Home buyers experience bidding wars

Homebuyers are unexpectedly finding more competition this spring (2012) in securing their offer onf their home. The Wall Street Journal is reporting that price bidding wars are increasingly being reported in markets across the country, from California to Florida.

This is true of Orlando real estate in Central Florida especially in certain neighborhoods like, Baldwin Park, Hunter's Creek, StoneyBrook, Avalon Park, Bay Hill/Dr .Phillips and others.

 Homebuyers can become frustrated and caught off-guard about the bidding wars re-emerging.

 Why are things getting so competitive? Many housing markets are seeing a drastic decrease in the number of homes listed for sale, leaving homebuyers with fewer options and more bidding on the same house.  Some real estate  analysts say the shortage in supply is from sellers unwilling to take much less for their home than what they originally paid for it and pulling homes off the market. Also, a surge in investors who snatch up homes in bulk in all-cash deals has made the market competitive.

The National Association of Realtors® latest pending sales report confirms the trend. Pending sales in March reached their highest level in nearly two years and are up 12.8 percent from one year earlier.

Source: “Stunned Home Buyers Find the Bidding Wars Are Back,” The Wall Street Journal (April 27, 2012)

Orlando Real Estate- What Sold last week

Orlando Real Estate

Orlando Single-family homes sales

• Sales of single-family homes decreased to 260 during the week of Apr 1, from 472 the week prior
• The median price of single family homes decreased to $129,000, a change of -4.4%
• The number of single-family home foreclosure transactions decreased to 51 last week, from 113 the week of Mar 25
• The number of single-family home short-sale transactions decreased to 72 from 136 the week prior
• Single-family inventory decreased by 85, and now sits at 9,056

Orlando Condos, townhomes, and villas

• Sales of condos, townhomes, and villas decreased to 101 during the week of Apr 1, from 172 the week prior
• The median price of condos, townhomes, and villas increased to $76,000, a change of 8.5%
• The number of condo, townhome, and villa foreclosure transactions decreased to 22 last week, from 57 the week of Mar 25
• The number of condo, townhome and villa short-sale transactions decreased to 30 from 46 the week prior
• Condo inventory decreased by 2, and now sits at 2,147

Orlando Real Estate sales - Week of March 18, 2012

Orlando Single-family existing homes

• Orlando Real Estate Sales of single-family homes increased to 315 during the week of Mar 18, from 309 the week prior
• The median price of single family homes decreased to $121,000, a change of -6.9%
• The number of single-family home foreclosure transactions increased to 63 last week, from 59 the week of Mar 11
• The number of single-family home short-sale transactions increased to 103 from 100 the week prior
• Orlando Single-family inventory decreased by 123, and now sits at 9,250

Orlando Condos, townhomes, and villas

• Sales of condos, townhomes, and villas decreased to 87 during the week of Mar 18, from 121 the week prior
• The median price of condos, townhomes, and villas decreased to $66,900, a change of -10.8%
• The number of condo, townhome, and villa foreclosure transactions decreased to 24 last week, from 27 the week of Mar 11
• The number of condo, townhome and villa short-sale transactions decreased to 26 from 42 the week prior
• Condo inventory decreased by 32, and now sits at 2,232

Mortgage rates jump--buyers to follow suit?

The average U.S. rate on a 30-year fixed mortgage rose above 4 percent for the first time in five months. The sharp increase suggests the window to buy or refinance a home at historically low rates may be closing.

Freddie Mac announced on Thursday that the rate on the 30-year loan jumped to 4.08 percent, up from 3.92 percent the previous week.  It was just a month ago that it touched 3.87 percent, the lowest since long-term mortgages began in the 1950s.

Mortgage rates are rising because they tend to track the yield on the 10-year Treasury note. The economic outlook has improved in recent weeks causing investors to shift money out of long-term U.S. Treasury bonds and into stocks. That has driven Treasury yields higher.

Higher mortgage rates could spur more sales, especially if home prices begin to rise. Potential buyers will likely move quickly to avoid paying higher rates down the line. Read more.

