Archive for the ‘Orlando homes’ Category

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What is a Housing Bubble? Is One Forming?

July 7, 2015

Bubble-2-KCM

The recent talk of Greece and its financial challenges has some questioning whether the U.S. could also return to the crisis we experienced in 2008. Some are looking at the rise in real estate values and wondering whether we are in the middle of another housing price bubble.

What actually is a price bubble?

Here is the definition according to Jack M. Guttentag, Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania:

“A price bubble is a rise in price based on the expectation that the price will rise. Sooner or later something happens to erode confidence in continued price increases, at which point the bubble bursts and prices drop. What makes it a price bubble is that the cause of the price increase is an expectation that the price will increase, which sooner or later must reverse itself.”

Does Professor Guttentag believe we are in another housing bubble?

In a recent article, he explained:

“My view is that we are a long way from another house price bubble. Home buyers, lenders, investors and regulators now understand that a nationwide decline in house prices is possible — because we recently lived through one.”

What are home prices doing?

Though home values are continuing to appreciate, the acceleration of the increases has slowed to year-over-year numbers which reflect a healthy housing market. Here is a chart showing year-over-year appreciation since January of last year:

Case-Shiller

We can see that appreciation rates have dropped from double digit numbers to more normal rates of 5% or lower.

Bottom Line

We think Nick Timiraos of the Wall Street Journal put it best in a recent tweet:

“Predictions of a new national home price bubble look unfounded for now, according to data.”

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Show me the money – from contract to close on a home…

July 16, 2013

In today’s real estate world…financing is critical. It is often the difference between deal or no deal. So, how do you make it work? There are a number of factors to consider:

1. Is the buyer’s lender local and reputable?
2. Has the buyer been pre-APPROVED?
3. Is there a significant down payment?
4. Will the house appraise?

Without a yes answer to the above questions, your contract could be in jeopardy. It is always important to work with a lender who properly qualifies prospects, No ambiguous language allowed on that pre-approval letter (look for the “out” clauses”)! Make sure you actually talk to the lender and find out the specifics on the borrower. Is the buyer putting down some funds…money talks in this market and deals are done when the buyer has contributed to the bottom line. Finally, is the home priced right? In today’s market…we don’t want to be a part of the problem. We have to be problem solvers!

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Holy cow – there are no homes to sell…

January 30, 2013

house sideways

Things have gotten a wee bit strange in real estate recently. There are simply too few homes for sale. I have buyers…lots of buyers actually but there is an absolutely nothing to show them. If you want a home in the $200,000 to $350,000 price range in a good area of Orlando then you had better be prepared to look a long time and jump on something the minute it becomes available. I’m seeing multiple offers on homes listed and anxious agents who want contracts signed before it is too late. There is definitely a sense of urgency in the Orlando real estate marketplace.

What does this mean? The economy is affecting homes listed for sale as potential sellers fear they won’t obtain fair market value for their home. The majority of homes for sale in Orlando remain short sales or foreclosures. We need to see the inventory of distress sales dwindle and more normal market conditions return.

What is normal? Who knows? But this certainly isn’t it.

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What’s happening in Orlando real estate?

July 1, 2012

What an interesting time in real estate. Homes ARE selling and I have had a great year to date. I’m grateful for that. But there is a lot of work to be done. In what direction are we moving as a nation?

The majority of homes sold are still distress sales. Homes that are NOT distressed (in foreclosure or short sale) are selling fast and furious. These homes are generally well cared for and the Seller can make a decision quickly. People are tired of waiting on banks and on being required to accept homes in shabby condition or AS IS without regard to repairs. I truly believe that buyers want to work with homes that they KNOW are well-maintained and show pride of ownership.

So who is buying distressed properties? Mostly investors with a lot of cash. Are we turning into a society of renters? Time will tell. I can tell you that there are a lot of people looking for rental homes. I probably get five to ten calls per day of someone looking for a rental house.

