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Florida’s housing market in July

Existing home sales dropped 8%

ORLANDO, Fla. –.Existing home sales dropped 8% inventory shortage, rising prices. NAR Closed sales of single-family homes statewide totaled 24,083 last month, down 8 percent from July 2015, reflecting the state’s current shortfall in inventory.

“Florida’s supply of for-sale homes remains tight, which is putting pressure on median prices and having a dampening effect on closed sales,” said 2016 Florida Realtors® President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “But the state’s strong jobs outlook and growing economy are attracting more and more new residents, which provides a solid foundation for the housing market. Florida businesses created 26,500 jobs in July and our population is growing by more than 1,000 new residents each day, according to recent economic reports.”

Home sellers continued to get more of their original asking price at the closing table in July: Sellers of existing single-family homes received 96.4 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.6 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $223,238, up 11.6 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in July was $160,000, up 6.8 percent over the year-ago figure.

In July, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 56th month in a row, Veissi noted. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in June 2016 was $249,800, up 5 percent from the previous year; the national median existing condo price was $231,600. In California, the statewide median sales price for single-family existing homes in June was $519,440; in Massachusetts, it was $380,000; in Maryland, it was $291,892; and in New York, it was $248,500.

Looking at Florida’s townhouse-condo market, statewide closed sales totaled 8,934 last month, down 11.5 percent compared to July 2015. Closed sales data reflected fewer short sales and cash-only sales in July: Short sales for townhouse-condo properties declined 41.1 percent while short sales for single-family homes dropped 34 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“Compared to July of 2015, closed single-family home sales were down in 18 out of Florida’s 22 metro areas this July,” said Florida Realtors® Chief Economist Brad O’Connor. “This translates into a statewide sales decline of 8 percent year-over-year, which is the largest drop we’ve seen for any month in 2016. But a closer look at the data shows the same underlying trend we’ve been seeing all year, which is that these sales declines are occurring almost exclusively in sub-$200,000 price tiers.

“Florida continues to suffer from a drought in the supply of affordable housing for sale, resulting from the gradual exhaustion of the state’s inventory of distressed properties and the lack of new construction in these price ranges. The same story is largely playing out in the markets for condos and townhouses.”

Inventory was at a 4.3-months’ supply in July for single-family homes and at a 5.9-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.44 percent in July 2016, significantly lower than the 4.05 percent average recorded during the same month a year earlier.

Housing market sees 2Q 2016 increase in listings, prices

Realtors, Housing market sees 2Q 2016 increase had more new listings, higher median prices and fewer days to a sales contract during the second quarter of 2016, according to the  Realtors.lake-nona-homes-for-sale

Closed sales of single-family statewide totaled 76,748 in second-quarter 2016, up 1.4 percent from second-quarter 2015.

“Florida continued to add new jobs, which attracts new residents, encourages economic growth and strengthens the housing market,” said 2016 Florida Realtors President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “Traditional housing sales increased statewide over the three-month period, while sales of distressed properties continued to decline. In another positive sign, new listings for single-family homes over the three-month-period rose 2.9 percent year-over-year.”

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Orlando Homes

 

The statewide median sales price for single-family existing homes in second-quarter 2016 was $220,000, up 10 percent from the year-ago period, according to data from Florida Realtors. “Existing home sale prices throughout most of Florida’s metro areas are continuing to exhibit robust year-over-year growth,” said Florida Realtors Chief Economist Brad O’Connor. “Demand is strong and supply is limited. The inventory of homes at the more affordable end of the price spectrum – which includes the vast majority of distressed properties – continues to decline significantly, and new construction has not come close to making up the difference.”

Meanwhile, traditional sales for single-family homes increased 14.4 percent year-over-year. Closed sales typically occur 30 to 90 days after sales contracts are written. In second-quarter 2016, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was 42 days for single-family homes and inventory was at a 4.3-months’ supply, according to Florida Realtors.

The interest rate for a 30-year fixed-rate mortgage averaged 3.59 percent for second-quarter 2016, down from the 3.96 percent average during the same quarter a year earlier, according to Freddie Mac.

‘Boomerang’ buyers poised for Homeownership

Seven years after the housing crash, Orlando has been dubbed a “” as former homeowners begin to restore their credit enough to purchase another house. Check out this Video on the now.’Boomerang’ buyers poised for homeownership in Orlando.  https://www.youtube.com/watch?v=D1azdK3G4_k

More than almost anywhere in the country, Metro Orlando has the makings of a housing market poised to benefit from foreclosed homeowners ready to buy again, according to a report released Tuesday by RealtyTrac.

