Posts

Is Home Seller Enthusiasm Waning?

The latest report from Redfin shows that home sale prices in March were still on the way up—they were 9 percent higher than a year ago, closing the month at a median $297,000 nationally.

But homes for sale were down across the board as well. Compared to March 2017, the number of on the market in the United States was down 12 percent. More telling, the number of newly listed homes fell 5.6 percent from last year, something Redfin classifies as “a sign of possible waning seller enthusiasm and ongoing tight market conditions.”

Redfin Chief Economist Nela Richardson said one explanation for the dropoff in housing movement this March might have been the fact that Easter came so early.

“Sellers are slow to list this year and we aren’t seeing enough new construction homes to fill the gap,” Richardson said. “If we don’t see the new listings number turn around next month or a pickup in new housing starts, inventory will be a persistent drag on sales for the remainder of the year.”

If seller enthusiasm is waning, buyer demand is still strong. According to Redfin, the typical home went under contract in 43 days in March. That’s eight days faster than a year earlier and faster than any March on record.

Among homes that sold last month, 24 percent sold above their list price, up from 22.3 percent last March. One in five homes that sold in March went under contract within two weeks of their debut, compared to 18.4 percent last year. The Bay Area had much higher numbers than the average, though. In San Jose, 83 percent of houses sold above list price. In San Francisco and Oakland, three-quarters of houses sold higher than listed.

Seattle (for the second month in a row) and Denver were the fastest-moving markets in the country. Houses there were on the market for a median of just seven days in March. The Bay Area also saw houses close in less than two weeks.

As is typically the case, prices grew most in the Bay Area. San Jose saw prices leap by 32 percent from a year ago; San Francisco almost 17 percent.

But less-typical markets showed price growth as well. Allentown, Pennsylvania, saw prices climb 22 percent since last year, just 1 percent more than the prices in Detroit.

At the same time, inventory dropped in 65 of the 73 most populous metros Redfin tracked. In 48 of those metros, inventory fell more than 10 percent compared to last year. Baton Rouge; Washington, D.C.; and Allentown bucked the declining inventory trend, respectively adding 26.6 percent, 11.8 percent, and 11.4 percent to housing supply from last year.

What to Expect in the Homebuying Season

What to Expect in the Homebuying Season

Homebuyers will need to be on their toes this homebuying season if they are to snag their dream abode if the typical time taken to sell a home in 2017 is any indication. According to a report by Zillow, sold faster than ever in 2017, with a typical median-priced house flying off the market in 81 days. And this has been the case for the past three years, the report said citing data that indicated homes sold slightly faster at 80 days in 2016.

In 2017, the fastest-selling market was San Jose, California, with the typical home sold in 41 days. Homes in Miami, on the other hand, took 110 days to sell in both years, the report indicated.

What do these numbers indicate for 2018? “As demand has outpaced supply in the over the past three years, buying a home has become an exercise in speed and agility,” said Aaron Terrazas, Senior Economist at Zillow. “This is shaping up to be another competitive home shopping season for buyers, who may have to linger on the market until they find the right home but then sprint across the finish line once they do. Being prepared—working with a great , getting financing pre-approved—can help a buyer make a stand-out offer.”

According to an earlier Zillow report on Group Consumer Housing trends, a typical buyer spends around four months searching for a home and makes two offers before successfully closing on a home. But the latest data indicates that homes sold in lesser time than that in 2016 and 2017, making it imperative for homebuyers to be ready to move quickly when they find a home they want to purchase, the report said.

The report also indicated that homes sold the fastest in June when the typical U.S. home sold in 73 days flat. In San Jose, the report said, homes sold fastest last year in October within just 39 days of being listed.

Lake Nona area to get new grocer, restaurant and more

Emerson International Inc. wants to build a new retail center in southeast near .

The Altamonte Springs-based development firm is seeking approval from the Orange County development review committee on April 11 to build a 40,600-square-foot retail center in the Eagle Creek community. The $6 million-$8 million commercial center would be built on 8.29 acres of undeveloped land at 13615 Narcoossee Road.

