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Orlando State of the Market February 2023

March 16th, 2023 by tisner


State of the Market

  • Overall sales rose 33.8% from January to February. There were 2,240 sales in February and 1,674 sales in January.
  • Overall sales in February 2023 were 30.0% lower than February 2022 when there were 3,198 sales.
  • Inventory dropped from 6,115 homes in January to 5,555 homes in February.
  • Inventory in February 2023 (5,555) was 140.2% higher compared to February 2022, when it was recorded at only 2,313 homes.
  • The median home price for February was recorded at $358,000, up from $350,000 in January. This comes after three straight months of declining median home prices.
  • February’s interest rate was recorded at 6.4%, up from 6.1% in January.
  • Homes spent an average of 62 days on the market (DOM) in February, up from 57 days in January. This is a 106.7% increase compared to February 2022 when homes spent an average of 30 days on the market.
  • New listings decreased slightly from January to February, with 2,820 new homes on the market in February, compared to 2,911 in January.
  • “In February, we saw a spike in sales due to closings that started during the holiday season. After the New Year, we tend to see those contracts close as home buying and selling activity rises,” said Lisa Hill, Orlando Regional REALTOR® Association President. “The Orlando housing market continues to look positive as we look ahead to a strong spring selling season.”

Market Snapshot

  • Interest rates increased from 6.1% in January to 6.4% in February. This is 64.5% higher than February 2022 when interest rates were 3.9%.
  • Pending sales increased by 21.2%, from 3,453 in January to 4,184 in February.
  • 22 distressed homes (bank-owned properties and short sales) accounted for 1.0% of all home sales in February. That represents a 57.1% increase from January, when 14 distressed homes sold.

Inventory

  • Orlando area inventory decreased by 9.2% from January to February – from 6,115 homes to 5,555 homes. Inventory in February 2023 was 140.2% higher than in February 2022, when inventory reached a record low.
  • The supply of homes decreased to 2.48 months in February, down from 3.65 months in January. A balanced market is six months of supply.
  • The number of new listings decreased from January to February by 3.1% – from 2,911 homes to 2,820 homes.

ORRA’s full State of the Market Report for February can be found here.

Access Teri’s one-stop Orlando FL home search website.Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

By: www.orlandorealtors.org

Economy Sends Mixed Signals: What’s It Mean?

March 9th, 2023 by tisner


Inflation slowed and the stock market climbed in the first six weeks of 2023, but then it stopped. A soft landing seemed possible; now recession fears are back.

WASHINGTON (AP) – Maybe it was just too good to be true.

For a few weeks in late January and early February, the U.S. economy seemed to have reached a rare, sweet spot. Inflation was steadily slowing from painful heights. And growth and hiring remained surprisingly sturdy despite ever-higher interest rates imposed by the Federal Reserve.

Perhaps, the thinking went, the Fed’s inflation fighters were managing to nail a notoriously difficult “soft landing”: A scenario in which borrowing and spending slow just enough to tame inflation without tipping the world’s biggest economy into a recession.

“We were looking at landings that were pillow-soft,” recalled Diane Swonk, chief economist at the accounting giant KPMG. “There was a bit of glee about that.”

The financial markets roared their approval in the first six weeks of 2023, with stock prices surging on expectations that the Fed might soon pause and eventually reverse the series of aggressive rate hikes it began nearly a year ago.

Then something went wrong.

It began on Valentine’s Day. The government said its closely watched consumer price index had surged 0.5% from December to January – five times the increase from November to December.

Over the next week and a half, two more government releases told essentially the same story: The Fed’s fight to curb inflation wasn’t even close to being won.

That realization brought a related worry: If high inflation was even stickier than we thought, then the Fed would likely keep raising rates – and keep them high – longer than was assumed. Those ever-higher borrowing rates would make it more probable that a recession, with layoffs and business failures, might occur.

Fed Chair Jerome Powell warned Congress Tuesday that the central bank will have to raise interest rates even higher than its previously signaled if inflation keeps running hot.

“It’s heartbreaking,” Swonk said. “This has put the Fed back in defensive mode, and they’re going to have to harden their resolve on rate hikes.”

Unsurprisingly, the stock market has recoiled at the prospect.

Here’s a closer look at the economy’s vital signs at a perplexing time of high interest rates, still-punishing inflation and surprisingly strong economic gains.

