Homes for sale in Orlando Florida - any signs of progress?

One way to check how the market of homes for sale in Orlando Florida is doing is to look at the monthly statistics issued by the Orlando Regional Realtors Association. The data covers:

". . . all listings taken or sold by ORRA brokers, regardless of location and is exclusive to residential property, which includes townhomes, duplexes, single-family homes, and condos. It does not include vacant land or commercial transactions."

So even though it doesn't include everything (for example, For Sale By Owner properties) it does represent the majority of what's available and it is a good measure of market status in the Central Florida real estate market. The Association covers Hillsborough, Lake, Orange, Osceola, Polk, Seminole, and Volusia counties.

Numbers for January 2009 were issued last week so let's take a look:

1. Inventory: As of the end of January 2009, the Realtors Association had 22613 homes for sale in Orlando Florida actively listed for sale. That is 12.1% better than January 2008, when the figure was 25724, so it does show an encouraging downward trend - but there is still a long way to go. With closed contracts averaging approximately 1200 per month, the latest inventory number represents around 18 or 19 months' closings. Some industry experts believe that number needs to be between six and twelve months' closings before the market is healthy again. Just by way of a contrast, four years ago when the property boom was at it's height, the inventory number was 3317!

2. New Listings: in the three months to January 2009, 11394 new listings were taken, 8.8% down on the same period one year before. That's one of the factors helping to reduce the inventory and it looks as if a fall in prices and long lead times to sell are reinforcing the message that, if you don't really have to sell, keep hold of your property until the market recovers.

3. New contracts: for the three months to January 2009 there were 5797 new contacts, compared with 3455 in the same period last year. A 67.8% increase, undoubetedly reflecting reduced prices, and reduced interest rates. Orlando properties are now more affordable. The January ORRA report also states that

"The median price of Orlando homes sold in January ($148,274) decreased by 33.06 percent compared to January 2008 while the area’s average interest rate dropped to its lowest point since May of 2005, creating market conditions that further tilt in favor of buyers."

- an enormous change!

4. Expired and withdrawn: A total of 10289 listings expired or were withdrawn during the three month period. In the three months to January 2008 this figure was 11845, so the trend is in the right direction. It is quite remarkable when you compare the 10289 number with New Listings in the same period: it tells us that for every 10 people who listed their home, another 9 took their property off the market. Clearly there will be some duplication here (some expirations will re-appear as new listings later) but it does highlight the difficulties faced by Sellers (if any highlight was necessary).

So there you have it: in summary, some progress but still very much a buyers' market. Still quite a way to go so we need more good news for the next few months. Maybe, just maybe, something useful will emerge from the Washington DC merry-go-round of stimulus, bail out and spending to energize real estate markets. Certainly a lot more progress is needed before those with homes for sale in Orlando Florida can expect a comfortable ride.

Homes For Sale In Florida - The First Questions To Ask

When you begin to look for homes for sale in Florida, there are several key questions that you should ask yourself right at the beginning, including:

1. Why are you buying?

Perhaps this is the most basic question, because it influences the answers to almost all of the other ones. If you’re already in Florida and just moving house, or if you already have family contacts here, you will already have some appreciation of where to get information, who can help and maybe even where to look.

But if you’re retiring from a colder climate in the USA, say New York or New Jersey, then Florida may be a very different place to the one you’re used to – and although all parts of Florida are hot, some are hotter and more humid than others!

If you’re buying a second home, you’ll need to know those locations that welcome such residents (and those that penalize them).

If you’re buying for investment purposes, focus on the places that are expected to recover most strongly from the current downturn.

2. What type of property?

Large or small, single family home or condo, ocean front or inland, money-no-object or as cheap as possible – there are enormous choices and each will help to focus your search.

For most people, budget constraints will dictate what type of property and will narrow down the locations available. Take account also of the latest loan finance programs that are available (if you’re not buying free and clear). You may need to get pre-approved for financing before going too far, because more and more sellers are insisting on that before taking any buyer seriously.