I am happy for the uptick in home sales but I will be happier when we see loans easier to obtain (even qualified buyers are unduly pressured during the loan process), appraisers realizing that the market is getting stronger and buyers not afraid to make decisions. WE NEED TO MOVE TOWARD A COUNTRY OF CONFIDENT CITIZENS.

I love our country as we approach this July 4th holiday and I pray that we will see our nation move in a positive direction with everyone working to the better good of our nation. May it be so.

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Show me the money…

May 15, 2011

If you have been reading my blogs then you would know this headline may be a bit misleading. It’s NOT really all about the money.

But when it does comes to money – people need to be smart. When I refer to people…I mean Sellers.

There used to be a thought process in selling real estate that the three things that mattered were PRICE, LOCATION and CONDITION. While it still remains true to some degree. I would argue that in our current market the ONLY thing that matters is PRICE.

The homes selling in the Central Florida area are priced right and priced to sell. That means short sales as well as non-distressed properties. In this market, your home has to be priced to compete. Sellers should understand why their home isn’t sold – it is most certainly going to come down to price. I have seen homes in the worst of condition that sell because they are priced to attract buyers. It is our job, as real estate sales educators to advise our clients accordingly. PRICE = SOLD.

Show them the money.

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One is the loneliest number

December 15, 2010

 

 

It’s that time of year – the time when everyone starts bombarding your email with solicitations for SEVEN ways to get rich, SIX steps for a better year, FOUR ways to get your home sold, THREE things you need to do to guarantee sales success. You get the picture. 

I don’t know who started this trend but the minute I see a number associated with an activity – I just zone out. I find the whole thing a little hokey. You want to be successful? ONE THING – WORK hard. You want more money? Work hard. You want happiness? Work hard. It’s really just that simple. 

We live in a culture that wants quick fixes to all our problems. That is simply not how life works although it would be nice in theory. To make your life successful you don’t need SEVEN secret tips…you just need to put one foot in front of the other toward your goal and make it work. I promise this is true. 

I have one suggestion for you today – decide to be succesful and happy and WORK hard to make it so.

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Is the grass greener?

February 5, 2009

Survey Finds Grass Is Greener on the Other Side

The results of a survey exploring attitudes related to where Americans would like to live show that the grass is definitely greener on the other side of the fence.

About 46 percent of people would prefer to live in a different type of community from the one they live in now, the survey by the Pew Research Center’s Social & Demographic Trends found. That sentiment was most common among urban dwellers.

But the desire to move elsewhere doesn’t stop people from appreciating their current locale. About 80 percent rank their current communities as excellent, very good or good. Both the 63 percent who have moved at least once and the 37 percent who have lived in the same place all their lives are equally satisfied with their current locations.

Other findings include:

  • Americans are all over the map in their views about their ideal community type: 30 percent say they would most like to live in a small town, 25 percent in a suburb, 23 percent in a city and 21 percent in a rural area.
  • About 75 percent of Americans say they prefer living where the pace of life is slow, not fast. A similar majority prefers a place where neighbors know each other well to one where neighbors don’t generally know each other’s business.
  • About 65 percent say they prefer to live in a hot-weather climate rather than a cold one.
  • Fast food gets the nod with 43 percent preferring to live in a place with more McDonald’s outlets vs. the 35 percent who would rather have more Starbucks shops.

Asked to rank cities where they would live if they could, nearly everyone chose warm weather locations in the South or the West. Here are their top 15 picks:

1. Denver, 43 percent
2. San Diego, 40 percent
3. Seattle, 38 percent
4. Orlando, 34 percent
5. Tampa, 34 percent
6 San Francisco, 34 percent
7. Phoenix, 33 percent
8. Portland, Ore., 31 percent
9. Sacramento, 29 percent
10 .San Antonio, 29 percent
11. Boston, 28 percent
12. Miami, 28 percent
13. Atlanta, 26 percent
14. Washington, DC, 25 percent
15. New York, 24 percent

Source: Pew Research Center (01/29/2009)