Inflation

Consumer inflation, not much of a problem, on average, since the early 1980s, started picking up in the spring of 2021 as the economy roared out of recession and Americans spent freely again. At first, Fed Chair Jerome Powell and some economists dismissed the resurgent price spikes as likely a temporary problem that would resolve itself once clogged supply chains had returned to normal.

But the supply bottlenecks lasted longer than expected, and so did high inflation. Worse, Russia’s invasion of Ukraine a year ago sent energy and food prices rocketing. By June 2022, consumer prices were 9.1% higher than they’d been a year earlier – the hottest year-over-year inflation in more than four decades.

By then, the Fed had begun, belatedly, to respond. It has raised its benchmark rate eight times since March 2022 in its most aggressive credit tightening since the early 1980s.

In response, consumer inflation edged down from its mid-2022 peak. It posted milder year-over-year increases for seven straight months as supply chains unclogged and higher borrowing costs worked their way through the economy, putting a brake on overspending.

Financial markets appeared ready to declare the inflation dragon all but slain.

Then came January’s unexpectedly hot consumer inflation data. Two days later, the government reported that wholesale prices had jumped 0.7% from December to January, nearly twice what forecasters had expected.

Next came bad news from the inflation gauge the Fed watches most closely: The government’s personal consumption expenditures price index. It accelerated 0.6% from December to January, far above the 0.2% November-to-December uptick. On a year-over-year basis, prices rose 5.4%, up slightly from the annual increase in December and well above the Fed’s 2% inflation target.

The PCE report “adds to the difficult if not impossible task facing the Fed in terms of getting inflation back to its 2% target without driving the economy into a ditch,” said Joshua Shapiro, chief U.S. economist at the Maria Fiorini Ramirez Inc. consultancy.

One concern is that this time, inflation may prove harder to slow than it was initially. Households have increasingly shifted their spending away from physical goods like patio furniture and appliances to experiences like traveling, restaurant meals and entertainment events. Inflationary pressures, too, have shifted from goods toward services, where price acceleration can be harder to tame.

In part, that’s because chronic labor shortages at stores, restaurants, hotels and other service-sector industries have led many employers in those industries to keep raising pay to attract or retain workers. Those employers, in turn, have generally raised their prices to make up for their higher labor costs, thereby fueling inflation.

Some economists expect the Fed to raise its benchmark rate by a substantial half-percentage point when it next meets March 21-22, after having announced only a quarter-point hike when it met Jan. 31-Feb. 1.

Housing

The Fed’s rate hikes, which so far have had only a limited effect on the overall economy, have walloped one industry: Housing.

Residential real estate depends on the willingness of people to borrow for what’s typically the costliest purchase of their lives. As the Fed continually jacked up interest rates last year, the average rate on a 30-year fixed mortgage topped 7% last fall – more than double where it began 2022 – before dropping back slightly.

The damage has been severe. Sales of existing homes have dropped for a record 12 straight months, according to the National Association of Realtors®. And the government’s GDP report showed that investment in housing plunged at an annual rate of nearly 26% from October through December after having tumbled 18% from April through June and 27% from July through September.

The overall economy

The flipside of the disquieting inflation news is good news on the state of the economy – or what would be considered good news in normal times. Even burdened by rising borrowing rates, the economy has proved stronger and sturdier than most forecasters had imagined.

“This economy today looks very different from where we thought it was in mid-January,” said Peter Hooper, an economist at Deutsche Bank. “Before, we thought that things were slowing down, the labor market was softening, wage and price inflation was coming down.”

With inflation pressures still persistent, Hooper said, “there’s this growing expectation that the Fed has clearly more work to do.”

The economy regained its footing last summer after enduring an anemic first half of 2022. The nation’s gross domestic product – its total output of goods and services – contracted from January through March last year and again from April through June.

Though one informal definition of a recession is two straight quarters of negative growth, most economists set aside such concerns this time. They noted that the economy had shrunk in early 2022 because of factors unrelated to its underlying health: Leaner business inventories and a surge in imports, which widened the U.S. trade deficit.

GDP quickly regained momentum: It grew at a solid 3.2% annual rate from July through September and a 2.7% rate from October through December. Steady consumer spending contributed heavily to the growth.