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Orlando Real Estate Sales for the week March 11-17

Orlando home Sales

• Sales of single-family homes increased to 309 during the week of Mar 11, from 259 the week prior
• The median price of single family homes decreased to $130,000, a change of -3.7%
• The number of single-family home foreclosure transactions increased to 59 last week, from 36 the week of Mar 4
• The number of single-family home short-sale transactions increased to 100 from 87 the week prior
• Single-family inventory decreased by 98, and now sits at 9,373

Orlando Condos, townhomes, and villas

• Sales of Orlando condos, townhomes, and villas increased to 121 during the week of Mar 11, from 83 the week prior
• The median price of Orlando condos, townhomes, and villas increased to $75,000, a change of 2.7%
• The number of condo, townhome, and villa foreclosure transactions increased to 27 last week, from 23 the week of Mar 4
• The number of Orlando condo, townhome and villa short-sale transactions increased to 42 from 24 the week prior
• Condo inventory decreased by 34, and now sits at 2,264

Orlando Condos and Townhomes

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area decreased by 34.27 percent in February when compared to February of 2011 (326 to 496)).

The most (116) condos in a single price category that changed hands in February were yet again in the $1 - $50,000 price range and account for 35.58 percent of all condo sales.

Orlando homebuyers purchased 173 duplexes, town homes, and villas in February 2012, which is a 27.31 percent decrease compared to February 2011. Most (25) fell within the $120,000 - $140,000 price range; another 24 properties fell into the $100,000 – 120,000 price range.

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Orlando Real Estate-Median Price increases

Median Price for Homes sold in ORLANDO

*The median price of all existing Orlando area homes combined sold in January 2012, $108,000, is a 13.80 percent increase from the $94,900 median price recorded in January 2011.

*The median price for "normal” existing homes sold in February is $150,000, is a decrease of 3.23 percent from the median price of "normal” existing homes in February 2011.

*The median price for short sales increased by 5.26 percent to $100,000, while the median price for bank-owned sales increased by 8.11 percent to $80,000.

Orlando Real Estate- Homes inventory down 31 percent

Orlando real estate Homes inventory down 31 percent; median home price bounds 16 percent

The number of existing homes available for purchase in Orlando is continuing a steady decline that began in back in July 2010 at 16,563 and now rests at 9,253. In February 2012, total inventory was 31.36 percent less than it was in February 2011.

*Orlando home sales (all home types combined) in February 2012 were down 15.19 percent over February 2011.

*Single-family home sales in the Orlando area decreased by 2.82 percent in February when compared to February of last year. Condo sales decreased by 34.27 percent; duplex, town home, and villa sales decreased by 27.31 percent.

*Of the 1,854 sales in February, 738 "normal” sales accounted for 39.81 percent of all sales, while 498 bank-owned and 618 short sales respectively made up 26.86 percent and 37.98 percent.

*The number of "normal” sales in February increased by 29.02 percent over February 2011, while short-sales increased 20.00 percent and foreclosures dropped 54.02 percent.

*The 9,348 homes pending closing in February of this year is an increase of 1.37 percent compared to the 9,223 pendings in February of last year.

*Short sales made up 69.84 percent of pendings in February. Normal properties accounted for 17.02 percent and bank-owned properties accounted for 13.14 percent.

*Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in February were down by 14.20 percent when compared to February of 2011. Each individual county’s monthly sales comparisons are as follows:

• Lake: 17.14 percent above February 2011 (369 homes sold in February 2012 compared to 315 in February 2011);
• Orange: 15.54 percent below February 2011 (1,207 homes sold in February 2012 compared to 1,429 in February 2011);
• Osceola: 27.77 percent below February 2011 (398 homes sold in February 2012 compared to 551 in February 2011); and
• Seminole: 15.27 percent below February 2011 (394 sold in February 2012 compared to 465 in February 2011).

Median Price

*The median price of all existing homes combined sold in January 2012, $108,000, is a 13.80 percent increase from the $94,900 median price recorded in January 2011.

*The median price for "normal” existing homes sold in February is $150,000, is a decrease of 3.23 percent from the median price of "normal” existing homes in February 2011.

*The median price for short sales increased by 5.26 percent to $100,000, while the median price for bank-owned sales increased by 8.11 percent to $80,000.

Inventory

*There are currently 9,253 homes available for purchase through the MLS. The February 2012 overall inventory level is 31.36 percent lower than it was in February 2011, and almost equal to what it was in January 2012.

*Single-family home inventory is down 32.68 percent; condo inventory is down 18.46 percent.

*The current pace of sales translates into 4.99 months of supply.

