ORLANDO HOME SALES NUMBERS STRONG FOR APRIL

The Orlando Regional Realtors Association (ORRA) has released the April performance numbers for Central Florida and the numbers are promising.

Total inventory of homes for sale increased slightly from March totaling out at 10,647. 4,401 new properties hit the Orlando area real estate market for April. 

The average mortgage rate dropped from 4.43% in March to 4.39% in April. The median and average sold home prices stayed about that same at $163,000 and $204,000 respectively.

The average days on market also remained steady at 77 days.  

The most impressive number for me was the days to close average which was 46 days. This is the average time it takes a property to close once it goes under contract. Why do I feel this is so important? Because it is an indicator of a shifting market from a pre-foreclosure market (aka: short sales) to a more conventional market. Cash buyers are still major players in the market but even cash deals are subject to long delays when dealing with short sales. This shortened time frame, almost 20 days shorter than the same time last year and the lowest in the last three years, shows signs of a recovering market in my opinion. This with the addition to the increasing inventory of new homes for sale in the Orlando market also shows me that sellers are finding the market more palatable in terms of what fair market value is for their homes.

A recovering market means recovering communities, conventional sales bring back the days of well kept, move in ready homes, home warranties and negotiations no longer on “As Is” contracts. Its a win for the seller, the buyer and the community at large. The next big hurdle, as I see it, is having the banks relax their credit restrictions a bit so that financed buyers can get back in the game. Cash buyers won’t last forever and if we want to continue our positive strides back to a healthy Orlando real estate market, financed buyers must be allowed back in to the game.

-Rob Sassos

Broker/President

*for more information on the orlando real estate market or assistance with financing, please e-mail Rob: Rob@SimplicityRE.com

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WTF?!

(Where's The Financing?!): Is the Current Real Estate Market Recovery Sustainable?

Many industry experts believe it is. Initially thought to be an anomaly, the current housing market recovery seems to be sustainable. In a recent article in DSNews, analysts for Capital Economics feel the current uptick in the housing market will remain sustainable for the foreseeable future. Though this rapid recovery took many analysts by surprise,there are several major indicators that suggest the current recovery is more than a flash in the pan.
Sustained rises in demand, home prices and homebuilding activity along with new and existing home sales demonstrate lasting recovery. These same analysts are also predicting a price growth of 5% for 2014. According to CoreLogic, the Orlando residential real estate market saw a residential median price increase of 10% in the last twelve months. The biggest threats to this continued growth, according to analysts, is the country falling in to another recession or the release of the current shadow inventory (currently estimated at 3.8 million properties, 1.5 times larger than the current number of active properties for sale) both of which seem unlikely. Concerning the shadow inventory, it would not be beneficial to the banks owning them. A flood of properties on the market and a dramatic drop in property values would not benefit anyone.
Though these major threats do not seem likely, there are larger issues to consider. The current real estate market is being sustained primarily by investors and cash buyers. According to the Florida Association of Realtors, more than half the homes purchased in Florida were cash deals. The concern here, especially with the large investors, is when property values increase, so do the deep discount opportunities that investors look for. ROI is the name of the game and when those deep gains evaporate, so does investor interest. Florida does benefit in being the most popular state for foreign investors which almost always pay cash. Financed buyers, on the other hand,have been a very small player in the national market and in the Orlando real estate market as well. Increased financed transactions and loosened credit restrictions go hand in hand. To allow the financed buyer back in the market, relaxed credit restrictions must inevitably occur.
My own personal experience for the last four years, both the Orlando and Tampa Bay markets, leads me to believe that property values and market recovery will be slow but positive. I initially was in agreement that this was just an positive hiccup in the market and when the large investors began to slow their buying pace, the market will slow as well. However, I have not seen this. What I have seen is increased buyer activity, receiving multiple offers at asking price or higher on many of my listings and an increased interest in new construction. Don’t get me wrong, there are still deals to be had out there, especially for cash buyers but they are significantly more scarce than they were two years ago.
All in all, I agree with the analysts that the market is recovering and will continue to recover. I don’t see any dramatic rise in property values in the near future but rather a more slow and steady rise to recovery.
What are your thoughts on the analysts forecast?

-Rob Sassos is the Broker/President of Simplicity: A Real Estate Brokerage Company. Simplicity specializes in residential real estate and property management in the Orlando and Tampa Bay markets.

DSNews

Florida Association of Realtors

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This is important information for those who have sold or plan to buy or sell short sales this year. The extension of the Mortgage Debt Relief Act is critical for many Americans. I have been involved in hundreds of short sale transactions. If you have questions, please contact me. ?#‎orlando? ?#‎realestate? ?#‎ShortSale?

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SHORT SALE INFORMATION CLICK HERE

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