Economists still foresee a recession sometime this year – they were always skeptical of a soft landing – but now see it coming later than they’d expected. A survey of 48 forecasters issued last week by the National Association for Business Economics found that only a quarter of the respondents think a recession will have started by the end of March, down from half who had predicted so in December.

Jobs

The remarkable strength of the American job market has defied expectations throughout the economic tumult of the COVID years. 2021 and 2022 were the two best years for hiring in U.S. government records dating to 1940.

Job creation was expected to slow this year. Not so far. In January, employers added a blistering 517,000 jobs, far surpassing December’s 260,000 gain. They likely added nearly 208,000 more in February, according to a survey of forecasters by the data firm FactSet. The Labor Department releases last month’s job numbers on Friday.

What’s more, American workers as a whole are enjoying nearly unheard-of job security despite some high-profile layoffs in technology and a few other sectors. The government’s count of monthly dismissals and layoffs sank below 1.5 million for the first time in 2021 and has stayed there since.

In January, the unemployment rate reached 3.4%, its lowest level since 1969. There are now about two job openings, on average, for each unemployed American.

But a robust job market also puts upward pressure on wages – and therefore on prices. Which means further inflation.

“The kind of wage gains we’re seeing and the kind of tightness in the labor market is consistent with 3.5% to 4% inflation, not 2% or 3%,” KPMG’s Swonk said. “That’s the hard reality of where we are.”

Consumers

Their jobs secure, their bank accounts still bolstered by pandemic-era savings, Americans have continued to spend, shrugging off higher interest rates and prices.

In January, retail sales rose at their fastest pace in nearly two years, rebounding from a tepid holiday shopping season. Even after accounting for inflation, consumers spent their after-tax dollars at the fastest pace since March 2021. Consumer spending on services, ranging from health care to dinners out to airline tickets last year accounted for 95% of the economy’s growth.

Mark Zandi, chief economist at Moody’s Analytics, estimates that consumers still have $1.5 trillion in “excess savings” – above what they’d have socked away if the pandemic hadn’t hit – from government aid and from cutting back while stuck at home at the peak of the pandemic.

Still, inflation continues to cause hardships for millions of households. Adjusted for inflation, average hourly earnings have fallen for 22 straight months, government data shows. Many low- and middle-income families are turning to credit cards to sustain their spending.

Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission. AP Economics Writer Christopher Rugaber contributed to this report.

By: www.floridarealtors.org, Paul Wiseman

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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Real Estate Trends: What’s the 2023 Fla. Outlook?

January 26th, 2023 by tisner

ORLANDO, Fla. – What should consumers, Realtors® and policymakers expect when it comes to Florida real estate over the next year? After the unexpectedly strong years of 2020 and 2021 despite an ongoing pandemic, Florida’s housing sector in 2022 was affected by rapidly rising inflation and higher mortgage interest rates, Florida Realtors® Chief Economist Dr. Brad O’Connor told nearly 500 Realtors during the recent 2023 Florida Real Estate Trends summit.

“Now, we expect the state’s residential real estate market to return to a more typical pace,” he said. “I believe 2023 will look more like the ‘traditional’ housing market years of 2018-2019 in Florida as supply and demand become more balanced.”

The event was part of this year’s Florida Realtors®’ Mid-Winter Business Meetings at the Renaissance SeaWorld Orlando. In addition to O’Connor, the summit featured John Leer, chief economist of Morning Consult, which uses high-frequency survey data to capture insights into consumer attitudes and concerns. Leer leads global economic research and oversees the firm’s economic data collection, validation and analysis. He is an authority on the effects of consumer preference, expectations and experiences on purchasing patterns, prices and employment.

It also included a panel of Realtors who use Florida Realtors’ SunStats resource regularly, sharing how it helps them in their business. Panelists were Peter West, broker/managing partner, Bishop West Real Estate; Kara Wisely, broker associate, Berkshire Hathaway HomeServices Florida Realty; and John J. Adams, president, Adams, Cameron and Co., Realtors. Jennifer Warner, Florida Realtors economist and director of economic development, served as the moderator.

Dr. Brad O’Connor, Florida Realtors chief economist

One major question currently on the minds of real estate professionals, homebuyers, home sellers and others: Is a price correction on the way?