The first wave of more than 100,000 foreclosures and short sales engulfed the Orlando market seven years ago, and some of those former homeowners have cleaned up their credit in that time. Whether they re-enter the market depends largely on wage increases and home-price appreciation.

“We are now paying in rent what we couldn’t afford in mortgage back then,” said Orlando resident Hilary Liermann. Following a short sale of her Gotha home in 2010, her family of four now lives in the Dr. Phillips area. She said they could consider buying a home again, depending on her family’s income and on home prices in their school district.

In the four-county Metro Orlando region, more than 123,000 “boomerang” buyers who lost their in foreclosure and short sales since the market crashed in 2007 could regain the ability to purchase houses through 2022, according to RealtyTrac.

Typically, it takes seven years for homeowners to repair their credit score after a foreclosure, or as little as four years for homeowners who went through a short sale. Andy Insua, Florida director of mortgage for Fifth Third Bank, said new types of mortgage loans are even more forgiving of distress-home sales.

Northlake Park home photo

Homeownership

But potential boomerang buyers might still face problems.

“There’s going to be some head winds for people coming back into the market: One is that wages haven’t grown significantly, and prices have gone up, so affordability has come down,” Insua said. “And, also, the inventory in that space is thinner, so it can be tougher to find what you’re looking for.”

And then there is a “kind of emotional scar tissue” and also a lack of understanding that prospective buyers may, in fact, qualify for a mortgage, Insua added.

In Dr. Phillips, Liermann said it’s been nice to see her children settle into high-performing schools and to call the landlord last summer when the air conditioning needed to be replaced. Financially, though, it’s not easy to write a mortgage-sized check for the monthly rent. And while renters risk being forced to relocate if their landlord decides to sell, the pain of a short sale isn’t easily forgotten, she added.

Boomerang Buyer

“We’re real nervous, and we’re kind of putting it off and putting it off … maybe in the next few years,” she said Tuesday.

During the last 10 years, Orlando’s homeownership rate has dropped from 77 percent to 66 percent, property records show. About a third of Orange County’s new residential construction last year was apartments — more than double the rate from the housing-boom years of 2003 through 2006, property records show.

A shift of former Orlando-area homeowners from their rentals back into homeownership could strengthen the housing market, but it could also signal weakening demand for new apartments and the region’s expanding pool of rental houses.

“It’s not a slam-dunk they’re going to become buyers. At this point, it’s still a wild card,” said RealtyTrac Vice President Daren Blomquist. “But how they behave moving forward will affect a lot of people in the industry.

“If they do move forward, that could be a problem for some of these developers who are counting on them to remain renters for some time.”

RealtyTrac outlined three factors driving the boomerang market for Metro Orlando:

•The area has enough former homeowners to purchase 13 percent of the housing stock in the four-county area during the next seven years.

•Orlando-area buyers pay a median of just 23 percent of their income for a median-priced home — far below the 28 percent point at which a market is no longer considered affordable.

•The two Orlando groups most likely to have lost their homes — Generation X and baby boomers — have grown larger from 2007 to 2013, the real-estate-research company found.

 

New 120-room Holiday Inn Lake Nona

Pioneers USA, an Orlando missionaries organization, has filed plans with the state to build a new estimated $12 million-$20 million Holiday Inn Valencia College hotel on more than 6 acres it owns near Valencia College’s Lake Nona Campus and the future U.S. Tennis Association complex.

A four-story, 120-room Holiday Inn Express hotel is proposed for the land, which sits on a larger Pioneers-owned chunk of land that’s home to an existing KOA camp ground, a church and other structures. The nearly 100,000-square-foot hotel would take up 2.28 acres and may create up to 200 temporary construction jobs and nearly 100 hotel jobs.

Industry estimates would put the construction cost of a new 120-room hotel at about $101,000-$172,000 per room for mid-range to upscale hotels, or between $12 million-$20 million.

The contractor on the project is Lake Mary-based The Collage Cos., with Altamonte Springs-based Forum Architecture & Interior Design Inc. and Longwood-based Tri3 Civil Engineering Design Studios as the designer and civil engineer, respectively.

There already are several Holiday Inns and other InterContinental Hotel Group hotels near Lake Nona due to its proximity to Orlando International Airport.

