Asking Prices and Inventory for Homes in Central Florida

As of June 25 2012 there were about 11,148 single family and condo homes listed for sale in Central Florida. The median asking price of these homes was approximately $165,985. Since this time last year, the inventory of homes for sale has decreased by 19.8% and the median price has increased by 3.8%.

Inventory & Interest rates are low hmmmm....

The number of existing homes available for purchase in Orlando is continuing a steady decline that began back in July 2010 at 16,563 and now rests at 8,243. In May 2012, inventory was 24.85 percent less than it was in May 2011. The inventory of single-family homes is down by 28.22 percent when compared to May of 2011, while condo inventory has hatched a surprising increase of 1.18 percent. The month-of-supply statistic has set a new record low. The current inventory combined with the current pace of sales equates to a 3.53-month supply of homes in Orlando, which is a rate not seen since December of 2005 when it was a 3.58-month supply. Another boost to the housing market is that mortgage interest rates remain under 4 percent for a 30-year fixed-rate mortgage. If you're willing to look at a 15-year mortgage, you can find one for about 3 to 3.25 percent. Some lenders are now offering 10-year loans at 3 percent or less. These interest rates are a good indication of why the inventory is so low!

May 2012 The Housing Market - Just Released June 15, 2012

SALES... *Orlando home sales (all home types combined) in May 2012 were down 5.88 percent when compared to May of 2011 and down 4.06 percent when compared to April 2012. *Single-family home sales in the Orlando area decreased by 2.71 percent in May when compared to May of last year. Condo sales decreased by 17.37 percent; duplex, town home, and villa sales decreased by 8.44 percent. *Of the 2,337 sales in May, 1,107 "normal” sales accounted for 47.37 percent of all sales, while 588 bank-owned and 642 short sales respectively made up 25.16 percent and 27.47 percent. *The number of "normal” sales in May increased by 19.55 percent over May 2011, while short-sales decreased 4.61 percent and foreclosures dropped 33.48 percent. *The 10,291 pendings in May of this year is an increase of 0.79 percent compared to the 10,210 pendings in May of last year. *Short sales made up 67.00 percent of pendings in May. Normal properties accounted for 20.00 percent and bank-owned properties accounted for 13.00 percent. *Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in May were down by 1.78 percent when compared to May of 2011. Each individual county’s monthly sales comparisons are as follows: Lake: 24.73 percent above May 2011 (469 homes sold in May 2012 compared to 376 in May 2011); Orange: 8.20 percent below May 2011 (1,511 homes sold in May 2012 compared to 1,646 in May 2011); Osceola: 13.42 percent below May 2011 (484 homes sold in May 2012 compared to 559 in May 2011); and Seminole: 12.35 percent above May 2011 (564 sold in May 2012 compared to 502 in May 2011). Median Price *The median price of all existing homes combined sold in May 2012, $120,000, is a 9.09 percent increase from the $110,000 median price recorded in May 2011. *The median price for "normal” existing homes sold in May is $160,000, is an increase of 3.23 percent from the median price of "normal” existing homes in May 2011. *The median price for short sales increased by 5.88 percent to $108,000, while the median price for bank-owned sales increased by 4.31 percent to $83,450. Inventory *There are currently 8,243 homes available for purchase through the MLS. The May 2012 overall inventory level is 24.85 percent lower than it was in May 2011. *Single-family home inventory is down 28.22 percent; condo inventory is up 1.18 percent. *The current pace of sales translates into 3.53 months of inventory supply. *New contracts are down 0.08 percent compared May of 2011. New listings are up 10.37 percent. Other *The Orlando affordability index decreased to 250.73 percent in April. First-time homebuyer affordability in May decreased to 178.30 percent. *Homes of all types spent an average of 85 days on the market before coming under contract in May 2012, and the average home sold for 95.57 percent of its listing price.

Importance of an Appraisal

An appraiser is a professional person who can tell you what your home is worth. The appraiser will come to your house and list the number and size of the rooms and any extras, such as a fireplace, porch, pool, or garage. The appraiser will compare your home and property to other homes that have sold recently with similar features. The appraiser then estimates that your home might sell for approximately the same amount of money as similar homes. This is called an "appraisal." In short, an appraisal is the estimated amount of money your home may sell for.

What is a Real Estate Appraiser?