The project will include:

  • A 21,900-square-foot grocery store
  • A 5,000-square-foot restaurant

Civil engineering firm VHB and C4 Architecture are working on the retail project. A new shopping center brings with it opportunities for companies, vendors and people looking for jobs, as well as retailers that want a presence near Lake Nona.

The overall 67,500-square-foot lot is part of the mixed-used Eagle Creek community that fronts Narcoossee Road.

The community has The Sanctuary at Eagle Creek, a 282-unit apartment complex, and townhomes dubbed the Curzon Place Golf Villas, developed by Emerson International.

OIA tackles potential development of 1,300 acres

Orlando International Airport is looking at the potential of its east airfield for future expansion and overall growth.

 

The Greater Aviation Authority, the entity that oversees the airport, has teamed up with real estate firm Jones LangLaSalle Inc. to look at how 1,342 acres of airport-owned vacant land can be developed in the near future. The land, bought by the airport over several decades dating back to 1986, is prime for developments that cater to operations such as fuel storage, training, distribution and logistics, warehouses or other airport-related needs.

“Our original purpose was to acquire this property to expand if needed and to provide aviation opportunities for support uses that would generate jobs,” Phil Brown, executive director with the Greater Orlando Aviation Authority, told Orlando Journal. “Our whole intent, which goes back to one of our main goals in economic development, is to use that property to bring new jobs to the airport and generate non-aviation revenue, which accounts for 30 percent of the airport’s [$518.2 million] budget.”

There’s no timeline for when the land will be developed and leased out, but Brown said he is ready to hear proposals. He said the airport constantly is growing and the available land is a major asset for that growth. “They are not making any more land,” he said, noting other airports in Florida are mostly landlocked.

Orlando International Airport is looking at how it can use more than 1,300 acres for future development.
Enlarge
Orlando International Airport is looking at how it can use more than 1,300 acres for future development.
Most of the 1,300-plus acres is useable — roughly 1,100 acres — with the rest designated as wetlands. The land also is near access points for the airport and highway systems that would make it ideal for most users who need to transport cargo or other large bulk items.

The airport also may use some of the vacant land for its own operations, including storage for materials for the $2.15 billion south terminal project, which is underway and slated to be done by 2020. However, one type of development that’s not on the radar is any residential type of project, such as or apartments, as the goal is to use the land to enhance airport operations.

This move coincides with the airport’s already massive growth plans that include more than $3 billion in new development and upgrades. The airport welcomes more than 44 million passengers and counting each year, thanks to Orlando’s $60 billion tourism industry that continues to invest in new attractions, hotels, and other offerings. Central Florida draws 68 million-plus tourists to the region each year.

Margaritaville Resort Orlando has paradise under construction

 

Paradise isn’t built in a day, but Margaritaville Resort Orlando is trying to get it done by this summer.

The $750 million, a 300-acre resort in Osceola County has under a 180-room Margaritaville hotel, 1,000 resort vacation cottages, 300 timeshare units and a 12-acre, multimillion-dollar water park. As such, the resort held a behind-the-scenes construction tour of the property with media on March 26 that showed the latest work.

Primarily, the resort’s 1,000-plus vacation cottages are well underway on construction with the first 25 units set to be ready by July. The next 25 units, which will be built in 25 increments, will begin construction immediately at the completion of the previous 25 cottages.

“We have 25 railed up and you will see those coming up shortly. The concept is that we have six different islands or villages of about 200 each. We are trying to have every home be unique with no duplicates,” Jim Bagley, managing director of project developer Encore Capital Management, told  Journal, noting that the resort will have at least 300 homes finished every year.

Also, underway is the new Margaritaville hotel, which has two wings of about 90 rooms apiece. The hotel’s drywall is being installed on the western wing of the hotel with plans for those rooms to be completed by December. The hotel’s east wing currently is installing exterior framing and is running about 30 days behind the west wing, but Bagley said both of the hotel’s wings should be done at the same time for the late holiday season.