“Well, prices are determined by both demand and supply,” O’Connor said. “Falling demand is only one ingredient needed for a large correction; we also need a flood of supply – in the last housing cycle, this came from overbuilding and foreclosures. And it’s unlikely that we’re going to see a flood of newly built homes on the market for several reasons. First, fewer home builders currently exist than in years past; builders are more conservative when it comes to taking on new builds; and home builds are taking longer to complete. Supply is also being affected by homeowners who don’t want to list their house and buy a different one because they’re likely to have to pay more on the next home due to higher mortgage interest rates.

“So it’s true some owners are feeling ‘locked-in’ to their current home and current mortgage rate, but it’s not all homeowners. We are seeing gains in inventory (active listings) and closed sales are continuing. And we are going to see some relaxing or easing in prices, but we’re not going to see a great drop unless or until we see more supply available.

According to O’Connor, inflation will continue to be a factor in 2023, though recent economic news shows the Federal Reserve’s action to fight inflation appears to be having a positive effect. Buyer demand in Florida in the coming months will continue to be challenged by insurance costs, mortgage rates – especially if rates start rising again to 7% or higher – and ongoing economic uncertainty that erodes consumer confidence.

“Mortgage rates will come down, but it’s all dependent on different factors,” he said. “All of the current forecasts on existing home sales in 2023 rely on where the 30-year mortgage rate is going to be, and that’s in flux.

Recent 2023 forecasts for U.S. existing home sales compared year-over-year to 2022 include:

National Association of Realtors® (12/13/22): Existing home sales fall 7.0% Y/Y in 2023

Fannie Mae (12/12/22): Existing home sales fall 21.1% Y/Y in 2023

Mortgage Bankers Association (12/19/22): Existing home sales fall 13.7% Y/Y in 2023

Redfin (12/6/22): Existing home sales fall 16.0% Y/Y in 2023

Realtor.com (11/30/22): Existing home sales fall 14.1% Y/Y in 2023

National Association of Home Builders (1/4/23): Existing home sales fall 15.7% Y/Y in 2023

O’Connor said, “In the first half of this year, I feel confident that we’re going to see home prices flatten out on average, and I think sales will kind of hug below the line of 2018 (closed existing home sales). I expect closed sales to hover a bit below the more usual pace of Florida home sales, such as what we saw in 2018. However, because home prices are much higher now than in 2018, we are still going to see a higher dollar volume of closed existing home sales, just not at the level of last year or in 2021 with dollar volume.”

Dr. John Leer, Morning Consult chief economist

How consumers are affected by the economy, inflation and other factors – or how they feel about what’s going on in the world around them – influences consumer confidence and factors into their buying decisions or saving habits, according to Dr. John Leer, chief economist for Morning Consult.

“In 2023, consumer confidence is starting to rise across most of the U.S. but remains far off from where it was a year ago,” he said. “It’s going to take a prolonged period of real wage growth and fairly stable policy outcomes for consumers to feel more comfortable and confident about the economy and their future. In December, consumers reported rising credit balances at the highest rates since tracking began. Research shows more consumers are finding it difficult to make ends meet at the end of the month, and the share of adults able to save each month continues to shrink.”

Leer pointed out this is a sign that consumers have been pushed to the brink and are having to pull back on spending as higher expenses erode their savings and sense of financial stability.

“While we’re seeing in the news that inflation is starting to cool, inflation is still impacting consumers,” he said. “They still feel and see that inflation is costing them more. Consumers are under financial stress and they’re trying to downsize their spending. Over the last two months, what we’re seeing is the outlook for the U.S. economy has really deteriorated, particularly among consumer fronts. Consumers have exhausted their sources of spending. We expect to see consumers continue to draw back from spending as small business and other sectors reduce hiring, expenditures and otherwise also contract.”

However, Leer also noted that housing and homeownership remain a top priority for many consumers. “Housing prices are beginning to flatten but continue to resist declines as buyer interest perks up,” he said. “Buyers are still waiting in the wings, interested in purchasing a home as soon as they’re able to do so financially. We continue to see that homeownership remains a strong goal for consumers, particularly for young adults looking to start a family and who feel secure in their jobs and ready for that next transition.”

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

By and photo credit: www.floridarealtors.org

Comps & Market Stats: What’s the difference?

January 12th, 2023 by tisner

Realtors know the ins and outs of comps — what they are, why they are important in every deal, and how they set the price and tone of the transaction overall.