Other

*The Orlando affordability index decreased to 271.61 percent in February. First-time homebuyer affordability in February decreased to 193.14 percent.

*Homes of all types spent an average of 96 days on the market before coming under contract in February 2012, and the average home sold for 93.14 percent of its listing price.

*New contracts are down 8.00 percent compared February of 2011. New listings are down 0.58 percent.

Florida home prices up in Jan. 2012--Corelogic reports.

CoreLogic released its January Home Price Index (HPI) report today and nationally, home prices, including distressed sales, declined in January 2012 by 3.1 percent year-over-year. Home prices declined by 1.0 percent month-to-month – its sixth consecutive monthly decline.

Florida home sales, on the other hand, increased by 1.8 percent year-over-year. Florida was  one of only 18 states to see a price boost in home sales.

Excluding distressed home sales, national year-over-year prices declined 0.9 percent in January 2012 compared to January 2011, but that same metric posted a month-over-month gain, rising 0.7 percent in January. Distressed sales include short sales and real estate owned (REO) transactions.

In Florida, real estate prices rose even when distressed home sales were excluded – 0.9 percent year-to-year.

Overall, seven states had higher real estate price increases than Florida. South Dakota led the nation with an overall 5.7 percent price increase year-to-year, while Illinois saw the biggest price drop at 8.7 percent.

Mark Fleming, chief economist for CoreLogic,  said that although home price declines are slowly improving, that home prices are still down to nearly the same levels as 10 years ago.

 
CoreLogic January 2012 real estate report highlights

• Including distressed sales, the five states with the highest appreciation were: South Dakota (+5.7 percent), North Dakota (+4.0 percent), West Virginia (+4.0 percent), Montana (+3.6 percent) and Michigan (+3.0 percent).

• Including distressed sales, the five states with the greatest depreciation were: Illinois (-8.7 percent), Nevada (-8.0 percent), Delaware (-7.9 percent), Alabama (-7.7 percent) and Georgia (-7.5 percent).

• Excluding distressed sales, the five states with the highest appreciation were: South Dakota (+6.4 percent), Montana (+5.9 percent), North Dakota (+3.8 percent), Alaska (+3.7 percent) and Indiana (+2.7 percent).

• Excluding distressed sales, the five states with the greatest depreciation were: Nevada (-6.7 percent), Delaware (-5.5 percent), Minnesota (-4.1 percent), New Jersey (-3.5 percent) and Georgia (-3.3 percent).

• Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to January 2012) was -34.0 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -24.2 percent.

• The five states with the largest peak-to-current declines including distressed transactions are Nevada (-60.1 percent), Arizona (-50.8 percent), Florida (-49.0 percent), California (-43.6 percent) and Michigan (-43.2 percent).

• Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 71 are showing year-over-year declines in January, eight fewer than in December.

The entire CoreLogicreal estate report is available online. You can also see Orlando based real estate online.

Orlando real estate- drop in foreclosures, short sales are up

 Orlando Real Estate-

Drop in   Orlando foreclosures lifts overall median price up, but pulls overall sales numbers down.

A sharp decline in the sales of Orlando foreclosure homes contributed to a drop of 17.83 percent in Orlando's overall sales for January 2012, despite increases in the number of both short sales and normal sales. Foreclosure sales in January decreased by 57.61 percent when compared to January of 2011, while short sales increased 23.69 percent and normal sales increased 19.92 percent.

Olrando Real Estate- Weekly Report

Week of February 26, 2012

Orlando Single-family existing homes sales

• Sales of single-family homes increased to 458 during the week of Feb 26, from 239 the week prior
  
• The median price of single family homes increased to $140,000, a change of 12.0%
  
• The number of single-family home foreclosure transactions increased to 88 last week, from 55 the week of Feb 19
  
• The number of single-family home short-sale transactions increased to 140 from 76 the week prior
  
• Single-family inventory decreased by 101, and now sits at 9,603

Orlando Condos, townhomes, and villas sales
Sales of condos, townhomes, and villas increased to 170 during the week of Feb 26, from 107 the week prior

• The median price of condos, townhomes, and villas decreased to $63,000, a change of -16.0%
  
• The number of condo, townhome, and villa foreclosure transactions increased to 51 last week, from 30 the week of Feb 19
  
• The number of condo, townhome and villa short-sale transactions increased to 50 from 32 the week prior
  
• Condo inventory decreased by 8, and now sits at 2,366

More short sales being closed on--now some lenders offer seller incentives

More short sales are being sold as lenders are getting more flexible than before. And some banks are allowing financial incentive to owners for choosing short sales when loan modification fail.  The interesting thing is that although a few owners are even getting cash to complete the short sale, the financial incentives  are random and infrequent.