Amenities at the hotel include s 5,000-square-foot kids’ club and fitness center, a 2,500-square-foot food and beverage outlet and a 10,000-square-foot, zero-entry beach lagoon that will open by July.

“Right now the building shells and ironworks are being built on those amenities. We are also in good shape for the first pools. We expect to have 5,000 renters here on the weekend and we need to have pools to accommodate that, so the amenities will be able to accommodate 1,000 people apiece,” Bagley added.

As for the 200,000-square-foot retail center, space is filling up as tenants keep singing on. Tenants include Studio Movie Grill, GameTime, a Rascal Flatts restaurant, a KISS Rock & Brews, Skechers, Bahama Bucks Original Shaved Ice Co., Avalon Day Spa, Café Rio, Cold Stone Creamery, Paradise Spirits & Wine and BurgerFi.

Margaritaville Resort Orlando is expected to radically transform Kissimmee’s iconic U.S. Highway 192 tourist corridor when it opens later this year. The resort will boost Central ‘s lodging and activities and should spur more capital investment here. Orlando’s $60 billion tourism industry — the region’s main economic engine — draws 68 million visitors annually.

Millennial homebuyers are not actively seeking

 

Good morning, Orlando!

Millennial homebuyers are not actively seeking to buy a house in Orlando, according to a new study by LendingTree.

In fact, out of the 100 cities ranked, Orlando came in at No. 80. See the data here.

Mortgage requests for buyers under 35 were analyzed between Feb. 1, 2017, and Feb. 1, 2018, then ranked alongside data about the average age of the buyer under 35, credit score, down payment and requested loan amount.

The study found cities in the Sun Belt like Las Vegas, Tuscon, Ariz., and five Florida cities as least popular, which could be because of their popularity instead with retirees, as well as high cost of living, according to LendingTree.

About one-third of mortgage requests through the company were from those 35 years old and younger.

And be sure to check out these other Monday headlines:

New project with shops, may be on tap for the area near SunRail station
A South Florida developer is eyeing 18 acres near the SunRail station in southwest Orlando for a possible mixed-use development. The project would include apartments, townhomes and a two-story office-and-retail building on Sand Lake Road and Orange Avenue. More here.

RESIDENTIAL REAL ESTATE
Images revealed of apartment buildings at Disney’s Flamingo Crossings
Rendering of the community center at Flamingo Crossings

Online mortgage lender expands into Florida, seeks to disrupt the industry
Lenda, an online mortgage company that claims it can close home loans 3.5 times faster than the industry average is expanding into Florida. Lenda uses a predictive algorithm, rather than going through human loan officers, to determine whether a borrower is creditworthy. More here.

N.C. food production biz considers adding 95 jobs in Melbourne
MG Foods Inc., a North Carolina-based food production, packaging, and distribution company, has applied for property tax breaks with Brevard County in order to expand its workforce by 95 jobs, Florida Today reports. More here.

How to get a piece of the work on the next phase of OIA’s new terminal
Orlando International Airport is looking for some help as it plans the next phase of its $2.15 billion expansion. The Orlando airport — the busiest airport in the state — is a huge driver of the area’s and the new south terminal will raise its capacity by 10 million passengers. More here.

Mortgage rates hold steady
Mortgage rates held steady this week, according to Freddie Mac. The 30-year fixed mortgage averaged 4.45% for the week ending March 22, essentially unchanged from 4.44% the previous week. Favorable mortgage rates have helped propel U.S. home sales and the refinance market.

And higher gas prices are on the way
Expect higher gas prices this week, AAA says. The Florida average has risen 10 of the past 12 days, climbing a total of 6 cents. You can expect prices to climb at least another 10 cents in the coming weeks. Gas prices in Orlando currently average $2.48 a gallon.

What Does The 2018 Housing Market Look Like?

Oftentimes, it’s difficult to predict the . In the last decade alone, we’ve seen a market crash and slow rebound.

However, while some experts are focused on yet another housing bubble, real estate has been on the rise. In October, sales of new U.S. single-family homes hit their highest level in 10 years across the country.