But how do comps compare to market statistics, and more importantly, when should you look to one over another?

  • COMPS: This stat helps consumers who have already decided to buy something evaluate the different options on the market; helps a seller understand how their product stacks up compared to other products currently “on the shelf”
  • MARKET STATS: These help professionals gauge the health of the marketplace overall and to set expectations throughout the transaction for both buyers and sellers. Helps them communicate how competitive the marketplace is, how pricing is trending, whether the marketplace favors buyers or sellers, how quickly assets will move.

 

Comps: The value of features to individuals

To help understand, let’s consider a near-universal experience: buying a new vacuum cleaner.

When you go to Target to buy a vacuum, you stand in front of the options on the shelf and start comparing features and evaluating price, looking for the machine that will ultimately suit your specific needs. A person standing next to them is likely doing similar calculus but could come up with a different purchase based on their individual needs.

A pet owner may require certain tools and features that a person without pets doesn’t need. An older person may need a lighter machine, which could cost more, whereas a young college student doesn’t mind the cheaper, bulky model.

The one thing that unites every consumer in the market for a vacuum is that they are in the market for a vacuum. Value is placed on aspects of each machine based on their specific needs — what matters to one person may not to another. That’s why people are willing to pay different prices based on the different features that matter to them.

Comps are similar — they look at the individual features of houses that have recently sold very close to the area of the house in question. Features are compared: Does this house have a pool, a view, a yard, any major appliance upgrades, etc.? All of these features can add to the perceived value of the home — depending on if buyers are willing to pay more for them.

What matters to one buyer may not to another who would not be willing to pay extra for that particular feature. Someone with a more limited budget may be more willing to compromise on features just to purchase a home. Another person cannot live without certain things and are willing to pay more for what they want.

Either way, comps look at specific properties in a very small area and compare them to one another at a particular moment in time.

Comps are used to set the list price of a home and help sellers know how their property stacks up compared with other homes that recently sold. Comps matter most to people who have decided to actively participate in the market or have made the decision to buy or sell.

Market stats: Housing as a commodity

Market statistics elevate above the individual and consider the marketplace in general, looking at the health of the buyer and consumer and their ability to participate in the marketplace.

Continuing the vacuum-cleaner analogy, market data helps answer some of the following questions:

  • How many people are in the market for vacuums?
  • Do people have the money to purchase high-priced models or more entry-level models?
  • How many other models are there for people to chose from?
  • How do the features of my vacuum compare with the others on the market?
  • How quickly do vacuums sell after they arrive at the store?
  • Are other vacuums running a promotion that would incentivize a buyer to choose that model to get the discounted price?
  • Is the price of my vacuum in line with the others on the market?

Market statistics matter to anyone trying to understand the housing market in general, regardless of whether they are actively trying to buy or sell a home at the present time.

It also removes the individual features of the home from consideration and allows people to consider what all homes in a particular area (ZIP code, city, county, etc.) are doing. Market stats takes some of the emotion and specifics out of consideration and allow everyone to look at housing as a commodity, like oil and lumber.

Market stats help “set the table,” helping clients and professionals start the conversation from the same place.

Meaning, you can inform a client of how quickly homes are selling in their area and for what percent of the listing price. This can then help them understand how their transaction could go based on what is happening around them, beyond the handful of recent sales.

Market stats have a longer historical time horizon than comps, which typically do not go further back than six months and can help clients understand current market conditions compared to a year or so ago. This helps show the direction of the market, allowing for you to help manage expectations.

Ultimately, market statistics matter to professionals working with clients who rely on your expertise to tell them what is going on in the market overall.

Most clients do not know why median sale price trends matter to them and how understanding the temperature of the market can inform their experience going through a deal. But you know that understanding broader trends can help your clients make savvy decisions.

It may be a better time to buy a condo than a single-family home, for example, based on available inventory and pricing trends. It may be the right time to put a house on the market, given how low inventory currently is and has been trending for the last 12 months. It may be time to consider a different ZIP code over another — the ability to figure out options for your clients are practically endless.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

Info from floridarealtors.org/

New Year’s Resolution: Invest in Real Estate

December 29th, 2022 by tisner


Stocks mainly pay when they appreciate and bonds via coupons, but real estate offers five profit centers, such as income, tax savings and principal paydown.