Here are some of the lenders offering selling incentives for short sales as reported by USA TODAY:

• JPMorgan Chase went national with short-sale incentive offers last year, paying up to $35,000 in some cases.

• Bank of America is testing incentives from $5,000 to $25,000 in Florida to see if they should be expanded to more states. The Florida program began fall of 2011

• Wells Fargo’s incentive offers range from less than $3,000 to $20,000.

Short sales can save lenders money compared with the expenses involved in completing foreclosures. In states like Florida where foreclosures go through the courts, 50 percent of loans in foreclosure are more than two years past due.

In Orlando real estate, there were more short sales completed in 2011 than the year prior. Last  year, there were 6,981 single family homes sold as short sales in the Orlando Real Estate market. 

 

Short sale sellers need to close in 2012 for debt forgiveness

Did you know that if a bank writes off debt in a short sale, it’s a taxable event?  It is true. The lender tells the Internal Revenue Service about the transaction by submitting a “Form 1099-C, Cancellation of Debt” at the end of the year. This means that home sellers must acknowledge the amount when they fill out their federal taxes.  But, through Dec. 31, 2012, the federal government forgives any tax liability associated with forgiveness of a mortgage loan.

Will the debt forgiveness continue after the deadline is over?
The government generally considers forgiven debt to be income. If a seller has signed legal loan papers to take out a $200,000 mortgage and the lender accepts $100,000 in a short sale, for example, the seller received the equivalent of $100,000 in free money by government estimates. As a result, the IRS taxes it. For tax year 2012, however, the government still forgives the debt; in 2013, it might not.

The tax amount can be significant. On a debt of $100,000, a short-sale seller in the 25 percent tax bracket could end up owing $25,000 in income taxes.

Since short sales can take months and even fall through, homeowners considering a short sale may want to start the process sooner rather than later.

Note: Always talk to your tax advisor or CPA about tax consequences of real estate
Sourece: Florida Realtors®

Featured Downtown Orlando- Homes for Sale

Featured Listings Downtown Orlando- Listing by Remax, Keller Williams and the Winter Park Co.   Thornton Park neighborhood is one of Orlando's most coveted districts by young professionals. Just east of Lake Eola, this residential neighborhood is home to both modern condos and oak-shaded bungalows with wrap around front porches and spacious front yards. See hundreds of  other downtown Orlando homes for sale organized by price with multiple photos and virtual tours in Thornton Park, Delaney Park and Sodo in Orlando. No registration required.