A real estate appraiser is an impartial, independent third party who provides an objective report on the estimate of value of real estate. The appraisal is supported by the collection and analysis of data.

A real estate appraiser values real property (land, houses, buildings, etc.), not personal property (cars, jewelry, furniture). The appraiser determines the physical characteristics of the property to be appraised and estimates value based upon three common approaches to value:

Sales Comparison Market Approach
Cost Approach
Income Capitalization Approach


Home Inspections Are Not Appraisals
A property appraisal is a document that provides an estimate of a property's market value. Lenders require appraisals on properties prior to loan approval to ensure that the mortgage loan amount is not more than the value of the property. Appraisals are for lenders; home inspections are for buyers.

The Federal Housing Authority (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), requires lenders to obtain appraisals of properties securing FHA-insured loans. FHA requires appraisals for three reasons:

To estimate the market value of the property.
To make sure that the property meets FHA minimum property requirements/standards (health and safety).
To make sure that the property is marketable.

The FHA appraisal process will note property deficiencies that are readily observable and found not in compliance with HUD's minimum property requirements/standards. These deficiencies may not be the same as those items noted in a home inspection report.


When Should I Use An Appraiser?

You will likely need the services of a real estate appraiser whenever an estimate of the value of your real estate is required. Most commonly, this occurs when you apply for a real estate loan, either to purchase or refinance your home. You may also need a real estate appraiser to assist in the appeal of your property tax assessment, for insurance purposes, for probate and estate settlements or other reasons.

What's My Property Worth?

It is common to ask the appraiser this question as soon as the appraiser has inspected the property. The truth is at that time the appraiser doesn't yet know. The inspection is the first step of many that the appraiser must complete before a value is determined.

The appraiser measures the house from the outside to determine square footage. The appraiser takes notes concern- ing the features of your house such as room layout, number of bedrooms, baths, etc. The appraiser also makes a determination of the general condition, appeal and functional layout of your house. All of these items are taken into consideration in the appraisal report.

How Long Does an Appraisal Take?

The physical inspection of a typical property usually takes about twenty to forty-five minutes. Sometimes an inspection can take longer if the house is difficult to measure or has some unique features that require additional investigation by the appraiser.

After the initial inspection of the property the appraiser spends time examining or analyzing the neighborhood or area. The purpose of this is to search for other properties that are similar to the property being appraised that have sold recently and examine neighborhood influences. When the fieldwork is finished, the appraiser completes the report at his office.

What Does The Appraiser Need to Know?

To help the appraiser complete the appraisal, you can provide some information that is helpful. Please tell the appraiser of any previous sale on the property within the last 12 months. Indicate if there is a pending contract to purchase on the property. Does the property have any right of way or other easements? Is there structural damage, or water leakage in the house? Is the property in a flood zone? Basically, inform the appraiser about any hidden features or detriments to the property.



How Do I Choose an Appraiser?
Although federal and state laws usually require that the lender must hire the appraiser when the appraisal is to be used for a real estate loan, some lenders will allow you to select an appraiser from their list of approved appraisers. For all other appraisals, you are allowed to select your own appraiser.

Licensed real estate appraisers can be found on the internet or by talking to your friends who have previously used an appraiser. Be sure to interview the appraiser carefully to determine if he or she is licensed and experienced in appraising your type of property.

Most licensed appraisers will provide an advance estimate of the cost to perform the appraisal, and many will commit to a fixed fee for the appraisal. It is always wise to obtain a written contract for services which includes a description of what is to be appraised, the scope of the assignment, the anticipated delivery date, the fee and terms of payment.

First Time buyer?

First time buyers... this is a great time to buy! Interest rates are at an all time low and the housing market is beginning to turn around! The supply is down, but I can help you find one... If you are ready to buy your first home... here are the perks! When you make a mortgage payment, you are building equity - and that's an investment. Owning a home not only qualifies you for tax benefits, but it also gives you freedom, stability, and security. The mortgage interest and real estate taxes are tax deductible, which allows you to subtract part of your housing related expenses from your taxable income, which could reduce your tax bill. In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant! Renting gives you the freedom to move and the land lord to fix your problems, but annually the rent may increase, evictions may occur, and your freedom to decorate and make changes will be strapped. So are you ready to live in a community with stability and a sense of security for a longer period of time? Then get ready to enjoy the perks of tax breaks, freedom, and your first home...!

