Home Buyer Tax Credit Extended AND Expanded!!!

Home Buyer's Tax Credit Extended & Expanded

As widely anticipated, the up to $8,000 First Time Home Buyer's Tax Credit has been extended.  It has also been expanded and there are several NEW changes that could affect you so please read the one page document linked below to see if you qualify!  The new time frame to purchase a home and receive the tax credit has been extended from November 30, 2009 to April 30, 2010.  There's also a 60 day period after April 30, 2010 for those with a binding contract to close the transaction and still receive the tax credit.

There are several important changes including a potential $6,500 tax credit for current homeowners which is brand new and begins December 1, 2009.  There are conditions for eligibility which are included in the document linked below.

Also in the document below there is information about the new Anti-Fraud Rule, higher income limits, cost of home limits and purchases by a dependent so please review the document.  Here's that link:

www.realtownblogs.com/uploads/CentralFloridaRealEstate_Homebuyer_Tax_Credit_Changes_Chart.pdf

A five month extension for the tax credit will go very quickly so NOW is the time to begin finding the perfect home for you!  Congress has stated that there will NOT be another extension of this program.  It will be my pleasure to assist you or anyone you know with any real estate needs or questions.  If you're looking to buy or sell real estate in Central Florida please contact me by email or phone.  I look forward to serving you!

Time to Invest In Central Florida Distressed Properties? YES!

Should I invest in Notting Hill? YES!

Good morning Investor G. Thanks for your question on Trulia Voices regarding investing in Notting Hill in beautiful Lake Mary, Florida.

While no real estate agent or financial adviser (or even a psychic?) can determine future values of any investment (real estate, equities, art, etc.) I would say Notting Hill, at today's distressed prices, would be a very good investment especially for the long term.

The values dropped from $350,000-$440,000 just two years ago to today's prices of around $65,000 to $85,000 for two bedroom units and around $100K-$125K for three bedroom units often with two car garages and many I've seen that are in excellent condition.

The Association fees are "high" I suppose but that wasn't the real issue. The problem was the high prices and the extremely high property taxes!!! A secondary problem seems to be the lack of available financing since I believe the developer still owns too many units to meet guidelines AND the high rental and vacancy rate (or not meeting the minimum percentage for owner occupied units) so almost ALL of the recent sales have been for cash. The cash investors are getting some great deals/great prices on these bank-owned and short sale units.

The real difference NOW is that the County has reacted by lowering the assessed values of these properties by HUGE percentages. Some of the units which had tax bills approaching $4,500 a year are now assessed for 1/3 of the 2008 taxable value. So instead of taxes being almost $400 a month I'm seeing 2009 tax bills at closer to $1600 a year or $133 a month when you figure your ROI. That cut in taxes of almost $3,000 a year or $250 a month makes for a real potential of possible cash flow in addition to buying at low prices thinking there's excellent potential for price appreciation.

As we see more owners occupying these units and when the developer sells out their remaining units which I understand they still own the values could and should rise significantly. The bottom line is with low prices and low property taxes and a desirable rental market in the Heathrow-Markham Woods area, Notting Hill looks like a great place to invest. I think the demand for rentals at today's prices in there also support the investment potential.

Feel free to call or email with any questions. You do have to react quickly in Notting Hill since the last several offers I've written in there have had multiple offers in a matter of hours! That also tells me that the investors have discovered this is a place where they'd be looking to invest.

If you want to search for the bank owned, short sales, corporate owned or other distressed properties, go to http://www.MyFloridaHomesMLS.com/marty and click on the big "Foreclosure" button or use my no obligation search at http://www.OrlandoBankOwnedProperty.com or http://www.OrlandoForeclosureProperty.com (both direct to the same web site). I can be reached at the email address or phone number below if I can assist you. Thanks and have a great Sunday!

Marty

Marty Hunt, Realtor®, ABR, CRS, GRI, e-PRO
Owner/Partner: Florida Home Team Realty, LLC
Direct, Anytime: (407) 869-7779
Toll Free: (888) 412-8681 Fax: (407) 869-8987
Email: mailto:marty@martyhunt.com
Web Site: http://FloridaHomeTeam.com or http://www.MyFloridaHomesMLS.com/Marty

See Thousands of Foreclosures and Bank Owned Properties! Go to
http://www.OrlandoForeclosureProperty.com and click on "FORECLOSURE".Web Reference: http://MyFloridaHomesMLS.com/marty

HUD Announcement NOT What is Needed!

HUD: Tax Credit Can Be Used on Closing Costs, NOT As Part of Minimum 3.5% Down Payment! 

It's not at all what the consumer or the real estate industry or homeowners nationwide wanted or needed and it's yet another example of big government not understanding what happens at "street level".  HUD did NOT approve a plan to allow buyers to use the $8,000 first-time home buyer tax credit toward their down payment.  This is a significant back pedal from what everyone thought would be a HUGE help to the buyers and to the real estate market overall.

Unfortunately HUD announced FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can't be used to cover the minimum 3.5 percent down payment, senior HUD officials told reporters on a conference call Friday morning.

Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent down payment.