	1300 OSCEOLA AVE, Orlando, FL 32806 $799,999               Request Showing Bedrooms | Bathrooms | Sq. Feet Lot Sq. Feet | MLS # 5 4 4373 9252 O5003264 Short Sale; EXQUISITE custom built estate pool home in the downtown Orlando Delaney Park community. Tons of incredible woodwork throughout from the hand carved railings, Brazilian wood floors, and intricate carved crown molding. Plenty of room to roam with over 4,000 Sq. Ft. Living area including an office, theater rm, detached in-law suite above the garage, formal living rm, formal dining rm, eat in kitchen, and family rm. Fall in love with the state of the art gourmet kitchen with top of the line Viking appliances, granite counter and an incredible butler pantry. The master bathroom features an unbelievable spa / shower system with nine heads. The large 28x15 master suite offers a luxurious and spacious retreat with balcony. Enjoy the very private backyard with 2nd floor balconies overlooking the large heated lagoon sport pool and spa. This home was featured in the Morgan Creek Productions movie, Sydney White w/Amanda Bynes! Just minutes from downtown shopping, entertainment, office district, 2008 grade A schools, major highways and within one mile from Orlando Regional Medical Center & Arnold Palmer. This fine home awaits the discerning buyer who expects nothing but the best. Courtesy Of: Re/Max Assured
	1206 DELANEY AVE, Orlando, FL 32806 $798,000    Request Showing Bedrooms | Bathrooms | Sq. Feet Lot Sq. Feet | MLS # 5 2 2866 38685 O5003301 Historic downtown Orlando home in Delaney Park District, restored and upgraded. This 5/2 waterfront home, plus 1/1 guest quarters, has a master bedroom and guest room downstairs, original solid oak floors, plaster walls and high ceilings. The living and dining rooms have 13' ceilings and feature built in bookcases and desk. Kitchen has been restored utilizing cabinetry with a historic feel; porcelain countertops, modern fixtures and appliances round out the kitchen. Downstairs bath features a whirlpool tub, stained glass and painted copper ceiling. There are three bedrooms upstairs and a large bath. Separate alarm system for guest quarters. Home sits on a HUGE 370' deep lot with a waterfront dock serviced with electricity and water. Driveway and courtyard are paved with salvaged Chicago brick extending from the 1/1 basement living quarters, to the 4-car garage and workshop. The two A/C units and commercial grade roof were recently replaced. New exterior paint and awnings in 2010. Shatter-proof 3M coating on all windows. Transferrable termite bond, irrigation system, security systems (2), and an emergency generator wired into the home's circuitry. This home is a rare find! Courtesy Of: Keller Williams Advantage 2
	930 LANCASTER DR, Orlando, FL 32806 $725,000   Request Showing Bedrooms | Bathrooms | Sq. Feet Lot Sq. Feet | MLS # 5 3 4583 20923 O5066470 Tree-lined brick streets lead you to this beautiful English Tudor style lakefront home. On nearly ? acre w/330 feet on Lake Lancaster this home offers space, great entertaining areas & park-like yard in one of Orlando's most highly regarded neighborhoods. A spacious living room has wood floors & large picture window. The formal dining features a bay window with views of the pool and lake. Vaulted wood beamed ceiling, bright windows & a floor to ceiling stone fireplace accent a stunning family room. Quiet den/office w/built in desk and bookcase plus a walk in closet. A guest suite with separate entrance has a bedroom, full bath and living area. An updated kitchen has lots of custom cabinetry, Silestone countertops, stainless appliances, marble floors and long breakfast bar. An attached butlers' pantry offers more storage space. A huge laundry room is also on the first floor as well as 2 half baths. Master retreat with large bedroom and an adjoining office room with built in bookcase. The spa like master bath has travertine floors, 2 pedestal sinks, recessed lights, 2 walk in closets, and travertine shower with artistic tile accents. Screened patio provides great outdoor living space. With a black gunite finish, the pool is both relaxing and sophisticated and has the added benefit of a heated spa. Incomparable in downtown Orlando, 330 ft on a beautiful lake allows water sports, beautiful views and relaxing entertaining. Close to shopping, restaurants, parks and A-rated Blankner (k-8) Elementary & Boone HS Courtesy Of: Keller Williams At The Parks
	605 GORE ST, Orlando, FL 32806 $695,000    Request Showing Bedrooms | Bathrooms | Sq. Feet Lot Sq. Feet | MLS # 3 2 3058 7403 O5065387 Spanish Revival Jewel Box! Casual elegance at it's finest best describes this walled, private enclave just steps from Lake Davis. You will be enchanted from the moment you enter the courtyard and see the sparkling saline pool,ivy covered walls and the tranquil, open spaces that are just a preview of what's to come. This 1925 beauty has been carefully renovated and expanded while preserving the architectural details that make it so special. An eclectic mix of pecky cypress beams, wrought iron,oak floors, expanses of windows,plaster walls,& fireplace are all original.This home is a very restful retreat inside and out.A seamless renovation that blends all of today's desired features with the quality of the 1920s era. The restful master retreat is rich with details including a soaring bank of arched windows with a window seat. This is just one of the large, yet intimate rooms throughout the home. You'll want to hang out in the sunny kitchen that opens to the family rm, overlooking a covered lanai, outdoor fireplace, shower and fountain. Adjacent cabana w/half bath & wet bar has 3 sets of french doors opening to the pool. This is a one of a kind, very special home that you will just have to have - a sanctuary in the middle of downtown Orlando. Courtesy Of: Winter Park Land Co. Florida Regional MLS, Information is believed to be accurate but not guaranteed. All the listings are pulled from the Mid-Florida Listings and are represented by the respective Listing Brokers, not Realty Cafe LLC nor Orlando Neighborhoods and Real Estate Blog.