Orlando Sentinel: What (Home) Does $250,000 Buy?

What Kind of Home Does $250,000 Buy These Days?

Marty had a property listing featured and was quoted several times in a front page article in the February 11, 2007 issues of the Orlando Sentinel.  A link to the article is below:

http://www.orlandosentinel.com/orl-250grand1107feb11,0,5755214.story

It was an intersting review of the different types of properties and how location determines price.  In the close in markets, homes are far more expensive and in the outskirts homes are still much more affordable. 

Of course, before determining if driving further is wise to get more home for the money, you should look at the cost of gar and repairs, your time, and wear and tear on the vehicle to determine if there are any real savings.  If your house payment is $300 less but you spend two hours a day on Interstate 4 and your cost to commute is $300 a month, there is no savings. 

I guess the bottom line usually comes down to choosing the lifestyle you prefer and finding housing that you can afford in a location that works for you.  The commute and the housing prices in the area are only two of many important factors to consider when choosing a home!

Hunt Receives Prestigious "2006 Rising Star" Award!

Hunt Honored with 2006 Rising Star Award!

The Rising Star Award was presented to Marty Hunt, ABR, CRS, GRI, e-PRO, of Realty Executives Orlando, for demonstrating exceptional performance, potential, and dedication in service to the Orlando Regional Realtor® Association.  The award was presented as part of ORRA's Seventh Annual Showcase Awards, which was held at SeaWorld's Ports of Call on Saturday, January 27, 2007.

Mr. Hunt is an eighteen year real estate veteran specializing in residential real estate marketing and sales throughout Central Florida.  He currently serves as 2006-07 Treasurer of the Mid-Florida Regional Multiple Listing Service, Chairman of the MFRMLS Finance Committee, Chairman of the ORRA Risk Management Task Force, 2007-08 President-Elect for MFRMLS, and serves on several other Committees and Task Forces at ORRA and MFRMLS.  Mr. Hunt also serves as a Director for MFRMLS and a Director for the Florida Association of Realtors®.

The Orlando Regional Realtor® Association, recognized as one of the most innovative real estate associations in the country, represents more than 11,500 real estate professionals throughout Central Florida.  The Mid-Florida Regional MLS supports more than 32,000 professionals from eight local real estate Associations including Orlando Regional, Greater Tampa, West Volusia, Bartow, Lakeland, East Polk, Greater Lake and the Osceola County Association of Realtors®.

January Home Sales Surprise & Disappoint

January 2007 Home Sales Lower Than Expected

Preliminary sales figures for January, 2007 for Orange and Seminole Counties were released today.  This report covers much of the Greater Orlando area.  The report shows only 1,314 homes sold last month compared to 1,917 in January, 2006.  That's a decrease of about 31% below last year's soft sales figures and the lowest number of sales in recent memory over several years.  This certainly MUST be the bottom that some say we've hit!  I look for definite improvement throughout the year.

There were 6,630 new listings added in this market during the same period making the inventory on hand balloon to 21,266 homes for sale.  Using the current inventory divided by the current sales rate results in an absorption rate of over sixteen months.  In other words, if homes sell at January's pace it would take sixteen months to sell the current inventory!  This is the highest level I've ever seen.

The good news is that sales activity seems to be increasing and I look for February's numbers to be improved.  We're seeing reasonably good buyer activity and more offers to purchase which results in accepted contracts and is an indicator of future sales.

Interest rates continue to hover near historic lows and I anticipate a much improved spring and summer buying season in 2007.  I'm not sure we'll have the strength to surpass last year's numbers (and last year's numbers were a significant drop from 2005).  I think, at a minimum, we'll see vast improvement and will not see 30% declines in sales as we did in January.  I'm still hoping for a revised number that shows higher sales for the month.  The figures released today simply seem too low for the market we are in.

There are nearly 12,000 Realtors in the marketplace to complete only 1,314 closed sales last month.  With two sides to each sale (generally a buyer's side and seller's side in a transaction), that would make about 2,600 transaction sides for 12,000 agents.  If no agent had multiple sales (which we know is not the case), there would be approximately one sale for every five agents.  In other words, on average, four of five agents didn't participate in a sale last month!

Tornado Damage at The Villages

Tornado Damage to Homes of Friends & Clients!

The tornadoes that raced through Central Florida in the very early morning hours on February 2 have affected some of our friends and clients.  The most serious damage and loss of life was in Sumter and Lake County with significant damage also in Volusia and Seminole County.

I have worked with a number of clients who have sold homes throughout Central Florida and moved to The Villages, Florida to retire.  There are reportedly about 1,000 homes damages or destroyed in The Villages alone.  The brand new home of our clients Dan and Betty has been damaged to the extent that it's condemned. 

Governor Crist declared a State of Emergency and President Bush declared it a Federal Disaster Area.  An EF-3 tornado with winds between 155-160 miles per hour touched down in Lady Lake, Lake Mack and Paisley.  There are 20 confirmed deaths so far in that area.  Deland and New Smyrna were also hit by EF-2 and EF-1 tornadoes respectively. 

Here's a link to some pictures of the destruction at The Villages: 

http://www.thevillagesdailysun.com/articles/2007/02/02/news/news01.txt

Please keep these families in your thoughts and prayers.

Marty

2007: Real Estate Trends In Central Florida

2007: A Look Ahead at This Year's Real Estate Market in Central Florida

What will the Central Florida real estate market look like this year?  After two of the wildest years in history in 2004 and 2005, the market cooled dramatically in 2006.  Price appreciation in 2006 was minimal but positive after two record years with prices rising about 25% in 2004 and 30% in 2005!  Anyone buying or selling and any Realtor® working in the 2004-2005 markets certainly experienced one of the most exciting periods in the history of real estate in Central Florida!  2006 was the year of the shift from the hottest seller's market ever changing to possibly the best buyer's market ever.  It was a shift in market balance unlike anything seen before.

Fast forward to 2007:  We begin this year with approximately 20,000 homes for sale, nearly double the inventory from a year ago and nearly SIX TIMES the low inventory point in 2005 when we dipped below 4,000 homes for sale; that was the peak of the buying frenzy!  Sales have declined the last several months of 2006 but it seems the bottom has been reached.  I expect we'll turn the corner slowly but very soon.  Sales figures could look stronger toward the middle and end of 2007 when we start going up against the declined 2006 soft sales figures.

Interest rates are staying near historic lows; prices have stabilized and will likely show a slight INCREASE in 2007.  It's the perfect time for buyers and long-term investors to enter the market; the perfect time for many folks to consider rental property as part of their retirement income strategy; and the perfect time to consider that beach condo or second home purchase for your family enjoyment!

I look forward to a market in 2007 that moves toward balance between buyers and sellers.  The nicest homes in the best neighborhoods will continue to sell well, and the homes that aren't the "cream of the crop" will stay on the market longer and probably require price concessions or incentives to get them sold.  New home builders have dropped prices as much as 25-30% to attract buyers so we could now see prices stabilizing and slightly increasing in 2007!

It's my pleasure to serve the real estate needs for you, your family, friends, co-workers and neighbors as I enter my 18th year as a full-time Realtor® in Central Florida!  Here's to a successful year in '07!

Marty