July 2012 Housing Market – Talking Points
Released August 15, 2012
*Orlando home sales (all home types combined) in July 2012 were up 2.66 percent when compared to July of 2011 and down 9.91 percent when compared to June 2012.
*Single-family home sales in the Orlando area increased by 6.52 percent in July when compared to July of last year. Villa sales increased by 10.58 percent; condo sales decreased by 17.41.
*Of the 2,355 sales in July, 1,132 normal sales accounted for 48.07 percent of all sales, while 559 bank-owned and 664 short sales respectively made up 23.74 percent and 28.20 percent.
With very few move in ready homes to select from, buyers are scrambling to chose between slim home pickings. It seems like anything decent is selling super fast right now and the market is definitely favoring sellers. As Realtor I am definitely looking for more listings at this point, but I think that potential sellers are still hesitant to put homes on the market as prices still haven’t come up high enough to make them move.
What you can expect to deal with right now:
Existing home sale prices for the Orlando area held steady from September to October but it was the first time in more than a year since the number of houses on the market actually increased, according to a report released Tuesday by the Orlando Regional Realtor Association.
The median price for a house in an area that mostly consists of Orange and Seminole counties was $112,700 in October _ up from $112,500 in September. Prices last month were up 7 percent from a year earlier.
One slight shift in the housing market during October was that, for the first time since July 2010, the number of houses listed for sale grew. By the end of the month, the market had 9,973 houses awaiting a buyer, which was 42 more than in September. Even with the increase, the market continues to have a fraction of buying opportunities than it has had in recent years. It was saturated with a high of 26,330 listings in October 2007 and 15,441 listings this time last year.
At the current pace of sales, Orlando has a 4.82-month supply of homes; six months is considered a normal market.
In October, sales of normal homes commanded a median price of $153,000, while short sales fetched a median of $95,000 and bank-owned houses had a median price of $80,000. The normal sales accounted for about 41 percent of all 2,068 sales during the month.
Buyers who purchased an Orlando area home in October paid average interest rate of 4.21 percent, which is slightly above the 4.19 percent average interest rate recorded for September. That rate was the lowest since the association began tracking the statistic in 1995.
Homes of all types spent an average of 106 days on the market before coming under contract in October, and the average home sold for 94.66 percent of its listing price. A year ago, those numbers were 91 days and 94.67 percent, respectively.
Fewer real estate agents expect price drops
EMERYVILLE, Calif. – Sept. 19, 2011 – Most real estate professionals and homeowners expect home values to decrease or stay the same through the end of the year, according to HomeGain’s third quarter survey. While the outlook remains dour, however, a higher percentage of real estate agents seem to think their market area has hit bottom and is rebounding.
In Florida, one in five (22 percent) real estate professionals surveyed expect prices to rise over the next six months, as did 22 percent of homeowners. That’s second only to Arizona, where 33 percent of agents anticipate a price increase and 29 percent of homeowners.
Nationally, 11 percent of real estate professionals expect home values to increase in the next six months, down one percent from last quarter; 12 percent of homeowners expect home values to increase, down 3 percent from last quarter.
According to the survey, 47 percent of agents and brokers and 45 percent of homeowners think that home values will decrease over the next six months. However, agents’ attitudes have become slightly less pessimistic since the second quarter (50 percent expected price declines) even though homeowners have become more pessimistic (30 percent expected price declines).
An almost equal number of agents and homeowners expect selling prices to remain roughly the same for the next six months, with 42 percent of agents expecting the status quo to continue compared to 43 percent of homeowners.
According to agents and brokers, 75 percent of homeowners believe their homes are worth more than the agent’s recommended listing price. In contrast, 68 percent of homebuyers believe homes are overpriced.
The five states with a rising outlook about home prices – Arizona, Florida, Texas, California and Ohio – were generally hit hard by the real estate crisis and now may be bouncing back. The five top states where agents expect prices to decline include New Jersey (77 percent of agents expect a six-month price drop), Pennsylvania (75 percent), North Carolina (68 percent), Georgia (62 percent) and Virginia (58 percent).
Over 500 real estate agents and brokers and over 2,200 homeowners were surveyed.
© 2011 Florida Realtors®
As you know we have been following the story of getting high speed rail into Orlando and finally after many false starts it looks like this train is gonna leave the station!! Press release below:
Earlier today Governor Rick Scott authorized the Florida Department of Transportation to sign the pending Full Funding Grant Agreement for SunRail. This will allow Florida to begin the construction and operation of Central Florida’s commuter rail system.
Click here to see a video of the Secretary’s announcement: