Congratulations to my hometown of Oviedo, Florida for making the list of the Top Places to Raise Kids in 2013! Take a moment and see if your town made the Bloomberg Business Week list by clicking here.
Friday, January 4, 2013
Thursday, January 3, 2013
Orlando Housing Market Report
Orlando area home sales soared 19.88 percent in November, led by a thunderous 50 percent increase in the number of traditional sales, reports the Orlando Regional REALTOR® Association.
The jump in traditional sales, which typically have steeper price tags than foreclosures and short sales, drove Orlando’s median price to its highest in three years. The November median of $129,000 is 12.17 percent above that of November 2011 ($115,000) and 5.31 percent above that of October 2012 ($122,500).
Orlando’s overall median price has now posted positive year-to-year gains for 17 consecutive months. In addition, the median price has climbed 19 percent since January 2012 and 36 percent since January 2011.
"All of our indicators point to a clearly improving housing market in Orlando,” says ORRA Chairman Stephen Baker, RE/MAX Central Realty. "I’m particularly heartened by the jump in traditional sales, which illustrates a pent-up demand from buyers. This is what owners who want to sell — but have been reluctant to put their homes on the market — have been waiting for.”
All sales types experienced year-to-year increases in median price in November. The median price of normal sales increased 4.76 percent, while the median price of foreclosures increased 12.43 percent and short sales increased 4.76 percent.
Completed Sales
Members of ORRA participated in 2,430 home sales that closed in November 2012, an increase of 19.88 percent compared to November 2011 and a 5.89 percent decrease compared to October 2012.
Compared to November of 2011, the number of short sales (705) decreased 6.62 percent and foreclosures (507) increased 9.74 percent. The number of completed traditional sales (1,218), however, jumped 50.37 percent compared to last year.
Homes of all types spent an average of 83 days on the market before coming under contract in November 2012, and the average home sold for 96.27 percent of its listing price. In November 2011 those numbers were 99 days and 95.19 percent, respectively.
The average interest rate paid by Orlando homebuyers in November, 3.47 percent, set yet another record as lowest average interest rate since ORRA began tracking the statistic in 1989. A year ago, homebuyers paid an average interest rate of 4.10 percent.
Pending Sales
Pending sales – those under contract and awaiting closing – are currently at 8,847. The number of pending sales in November 2012 is 0.70 percent lower than it was in November 2011 (8,909) and 4.38 percent lower than it was in October 2012 (9,252).
Short sales, which take much longer to process from contract to close, made up 67.37 percent of pending sales in November 2012. Normal properties accounted for 21.04 percent of pendings, while bank-owned properties accounted for 11.60 percent.
Inventory
The number of existing homes (all types combined) available for purchase in Orlando is continuing a steady decline that began back in July 2010 at 16,563 and now rests at 7,847. In November 2012, inventory was 22.58 percent less than it was in November 2011.
The inventory of single-family homes is down by 25.53 percent when compared to November of 2011, while condo inventory has decreased by 3.71 percent.
The month-of-supply increased a bit in November when compared to last month: Current inventory combined with the current pace of sales equates to a 3.23-month supply of homes in Orlando (there was a 3.13-month supply in October 2012).
Affordability
This month’s increase in median price has led to a decrease in Orlando’s affordability index: The October index of 247.25 percent is eight points lower than October 2012’s index of 259.29 percent. (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 $54,758 can qualify to purchase one of 4,441 homes in Orange and Seminole counties currently listed in the local multiple listing service for $318,947 or less.
First-time homebuyer affordability in November decreased to 175.82 percent from last month’s 184.38 percent. First-time buyers who earn the reported median income of $37,235 can qualify to purchase one of the 3,195 homes in Orange and Seminole counties currently listed in the local multiple listing service for $192,786 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area increased by 22.74 percent in November when compared to November of 2011 (367 to 299).
The most (110) condos in a single price category that changed hands in November were yet again in the $1 - $50,000 price range and accounted for 29.97 percent of all condo sales.
Orlando homebuyers purchased 219 duplexes, town homes, and villas in November 2012, which is a 1.35 percent decrease compared to November 2011. Most (32 each) fell equally within the $100,000 - $120,000 and the $140,000 - $160,000 price range categories.
MSA Numbers
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in November were up by 13.40 percent when compared to November of 2011. Throughout the MSA, 2,869 homes were sold in November 2012 compared with 2,530 in November 2011. To date, sales are up 0.82 percent for all counties combined.
Each individual county’s monthly sales comparisons are as follows:
- Lake: 27.87 percent above November 2011 (390 homes sold in November 2012 compared to 305 in November 2011);
- Orange: 5.80 percent above November 2011 (1,440 homes sold in November 2012 compared to 1,361 in November 2011);
- Osceola: 3.62 percent above November 2011 (458 homes sold in November 2012 compared to 442 in November 2011); and
- Seminole: 37.68 percent above November 2011 (581 sold in November 2012 compared to 422 in November 2011).