In reality, HUD allows the seller of a property to pay "all" of the buyer's closing costs up to 6% (which generally covers all of the costs) and that is how business is generally done in the Central Florida market.  First time buyers come up with the down payment and ask the seller to assist by paying their costs.  I closed three or four transactions in the last 30 days where the seller paid the buyer's full closing costs and pre-paids (escrows) so the buyer's total investment was the 3.5% down payment.  So the big "news" is that not much has changed and this won't help most buyers who are strapped for cash.  The vast majority of sales using FHA financing already do not have the buyer paying closing costs so this new rule in most cases in not a factor and did nothing to stimulate sales and in reality almost nothing to assist a buyer who is short on cash but has acceptable credit, income and job stability to otherwise qualify. 

So the bottom line is that the big announcement by HUD is actually a big disappointment.  HUD, please revisit this issue and give the consumers what they want and need.  What better use could there possibly be for the $8,000 tax credit than to have the buyer plunk it down as a down payment on their first home?  You're going to give them the money anyway so why not give it to them to fund the purchase?  I understand HUD wants the buyer to have an investment (some "skin in the game") but they're going to give them the $8,000 with NO restrictions on how it is spent or wasted...why not use it as their down payment?  That sounds like better use of the money than buying furniture or a couple of new flat panel TV's or taking a vacation!

Home Buyer Tax Credit Loans Update

HUD: Homebuyer Tax Credit Loans Still on Track

News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.

"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® Magazine Wednesday afternoon.

Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.

The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.

When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.

Source: REALTOR® Magazine Online

IRS Form 5405 To Claim Your $8,000 Tax Credit!

IRS Form to Claim Home Buyer Tax Credit

Below is a link directly to the IRS Form 5405 to claim the 2009 First-Time Home Buyer Tax Credit of $8,000.  The form has the information to determine if you qualify or feel free to call or email me with your questions!

Encourage your friends, family and co-workers to buy a home between now and December 1, 2009 to receive $8,000 if you meet the simple guidelines.  My previous post contained the FAQ's so I won't repeat them here but feel free to call or email if you have any questions!

www.irs.gov/pub/irs-pdf/f5405.pdf

Have a great weekend!

Marty

2009 Home Buyer's Tax Credit Quiz/Q&A

2009 HOME BUYER TAX CREDIT Q&A
You answered 12 out of 12 questions correctly. OK, genius, you obviously paid attention to news about the tax credit! But there's always more to learn. The 2009 First-time Home Buyer tax credit can be a great incentive to get first-time buyers ready to purchase. Learn even more: Download the slides and replay the broadcast from a REALTOR® Magazine Webinar, or access additional information at REALTOR.org. 1. To qualify for the 2009 First-Time Home Buyer Tax Credit, a home must be purchased in what time period?   Your Answer Is Correct: Jan. 1, 2009-Dec. 1, 2009 The home must be purchased on or after Jan. 1, 2009 and before Dec. 1, 2009 to qualify.   2. In order to qualify for the full $8,000 tax credit, the house must be at least what price?   Your Answer Is Correct: $80,000 Any home that is purchased for $80,000 or more will qualify for the full $8,000 credit. The credit is equal to 10 percent of the home's purchase price, up to $8,000. So if the house costs less than $80,000—say, $75,000—the credit will be 10 percent of the cost (in this case, a $7,500 credit).   3. A first-time home buyer is defined as a buyer who hasn't owned a principal residence for how long?   Your Answer Is Correct: 3 years prior to the purchase A first-time home buyer is considered to be a purchaser who has not owned a home in the three years previous to the day of the 2009 purchase. So if the last time you owned a home was in 2005, you would be eligible for the tax credit, even though it's not technically your "first" home. Married joint filers must both meet this "first-time home buyer" requirement in order to claim the credit on a joint return.   4. What is the income limit for claiming the full tax credit for married taxpayers filing a joint return?   Your Answer Is Correct: $150,000 Married couples filing jointly cannot have an income of more than $150,000 to qualify. If the couple makes more, they don't lose out entirely, though. The credit phases out for married couples (filing jointly) who earn $150,000 to $170,000 in annual income, with a smaller credit being awarded for the higher amounts. Learn more about the formula at REALTOR.org.   5. What is the income limit for claiming the full tax credit for a single taxpayer?   Your Answer Is Correct: $75,000 Similar to married couples filing jointly, singles making more than $75,000 in annual income don't necessarily lose out entirely on the benefit of the credit. The credit phases out for single filers earning between $75,000 and $95,000. Learn more about the formula at REALTOR.org.   6. How is a home buyer’s income determined for tax credit eligibility?   Your Answer Is Correct: Adjusted Gross Income (AGI) For most individuals, “income” will be defined and calculated as Adjusted Gross Income (AGI) on their IRS 1040 income tax return forms. AGI includes wages, salaries, interest and dividends, pensions and retirement earnings, rental income, and several other elements. AGI is the number that appears on the bottom line of the front page of a 1040 form.   7. What is the most significant difference between this tax credit and the one Congress approved in July 2008?   Your Answer Is Correct: The repayment feature is eliminated. The 2008 home buyer tax credit that Congress approved was basically an interest-free loan but it had to be repaid over 15 years, whereas the 2009 tax credit does not have to be repaid. The 2008 tax credit also had a limit of $7,500.   8. What types of homes do not qualify for the tax credit?   Your Answer Is Correct: They all qualify Basically any home that is used as a principal residence qualifies for the tax credit, including single-family houses, mobile homes, townhouses, condos, manufactured homes and even houseboats. Generally, you must spend 50 percent or more of your time in the home for it to be considered a principal residence.   9. To claim the tax credit, you will need to:   Your Answer Is Correct: Claim it on your federal income tax return. It's that easy: Just claim it on your federal income tax return; no pre-approval is necessary. Home buyers will need to complete IRS Form 5405 to determine their credit amount and then claim that amount on Line 69 of their 1040 income tax return.   10. Which of the following statements about the tax credit is TRUE?   Your Answer Is Correct: Vacation homes and rental properties are not eligible. The home must be a principal residence that is owned by the occupant, so vacation homes and rentals would not be eligible for the tax credit.   11. What if buyers are eligible for an $8,000 credit, but their entire income tax liability for the year is only $5,000?   Your Answer Is Correct: They'll get a refund for $3,000. Any credit amount unused will be refunded as a check to the buyer. So the purchaser would receive the difference between the $8,000 credit amount and the amount of tax liability (so in the above case, a $3,000 refund).   12. How long do owners have to stay in their homes without having to repay the tax credit?   Your Answer Is Correct: 3 years The home cannot be sold until three years after the purchase, or owners will be required to repay the tax credit. This is to prevent buyers from flipping properties in order to cash in on the credit.