This would be yet another investment near Lake Nona, which has been booming in residential, commercial and other real estate development like the USTA tennis complex and Vista Park, a new 4,400-home neighborhood in the pipe line for that area.

Shops, eateries planned near Lake Nona

Looks like more space for shops and restaurants is on its way to the area near the Orlando International Airport.

Plans for Vista Park — a new mixed-use neighborhood slated for 1,572 acres north of State Road 528 and west of State Road 417 in Orlando — now include up to 80,000 square feet of retail space, up from the original 20,000 square feet, city of Orlando documents showed. This gives construction firms a larger potential job, and gives businesses more opportunities to set up shop in the neighborhood.

This comes after nearby homeowners raised concerns with the development, including 20,000 square feet of retail not being sufficient for the 4,300 homes and 20,000 square feet of offices Nona parking garage 2also planned for Vista Park. “This is a compromise we had agreed to at a quasi-judicial hearing,” said Miranda Fitzgerald, land-use attorney with Lowndes, Drosdick, Doster, Kantor & Reed PA, who represents the land owner. Mockingbird Orlando LLC, an entity related to South Florida casino and horse racetrack owner John J. Brunetti, owns the land.

Jay Thompson, managing partner of developer Palm Beach Gardens-based Land Innovations LLC, has had his eyes set on Vista Park and catty-corner property, Starwood DRI, for a “mini Lake Nona” that may create an economic impact of $4.5 billion, he previously told OBJ. Plans for Starwood DRI include thousands more , square feet of retail, office and industrial space.

Orlando’s city council during a July 25 meeting approved Vista Park getting a planned-development zoning as it’s consistent with the city’s comprehensive plan. The project can now move forward after concerns from home owners were reviewed by a hearing officer.

The project still needs to be reviewed by the state Department of Economic Opportunity, and specific zoning ordinances need to go before the city. Overall, development is not expected to begin until 2018, Fitzgerald told OBJ.

Meanwhile, the land slated for Vista Park is being cleaned up, as World War II-era bombs are buried beneath it. Permits for the clean-up process were issued last summer, Fitzgerald said.

Interest rates soften- buyers have few options

Mortgage interest rates dropped during June but the improved home financing did not boost overall sales in the core market, a new report shows. Median prices in an area of mostly Orange and Seminole counties increased to $207,000 during June – up 15 percent from a year earlier and up about 2 percent from a month earlier, according to a report released Friday by Orlando Regional Realtor Association. Allyn Maycumber of Keller Williams Advantage says that with such a limited supply of on the market,it is making it very difficult to find buyer’s the right home. What the market needs is a influx of well priced homes to offset the abundance of new buyer’s entering the market.money

In the Lake Nona area of Orlando, Florida we do have a strong new housing development engine, and that is indeed giving our local buyers more options than most buyers across the country. Remember if you are interested in new construction let us represent you. The builder already factors in our compensation, and we carefully review your new home build contracts to make any needed changes to protect you. Meet us personally, or verify our single agency representation for you by email. The same applies to existing home sales. Our real estate expertise with Florida sales contracts is extensive, and so very important for one of the most critical asset purchases in your life.

 

offices, homes, more in the pipeline

Looks like more development is on its way to to further grow a neighborhood and new sports district.

The city of Orlando on July 11 approved development plans in the southeast Orlando community for new , offices, showrooms, private athletic fields, mixed-use buildings, fitness centers and more. Lake Nona’s developer, Development Co. LLC, now can move forward with its plans that’ll create new construction opportunities, further develop a high-end neighborhood and develop land near the future U.S. Tennis Association’s 63-acre, $100 million campus that’s opening by year-end.

Here’s what’s coming:

  • Phase 7: Tavistock plans to expand its Laureate Park neighborhood by 54.8 acres that are between Tavistock Lakes Boulevard and Nemours Parkway. The property has 207 lots and will be used for more single-family homes and townhomes.
  • Laureate Park Neighborhood Center Phase 1: Tavistock will develop a 6,300-square-foot, mixed-use building; a 2,300-square-foot, multi-purpose building; a 3,000-square-foot fitness center; two swimming pools and neighborhood green space on 10.77 acres north of Tavistock Lakes Boulevard and east of Sachs Avenue. Later phases of the Laureate Park Neighborhood Center call for 141 housing units, including townhomes, condos, single-family waterfront homes and boutique apartments.
  • Sports Village at Lake Nona: Tavistock will develop 31.1 acres west of Performance Drive and south of the USTA facility where it plans to build up its 300-acre Sports & Performance District. An 18,877-square-foot office building, two 50,000-square-foot buildings with office and showroom space, six athletic fields with a 23,750-square-foot building for ancillary uses, and 700 parking spaces are plannorlando cityed for the property.

