A recent report from the Florida Realtors site today, reported Orlando as one of the top 11 ‘combacks’ for 2011!!
I also heard the ads on the radio, sponsored by the Orlando Realtor’s association – about how NOW is a great time to buy
I would have to agree with them too! Judging from the recent absorption rates in Orlando, it seems like trends may be turning! There is still some uncertainty with the “shadow inventory” we hear about – but depending on if that is a trickle or a DUMP into the market – we may see a bottom on the market this year! (FINALLY!)
Although my workload is still not seeing much by way of refinance or purchases (except REO purchases) – but then again, some of the ‘cheaper/faster’ appraisers out there may be interpreting “Customary and Reasonable” fees in a wholly lower fashion than I do!
Good luck Orlando!
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I recently read an article in the Florida Realtors online blog (http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=252076 ) about how Florida is #2 in the nation for longest foreclosure process. Can you guess who is #1? New York!
I lived in New York too and remember their court processes and how often they favored the tenant, the homeowner, etc. I guess on one had this is a good thing because it can protect the consumer, giving them longer to make other arrangements, try to resolve the situation, etc.
On the other side of the coin, however, is the investor. Weather that is the bank, an institution of some sort or an individual, getting an asset (or in this case likely a liability) back into the stream of commerce – eventually is a good thing for the neighborhood.
I often think, “Where is this family now?” They are paying rent somewhere likely.
Here’s some advice – if you don’t have to move….DON’T !
I would rather see an occupied home in a neighborhood being cared for until the day you HAVE to move out. If you are just going to move to another home in the zip code – why pay rent when you can live for ‘free’ until the process is complete? Take that rent money and put it into the lawn care and keep the utilities going. One day, sure, you will have to vacate as the foreclosure comes to a close. But until then – it actually HELPS the neighborhood instead of having another home in LIMBO.
As mentioned in the article above, “Foreclosure typically isn’t making a profit, it’s minimizing a loss,” says Rick Sharga, senior vice president at Realty Trac. “It’s hard to get the (investors) who own the notes excited about spending more money to execute a foreclosure. Ironically, the longer these things take, the more it costs.”
So if you are a homeowner, take advantage of this window. Save up some money and get ready for the changes about to come. But in the meantime, know that STAYING can actually help the neighborhood appear more stable and help your neighbors maintain some of their own property value.
Good luck!
I remember when I first moved to Florida full time. It was in 2003, before the BOOM in real estate. I owned a home in upstate New York which was worth about $40,000 at the time but the taxes were outrageous! Couple that with winters where it was common for 6 feet to 10 feet of snow to accumulate – and it was an easy decision to make the move to Florida! Sure, the median priced home was around $200,000 – but taxes were WAY lower (no state income tax, lower sales tax and lower real estate taxes!) and from a cash flow perspective – the numbers worked!
Today, I checked out an article post from CNN on the current Florida housing market. This video in particular, caught my eye:
http://money.cnn.com/video/pf/2010/11/24/pf_foreclosure_auctions.cnnmoney/
For my New York friends who are thinking – yeah, but it is SO hot there in the summer – I’ll remind you that our summer in 2010 was similar in temperatures to yours this year! And, minus the snow plowing, sidewalk shoveling, and car window scraping in the winters….it might be time to at LEAST look into a second home?!
In any event – we may not have reached the absolute BOTTOM in the market yet – but we are darn near close I would think – judging that some areas I have appraised are valuing 75% less than when the properties were purchased in 2007! WOW – values at 1/3 of what they used to be 3 years ago! Do you think it will go lower? Will homes eventually just be transferred for FREE?
Current inventory may be keeping the pricing low for a bit, with the ‘shadow inventory’ looming out there, and sidelined buyers not purchasing as many homes right now. But give it time… and like a clogged up drain – you just may see another “boom” of buying. It will just be the prices are at 50-70% of that boom from 2005!!
Make it a great day!
I downloaded the latest 3rd quarter report for Orlando today, from the National Association of Realtors and saw the very 1st graph which caught my eye:
Click to view large Download this gallery (ZIP, undefined KB) Download full size (52 KB)
I have been seeing of late, some increasing trends for home sales. Yet when you look at the longer view - it is quickly apparent that the markets are really just getting back to ground zero!
The report showed a lot of really good data, which I have been tracking ‘on the ground' in real estate appraisals here in central Florida, including Orlando, Clermont, Winter Garden and Windermere.
What a world of difference from 5 years ago! The question is.....where will we be 5 years from now?
Today's Florida Realtor News highlighted a story about a couple of mortgage brokers who were charged with fraud.
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=250105
On paragrpah stated "Although 16 named individuals took part in varying roles in the complex network - and all are charged in the indictment with conspiracy to defraud - the premise actually was simple, the government filing shows"
So you know, appraisers had to be part of this in order for these loans to have gone through. I recently finished a forensic review of an appraisal, where the stated value was $118,000 above the sale price. The home was not listed in the MLS, had no market exposure, and was a sale between apparently related parties.
This was a perfect scenario for fraud! The appraiser fudged some numbers on the comps, GLA was 'misreported', adjustments for GLA skewed low, etc, etc In the end, you have someone who benefited from that over priced sale which likely was mortgage with 0% down.
The housing markets have a lot of player with many parties to blame. This is why, more than ever, we need an industry of honest, ethical appraisers to help dig out and find the truth!
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Florida St Certified Residential Appraiser #RD4088. FHA approved. I service all of Lake, Orange, Osceola, Polk, and Seminole Counties.
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