Central Florida Real Estate 2007: From the Rear View Mirror!

2007 Central FL Real Estate: From the Rear View Mirror!

It's that time of year when we close the books, pack away the files, and reflect on the happenings of the past year. It's a look back which hopefully will give us some insight about what lies ahead for 2008.

The median sales price of a single-family home in the Orlando area in December 2007 dropped in one month by $11,000 to $223,900, reports the Orlando Regional Realtor® Association. The median sales price for December 2007 is 10.44% below that of December 2006 ($250,000). HERE'S AN INTERESTING FACT YOU DON'T SEE IN THE NEWSPAPER: The AVERAGE sales price has remained relatively stable changing very slightly from $295,300 in December 2006 to $290,300 in December 2007, a difference of only 1.7%. Median price is what is reported regularly. My opinion is that this simply shows that the market is strongest in the lower price ranges (the starter homes) so more sales are occurring at the bottom price ranges which brings down the median price. I consider the average price more important and a better indicator of the overall market. Although average price can be more volatile on a month to month basis if a few really expensive homes close, it's a reliable number when we have a history and can see trends.

The decrease in the median home price to $223,900 means that the area's affordability index has improved tremendously - in December 2007 the index jumped to 100.3 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.) Buyers who earn the reported median income of $51,335 can qualify to purchase one of 6,936 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $230,617 or less.

SALES: The number of sales in the Orlando area declined by 48.33 percent in December 2007 compared to December of last year (1,005 to 1,945), and the number of sales that took place in December 2007 also decreased over the number of sales that occurred in November 2007 (1,029, which is revised from 963 as reported last month). Total year-end sales for 2007 (16, 673) were down by 39.50 percent over 2006 (27,559). Is everyone glad 2007 is behind us?

Homes of all types spent an average of 116 days on the market before being sold in December 2007; and the average home sold for 92.52 percent of its original asking price. In November, those numbers were 114 and 93.77 percent, respectively. The days on market calculation is hugely misunderstood and is very misleading. The only homes used to calculate days on market are the homes that SELL! There were 1005 sales but there were a whopping 4,619 homes taken off the market unsold (expired or withdrawn). So the nearly 80% of homes that did NOT sell aren't calculated into the days on market. We really need to change how that number is calculated and reported!

The majority of single-family homes (183) that changed hands in December 2007 were sold for between $200,000 and $250,000, a trend that was evident throughout 2007 (3,006 of the 13,181 single family homes that were sold in 2007 fell into this price category). Another 105 homes were sold in December 2007 for between $250,000 and $300,000. Two hundred fifty-five homes sold for less than $200,000 in December, and 262 sold for more than $300,000. On the far ends of the scale, 22 homes were sold for $1 million or more while only three homes sold for less than $50,000. By year's end, 354 homes in the Orlando area sold for more than $1 million.

Inventory

There are currently 24,298 homes active listings (includes single family, town homes and condos) in December. Inventory decreased by 1,874 homes in December 2007, which means that 1,874 fewer homes entered the market than left the market. A large decrease is generally expected in December due to the holidays and people waiting to list or re-list their homes until the new year. Compared to last year, the December 2007 inventory level (24,298) is 24.4 percent higher than it was in December 2006 (19,537).

The inventory level reflects a 24.18-month supply at the current pace of sales. So consider the two year supply when talking about the average of 116 days on market!

There are 18,328 single-family homes currently listed in the MLS. Most (6,673) are listed in the $200,000 - $300,000 price range. Condos currently make up 3,887 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,083. Most condos (559) are priced at $200,000 to $250,000; most duplexes/town homes/villas (521) also fall into the $200,000 - $250,000 range.