Increase the value of your home...

While the value of your home is largely determined by such things as location, size, condition and amenities, there are still steps you can take to maximize its worth. First, you need to evaluate your plans carefully if you're improving your home to put it on the market. Cutting corners could hurt rather than help your prospects, but you don't want to go overboard either. Your home's value should be no more than 20% above the average. That means a $10,000 kitchen improvement project might be a better idea than a $10,000 hot tub, especially if no other homes in your area have hot tubs. In other words, it's best to keep changes simple. Here's a list of remodeling projects that buyers are likely to find valuable: Add a bedroom - Three and four-bedroom homes are most desirable. Install a master bathroom - When a bedroom has a bathroom, it means extra value. Install a new shower – A new shower says a modern home. Change your fixtures – Get a faucet that adds a decorative element to the bathroom. Re-grout the tile - If the tiles are in good shape a new grouting does wonders. Install new kitchen cabinets - Even just a paint job and some new handles will give your cabinets a fresh look. Improve functionality - If you've got the space, an island is the way to go. New appliances make a difference too. Expose the floors - Remove old carpet and show off the original floor. If you don't have hardwood floors, consider new carpeting. Install new doors - Doors set off a room and make a great difference. Paint the interior - A new paint job speaks volumes. Good colors to use are white, off-white, and a light grey. Add new light fixtures - Replace any that are damaged or out-of-style. Add a fireplace - Even if you don't plan on using it much, it adds great value. Take advantage of unused or underused space - If you can convert a basement or attic into a useful room, do it. Landscape - A few strategically located plants and a neat-looking yard will impress. Add a deck - It's a great use of exterior space because it increases your total entertainment area. Dress up your porch & entrance - A freshly painted door with a new door handle can make a great first impression. Adding a flower pot and door mat will also increase your curb appeal. Replace the windows - New windows not only give your home a new look, they can also lower your energy bill. Remember, when it comes to your home, it's important to keep pace with your neighbors. Don't let your home become the most expensive on the block - but don't fall behind either. This is a case where it's best to be right in the middle!

Home Staged Home...

What to do before you sell "Home Staging" is more than just preparing to sell your home by making it look the best it can. It's really the art of first impressions. For many home sellers and real estate agents, the concept of "home staging" is being more frequently recognized and used to effectively promote and market a home in the marketplace. However, while real estate agents are experts in the field of selling houses and closing the sale, many are not experts in design. If you are in the process of, or thinking about, selling your home, you may want to consider hiring a professional home stager to assist you. They work with the "flow" of a home, eliminate clutter, arrange furniture, and even assist in enhancing curb appeal. Or, if you're more the do-it-yourself type, below are some tips on what you can do to improve your home's "first impression." Start at the curb Curb appeal is the first step to selling your home. No one wants to buy a previous owner's dirty house. Power-wash the siding and wash windows until they shine. Trees, shrubs, and flowers should be neat and tidy, the garden weeded and the lawn mowed and edged. Once you've removed everything that isn't necessary, add touches such as large, lush flower pots or hanging planters to welcome visitors. Move inside Once you've created a promising exterior, you need to focus on the interior. The key to staging is to make it meaningful, set the tone and suggest countless possibilities. That means you need to remove everything that could distract the buyer's attention. Keep only what you must to remain functional. If you don't use something everyday, pack it for the move. Like the exterior, the inside needs to be neat and clean. If paint is showing signs of age, repaint. Neutrals often work best. Once the house is clean, stage your home with minimal furnishings. If you need inspiration, visit some model homes to see how decorators have put rooms together. Clear out closets, cupboards, and drawers. Strip the kitchen down to the necessities. Counters, however, should be clear, except for a decoratively placed bowl of fruit or bouquet of fresh flowers. It's not necessary for individual rooms to be used for their original purpose as long as the functions they represent are logical and show the space off well. Remove anything personal such as family pictures and mementos. Edit books, CDs, and videos on bookshelves. Arrange furniture to enhance the strengths of the room and facilitate traffic flow. If your furniture shows signs of age, consider borrowing pieces. Open the curtains to allow natural light to fill the room. Appeal to the buyer's sense of smell. Hot apple cider, cinnamon rolls, or fresh baked cookies add a homey smell....xo Simplicity and comfort is your ultimate goal!