What’s the market forecast for next year? Industry insiders and top experts have similar predictions.

As a future or current homeowner, it’s important to stay on top of the changes in real estate. Read on to learn what the 2018 housing market has in store.

Inventory Shortages

New home sales may be on the rise, but the number of available is on the decline.

Low home inventory has made home prices more expensive in recent years. This trend will continue in 2018, making it more difficult for first-time and budget-focused buyers to enter the market.

There are 12 percent fewer homes on the market than there were a year ago. If this trend continues, homebuyers will be faced with stiffer competition and higher prices. This will make the demand for home purchase loans even greater.

What’s contributing to this low inventory? There are several theories.

Rising housing costs have added emphasis to high-end construction. More expensive homes are being built, which is making it more difficult to find affordable homes.

Homeowners might also be less likely to sell their homes than they were pre-crash. Despite it being a seller’s market, they aren’t looking to enter the market. They’d rather stay locked into their current mortgage.

Whatever the reason, the inventory shortage is expected to continue. Low inventory and high prices will force new homebuyers to get creative if they want to find an affordable home.

Housing Market Opportunities

Certain demographics have seen an abundance of housing opportunities. They can expect these opportunities to be even greater in 2018.

One such demographic is sellers of mid-priced single-family homes. These are some of the most in-demand homes across the nation.

Developers and sellers can make big money on this valuable sector of the market. More millennials are seeking to buy starter homes while baby boomers are scaling back.

The housing shortage isn’t all bad for buyers. Experts are predicting that housing prices will slow down in the coming year.

Forecasts show that the average U.S. house price growth will be 4.9 percent in 2018, which is lower than the 6.6 percent growth seen in the second quarter of 2017.

Prices might be curbed thanks to mortgage rates. A moderate increase in mortgage rates should help decrease refinancing activities.

You can still expect higher growth in big markets such as Seattle and San Francisco. Yet good mortgage rates, limited refinancing, and market stability will still help buyers in 2018.

Your Next Move

Predictions show low-inventory, high-prices, and market stability in 2018.

You don’t have to wait until these predictions come to fruition. Contact us now to learn more about buying your dream home. We offer free loan advice with no cost or obligation.

Here’s how Orlando-area home prices, sales did in January

 

 

 

 

Orlando’s median home price increased in January year over year, while sales held steady with a 0.5 percent uptick compared to January 2017, a new report from the Orlando Regional Realtor Association shows.

The overall median price of Orlando homes sold in January was $225,000, a 12.6 percent increase above the January 2017 median price of $199,900 and 2.2 percent below the December 2017 median price of $230,000.

In addition, 2,225 sales of all home types were recorded in January, 0.5 percent more than the 2,213 sales in January 2017. However, sales declined by 26.9 percent when compared to last month.

“The nearly 27 percent drop between December and January is a decline that historically follows a big push to close in December as buyers seek to take advantage of homeownership tax benefits,” said ORRA President Lou Nimkoff. “While low inventory conditions remain a significant challenge, Realtors anticipate an improvement in month-to-month sales. In fact, the January pending sales tally increased by more than 1,000 compared to December 2017, making it the greatest month-to-month increase since ORRA began tracking pendings in 2006.”

Meanwhile, the overall inventory of homes that were available in January — 7,604 — represents a decrease of 11.1 percent when compared to the year-ago period and a 1.3 percent decrease compared to last month.

Current inventory combined with the current pace of sales created a 3.42-month supply of homes in Orlando for January. There was a 3.86-month supply in January 2017 and a 2.47-month supply last month.

Here’s 2 spots where the Osceola Parkway Extension may be built — both are controversial

Would you rather see a major road built through a costly wildlife/nature preserve or a neighborhood?

This is the dilemma the Central Florida Expressway Authority, which soon must decide where to put the Osceola Parkway Extension, has been facing since last year.