Tavistock announced last April it planned to develop a 50,000-square-foot office building in its sports hub. also announced earlier this year it’s opening a new 23-acre training facility next to the USTA campus in 2017. It appears the new development plans line up with these prior announcements, but it is not confirmed if they are related.

Meanwhile, Tavistock also recently filed plans in preparation for a new hotel or resort in Lake Nona. Tavistock seeks to combine three parcels between Lake Nona Boulevard and the Lake Nona waterway into a single designation to streamline development plans for a future hotel or resort, sources previously told Orlando Business Journal. It’s not clear if these plans are related to the sports district, but Tavistock leaders previously said a resort and spa is needed near the sports district to accommodate traveling athletes and their families.

Lake Nona-Orlando Homes

Lake Nona in Orlando Florida is one of Florida’s fastest growing areas. Home to over 20 unique neighborhoods and vibrant communities, the area offers lush landscapes against a modern style homes.   From affordable to million dollar homes, from townhomes and condos to new construction multi family homes, frompool homes to waterfront homes, Lake Nona has a home to fit your lifestyle.

lake nona floridaLake Nona is located in the Southeast corner of Orlando.  The Lake Nona area is intersected by the 417 Greenway and the 528 Beachline forms its northern border.  Narcoossee Road is its main North-South artery.  There are numerousrestaurant and shopping options and more opening each month.  State of the art education facilitiesfrom pre-school to college are located right in the Lake Nona area.

Lake Nona Area Neighborhoods:

24 neighborhoods currently make up the greater Lake Nona area.  These neighborhoods and communites range from rustic lakeside cabins to townhomes to grand estate homes.

lake nona neighborhood area

These neighborhoods include the official Lake Nona neighborhoods of: Lake Nona Country Club, Laureate Park, Northlake Park, Summerset Park, Village Walk &Water’s Edge  Official Lake Nona neighborhoods are any neighborhood developed by the Tavistock Corporation on their property which is mostly anything West of Narcoossee Road.  Tavistock is also the developer for massive Medical City Area. Tavistock owns the name “Lake Nona” so only properties in their developmental area can use the term Lake Nona in their name. Properties on the East side of Narcoossee Road are considered part of Lake Nona Area by their general location and sharing of businesses on either side of the road.  Homes in the Lake Nona area were or are being built by various developers. All of the homes in the greater Lake Nona area are in Orange County and all with the exception of Summerset Park are in the Lake Nona school district area but only official Lake Nona properties are in the City of Orlando at this time. Lake Nona area neighborhoods include: Bellanona Grande Estates, Eagle Creek, East Park, Fell’s Landing, Isle of Pines, Lake Whippoorwill-Hart, La Vina, Live Oak Estates, Moss Park, Nona Crest, Nona Preserve, Nona Terrace,  North Shore Club, Randal Park, Savannah Pines, Stratford Pointe & Storey Park

Entertainment options abound in Lake Nona.  Well known for the Lake Nona Golf & Country Club, the Lake Nona area lake nona entertainment and activitiesactually offers two more golf courses in the Eagle Creek Golf Community and in North Shore at Lake Hart. Moss Park, Orange County’s largest park offering boating, hiking and swimming is a great place to relax and enjoy the Florida Nature.  For jetsetters, Orlando International Airport is adjacent to the Lake Nona area.  And Lake Nona’s central location means that Orlando’s world famous theme park attractions and its East Coast beaches are a short drive away.

Lake Nona is home of the 700-acre biomedical project known as Medical City
.  The continued growth of the Medical City will employ thousands of doctors, scientists, researchers, and other support staff making Lake Nona’s proximity to Medical City the perfect location.  With an estimated $2 billion in construction work that encompasses the UCF Medical School, Burnham Institute for Medical Research, Nemours Children’s Hospital, a VA Hospital, and the Medical Research Park, the future of this community makes it the premiere spot for medical professionals creating upwards of 30,000 new jobs in the area and adding billions to the Florida economy.

