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

Florida House passes six industry bills that impact real estate

This week, the Florida House approved six bills that impact florida real estate in some form or other:

Septic tank inspections
The 2010 law requiring septic tank inspections moved closer to being repealed after a House vote this week. Under HB 999 by Rep. Chris Dorworth (R-Heathrow), local governments will have the option whether or not to enact an evaluation program. Homeowners across the state will be protected from extensive regulations and the high costs associated with SB 550 passed in 2010.

In the Senate, SB 820 is now ready for a full vote and, if approved, will go back to the House of Representatives for a final vote. The bills will then go to Gov. Rick Scott for his signature to become law. Once signed into law, counties with “first magnitude springs” will have the ability to opt-out of the program, while all other counties would have to opt-in to the program.

In a related move, Gov. Rick Scott signed HB 7051 in law in February. HB 7051 sets numeric content standards for groundwater pollution under the U.S. Environmental Protection Agency’s Clean Water Act.

Local business tax
HB 7125 – also approved by the full House this week and awaiting action by the Senate – makes a common sense change to business tax law, exempting real estate licensees from local business taxes (formerly known as occupational licenses). A law passed in 2010 banned cities and counties from charging new business taxes, but those already doing so could continue. HB 7125 applies only to those counties still charging business taxes.

While many real estate licensees are independent contractors, Florida law requires licensees to work under a broker, which technically makes them less independent than other self-employed workers. Since Florida’s business tax law did not deal directly with a type of independent contractor that is not strictly independent, HB 7125, supported by Florida Realtors, corrects the situation. It allows a county or city to continue collecting a business tax from a broker – a company owner – but ends business taxes for salespersons and broker associates.

Property insurance
Realtor-supported legislation that would change the way Citizens Property Insurance Corp. pays claims in the event of a major storm passed the Florida House last week. Currently, if Citizens Property Insurance Corporation doesn’t have enough money to pay claims following a catastrophic storm, private insurers must pay up to 18 percent of their premiums to Citizens within 30 days of being assessed. HB 1127 by Rep. Ben Albritton (R-Bartow) significantly reduces this amount, and should make Florida more attractive to insurance companies operating in our state or considering operations here. The Senate did not consider the bill this week, but it’s awaiting action there.

Condo law
The House passed HB 319 by George Moraitis (R-Fort Lauderdale) and sent it to the Senate where it awaits further action. The bill amends laws relating to condominiums, cooperatives and homeowners’ associations; and, while it covers a lot of territory, its passage turns on language that seeks to clarify an existing safe harbor provision for lenders. When a condominium unit is foreclosed, a mortgagee is responsible for a portion of the previous unit owner’s assessments. Collection entities, however, are pursuing lenders – on behalf of associations – for unpaid late fees, interest, costs and attorneys fees, making an already uncertain closing process even more perilous. HB 319 seeks to clarify which fees mortgagees are liable for.

The Senate version of HB 319 – SB 680 by Ellyn Bogdanoff (R-Fort Lauderdale) – is in its final committee before a full Senate vote.

Property management
The “Florida Residential Landlord and Tenant Act,” which governs landlord-tenant relationships, would be updated under HB 921 by Rep. Kelli Stargel (R-Lakeland) that passed the House this week and now awaits Senate action.

The bill modifies a number of landlord-tenant laws. For example, it revises the notice a landlord provides to a tenant that describes how advance rent and security deposits are held and used by the landlord, and how they’re returned to the tenant. Other changes clarify the procedure for an eviction if a tenant has paid partial rent; how weekend days work under the applicable 24-hour notice when a sheriff returns possession of a dwelling to a landlord; maintenance responsibilities for screens and windows; and additional landlord-tenant issues.

Foreclosure
HB 213 by Rep. Kathleen Passidomo (R-Naples) passed the House on Wednesday and now awaits Senate action. If passed by the Senate and signed by Gov. Scott, HB 213 would speed the judicial foreclosure process – especially in relation to abandoned residential property – and jumpstart the economy, though critics worry that it will negatively impact some homeowners facing foreclosure.

