten the process. Under the new rules, banks will seek a BPO before the property is listed for sale and let the sellers know a minimum number they are willing to accept. If the sellers bring a buyer with a good offer, the lender must accept it within 10 days.
Not all sellers are eligible for the program, dubbed the Home Affordable Foreclosure Alternatives (HAFA), but enough are that it is probably worth waiting.
Source: The Wall Street Journal, June Fletcher (03/19/2010)
Short-Sale Incentives Start April 5th
Potential buyers of short-sale homes might consider waiting until April 5th before making a formal offer.
That’s the date the federal government will begin offering lenders financial incentives to hasten the process. Under the new rules, banks will seek a BPO before the property is listed for sale and let the sellers know a minimum number they are willing to accept. If the sellers bring a buyer with a good offer, the lender must accept it within 10 days.
Not all sellers are eligible for the program, dubbed the Home Affordable Foreclosure Alternatives (HAFA), but enough are that it is probably worth waiting.
Source: The Wall Street Journal, June Fletcher (03/19/2010)
Friday, March 5, 2010
Oprah Surprises Ocoee Middle School on today's show
Ocoee Middle School will be featured on Oprah today at 4 p.m. (WFTV, Channel 9, Orlando).
Back in December the entire study body recorded a "flash mob" video similar to one done in Chicago at the start of Oprah’s current season. The Ocoee Middle School flash mob was recorded to promote the virtues of reading, with the production assistance of Full Sail University and permission from Black Eyed Peas to adapt one of their popular songs.
Oprah loved the video and the school’s creativity so much that she is featuring it on today's show. The show segment was broadcast live from Ocoee Middle this morning and taped for replay this afternoon. Oprah announces, via satellite, to principal Sharyn Gabriel and the assembled body of students and staff in the courtyard that she and Target will give Ocoee Middle a complete library makeover, add 2,000 books and all new computers.
Watch the video here: http://www.youtube.com/watch?v=x6D9jiEYxzs
Back in December the entire study body recorded a "flash mob" video similar to one done in Chicago at the start of Oprah’s current season. The Ocoee Middle School flash mob was recorded to promote the virtues of reading, with the production assistance of Full Sail University and permission from Black Eyed Peas to adapt one of their popular songs.
Oprah loved the video and the school’s creativity so much that she is featuring it on today's show. The show segment was broadcast live from Ocoee Middle this morning and taped for replay this afternoon. Oprah announces, via satellite, to principal Sharyn Gabriel and the assembled body of students and staff in the courtyard that she and Target will give Ocoee Middle a complete library makeover, add 2,000 books and all new computers.
Watch the video here: http://www.youtube.com/watch?v=x6D9jiEYxzs
Wednesday, March 3, 2010
It's easier to get a jumbo loan
The jumbo loan market is starting to thaw, making it easier for move-up buyers to borrow.
Rates on jumbo loans of more than $729,750 in highest-priced markets rose during the financial crisis and lending standards tightened to the point where borrowers couldn’t refinance or get a new loan.
In the last couple of weeks, the average interest rate on a 30-year fixed-rate jumbo fell to 5.79 percent, a five-year low, according to rate tracker Informa Research Services. Rates are even lower on hybrid adjustables.
The availability of these loans suggests that banks are feeling more confident since Fannie Mae, Freddie Mac, and the Federal Housing Administration do not insure them.
Source: Los Angeles Times, E. Scott Reckard (02/28/2010)
Rates on jumbo loans of more than $729,750 in highest-priced markets rose during the financial crisis and lending standards tightened to the point where borrowers couldn’t refinance or get a new loan.
In the last couple of weeks, the average interest rate on a 30-year fixed-rate jumbo fell to 5.79 percent, a five-year low, according to rate tracker Informa Research Services. Rates are even lower on hybrid adjustables.
The availability of these loans suggests that banks are feeling more confident since Fannie Mae, Freddie Mac, and the Federal Housing Administration do not insure them.
Source: Los Angeles Times, E. Scott Reckard (02/28/2010)
Tuesday, March 2, 2010
From this weekend's Sunday Times (London,UK)
Florida's property market has collapsed, but with the worst over, it could be time to swoop in the Sunshine State
Lucy Denyer
February 28, 2010
It's freezing outside, there are at least a couple more months to go before the weather warms up, and the idea of a holiday home in the sun is probably pretty tempting right now. But Spain's not hot enough, and the Caribbean and the Seychelles are too expensive. Could Florida be the answer?
With its country-club lifestyle and balmy climate, the Sunshine State has traditionally been popular with British buyers. In the past 18 months, however, it has fallen out of favour, as prices have come crashing down by 50% or more from their peak. Florida had the second highest foreclosure rate - the equivalent of repossessions - in America in 2008, affecting one in 22 properties. Many remain empty and abandoned, after being seized by the banks.
"Some people just dropped the keys and left - they were effectively handing the property back to the bank," says Todd Swann, owner of Swann & Associates, an estate agency based in DeLand, central Florida. "Pricing didn't seem to matter when times were really desperate. It felt like we were working in a morgue."
In recent months, things have started to pick up. Although prices remain low, properties are starting to move again as people try to make the most of the bargains on offer. For UK-based buyers, there is also the exchange rate to consider: although the pound is already at a nine-month low against the dollar, some analysts expect further falls, which would add to the attraction of buying now.
