Alafaya, FL

The Median Sales Price for homes in the Orlando area as we all know has decreased significantly. Everyone is asking, where's the bottom. Well, I'll be the first to say that I see the bottom. I will go on record to say that we're almost there. I pulled this trend chart from Trulia and it represents the median sales price of homes. The most important lines are the black and purple. The black line is actual sales of the median priced home. Notice that this jumped out of proportion Jan.1 2004. If prices had not jumped due to supply and demand and had just progressed normally at a 3-5% increase, that average which is represented by the purple line would be approx. $205,000 today. However, the actual today is at $225,000. Therefore, I see the market still correcting another 10% and possibly more. Nothing says that we can't go below this line. That may be possible for a short period of time to clear out the foreclosures and short sales. So there it is, my crystal ball is telling me that the market in Orlando will continue to decrease another 10% - 15% overall before we stablize.

About the author:

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit http://www.jerrysellsorlando.com/ for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

(Copyright © 2008 By Jerry LaRose, P.A. All Rights Reserved.)

Don't wait too long to buy a home in today's market?

While today's market plays to your advantage as a buyer, with reduced housing costs and favorable interest rates, are you sitting by waiting?

When the market turns, today's bargains will be yesterday's missed opportunities.

While it is conceivable that home prices may drop further, it is likely that the decreased prices will be accompanied by increased financing costs due to rate cuts by the Fed. This means that any money saved on paying less for a house in a few months time will be offset by having to pay off your mortgage at a higher interest rate making "playing the waiting game" a waste of time (and very little fun).

This rate increase isn't just speculation. Just a couple of weeks ago, in early February, the fixed mortgage rate jumped a full half-percent, making it the fastest rate increase in 20 years.

The table below demonstrates how even as home prices may drop, monthly mortgage payments basically stay the same; due to increased interest rates:

Scenario 1:
Prices decrease by 5% and interest rates increase by 0.5%

Scenario 2:
Prices decrease by 10% and interest rates increase by 1.0%

Table: Kadlec, Dan. "Ignore the Headlines!" Time 25 February 2008

Why should you spend months in a situation that you want out of when you can begin your new lives in your new home today, with less interest?

If your home is on the market, you better make it easy for buyers to see!

I was showing homes yesterday and I had problems showing 3 of the 7 homes I was to show my buyers.

At the first home, the home owner was there and unaware of the showing. I guess the realtor never told them. (It's never a good idea to have the home owner at home when the buyers are there.) The whole situation was awkward and the buyers just rushed through the home.

At the second home, there was a combination lock box on the home. When I opened it up, there was no key inside......how am I suppose to get into the house? I am sure the home owner removed the key. With combination lock boxes, home owners can open them......actually, in my opinion; they are completely unsafe because ANYONE can open them. With electronic lock boxes, you have to have a special key to open.

Finally, at the third home, there were two dogs barking and running around inside. I can't bring my buyers inside this home with the dogs loose.

How is a buyer supposed to write an offer on your home if it's difficult for them to see it? All my homes on the market are on an electronic lock box and showings are scheduled through my call center. Call me to make sure your home is getting shown properly.

I must admit that it is a challenging time to be selling your home. Improve your odds of selling your home in today's buyer's market with the following tips:

1. Be motivated! There are many homes listed right now. If you don't need to sell, then don't. Ask yourself: Why am I selling?

2. Condition. Gone is the day where the buyer wants to fix up a home. If it's broken, fix it. If it's not neutral, make it. Why should a buyer buy your home over another. Contact me for staging tips.

3. Price it right! What does that mean...........be prepared to list your home 10% below other comparables. Next, be prepared to lower the price every couple of weeks. Contact me for a CMA. (Comparative Market Analysis)

4. Hire a REALTOR! Call me at (407) 580-7011 to schedule your marketing consultation.

Weak Economic Reports Drive Mortgage Rates Downward According to Freddie Mac's Weekly Survey

Freddie Mac today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.03 percent with an average 0.5 point for the week ending March 6, 2008, down from last week when it averaged 6.24 percent. Last year at this time, the 30-year FRM averaged 6.14 percent.

The 15-year FRM this week averaged 5.47 percent with an average 0.5 point, down from last week when it averaged 5.72 percent. A year ago at this time, the 15-year FRM averaged 5.86 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.34 percent this week, with an average 0.5 point, down from last week when it averaged 5.43 percent. A year ago, the 5-year ARM averaged 5.90 percent.

One-year Treasury-indexed ARMs averaged 4.94 percent this week with an average 0.5 point, down from last week when it was 5.11 percent. At this time last year, the 1-year ARM averaged 5.47 percent

"Weak economic reports that indicated declines in the job market, slowing in manufacturing and low consumer confidence drove bond yields lower this week and mortgage rates followed," said Frank Nothaft, Freddie Mac vice president and chief economist. "Interest rates for 30-year fixed-rate mortgages are now at the same levels as they were two weeks ago, erasing last week's upward jump."

"Meanwhile, the housing market continues to take a toll on the rest of the economy. Residential fixed investment shaved 1.25 percentage points off economic growth in the fourth quarter of 2007. More recently, the median sales price of new homes fell 15.1 percent in January, representing the largest annual drop on record. Residential construction fell 19.7 percent over the twelve-months ending January 2008, the largest decline since March 2007."