NEW YORK – If you invest in stocks or bonds, you may be more accustomed to one way of getting paid. For stocks, typically you’ll only get paid from stock price appreciation. For bonds, you’ll typically only get paid from the coupon payments (similar to net rental income of rental properties).

Since 2000, government bond yields have averaged 2-4%, while corporate bonds have averaged 4-6%. Bonds can also appreciate and depreciate in price if the investor sells before maturity.

In comparison, let’s take a look at the five profit centers in real estate investing and how they can impact your long-term investment strategy:

  1. Net rental income: This is the money you make after all expenses (mortgage, insurance, property management fees) are deducted from your monthly rental income.
  1. Tax savings: When you invest in real estate, you can take advantage of numerous tax deductions and write-offs. This can help you save a lot of money come tax time!
  1. Principal paydown: Every month, a portion of your mortgage payment goes towards paying down your balance, paid by your renter. This is a great way to build equity in your property and reduce your overall mortgage balance.
  1. Home price appreciation: Over time, the value of your property is likely to increase. This can provide you with a nice return on investment when you refinance or sell the property. Out of all of the profit centers, home price appreciation will have the greatest impact on return on investment over a full market cycle (10-20 years.)
  1. Inflation hedging: When inflation goes up, the prices of goods and services also increase. But since your mortgage payments remain the same, your purchasing power actually goes up! This makes real estate a great hedge against inflationary pressures.

© Copyright © 2022 Financial News & Daily Record, All rights reserved.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

Orlando State of the Market November 2022

December 16th, 2022 by tisner

State of the Market
“The housing market typically experiences a slowdown during the holiday season, and with high interest rates and economic uncertainty, this season’s slowdown may be especially significant,” said Tansey Soderstrom, Orlando Regional REALTOR® Association President. “While there is a lot of uncertainty with where the housing market is headed, buyers in the Orlando area have twice as many homes to consider than they did a year ago, and for sellers, home values and prices continue to remain steady.”

– The median home price for November was recorded at $360,000, down from $365,000 in October.

– Overall sales fell from October to November. There were 1,996 sales in November – down 26.5% from 2,716 sales in October. This is the lowest number of monthly home sales in nearly four years, dating back to January 2019. Overall sales in November 2022 were 45.5% lower than November 2021 when there were 3,664 sales.

– Orlando area inventory slightly increased by 1.0% from October to November from 7,128 homes to 7,197 homes. Inventory in November 2022 was 136.3% higher than in November 2021, when it was recorded at 3,046 homes.

– Interest rates decreased from 7.0% in October to 6.6% in November. This is 122.9% higher than November 2021 when interest rates were 3.0%.

– 9 distressed homes (bank-owned properties and short sales) accounted for 0.5% of all home sales in November. That represents a 55.0% decrease from October, when 20 distressed homes sold.

– New listings decreased by 14.6% from October to November, with 2,597 new homes on the market in November.

ORRA’s full State of the Market Report for September can be found here.

Access Teri’s one-stop Orlando FL home search website.Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

By: www.orlandorealtors.org

Orlando State of the Market October 2022

November 17th, 2022 by tisner

Orlando Area Residential Real Estate Snapshot for October-2022

State of the Market

  • October’s interest rate was recorded at 7%, a 10% increase from September when the interest rate was 6.3%. The last time interest rates were this high was May 2002.
  • That 7% interest rate in October 2022 was 131% higher compared to October 2021 when the interest rate was recorded at just 3%.
  • Inventory rose 3.5% from September to October, from 6,884 to 7,128. This is the eighth straight month of inventory increases.
  • Inventory in October 2022 was 109.3% higher compared to October 2021, when it was recorded at 3,406 homes.
  • Homes spent an average of 38 days on the market in October, up from 31 days in September.
  • New listings decreased by 8.3% from September to October, with 3,041 new homes on the market in October.
  • Overall sales in October held steady from September. There were 2,716 sales in October – down one sale from September.
  • The median home price for October was recorded at $365,000, the same median home price recorded in September. This comes after three consecutive months of decreasing median home prices.
  • “We have the perfect storm of economic uncertainty in the U.S. accompanied by the highest interest rates Orlando has seen in more than 20 years,” said Tansey Soderstrom, Orlando Regional REALTOR® Association President. “Rapidly rising interest rates are having a huge impact on buying power. Home Prices and sales are flat from September to October, but rising rates are causing buyers to look at different price points in order to find a monthly mortgage payment that they are comfortable with.”