Condos and Townhomes/Duplexes/Villas

The sales of condos in the Orlando area declined by 77.0 percent in December: A total of 84 condos changed hands in December 2007 compared to 361 in December 2006. In a month-to-month comparison, December 2007 condo sales (84) decreased by 27.6 percent from November 2007 (116). Year-end condo sales are down by 58.0 percent (2,101 condos were sold in all of 2007 compared to 5,003 in 2006). At year's end, the majority of condos (342) had sold in the $140,000 to $160,000 range.

Orlando home buyers purchased 116 duplexes, town homes, and villas in December 2007, which is a 30.9 percent decline over December 2006 when 168 of these alternative housing types were purchased. Duplex, town home, and villa sales in December 2007 were up by 30.3 percent compared to the number of sales that took place in November 2007 (89). Overall, duplex, town home, and villa sales were down in 2007 (1,391) by 39.0 percent (2,264 sales in 2006).

The majority (32) of duplexes, town homes, and villas sold in December 2007 fell into the $200,000 to 250,000 category. That pattern was consistent throughout the entire year, which saw the majority (403) of duplexes, town homes, and villas sold within the $200,000 t0 $250,000 range.

MSA Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in December were down by 42.1 percent when compared to December of last year. Throughout the entire MSA, 1,213 homes were sold in December 2007 compared with 2,096 in December 2006. By year's end, 19,976 homes were sold in the Orlando MSA while 33,106 homes were sold by year's end last year (a 39.7 percent decline).

Seminole County's December 2007 sales dropped 40.0 percent below that of December 2006 (281 to 468), while Orange County fell 49.4 percent (541 to 1,069). Lake County saw a 27.5 percent decline in the number of sales in December 2007 compared to December 2006 (221 to 305), and Osceola County experienced a 33.1 percent drop (170 to 254).

Each county's year-end sales comparisons are as follows:

Lake: 31.3 percent below 2006 (3,139 homes sold in 2007 compared to 4,571 in 2006);
Orange: 41.6 percent below 2006 (9,847 homes sold in 2007 compared to 16,848 in 2006);
Osceola: 45.6 percent below 2006 (2,702 homes sold in 2007 compared to 4,966 in 2006); and
Seminole: 36.2 percent below 2006 (4,288 homes sold in 2007 compared to 6,721 in 2006).

The above statistics are from the Orlando Regional Realtor Association and may not reflect all activity in the local housing market. It will be interesting to come back next year and see how things stack up! It looks like a slow start but I'm confident we'll pick up steam as the year progresses and that 2008 will be a better year when we calculate the final numbers. The only thing that could choke the market, big time, is if financing guidelines over-correct (which they currently have) and qualified buyers are not able to get financing that should be available to them. Many lenders are requiring higher down payments from buyers and there's uncertainty that even "good" buyers will be turned down for financing. Hopefully this will correct quickly and the real recovery can begin!

Marty Hunt, Realtor®, ABR, CRS, GRI, e-PRO
Realty Executives Orlando
Office: (407) 869-7779 Cell: (407) 619-2640
Toll Free: (888) 412-8681 Fax: (407) 478-1351
Email: mailto:marty@martyhunt.com
Web Site: http://www.martyhunt.com
BLOG: http://FloridaRealtorBlog.com

Orlando Area Quarterly Real Estate Market Housing Statistics

IT'S TIME TO BUY! Orlando Area Quarterly Housing Statistics

For anyone who enjoys facts and figures with plenty of graphs and charts, you will LOVE the National Association of Realtors® quarterly housing statstic reports. I've included a link to the most recent report which gives real insight into the real estate market in Central Florida!

Click on this link to enjoy this fantastic report:

uploads/CentralFloridaRealEstate_Oct_07_NAR_Research_Orlando_Housing_Stats.pdf

Return to my blog for your monthly and quarterly Market Updates as well as plenty of interesting, timely and important information about today's rapidly changing real estate market.

As most everyone knows, regardless of the incessant newspaper chatter and Internet "news" and sensationalisn about the real estate market, homes have on average doubled in value every ten years and the majority of the wealth in most families is in the equity they have built in their homes.

With interest rates being near 40 year historic lows and selection excellent, there has not been a better time to buy a home in recent years. If you or anyone you know is "thinking" about buying a house or waiting on the sidelines, NOW is the time to act to be a homeowner!

Marty Hunt, Realtor®, ABR, CRS, GRI, e-PRO
Realty Executives Orlando
Office: (407) 869-7779 Cell: (407) 619-2640
Toll Free: (888) 412-8681 Fax: (407) 478-1351
Email: marty@martyhunt.com
Web Site: http://www.martyhunt.com
BLOG: http://FloridaRealtorBlog.com

Director: Mid-FL Regional MLS (35,000 members)
Director: Florida Assn. of Realtors (153,000 members)
2001-2008 ORRA Advertising Committee
2006 ORRA Rising Star Award Winner
2006 Treasurer, Mid-FL Regional MLS
2006 Chairman, MFRMLS Finance Committee 2008 ORRA Audit Committee
2007 ORRA Nominating Committee
2007 ORRA Strategic Planning Committee
2007-2008 President-Elect, Mid-FL Regional MLS
2007 Chairman, ORRA Risk Management Committee
Member: Orlando Regional Realtor Assn, New Smyrna Beach Board of Realtors, Mid-Florida Regional MLS, Florida Assn of Realtors, National Assn of Realtors, 2006 Star Performer Award, Multiple Winner of Realty Executives 100% Club, Executive Club and Diamond Awards