At face value, there do seem to be incredible deals out there, with flats in some condominiums on sale for as little as $15,000 (£9,700) - sites such as foreclosuredataonline.com give an idea of what's on offer. Yet it's a case of caveat emptor, warns Bill Cowie, director of British Homes Group, a Florida-based company running online auctions where prices start as low as one cent, with no reserve. "A $15,000 condo might sound good, but it's in a building with no homeowners' association, with a wreck of a kitchen," he says.
Instead, do your research, visit America in person - don't even think about buying blind off the internet - and make sure your chosen area is an attractive one with good infrastructure.
In Orlando or other inland areas, it's worth considering a gated community, for a property you can lock up and leave. Stirling Sotheby's International Realty (stirlingsir.com) has a three-bedroom house in the Palisades, a golf community in Clermont, west of Orlando, for £120,000; the owner gets access to a pool, boating and tennis courts.
Northeast of Orlando, in the DeLand area, you are near Ocala National Forest and St John's River, and still only an hour from Mickey and his pals.
Properties with land are a particularly good buy now - land values have dropped so sharply that the extra acreage is almost free. A three- to four-bedroom detached property, with outbuildings and a pool, costs between £116,000 and £162,000.
As with any overseas purchase, there are potential pitfalls. If you plan to a buy with a American dollar mortgage, then any further fall in the pound will increase your monthly repayments; for a fee, you can hedge against this, through a company such as World First (worldfirst.com). Or take out a mortgage half in pounds and half in dollars. Don't forget that you will also be liable for real-estate tax - a yearly fee equivalent to 2% of the purchase price.
Nor should you count on funding your purchase by letting out the property: many condominium associations have rules governing how many rentals you are allowed in a year. Other local restrictions can also apply.
Lucy Denyer
February 28, 2010
It's freezing outside, there are at least a couple more months to go before the weather warms up, and the idea of a holiday home in the sun is probably pretty tempting right now. But Spain's not hot enough, and the Caribbean and the Seychelles are too expensive. Could Florida be the answer?
With its country-club lifestyle and balmy climate, the Sunshine State has traditionally been popular with British buyers. In the past 18 months, however, it has fallen out of favour, as prices have come crashing down by 50% or more from their peak. Florida had the second highest foreclosure rate - the equivalent of repossessions - in America in 2008, affecting one in 22 properties. Many remain empty and abandoned, after being seized by the banks.
"Some people just dropped the keys and left - they were effectively handing the property back to the bank," says Todd Swann, owner of Swann & Associates, an estate agency based in DeLand, central Florida. "Pricing didn't seem to matter when times were really desperate. It felt like we were working in a morgue."
In recent months, things have started to pick up. Although prices remain low, properties are starting to move again as people try to make the most of the bargains on offer. For UK-based buyers, there is also the exchange rate to consider: although the pound is already at a nine-month low against the dollar, some analysts expect further falls, which would add to the attraction of buying now.
At face value, there do seem to be incredible deals out there, with flats in some condominiums on sale for as little as $15,000 (£9,700) - sites such as foreclosuredataonline.com give an idea of what's on offer. Yet it's a case of caveat emptor, warns Bill Cowie, director of British Homes Group, a Florida-based company running online auctions where prices start as low as one cent, with no reserve. "A $15,000 condo might sound good, but it's in a building with no homeowners' association, with a wreck of a kitchen," he says.
Instead, do your research, visit America in person - don't even think about buying blind off the internet - and make sure your chosen area is an attractive one with good infrastructure.
In Orlando or other inland areas, it's worth considering a gated community, for a property you can lock up and leave. Stirling Sotheby's International Realty (stirlingsir.com) has a three-bedroom house in the Palisades, a golf community in Clermont, west of Orlando, for £120,000; the owner gets access to a pool, boating and tennis courts.
Northeast of Orlando, in the DeLand area, you are near Ocala National Forest and St John's River, and still only an hour from Mickey and his pals.
Properties with land are a particularly good buy now - land values have dropped so sharply that the extra acreage is almost free. A three- to four-bedroom detached property, with outbuildings and a pool, costs between £116,000 and £162,000.
As with any overseas purchase, there are potential pitfalls. If you plan to a buy with a American dollar mortgage, then any further fall in the pound will increase your monthly repayments; for a fee, you can hedge against this, through a company such as World First (worldfirst.com). Or take out a mortgage half in pounds and half in dollars. Don't forget that you will also be liable for real-estate tax - a yearly fee equivalent to 2% of the purchase price.
Nor should you count on funding your purchase by letting out the property: many condominium associations have rules governing how many rentals you are allowed in a year. Other local restrictions can also apply.
Monday, February 22, 2010
Claiming Tax Credit
IRS Clarifies What's Needed to Claim Tax Credit
The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.
While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common.
The IRS clarification says: "In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”
For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.
Source: Washington Post (02/20/2010)
The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.
While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common.
The IRS clarification says: "In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”
For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.
Source: Washington Post (02/20/2010)
Monday, January 25, 2010
Johns Lake Pointe, Winter Garden
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Previous customers and clients - the remaining properties at Johns Lake Pointe have now been taken over by the bank and are currently off the market. The receiver is assessing their value and they will then be remarketed as bank-owned/foreclosures. Contact me if you want to know when they are available.
They include -ALICANTE : 2315 sf / 4 bedrooms / 2.5 bathrooms / 3 car garage
SYCAMORE : 3743 sf / 6 bedrooms / 5.5 bathrooms / 3 car garage
LAUREL OAKS : 2563 sf / 4 bedrooms / 3 bathrooms / 3 car garage
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