Lake Nona developer sets stage for new hotel/resort Jul 1, 2016, 1:45pm EDT

developer sets stage for new hotel/resort

Having lived in Lake Nona in the Southeast , Florida corridor for the past 15 years we have experienced many exciting proposals, and developments that have come to fruition. And this information from the Orlando Business Journal is another interesting proposition that Tavistock Development Co. LLC has just announced. Between the existing Nona Medical City, Orlando City Soccer Club, and the U.S. Tennis Association (USTA) a future Lake Nona hotel resort will be highly needed and desired for all who visit, play, and work here.

Looks like early plans are in the works for a new hotel or resort in Lake Nona.USTA

Tavistock Development Co. LLC wants to rezone of a portion of its southeast Orlando vacant land from residential neighborhood to “airport support district-medium intensity,” Orlando Municipal Planning Board documents showed.

Tavistock seeks to combine three parcels between Lake Nona Boulevard and the Lake Nona waterway into a single designation to streamline development plans for a future hotel or resort, sources told Orlando Business Journal. New residential projects also are planned for the area.

The city’s board is expected to review the proposal at its Aug. 16 meeting.

Meanwhile, Tavistock has had a vision for a luxury resort and spa for some time now, so big-name athletes and their families won’t have to travel far to stay near Lake Nona’s 300-acre Sports and Performance District that’s being built up.

Orlando City Soccer Club plans to open a new 23-acre training facility in early 2017 next to the U.S. Tennis Association’s new $100 million National Campus that’s currently under construction. In fact, resort plans were one of the sticking points during Tavistock’s negotiations with USTA, as previously reported by OBJ.

However, it is unknown if the zoning proposal is related to the planned luxury resort supporting the Sports and Performance District.

Regardless, new opportunities will open up for designers, builders, vendors and job seekers if a new hotel or resort is created. It also can help support more visitors in the area, who shop and dine at businesses nearby as well as adding to the billions of dollars in construction planned in Lake Nona.

This would be the second hotel project in Lake Nona. The first, a dual-branded Marriott Residence Inn and Courtyard by Marriott, opened in Medical City last fall.

Check back for more information, and see here for other commercial real estate news.

Source by Orlando Business Journal and Writer/Realtor Pam Maycumber.

Limited supply of Homes is giving Buyer’s Headaches

To understand why Buyer’s are having headaches due to the limited supply of homes in , Florida it is relevant to first take a glance at the subprime mortgage crisis that coincided with the U.S. recession December 2007-June 2009. Many of the details in the following paragraph are from facts and information gathered by Wikipedia. Before we review those findings I would like to share with you a personal perspective as a licensed Real Estate Broker and Broker-Associate for 30 years in Central Florida. During the economic crisis my real estate expertise was primarily focused in the Southeast corridor of Orlando, FL specifically referred to as the area, and home of Medical City in Lake Nona. My husband, and real estate partner work at Keller Williams Realty Advantage III on 9161 Narcoosee Rd, Orlando, FL . 32827. Contact us anytime at 407-251-1314.  I can attest to you that we distinctly felt the hit of a “brick wall” in October 2005. A brick wall at the time we had no way of knowing just how thick and long it would be … not to mention with rebar steel inlayed within it. You will see that most reports begin showing signs in 2007, however, as Realtors we are effectively the “front lines” of army troops going into battle before the fly over and bombings come into the picture of war. It was brutal. The financial impact was devastating to Millions of Americans and Europeans, yet the psychological pressure and devastation it brought to so many families was equally devastating. Witnessing family feuds, divorces, children displaced from their schools and homes, forced relocations, and the overall ripple effect was heart breaking. Allyn Maycumber and myself did every thing in our power to ease them through these unprecedented challenging times. In my opinion it frustrated me that the government kept calling it a recession when in reality it was truly a GREAT depression. Review the Wikipedia information below, and then I will share Market Pulse graphs and statistics from the Orlando Regional Realtor Association to give you a clear 2016 up to date view of the low inventory of homes in our market place which is giving Buyer’s those nasty headaches. On a positive note you do have the Maycumber team of professional Realtors to find you your dream home even in the most interesting market. You need us now more than ever, and we are here to help serve you.

The United States (U.S.) subprime mortgage crisis was a nationwide banking emergency that coincided with the U.S. recession of December 2007 – June 2009.  It was triggered by a large decline in home prices after the collapse of a housing bubble, leading to mortgage delinquencies and foreclosures and the devaluation of housing-related securities. Declines in residential investment preceded the recession and were followed by reductions in household spending and then investment. Spending reductions were more significant in areas with a combination of high household debt and larger housing price declines.