Greater Orlando Area Market Pulse Update for November, 2007

November, 2007 Market Pulse Analysis & Commentary

MORE GOOD NEWS!  Like most of you, I'm tired of all of the negative press which is impacting the psyche of the country and the US housing market.  I made a comment nearly two years ago when everyone started talking about a "bubble" that I was NOT going to participate in this alleged real estate downturn.  Not to say that I'm unaware that the market is different, but I'm not going to surrender because of negative news articles!  I continue to believe that real estate is the most stable, best long term investment anyone could own!  I believe the optimism we share as Americans will survive and that we will outlast the medias negative spin.

It was announced yesterday that there would be over $90 billion dollars added to help with the liquidity crisis.  This should have a positive impact on the overall market and allow lenders to continue to make good loans.  The FED also dropped two key interest rates by another 1/4% this week.  In January, we will vote for some real tax relief in Florida, not the ideal outcome, but a great step in the right direction!  People who feel they have been "locked in their home" because they wanted to keep their low property taxes caused by the Homestead exemption should see that portability is the answer we've all be waiting for!  More about this in future blogs, but this is really an important tax change if Amendment 1 passes on January 29, 2008 (and it certainly should)!  I'm looking forward to a 2008 that surpasses the sales in 2007, which is shaping up to be THE FIFTH BEST YEAR IN THE HISTORY OF REAL ESTATE SALES in the US!  

The Greater Orlando area real estate market remained stable in November with closed sales which will exceed September 2007 sales (when adjusted to the final figures) and come in just under October 2007 sale figures.  Closed sales have stabilized for the past three months so that is cause for more optimism.  Inventory levels which had steadily climbed for the past year and a half have remained level now for six consecutive months!  The numbers should continue to look much better in January, 2008 when we begin to go up against the 2007 numbers instead of comparing to the 2006 numbers like we did this year.  2008 might start out below 2007 sales figures but the pent up demand, excellent selection and affordable prices should make 2008 an even better year!  IT IS THE TIME TO BUY!

Sales (unadjusted) for the month were 963 homes sold, about 47.7% below last year's 1,840 sales in November, 2006 BUT stable for the past three consecutive months according to the latest Market Pulse Report. This report includes homes sold by the nearly 12,000 members of the Orlando Regional Realtor Association and compares monthly statistics from November 2006 to November 2007. The report covers listings, sales, days on market & important statistics regarding real estate transactions comparing and showing trends for the past thirteen months.

Here's a link to this month's full report:

www.orlrealtor.com/Pages/marketpulse/MarketPulse1207.pdf

The number of active listings (homes for sale) is DOWN slightly this month. The inventory levels in Central Florida real estate appear to have peaked as listings have remained flat at around 26,000 so that is another very good sign! The number of Realtors in our Association is STILL holding steady which quite honestly is surprising.

The Absorption Rate, the number of homes for sale 26,172 divided by the monthly closed sales of 963, continues to be watched as a key indicator of overall market health. There is currently a 27 month supply of homes on the market but this is nearly identical to September's supply.

While I'm aware we are in an undeniable buyer's market, I also remain optimistic each and every day that we are turning the corner towards a balanced market. We have a lot of inventory to sell, but we are poised for a nice return to a very stable real estate market.  Spread the news that this is the best time I've seen in the last twenty years to buy a home with low interest rates and a great selection!

On behalf of the entire Marty Hunt Team, we look forward to assisting you with any real estate needs throughout the Central Florida area. Feel free to contact me directly at (407) 869-7779 or (888) 412-8681 with any real estate questions you may have.

Marty Hunt, Realtor®, ABR, CRS, GRI, e-PRO

Bank of America October 2007 Real Estate Agent Survey

Bank of America October 2007 Real Estate Agent Survey

The October 2007 Bank of America Real Estate Agent Survey has been posted. This report covers 40 markets around the country and agents still noted falling home prices in all 40 markets. But there is, for the first time in a while, some encouraging news too!

The "Traffic Index", which measures buyer activity actually viewing our listings, improved in the 40 markets overall to 18 after last month's all-time low nationally of 14.7 on the index. That could very well mean that we've reached the bottom of the cycle as far as traffic is concerned. The Orlando traffic improved to 16.7 compared to 11.8 on last month's index. With 50 being neutral we have a ways to go but it's a step in the right direction! While the home listing index is still a concern, we jumped from 12.7 in September to 24.6 in October. High inventory levels continue to be a concern and it will take some time to get back into balance but we WILL get there.

More positive news is that builders continued to sell off excess inventory and there's a big decline in new construction activity. The potential for lower mortgage rates will bring more buyers into the market. Without a doubt there are people waiting on the sidelines who want to buy homes. The American Dream" of home ownership is becoming more achievable as we have lower prices and interest rates near historic lows!

