Archive for June, 2009

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Luxury Home Market has sluggish sales

June 19, 2009

 

 

According to CNBC – The Highest-End Real Estate has been adversely affected by the economy.

In 2008, with falling prices, sluggish sales and currency fluctuations, the credit crunch and global financial crisis have hurt real estate in places that have traditionally been the most expensive markets in the world.

On March 23, Knight Frank released the Wealth Report 2009, a survey of high-end, prime real estate around the world. The findings show big price fluctuations around the world in the 2008 calendar year, and even more dramatic swings from Q3 to Q4. The firm defines prime real estate as: “The most expensive 1% of property in each location. Commonly – but not always – this will relate to the US $1m+ segment – and often will comprise an international client base.”

This past Spring sales in the million dollar category are at a standstill and sluggish would be a generous term for sales in this market. Some economists are calling for a stimulus package for all buyers and not just the $8,000 first-time homebuyer credit. I’m in agreement that we need to jumpstart the sales of homes across our nation to help restore consumer confidence and increase demand!

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Orlando Home Sale Statistics

June 11, 2009

I have some new statistics to share with all of you and they are pretty shocking when you consider the luxury market conditions and the number of home available for sale.

I would also like to say that I am so grateful to the many sellers out there that have confidence in my marketing program. I believe that the combination of a personalized marketing plan and Stirling Sotheby’s International Realty brand is a great team and we really try to do our best. I constantly try to look for new and creative marketing ideas to get my listings sold.

The May, 2009 update sums up the market quite well — only 1,055 homes sold in ORANGE COUNTY, Florida. This is a shocking number! 69% of the homes sold were sold for $200,000 or under. When you increase the sales price to $300,000 that accounts for 88% of all homes sold in Orange County, Florida. Over $1M luxury market is at .076% – in other word, almost non-existent with a mere 9 sales and a few of them short sales. One Winter Park estate home was original listed at $2.5M and sold for $1.4M.

Where do we go from here? We stay the course. In 23 years I have never seen market conditions like we are currently experiencing. We have a shortage of lenders willing and able to loan money unless the loan is backed by FHA. This explains why the average sales price for a home in Orlando right now is $130,000.

If your home is vacant, consider leasing at this time. At least it will cover some of your carrying cost until our elected leadership can figure out how to stimulate the economy and increase consumer confidence. As the housing market improves – so will the American economy.

For additional details on your neighborhood – call Linda at 407-898-9090 or my cell at 407-925-7721.  I am very excited to be busy and I still work hard to increase transactions in this difficult market.