For detailed statistical reports, please click on "Market Info” 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.
Monday, December 31, 2012
A Look Ahead to the 2013 Real Estate Market
According to a recent report from Zillow, more than 30% of the U.S.
home-owning population is underwater on their mortgages. This is a grim
outlook for the real estate market despite increasing property values,
which we can attribute only to the shortage of homes built within the
last 12 months. As 2013 looms, will these upside-down homeowners weather
the rough economic storm or will they list their properties and try to
move on?
The fed is desperately trying to come up with a solution to rescue those individuals who are drowning in negative equity in hopes to free up some of their finances. The logic is that those individuals will then turn to the marketplace with their newly freed funds and bolster the sluggish economy with it. But the fed may be in no position to bail anyone else out with the looming fiscal cliff.
It’s
great that home prices are rising, but it will provide little relief to
the still-crippled real estate market as we move into 2013. Although some markets are seeing sales gains,
the current environment may not have enough of an effect on potential
buyers as they weigh the pros and cons of investing in a home.
Primarily, will the property’s value increase enough to outweigh any
potential for negative equity?
But as property values go up, even slightly, so do the ambitions of property owners who may feel they can capitalize by asking for higher selling prices or increasing monthly rents. As such, commercial and residential renters should look to lock in low monthly payments by securing long-term occupancy contracts before prices go any higher in the upcoming year.
“That might be problematic for some rent-to-own properties,” says Brian McNerma, credit consultant with rent to own property listing service, HomeStarSearch. “Sellers will try to make up for their financial losses by passing the negative equity on to potential homeowners.” But not all property owners are underwater on their mortgages, he insists, and he urges those interested in lease-option to research the contract and the seller carefully.
Renters unable to escape higher monthly rents, however, just might consider making the long-awaited home purchase.Record-low interest rates and affordable prices are definitely enticing to new home buyers, but they do little to help those currently upside-down on their mortgages. Therefore, the number of home sales in 2013 – while trending upward slowly but surely – will be greatly limited by those who can’t afford and cleanly walk away from negative equity and start anew.

In fact, those affected most by negative equity are young owners who purchased homes with low down payments and didn’t have a chance to see equity improve before the housing bubble burst. Now they’re left with financial security enough to maintain the mortgage, but not enough to get out from underneath it.
Despite rising property values, the market is far from healthy. Even with seeming upward trends in major markets, it’s important to look at the other factors that influence those trends prior to making the assumption that things are going well.
The slow growth however, is good long-term as it allows potential buyers to establish down payments, build credit, and take advantage of various financing options without housing becoming too unaffordable. The market depends on this type of behavior, which is much more stable than the easy credit days prior to the recession.
The fed is desperately trying to come up with a solution to rescue those individuals who are drowning in negative equity in hopes to free up some of their finances. The logic is that those individuals will then turn to the marketplace with their newly freed funds and bolster the sluggish economy with it. But the fed may be in no position to bail anyone else out with the looming fiscal cliff.
But as property values go up, even slightly, so do the ambitions of property owners who may feel they can capitalize by asking for higher selling prices or increasing monthly rents. As such, commercial and residential renters should look to lock in low monthly payments by securing long-term occupancy contracts before prices go any higher in the upcoming year.
“That might be problematic for some rent-to-own properties,” says Brian McNerma, credit consultant with rent to own property listing service, HomeStarSearch. “Sellers will try to make up for their financial losses by passing the negative equity on to potential homeowners.” But not all property owners are underwater on their mortgages, he insists, and he urges those interested in lease-option to research the contract and the seller carefully.
Renters unable to escape higher monthly rents, however, just might consider making the long-awaited home purchase.Record-low interest rates and affordable prices are definitely enticing to new home buyers, but they do little to help those currently upside-down on their mortgages. Therefore, the number of home sales in 2013 – while trending upward slowly but surely – will be greatly limited by those who can’t afford and cleanly walk away from negative equity and start anew.
In fact, those affected most by negative equity are young owners who purchased homes with low down payments and didn’t have a chance to see equity improve before the housing bubble burst. Now they’re left with financial security enough to maintain the mortgage, but not enough to get out from underneath it.
Despite rising property values, the market is far from healthy. Even with seeming upward trends in major markets, it’s important to look at the other factors that influence those trends prior to making the assumption that things are going well.
The slow growth however, is good long-term as it allows potential buyers to establish down payments, build credit, and take advantage of various financing options without housing becoming too unaffordable. The market depends on this type of behavior, which is much more stable than the easy credit days prior to the recession.
Tuesday, December 18, 2012
Holiday Season = Perfect Time to Find Your Next Home
The Holiday Season is the Perfect Time to Find Your Next Home
Here are my top 12 reasons that the holiday season is the best time to find your perfect home:
- December is a great time to envision future family gatherings while visiting homes that are beautifully decorated and presented at their finest.
- Mortgage rates remain near historic lows.
- Selection is excellent. With more available properties on the market, finding just the right home has never been easier!