Here's the entire report with the first page being an overall view and Page 22 being the specifics for the Orlando market. Click the link below:

http://www.realtownblogs.com/uploads/CentralFloridaRealEstate_October_2007_Bank_of_America_Agent_Survey.pdf

Stay tuned for more encouraging real estate news! If you're as tired as I am about the negative news regarding housing, stay optimistic with me as we work towards an improving real estate market! I'm here to help if you have any real estate questions or need assistance in buying or selling a home throughout Central Florida!

Marty Hunt, Realtor®, ABR, CRS, GRI, e-PRO

Greater Orlando Area Market Pulse Update for September, 2007

September, 2007 Market Pulse Analysis & Commentary

The Greater Orlando area real estate market has slowed in September and closed sales took a significant month over month drop. We have not yet experienced a drop-off like this but it wasn't unexpected considering the barrage of negative media coverage from newspapers, TV and the Internet! We should get a break from the negativity when the media has the Presidential election to focus on in 2008. Hopefully that will get real estate off the front page and the buyers and sellers "fear" will subside and we'll begin to see an increase in sales. I wasn't expecting a drop in sales quite as steep as we experienced but the buyers have been standing on the sidelines and afraid to move forward. That is changing and I'm getting more phone calls and showings of properties over the last week or two.

This market isn't much different than the early 1990's when we had high inventory, many foreclosures, the RTC (Resolution Trust Corporation) to manage assets and to basically bail out the S&L's after the savings and loan crisis in the late 1980's. There were many naysayers and gloom and doomer's then as there are today. I worked through that market and real estate got stronger and stronger each passing year since that "crisis" so I remain optimistic and I'm firmly convinced that this is a GREAT time to buy real estate!

Sales (unadjusted) for the month were only 924 homes sold, down over 55% compared to last years 2,054 sales in Sept., 2006 according to the latest Market Pulse Report. That's the lowest number I can remember and it would be hard to predict any further decline in sales figures. This report includes homes sold in Orange and Seminole Counties and compares monthly statistics from September 2006 to September 2007. The report covers listings, sales, days on market & important statistics regarding real estate transactions in Orange and Seminole Counties comparing and showing trends for the past thirteen months.

Here's a link to this month's full report:

www.orlrealtor.com/Pages/marketpulse/MarketPulse907.pdf

The active listing numbers (homes for sale) is virtually unchanged this month in the two county area. The record high inventory levels in Central Florida real estate are a concern but it appears we may have peaked and should see a small decline in active listings over the Holiday period. The number of Realtors in our Association is still holding steady which quite honestly is surprising. With over 12,300 agents and only 924 sales in September that would represent only one home sold per thirteen agents this month, or 92.5% of the agents would have zero sales for the month if the remaining 7.5% had only one sale each!

The Absorption Rate, the number of homes for sale 26,310 divided by the monthly closed sales 924, continues to be watched as a key indicator of overall market health. There is currently a 28.5 month (well over two years!) supply of homes on the market! This is by far the highest ratio I've seen in the years I've been calculating this market indicator but the steep decline in sales inflated this number dramatically so it's not too surprising. Another concern is that "New Contracts" (a predictor of closed sales for the next month or two) fell again to the lowest number in the thirteen month period.

I believe we are going to see a few more tough months during the Holiday season which is traditionally not the best time of year for real estate sales. January and February are historically the slowest months but that wasn't true in 2007 so we could be a pick-up in sales in early 2008. It could still easily be mid-2008 before we see any significant jump in sales, and realistically at least into 2009 before we have a balanced market.

On behalf of the entire Marty Hunt Team, we look forward to assisting you with any real estate needs throughout the Central Florida area. Feel free to contact me directly at (407) 869-7779 or (888) 412-8681 with any real estate questions you may have.

Marty Hunt, Realtor®, ABR, CRS, GRI, e-PRO

New Home Sales & Prices Fall Sharply (NY Time Article)

New Home Sales & Prices Drop Sharply

The recent news from several new home builders has continued to show the effects of the housing situation that is affecting many areas of the US. Here's a link to a NY Times article from the Business Section on September 28, 2007 with news about the struggles of several new home builders in this current real estate market: Home Sales and Prices Fall Sharply

With sales dropping to the slowest pace in seven years and prices showing the biggest monthly decline in since 1970 (that's 37 years ago!), there are certainly some buying opportunities to be found in the market. What a great time to buy when we have soft prices, generous incentives from most builders, and interest rates near historic lows!

On behalf of the entire Marty Hunt Team, we look forward to assisting you with any real estate needs throughout the Central Florida area. Buying or selling, we are here to serve. Feel free to contact me directly at (407) 869-7779 or (888) 412-8681 with any real estate questions you may have.

Marty Hunt, Realtor®, ABR, CRS, GRI, e-PRO

Greater Orlando Area Market Pulse Update for August, 2007

August, 2007 Market Pulse Analysis and Commentary

The overall market has continued to "drag along the bottom" but sales are staying in a narrow range as they have all year. We have not yet experienced a drop-off like we usually do when school starts each fall so that is encouraging. It might be that there are always a certain minimum number of people who need to buy a home regardless of the market conditions. This bottom threshold appears to have been reached, or at least we are close to the bottom and appear to be holding fairly level.