The proposed Osceola Parkway Extension begins one mile west of the Boggy Creek Road and Osceola Parkway intersection, and extends eastward along the Orange/Osceola County line for six miles before turning south into Osceola County to meet the northern terminus of the proposed Northeast Connector Expressway. The project also includes a potential north/south segment linking to State Road 417 in the general vicinity of the Boggy Creek Road interchange.

The goal of the project is to relieve congestion and have regional connectivity. It’s part of the authority’s overall 2040 master plan, which includes other alignments.

One of the current alternatives shows that the extension could go through the 1,700-acre Split Oak Forest preserve, acquired in the 1990s, which is south of the Clapp Simms Duda Road. Environmental conservationists say doing so would defeat the purpose of having protected land that involved millions in funding.

However, if the project does not go through Split Oak, it could mean nine would be taken in the St. Cloud community Lake Ajay Village.

“The board is going to look at all the options. Our job is how are we going to move people in the next 40 years here in Central Florida,” Fred Hawkins, chairman of the Central Expressway Authority, told  Business Journal after the board’s Feb. 8 meeting. “We have to move those people and the to-do list is now, before more development occurs.”

Roughly $70 million has been allocated for the project so far, which would go toward property acquisition and engineering.

He added that going through a community such as Lake Ajay Village, located off Narcoossee Road, likely would be more expensive than going through Split Oak

“The properties directly affected are worth $450,000-$600,000. The property taxes they pay are between $3,000-$5,000 each. Not only will those properties will be affected, but all of them running along this area,” said Stacy Ford, a resident of Lake Ajay Village, during the public comments segment of the meeting. “The worst case for us isn’t that CFX will go through our homes, it’s that CFX puts this road right next to our homes because we don’t get compensation for the impact of that, which is our property values. At minimum, it’s going to be 20 percent.”

And if the project does go through Split Oak forest, Hawkins said there may be land compensated for that loss.

At the next expressway authority meeting on March 8, the board will go over the feasibility and cost of alternative corridors so it can move forward with project development and environment studies.

There are multiple public meetings for those who want to express their concerns regarding how the project may affect their property or commute. The meetings all will run from 5:30-7:30 p.m., and will be held:

  • Feb. 13 at St. Cloud High School
  • Feb. 15 at Lake Nona Middle School
  • Feb. 21 at the Association of Poinciana Villages Community Center

Tavistock proposes upscale Isleworth-area mixed-use project

 

 

 

 

 

 Group is lining up plans for a new Windermere mixed-use development it wants to build on vacant land on the shores of Lake Down.

The developer of the upscale Isleworth Golf and Country Club is seeking Orange County approval for the yet-to-be-named project on 43 acres zoned for agriculture at the northwest corner of Conroy Windermere and South Apopka Vineland roads, in what’s called the Isleworth Four Corners planned development.

Plans include 21 single-family homes; a 107-bed assisted-living and memory-care facility; 72 independent-living units; 40,000 square feet of medical office space in a two-story that may include a clinic or emergency department; a 30,000-square-foot big-box retailer; and about 40,000 square feet of additional shops and eateries east of Isleworth that Tavistock already owns through its related Windermere Property Holdings LLC.

The county will host a community meeting at 6 p.m. on Feb. 27 at the Chain of Lakes Middle School Cafeteria, where Tavistock will present its plans. Previous versions included a gas station and hotel, but residents shot down those plans, said Tavistock spokeswoman Jessi Blakley.

may begin sometime in 2019, pending approvals, said Tavistock spokeswoman Jessi Blakley, adding that it was still too early to have a project general contractor chosen.

Andres Duany of architect and town planning firm DPZ Partners LLC is a project consultant; Vero Beach-based Merrill, Pastor & Colgan Architects principal Scott Merrill is the architect; Winter Park-based Donald W. McIntosh Associates Inc. is the civil engineer; and Rulon Munns of Bogin Munns & Munns is the zoning attorney.

This is one of several projects Tavistock already has in the works. It also has more than $3 billion worth of construction in southeast ‘s 17-square-mile community, and plans in the works for the 24,000-acre Sunbridge community, for which it recently snagged another 200 acres of land in Orange and Osceola counties.