Wednesday, January 09, 2013

Orlando Real Estate Predictions for 2013

Orlando real estate, like the rest of the nation, has seen its ups and downs. Our predications for Orlando Real Estate, is the Orlando Real Estate Market is recovering
  • Increases in Multiple Offers:  As inventory continues to shrink the competition for quality properties will be fierce.  You may find yourself submitting multiple offers on several homes before you snag a property.  Be Prepared for offers over list price...especially if its "the one".
  • Orlando Home Prices Increasing:  Shrinking inventory is causing an uptick in homes prices, and consumers are confident.  According to Forbes, 2013 appreciation is expected to increase 3%.  NAR ecomomist predicts 4% increase in the median price of sales. Buy before the buying season heats up in the Spring, it will reduce competition, and save you money before prices increase.
  • Low Interest Rates:  Rates are in the low 3%'s, it has not been this low since 1970's. The Federal Reserve recognize this is aiding in housing recovery and is predicated to continue with low interest rates into the Spring.  Financing rates are ON SALE, you cannot afford not to buy.
  • Stricter Mortgage Guidelines:  Lenders are making money with the high volume of refinancing, and are tightening up their guidelines on loans to avoid defaults.  They will ask for more documentation and scrutized your financial readiness like never before.   FHA is having tighter underwriting standards for 580-620 credit scores.  For borrowers exceeding a loan amount of $625,000 the mininimum down payment is changing from 3.5% to 5%.  FHA insurance premiums expect to rise.  Before you decide to shop for a home contact an experienced mortgage broker to determine how you can be the best shape finanically to prepare for the loan process ahead.  Being preapproved always puts you in better position than being prequalified.
  • Rise in Rental Rates:  If you are landlord or thinking about becoming one its a great time, as rental rates are on the rise and predicted to rise for next 3 years.  Mortgage payments often are equal or better than rental rates, consider moving from a renter to a buyer.
  • More Sellers Puting Homes on Market:  Owners are feeling the confidence in the Orlando housing recovery and recognizing its become a sellers market and the time is right.   With more homes for sale will assist shrinking inventory, and offer more choices.
  • Distressed Properties Decreasing:  The shadow inventory is disappearing and less shorts sales and foreclosures hitting the market. Due to slow court processing there are foreclosures still lingering in pipeline and expected for the next few years.  Distressed property are sold less than market value, but can the riddled with transaction or maintenance isssues.
  • New Construction Incentives Decreasing:  In the past, new construction pricing showed value against pricing of distressed properties.  We predict the gap between resale and brand new homes will get larger, and builders will offer smaller incentives to buy. There are still very good deals in new construction, and builiding pace picking up speed.
Buy now before its too late.  If you need an experienced buyers agent to help you navigate the Orlando Real Estate market, just contact us.