Market Snapshot

  • Interest rates increased as the average interest rate for October was recorded at 7%. This is 131% higher than October 2021 when interest rates were 3%.
  • Pending sales decreased by 24% from September to October for a total of 2,915 pending sales.
  • 20 distressed homes (bank-owned properties and short sales) accounted for 0.7% of all home sales in October. That represents a 66.7% increase from September, when 12 distressed homes sold.

Inventory

  • Orlando area inventory increased by 3.5% from September to October from 6,884 homes to 7,128 homes. Inventory in October 2022 was 109.3% higher than in October 2021, when it was recorded at 3,406 homes.
  • The supply of homes increased to 2.62 months in October. This is the third month since June 2020 with over two months of supply. A balanced market is six months of supply.
  • The number of new listings decreased from September to October by 8.3% down to 3,041 homes.

ORRA’s full State of the Market Report for September can be found here.

Access Teri’s one-stop Orlando FL home search website.Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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By: www.orlandorealtors.org

Orlando State of the Market September 2022

October 27th, 2022 by tisner

Orlando Area Residential Real Estate Snapshot for September-2022

New Orlando Regional REALTOR® Association data shows interest rates surge as home sales see biggest drop since January 2022

State of the Market

  • September’s interest rate was recorded at 6.3%, a 19.5% increase from August when the interest rate was 5.3%.
  • Overall sales in September dropped by 18.3% for a total of 2,717 sales compared to 3,324 sales in August.
  • Overall sales dropped 28.3% in September 2022 compared to September of last year.
  • The median home price for September 2022 was recorded at $365,000, a decrease of 3.4% compared to August’s median home price, $377,750. This is the third month in a row that the median home price has fallen.
  • Inventory rose 1.8% in September, from 6,762 to 6,884. This is the fifth straight month of inventory increases.
  • Homes spent an average of 31 days on the market in September, jumping 14.8% from August when the average was 27 days.
  • New listings decreased by 27.1% from August to September, with 3,318 new homes on the market in September.
  • “We are starting to feel the impacts of rising interest rates on the Orlando housing market as they have more than doubled over the past 12 months,” said Tansey Soderstrom, Orlando Regional REALTOR® Association President. “Rising interest rates are causing buyers to be more cautious, resulting in fewer Orlando home sales for the month of September. This cooling off in sales does have an upside for buyers, as they now have the luxury of being more patient when looking for a home.”

Market Snapshot

  • Interest rates increased as the average interest rate for September was recorded at 6.3%. This is 120.9% higher than September 2021 when interest rates were 2.9%.
  • Pending sales decreased by 8% from August to September for a total of 3,838 pending sales.
  • 12 distressed homes (bank-owned properties and short sales) accounted for 0.4% of all home sales in September. That represents a 100% increase from August, when 6 distressed homes sold.

Inventory

  • Orlando area inventory increased by 1.8% from August to September from 6,762 homes to 6,884 homes. Inventory in September 2022 was 87.9% higher than in September 2021, when it was recorded at 3,664 homes.
  • The supply of homes increased to 2.53 months in September. This is the second month since June 2020 with over two months of supply. A balanced market is six months of supply.
  • The number of new listings decreased in September from August by 27.1% down to 3,318 homes.

ORRA’s full State of the Market Report for September can be found here.

 

Access Teri’s one-stop Orlando FL home search website.Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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By: www.orlandorealtors.org

Orlando State of the Market August 2022

September 22nd, 2022 by tisner

New Orlando Regional REALTOR® Association data shows median home price falls for second consecutive month as homes spend more days on the market

State of the Market

  • The median home price for August 2022 was recorded at $377,750, a slight decrease of 0.8% compared to July’s median home price, $380,900. This is the second month in a row that the median home price has fallen.
  • Inventory rose 3.7% in August, from 6,518 to 6,762. This is the fourth straight month of inventory increases.
  • Homes spent an average of 27 days on the market in August, jumping 28.6% from July when the average was 21 days.
  • Interest rates remained relatively flat – 4% in July vs. 5.3% in August.
  • Overall sales in August also remained flat, with a 0.5% increase for a total of 3,324 sales compared to 3,309 sales in July.
  • Overall sales dropped 16.9% in August 2022 compared to August of last year.
  • New listings decreased by 4.1% from July to August, with 4,550 new homes on the market in August.
  • “With a drop in median home price and another inventory increase, we are seeing the Orlando housing market level out as we continue to move away from a period of volatility and enter a period of stability,” said Tansey Soderstrom, Orlando Regional REALTOR® Association President. “This is good for both buyers and sellers, as they can take a slower, more measured approach to buying or selling a home.”

