blog/web-journal

Orlando’s top production homebuilders are facing a significant drop in home sales this year.  As a result, they’re eliminating some bells and whistles so they can offer lower prices.

The problems originated with the white-hot housing boom of 2004 and 2005, which saw investors snap up homes intending to flip them for a tidy profit.  That left an artificial shortage of housing which rapidly drove prices up to record levels.

Now, with a lot so starry-eyed investors facing foreclosure, there’s a glut of homes back on the market.  But with the median home price in Orlando at $253,000, many remain out of reach for most buyers.

So in an effort to attract buyers, local home builders now are offering lower prices.

- The Orlando Business Journal, July 2007 -

Kinney Harmon Road & US Hwy17-92

… homes that redefine luxury living…

3BD’s -1717 Sq.Ft. to 4BD’s - 3371 Sq. Ft.

Pre-Construction Pricing: $319,900 to 449,900

There’s no real market correction where consumers are concerned.

Yes, home price appreciation has slowed considerably, and nationally an expected 1% price drop is foreseen for 2007.  This drop is coming, however, at the tail end of a five-year spurt that increased home prices by 53 percent.  The market may be taking a small step backward, but that’s after taking 53 steps forward.

Even a relatively large price decline, such as the 12 percent drop as seen in the area of Sarasota, Fla., cannot reasonably be called a correction when this market had a 150 percent price increase during the boom.

Fewer home sales and fewer homes coming on line, equal more buying opportunities for consumers…

- National Association of Realtors,  July 2007 -

Continuing our occasional quiz series, there will be a prize for the first Central Florida Vacation Home Owner to identify what the picture is of and where it is located:

No correct answers received…  This is the fountain outside Beef O’Brady’s on west US192.

Westside Boulevard & US Hwy192

Gated Resort Club Lifestyle

4 BD’s - 1780 Sq. Ft. to 5BD’s - 1967 Sq. Ft.

$332,900 to $367,900

Condition of the home…

You can sell higher in a shorter amount of time if you take care of the condition of the home. Buyers don’t have the time to come in and fix things. And they just don’t have extra money available to fix up properties either.  With the subprime market gone and 100 percent financing unavailable, buyers will be tighter with cash.

- Real Trends, July 2007 -

Think about it…

Purchase a home for $250,000 in a normal market with 20% down… $50,000.  Figure a conservative appreciation rate of 4% per year on average.  In the first year, the home will have appreciated $10,000.  $10,000 on a $50,000 investment is 20%.

A four percent appreciation may not seem like much initially; however, what other investment vehicle can return this rate of return on average year after year?

Yes, mortgage interest, taxes and other small expenses are a factor.  These items though, are tax deductible for a qualified home; so in reality, the government is subsidizing the purchase.

Have extra cash parked somewhere?

Diversify your portfolio…  Buy a second home…

Something to do on a rainy day?

Did you know…

By paying an extra $100.00 on the principal of a mortgage every month, thousands of dollars in interest can be saved, and the mortgage paid off nearly 6 years sooner.

Exp: 30 year fixed-rate mortgage of $200,000 with a 6.74% tax-deductible interest rate.

Savings: $12,000.00 or so.

- Bankrate.com, 2007 -