The expansion of household debt was financed with mortgage-backed securities (MBS) and collateralized debt obligations(CDO), which initially offered attractive rates of return due to the higher interest rates on the mortgages; however, the lower credit quality ultimately caused massive defaults.  While elements of the crisis first became more visible during 2007, several major financial institutions collapsed in September 2008, with significant disruption in the flow of credit to businesses and consumers and the onset of a severe global recession.

There were many causes of the crisis, with commentators assigning different levels of blame to financial institutions, regulators, credit agencies, government housing policies, and
consumers, among others.  A proximate cause was the rise in subprime lending. The percentage of lower-quality subprime mortgages originated during a given year rose from the historical 8% or lower range to approximately 20% from 2004 to 2006, with much higher ratios in some parts of the U.S. A high percentage of these subprime mortgages, over 80% in 2006 for example, were adjustable-rate mortgages.  These two changes were part of a broader trend of lowered lending standards and higher-risk mortgage products.  Further, U.S. households had become increasingly indebted, with the ratio of debt to disposable personal income rising from 77% in 1990 to 127% at the end of 2007, much of this increase mortgage-related.

When U.S. home prices declined steeply after peaking in mid-2006, it became more difficult for borrowers to refinance their loans. As adjustable-rate mortgages began to reset at higher interest rates (causing higher monthly payments), mortgage delinquencies soared. Securities backed with mortgages, including subprime mortgages, widely held by financial firms globally, lost most of their value. Global also drastically reduced purchases of mortgage-backed debt and other securities as part of a decline in the capacity and willingness of the private financial system to support lending.  Concerns about the soundness of U.S. credit and financial markets led to tightening credit around the world and slowing economic growth in the U.S. and Europe.

The crisis had severe, long-lasting consequences for the U.S. and European economies. The U.S. entered a deep recession, with nearly 9 million jobs lost during 2008 and 2009, roughly 6% of the workforce. One estimate of lost output from the crisis comes to “at least 40% of 2007 gross domestic product”.  U.S. housing prices fell nearly 30% on average and the U.S. stock market fell approximately 50% by early 2009. As of early 2013, the U.S. stock market had recovered to its pre-crisis peak but housing prices remained near their low point and unemployment remained elevated. Economic growth remained below pre-crisis levels. Europe also continued to struggle with its own economic crisis, with elevated unemployment and severe banking impairments estimated at €940 billion between 2008 and 2012.

Now that you have a better understanding what happened in the housing bubble let’s take a at the Orlando, Florida three year history of inventory 2014,2015, and 2016.And while you are inventory Hsitoryreviewing these statistics keep in mind a few factors of home owners and investors. Given the sustained low interest rate environment, many owners have either purchased or refinanced and are locked into tremendously low interest rates over the past six years. It is highly unlikely that these homes will be coming  up for sale anytime soon as a result of this favorable financing. In addition to the sustained low interest rate environment and its potential damper on those properties actually coming up for sale anytime during the life of their loans, I should mention the “value disruption” factor that occurred between 2007-2010+.

A number of areas experienced a complete “reset” of values and in some cases to nearly HALF of their peak values. Buyers purchased properties in this marketplace at significant discounts from the high point, resulting in additional “frozen inventory”.  If you combine those two factors, it’s unreasonable to expect that these homes will be coming up for sale anytime soon. In addition, an unprecedented number of institutional investors entered the residential real estate market acquiring large pools and blocks of properties. This inventory is now also frozen and held. There is a current mentality among some homeowners and investors that home values will continue to rise. And indeed the low inventory has attributed to a strengthening of home values. Right or wrong, this mindset has become another factor in tightening of inventory.

This same dilemma plagues retirees finding limited or no options for retirement communities in their local area. Those retirement communities are costly. This also limits housing supply on the top end of the market since seniors are not motivated to sell unless they know exactly where they are going.

In the Lake Nona area of Orlando, Florida we do have a strong new housing development engine, and that is indeed giving our local buyers more options than most buyers across the country. Remember if you are interested in new construction let us represent you. The builder already factors in our compensation, and we carefully review your new home build contracts to make any needed changes to protect you. Meet us personally, or verify our single agency representation for you by email. The same applies to existing home sales. Our real estate expertise with Florida sales contracts is extensive, and so very important for one of the most critical asset purchases in your life.

Maycumber and Associates Lake Nona Florida

Writer and Realtor Pam Maycumber