Market Snapshot

  • Interest rates fell slightly as the average interest rate for August was recorded at 5.3%. This is 86.1% higher than August 2021 when interest rates were 2.8%.
  • Pending sales increased by 3.5% from July to August for a total of 4,171 pending sales.
  • 6 distressed homes (bank-owned properties and short sales) accounted for 0.2% of all home sales in August. That represents a 66.7% decrease from July, when 18 distressed homes sold.

Inventory

  • Orlando area inventory increased by 3.7% from July to August from 6,518 homes to 6,762 homes. Inventory in August 2022 was 85.9% higher than in August 2021, when it was recorded at 3,638 homes.
  • The supply of homes increased to 2.03 months in August. This is the first month since June 2020 with over two months of supply. A balanced market is six months of supply.
  • The number of new listings decreased in August from July by 4.1% down to 4,550 homes.

 

Access Teri’s one-stop Orlando FL home search website.Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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By: www.orlandorealtors.org

FHFA: U.S. 2Q Prices Up 17.7% – But Over 26% in Fla.

September 15th, 2022 by tisner


Of 100 metros tracked by government-backed mortgages, 8 Fla. cities hold top-11 spots, with Sarasota-Bradenton (up 36.5%) and Cape Coral-Fort Myers (36.0%) at the top.

WASHINGTON – It’s hard to underestimate the strength of Florida’s current home price increases in the second quarter of 2022 based on the Federal Housing Finance Agency House Price Index (FHFA HPI).

Index scores are based on mortgages – more than half of all in the U.S. – backed by Fannie Mae and Freddie Mac.

Of the 100 cities the index tracks, almost all Florida metros anchored the top 10 for year-over-year price increases, including two metros in the first and second spots. Only one Florida city, Miami-Miami Beach-Kendall, didn’t make the top 10, and it was No. 11.

Overall U.S. house prices rose 17.7% year-to-year in the second quarter (4.0% quarter-to-quarter), but no Florida metro area had an increase less than 26%.

Top 100 rank of Florida metros and year-to-year price increase

1. North Port-Sarasota-Bradenton: 36.5%

2. Cape Coral-Fort Myers: 36.0%

4. Tampa-St. Petersburg-Clearwater: 29.6%

5. Jacksonville: 29.0%

8. Fort Lauderdale-Pompano Beach-Sunrise: 26.9%

9. West Palm Beach-Boa Raton-Boynton Beach: 26.4%

10. Orlando-Kissimmee-Sanford: 26.3%

11. Miami-Miami Beach-Kendall: 26.1%

Overall, however, the nation started seeing a slowdown in the rate of home-price increases.

“Housing prices grew quickly through most of the second quarter of 2022, but a deceleration has appeared in the June monthly data” says William Doerner, Ph.D., supervisory economist in FHFA’s Division of Research and Statistics. “The pace of growth has subsided recently, which is consistent with other recent housing data.”

Other 2Q findings

  • U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.
  • House prices rose in all 50 states and the District of Columbia year-to-year. The five areas with the highest annual appreciation were: Florida 29.8%, Arizona 25.5%, North Carolina 25.2%, Montana 24.9% and Tennessee 24.3%
  • The areas with the lowest annual appreciation were the District of Columbia 5.2%, North Dakota 10.6%, Louisiana 10.8%, Minnesota 11.3% and Maryland 12.0%.
  • House prices rose in all of the top 100 largest metropolitan areas over the last four quarters greatest in North Port-Sarasota-Bradenton (up 36.4%) and weakest in Washington-Arlington-Alexandria (up 9.1%).

© 2022 Florida Realtors®

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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Source: https://www.floridarealtors.org/news-media/news-articles/2022/08/fhfa-us-2q-prices-177-over-26-fla

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