3. Where in Florida do you want to live?

Each area has different characteristics. For example, Miami is a large, sprawling city with lots of nightlife, multi-cultural populations and easy access to the Florida Keys. The South West e.g. Naples is a relatively expensive area with a high proportion of retirees – it has traditionally been a favorite of German buyers.

Further north, the Gulf Coast area around Tampa is less expensive (generally!) with a beautiful coast line and a great climate. Central Florida is dominated by theme parks and is a tourist favorite, with a concentration of single-family vacation homes and condos to the South West of Orlando.

Equally, areas further north such as Daytona, Jacksonville and Tallahassee have their own characteristics, plusses and minuses – and it’s for you to decide exactly what you need or want, of course. But until you do, you have a vast area to explore!

4. Who do you need help from?

Information is available everywhere - web sites; newspapers, referrals from friends or relatives, magazines in gas stations and supermarkets, Realtors, and so on and so on. Only you can decide whether you want to go it alone or get some professional help before you spend the big sum of money that homes for sale in Florida require.

If you're experienced at buying property, you may find the home buying process enjoyable. At the very least, you could try some Internet research to see how far you get first (and a recent report indicated that 70% of buyers now do that).

5. When can you visit to look around?

Technology is great and the Internet provides a fantastic preview of what’s available. Virtual tours can tell you a lot about a property. Ultimately, though, you can only get a true appreciation of whether that dream house is really what you want by paying a visit in person. If you need to move quickly, scheduling a visit is essential of course. If you can only move after you've sold your existing home or retired or sorted out other personal issues, you can be more relaxed. Whatever your circumstances, though, please make sure that you plan a personal visit before making any commitment. Hard though it is to believe, some buyers have purchased without this basic safeguard - and found out the hard way!


For more information on these and other questions, please check out more pages on this website.

Orlando Florida property - how to find the information you need

The Orlando Florida property market is diverse and covers a wide area. Before diving in, think about some of the different geographical parts:

• North of the city contains some of the upscale residential areas including Winter Park and Longwood. The more expensive localities such as Windermere and Isleworth contain high quality and individual properties and are home to celebrities such as Tiger Woods and Shaquille O'Neal. You can also find a wide range of lower-priced but remodeled apartments and condos, especially in areas such as Metrowest, that are close to the upscale Millennia Mall and convenient for the downtown business area.

• Disney World and other theme parks are located to the south west of Orlando and are obviously a major draw for tourists – including the traffic jams that brings! Slightly further away from Orlando, in Kissimmee, Clermont and Davenport, there are thousands of homes and condos in vacation-home communities: absentee owners own a high proportion of these as either second homes or investment properties. There is a well-developed property management industry supporting the short-term rental industry as tourists learn ever-more about this option.

• Orlando Florida property in the university area to the east has experienced tremendous growth during the past 5 years. It has very competitive prices and many new sub-divisions. It is also very convenient for leisure trips to the coast and to the NASA facility used for Shuttle launches.

• The major international and scheduled flight airport is to the south of the city. Sanford Airport to the north is used by many UK charter flight companies.

So if you’ve narrowed down your interest in Orlando Florida property to one area, what next?

One major issue is that you probably have too much information, much of which can be confusing and just plain misleading:

• The majority of buyers start out a property search by using the Internet. That’s a great place to begin, but keep an open mind as many websites are out of date. Try Realtor.com, Trulia.com and Zillow.com – but take any valuations they claim to provide with a pinch of salt!

• Newspapers contain current data about Orlando Florida property for sale, including both new and resale homes. Try the Orlando Sentinel.

• Realtors obviously specialize in local areas and cost you nothing – the seller pays their fees. But look for one who has been in the business for some years and who is prepared to challenge your assumptions if you want the best service.

Ultimately there’s no substitute for an on-the-ground visit – that’s just as true of Orlando Florida property as it is of any other area, despite the growth of computer technology, virtual tours and slick marketing.

Find out first hand and your Orlando Florida property experience should turn out to be a successful one.