Budget
Florida Realtors continues to monitor items in the proposed Florida budget. Money for affordable housing, a septic tank study and funds to fight unlicensed activity are being considered.

Source: Florida Realtors®

Leu Gardens Storytime presented by Nemour's Bright Start

Storytime at Leu Gardens

Presented by Nemours BrightStart!
Monday, March 5

Orange County Library System's storytelling program comes to Leu Gardens the first Monday of each month, excluding holidays. Share stories and songs with your little one. This is a free indoor event.

10:00 am - 10:15 am Infant Time (up to 18 months)
10:20 am - 10:35 am Toddler Time (18 months to 2 year olds)
10:40 am - 11:00 am Preschool Time (3 to 5 year olds)

Out and About Orlando on a Saturday night

Winter Park Playhouse - The Andrews Brothers $28/$38 ~ 2pm & 7:30pm.

The Mad Cow Theater - Dancing at Lughnasa $32 7:30pm.

The Mad Cow Theater - Hedda Gabler $27 ~ 8pm.

SAK Comedy Lab - Duel of Fools ~ 7:30pm & 9:30pm $15/$12 FL Resident.

Improv Comedy Club ~ 7:30pm & 10:15pm

Treasure Tavern - Dinner & Show $60.65 ~ 8pm.

Warren Buffet-sees real estate as better than stocks

Billionaire investor, Warren Buffett, said on CNBC’s Squawk Box recently that he’d buy up a couple hundred thousand single-family homes if it was practical.

Buffett s believes purchasing a home with ultra-low mortgage rates and holding it for the long-term has become a better investment than stocks right now.

Buffett forecasted an increase in household formations, as more people who moved in with their parents or family members during the recession look to move out and get their own home soon.

Buffett said the recovery in the housing market could vary quite a bit among local housing markets, however. He did not provide a timeline of when he expected a full housing recovery, admitting that his prediction last year that a housing recovery will take shape within the year turned out to be “dead wrong.”

See more-- Housing Market Forecast Beyond 2012 From Warren Buffet- International Business Times  

Rental demand grows, rents grow higher and renter incentives disappear

As rental demand continues to rise, rents are inching up higher and renter incentives are disappearing.

Across the country, as more people compete for apartments in the wake of the housing collapse, the market has swung in favor of landlords. For tenants, that means saying goodbye to move-in incentives and watching rents edge higher.

About a quarter of all apartments nationwide offered some type of concession in last year’s fourth quarter. By comparison, 53 percent of apartments offered concessions in the first quarter of 2010, according to data tracker MPF Research’s latest report.

“The industry moves in cycles, and right now not a lot of apartments are available,” said Jay Parsons, an analyst at MPF Research. Until apartment construction catches up to demand, landlords will maintain their control of the market, he said.

The vacancy rate are low in Pittsburgh, at 2.2 percent, is among the lowest in the country, according to MPF’s fourth-quarter data from 2011.

In New York, too, as rental demand swells in some of the most desirable neighborhoods, rates are reaching new highs. In 2011, average rents across all apartment categories rose 8.4 percent compared with the year-ago levels, according to the Citi Habitats annual report.

In Chelsea and the East Village, average monthly rent in January for a one-bedroom apartment hit $3,218 and $2,616 respectively. Both neighborhoods have vacancy rates below 1.5 percent. Furthermore, landlord concessions in New York plunged 68 percent from 2010, according to the report.

In Portland, Ore., one of the country’s tightest markets, the year-end vacancy rate was 3.1 percent, according to the Barry Apartment Report, a local data tracker.

Construction is up for apartments
Waiting lists are getting longer at apartment buildings around the country, which is fueling a spike in apartment development. MPF Research estimates 125,000 apartment units will be completed by year’s end, an 89 percent gain from 2011.

“That sounds like a huge increase,” MPF’s Parsons said. “But it’s really still on the low side by historic standards. (It) puts in perspective just how very, very low 2011 was.”

Some worry certain markets may be over-betting on construction, creating the conditions for a speculative bubble several years from now.

 

Source 2012 USA TODAY, See entire article here.