Central Florida Real Estate Blog

On January 12, 2010, the MFRMLS (My Florida Regional MLS) which covers most of the Central Florida Region released the December 2009 Real Estate Sales & Inventory Report for the Lake & Sumter County areas. While the numbers are basically flat from November, there are some positive signs which seem to indicate that home values may be beginning to leveling off. 

We've seen another increase in the number of homes that have sold from Nov-Dec '09 with an increase of 5.6%, or 335 total units closed in the month of December. In finding somewhat of a bright spot, this represents a 30% increase from a year ago (Dec'08). While inventory is being absorbed, there still is almost 4,800 active home listings on the market. MFRMLS currently shows a 14.3 month supply of inventory, but these numbers are significantly distorted due to the amount of pending short sales which will most likely reenter the active inventory, or end up in foreclosure. It is estimated that somewhere between 50%-70% of the current active inventory is in some form of distress.

The current average list price of a home is showing positive signs by increasing 3.84% from November to December. Whether this is a one month blip or the beginning of a trend, we will have to wait and see over the next few month. During the last 12 months from Dec'08 - Dec'09, the average list price is still down 12.4%.  

In regards to the average sale price of a home in Lake & Sumter County, we saw a slight decline just less than 1% (.008) from November to December. In comparing December '08 to December '09, the decline has been over 13.7%, or approximately 1.14% per month. On a $150,000.00 property, this means the average home is losing about $1,710.00.00 per month in value. Also consider the dynamics between Sellers and Buyers during the negotiating process. As of January '09, Buyers were negotiating on average 8% off the asking price. During the year, we have seen this number decrease to as little as 6% offering the assumption that Sellers were listing their property closer to market value, and Buyers were being much more realistic as to what they would pay for a home. As of the end of December '09, that number had increased to 8%, most likely meaning Sellers are negotiating more off their list price to get a transaction under contract. It's hard to predict where the market goes from here, but I'm skeptical that we've not seen the bottom yet or a leveling off of home values.

The number #1 selling price range has shifted downward in Lake & Sumter Counties to the $100,000-$119,999.00 range and makes up almost 12.9% of the yearly sale. Furthermore, the $0.00-$100,00.00 range accounted for 30.63% of the sales, while the $100,000-$160,000.00 range accounted for 37.15%. Collectively, the $0-$160K range makes up over 67% of all sales in the area. This should come as no surprise as first-time homebuyers and step-up Buyers will still be able to take advantage of the updated federal tax credit passed last month.

If you would like a full copy of the Lake & Sumter Counties Sale & Inventory Report, please email joe@rockspringsrealty.net and we will email you a copy at no charge or obligation. 

Rock Springs Realty is a full-service Real Estate Brokerage working with Buyer, Seller, and Investors throughout the Central Florida Area. We cover all areas of Lake, Sumter, Orange, Seminole, Osceola, and Volusia Counties. Our sales staff has extensive experience in Buying & Selling REO (Bank Owned Foreclosures) properties and welcomes the opportunity to discuss your real estate needs. You can reach us toll free at (877) 333-2811 or on the web at www.rockspringsrealty.net

P.S. - If you would like a free list of bank-owned foreclosure properties in your area, please contact us at the toll free number and we will forward a detailed list with no obligation.

Best Regards,
Joe Bornstein, Broker/Owner
Rock Springs Realty, LLC
3780 Rochelle Lane
Apopka, FL 32712