Sales (unadjusted) for the month were 1,343 homes sold, down 40.2% compared to last years 2,249 sales in August, 2006 according to the latest Market Pulse Report. This report includes homes sold in Orange and Seminole Counties and compares August 2006 to August 2007 real estate activity. The report covers listings, sales, days on market & important statistics regarding real estate transactions in Orange and Seminole Counties comparing and showing trends for the past thirteen months.

Here's a link to this month's full report: www.orlrealtor.com/Pages/marketpulse/Market-Pulse-9-07.pdf

The active listing numbers (homes for sale) increased slightly to 26,313 homes for sale in the two county area. This is another new record high inventory level in Central Florida real estate, and a record which has been broken monthly for eight consecutive months. While homes for sale increased, homes sold during the month again declined. The number of Realtors in our Association is higher than one year ago (12,501 members in 2007 compared to 12,114 in August, 2006). There are about 12,455 sales on this report which sold in 2007 year to date. When divided between 12,501 agents that's an average of one home sold per agent in eight months!

The Absorption Rate (the number of homes for sale 26,313 divided by the monthly closed sales 1,343), which is a key indicator of overall market health, shows there is currently a 19.6 month (over a year and a half) supply of homes on the market! This is again the highest ratio I've seen in the years I've been calculating this market indicator. Another concern is that "New Contracts" (a predictor of closed sales for the next month or two) fell dramatically again to the lowest number in the thirteen month period.

We are starting to see more homes being rented (but there's a major oversupply of rentals too) and more "short sales" (sellers who need debt forgiveness from their lender to reduce the loan pay-off to make the sale work). Also, the price reductions are still very prevalent and the number of vacant homes is substantial. Buyers are entering the market to buy at the lower prices, and the trend continues that the lowest priced homes or the nicest homes in the neighborhood at near the lowest prices are selling.

I believe we are going to see a sluggish market during the last quarter of 2007 and well into 2008. It might well be late 2008 before we see any significant jump in sales, and realistically into 2009 before we have a balance in the market. It's a tough market for sure but some homes ARE selling. It's a matter of time and price, and keeping your home in absolute move-in condition to attract the buyers that are in the market today. On behalf of the entire Marty Hunt Team, we look forward to assisting you with any real estate needs throughout the Central Florida area. Feel free to contact me directly at (407) 869-7779 or (888) 412-8681 with any real estate questions you may have.

Marty Hunt, Realtor®, ABR, CRS, GRI, e-PRO

Greater Orlando Area Market Pulse Update for July, 2007

July, 2007 Market Pulse Analysis and Commentary

Greater Orlando Area Market Pulse Update for June, 2007

June, 2007 Market Pulse Analysis and Commentary

Greater Orlando Area Market Pulse Update for May, 2007

Marty Hunt

Greater Orlando Area Market Pulse Update for April, 2007

I was confident there would be news of significant improvement this month after a much slower than expected first quarter. Generally April, May and June are pretty good months in terms of sales. According to the latest Market Pulse Report, homes sales averaged fewer than 1,600 homes per month sold in Orange and Seminole Counties in the first quarter of 2007. April's sales unfortunately did not improve as expected and actually declined to 1,469 homes sold in April, 2007 (preliminary figure, could be adjusted).

The Market Pulse Report covering April 2006 to April 2007 real estate activity was released this week and is linked below for your review. The report covers listings, sales, days on market and other critical statistics regarding real estate transactions in Orange and Seminole Counties comparing and showing trends for the past thirteen months. View this information at www.orlrealtor.com/Pages/marketpulse/Market%20Pulse%205-07.pdf or anytime at www.MartysBlog.com

The active listing numbers increased again to 24,435 homes for sale in the two county area. This is the highest inventory level in the history of Central Florida real estate, and it's a record which has been broken monthly for four consecutive months. While homes for sale increased, homes sold during the month declined to only 1,469 homes closed in April, 2007. This is a 40% drop from last year's number when 2,467 home sales were recorded. I continue to be surprised that the number of Realtors in our Association is remaining pretty steady and is actually above the number from one year ago (11,970 members in 2007 compared to 11,642 in April, 2006). It seems impossible that nearly 12,000 agents would survive with about 1,600 sales among them each month so far this year (on average 6 out of 7 didn't have a sale)!

The number of homes on the market has increased by 52% (24,435 in April, 2007 compared to 16,036 in April, 2006). Prices have remained fairly stable for the time being with some areas showing more substantial declines.  The days on market to sell have nearly doubled. Keep in mind that days on market is a misleading number because it calculates only the homes that have sold! While 1,469 homes sold last month, there were over twice as many homes (3,296) that came off the market unsold. Homes that come off the market unsold do not count in the days on market calculation. The Absorption Rate (the number of homes for sale 2,435 divided by the monthly closed sales 1,469) calculates there is currently more than a sixteen month supply of homes on the market!