- Discovering the home of your dreams is a great way to relax and escape the crowded stores and malls.
- Fewer buyers are actively looking at homes during the holidays, making it the perfect time for you to buy with less competition.
- Keep that New Year's resolution by moving into your dream home and adding a fitness room.
- A new home is the gift that keeps on giving throughout the year.
- We're open for business every day in December, except Christmas, and our full-time sales professionals are dedicated to serving your real estate needs.
- Cooler weather makes home shopping a pleasurable experience.
- Change is good. Start the New Year off right, with a new home.
- Planning an open house tour via FloridaMoves.com has never been easier.
- The holidays are the perfect time to treat yourself!
Contact me today to find your dream home! Simply go to www.floridamoves.com/tim.shelton or visit timsheltonrealtor.com.
Wednesday, December 5, 2012
Tips to Avoid Common Home Buyer Mistakes
What's missing from your current home? Storage space? Decent
parking? Privacy? You might not have noticed these missing features when
you and your home were in the honeymoon phase, but sometime in the
first few months, they became obvious.When you tour a home, it's normal to get caught up in the granite kitchen countertops that you might not notice there's insufficient square footage to butter your morning toast. And while that master bedroom looks stylish and neat, you don't realize it's small.
Sometimes, there's a fix. You can downsize the bedroom furniture. You can install shelving or buy bookcases to add storage. And for privacy, you can put up curtains or a fence. And sometimes you just have to learn to live with it. Or you vow next time around, you won't make the same mistake.
No one ever walked out of an open house thinking, "Nice place, but too many closets." On the other hand, a good staging job can disguise that a home has precious little storage.
This is where it pays to use your X-ray eyes. Visually strip away the furniture in a for-sale home and place your furniture and belongings there. Or simply measure - the rooms and the closets - and compare the square footage to what you have now, said Eric Tyson, author of "Home Buying for Dummies."
Ditto for kitchen cupboards, pantries and counter space, said Michael Corbett, author of "Before You Buy." Those countertops may look spacious until you get out your kitchen toys and discover there's not enough room, he said. Really look at a kitchen in terms of what you need when you cook to make sure the home offers the counter space you need.
You're only 15 miles from work. How long is that in traffic time? That daily commute factor is "a really big one that a surprising number of people don't properly research before they commit to a house," Tyson said. He advised trying the commute a few times, driving both ways, before you buy.
Some buyers shop for homes where "commute" doesn't automatically mean "car," said Ron Phipps, immediate past president of the National Association of Realtors and principal broker with Phipps Realty in Warwick, R.I.
"We're seeing a lot more urbanization and a lot more people moving toward public transportation links," he said.
One college professor wanted a home that was a comfortable walking distance from campus, he said. "Five years ago, that wouldn't have been a priority."
It could be the Saturday night party house, the guy who thinks Sundays were made for leaf blowing or the kid who practices the tuba 24/7.
Every neighborhood has its eccentrics, and you need to know if you can live with them.
One of the best ways to find out what's going on in the neighborhood is to chat up the neighbors, Corbett said.
"You must find out if there are any existing neighborhood problems."
From the minor issues (such as one neighbor's casual mechanic "shop") to the major (a string of crimes in the area), you want to know the concerns of the people who live there.
"It's really about asking questions up front," Corbett said. Ask the seller, and do your own research.
One smart move is to visit during morning rush hour, afternoon and evening rush hour, Corbett said.
Most people flip lights and faucets on and off when they tour a home to make sure they get the expected result.
But that's hardly the test of whether the water pipes or electric wiring will meet your needs, Corbett said. You'll need to determine if the plumbing and wiring can accommodate the way you live.
Flipping a bedroom light on and off doesn't compare to a busy morning with two blow-dryers and an electric shaver running while the microwave heats breakfast, the air conditioning clicks on and the TV blasts the traffic report.
If you are showering while someone does laundry and a third person flushes the toilet, will you feel a drop in pressure or a blast of cold water? With water, you can run a few things at one time and see how the home handles the pressure, Corbett said.
As for the electrical systems, you might want to talk to your home inspector, he said. Explain how many of people are in the household who may use electricity simultaneously, and ask if it will hold up, Corbett said.
It's a great home for you, but does it fit your car? Tyson said one home he owned came with street parking. It was great, but simple errands such as a trip to the market required a little more planning and a few extra steps.
"In retrospect, we wouldn't have done it differently," he said. "But you have to make sure you understand the ramifications of not having a garage in the city."
Some neighborhoods have rules about parking in the driveway or on the street. So if you have a preference or other plans for your new garage, it's smart to check any covenants before buying.
Privacy is a factor some buyers overlook until it's too late. Notice "if when you're in the bathroom, you're staring into your neighbor's shower," Corbett said. "You really have to be smart. Try to spend some time in the house."
The goal is to get the feeling of what it's like to really live in the house before you buy it, he said.
"I think the biggest mistake people make is they have to see not only do they fit," Corbett said, "but does their lifestyle fit (the home)?"
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