My biggest concern at this point is to make sure each client who has a home on the market today is positioned in the market to sell based on your individual needs and time frame. If 1,600 homes are sold per month and each buyer looks at ten homes in person (and that might be a high estimate in this Internet age), that would mean the average home gets LESS THAN ONE SHOWING per month. There are many homes that have not had a single showing in two months or more! Have your home 100% ready (sparkling, impeccably clean, well maintained lawn, flowers and shrubs) when you get that showing. Each viewing by every buyer is critical in this market. On behalf of the entire Marty Hunt Team, we are here to assist you in this interesting market.  Buying or selling, feel free to contact me directly at (407) 869-7779 or (888) 412-8681 with any real estate questions or concerns you may have.

Marty Hunt

Marty Hunt, Realtor® ABR, CRS, GRI, e-PRO

Marketing Specialist and Real Estate Consultant

Realty Executives Orlando

Sales of Previously Owned Homes Plunges to 1989 Levels

Sales of Existing Homes Take Biggest Plunge Since 1989

As mentioned in my previous Blog article, the real estate market nationally has apparently not yet turned the corner.  With home sales taking their biggest drop since 1989 on a national scale, the story in Central Florida is perhaps more concerning.

While there's an inventory of around 8 months worth of homes available in the United States, there's about a 14 month supply in Central Florida.  While prices dropped slightly on a national level (and 17 of 20 cities surveyed showed declines), prices in Central Florida took a much larger drop than the national figures.

Below is the beginning of an April 25 New York Times article about the national housing scene along with a link to the complete article.

A rebound in residential real estate remains elusive.

After two months of stronger sales and some tentative suggestions that the housing market was stabilizing, sales last month of previously owned homes took their biggest tumble in nearly two decades.

The National Association of Realtors said yesterday that sales of existing homes, which account for the vast majority of all home sales, fell 8.4 percent in March. That was the steepest monthly decline since January 1989.

Click on this link to read the article:  www.nytimes.com/2007/04/25/business/25econ.html

I'll continue to keep you posted by passing on timely and important information regarding the real estate market nationally as well as here in the Greater Orlando area!

Marty

Orlando Area Market Pulse Update For March, 2007

Real Estate Market Pulse, March 2007

The April Market Pulse Report which covers the March, 2007 real estate activity was released this week.  The report covers listings, sales, days on market and other critical statistics regarding real estate transactions mostly in Orange and Seminole County.

Click here to view a PDF file containing this data:

www.orlrealtor.com/Pages/marketpulse/Market%20Pulse%204-07.pdf

The number of active listings has increased to a new record of 23,547 homes for sale in the two county area.  This is the highest inventory level in the history of Central Florida real estate.  Sales for the month were quite frankly surprising and somewhat disappointing, with only 1,665 homes closed in March, 2007.  That is a sobering 42% decline from last year's number when 2,878 home sales were recorded.  The sales in March, 2006 were the highest sales of any month in that calendar year with two other months also being over 2,800 homes sold in May, 2006 and June, 2006.  If 2007 follows that trend and sales this year don't go much higher than March's figure this will really become serious for many hopeful home sellers. 

On the flip side, there has not been a better time to buy a home in my eighteen years of selling real estate.  Interest rates continue to hover near historical lows, inventory is obviously abundant so selection is good, and prices seem to have stabilized.

The number of homes on the market has increased by nearly 62% (23,547 in March, 2007 compared to 14.559 in March, 2006).  Prices have remained fairly stable in most areas and the days on market to sell have continued to rise.  If you're planning to sell, allow as much time as possible and begin your planning early if you can!  While 1,665 homes sold last month, there were a record 3,401 homes that came off the market unsold (expired or withdrawn listings).  More than twice as many homes came off the market as homes that sold last month.  Homes that came off the market unsold do not count into the days on market calculation.

The Absorption Rate (the number of homes for sale divided by the monthly closed sales) continues to hover at well over a year (14.1 months).  In other words, there are 23,547 homes for sale and 1,665 sales last month and at this rate it will take fourteen months to clear the inventory currently on the market.   

I'll keep you posted as the summer selling season progresses.  I'm optimistic that we'll see significant improvement, but the time frame is uncertain.  Many of the experts had been predicting a more balanced market by mid to late 2007 but I believe the timeline could be much farther out into 2008 or even 2009.  Based on the statistics, it would seem we have been at the bottom of the cycle these past few months, so some mild improvement should be coming fairly soon!

April is Fair Housing Month!

April is Fair Housing Month!

April 2007 marks the 39th Anniversary of the passing of the Fair Housing Act.  We fully support and celebrate that it is the letter of the law to promote Fair Housing for all!  Each and every day as Realtors® we are vigilant in supporting the full spirit of our Fair Housing Laws.

Hopefully every American understands and supports this seemingly simple concept of Fair Housing.  It surprises me that in 2007 HUD (the US Department of Housing and Urban Development) needs a poster pointing out "Fair Housing: It's Not an Option, It's the Law!"  Click on this link to see the PDF file:

www.hud.gov/offices/fheo/images/English_07.pdf

Here's a link to HUD's resources for Fair Housing including an interesting overview of our Fair Housing Laws and Presidential Executives Orders:

www.hud.gov/offices/fheo/FHLaws/index.cfm

If you'd like more specific information about your rights, here's a helpful link:

www.hud.gov/offices/fheo/FHLaws/yourrights.cfm