Central Florida Real Estate Blog

On April 12, 2010, the MFRMLS (My Florida Regional MLS) http://www.mfrmls.com/ which covers most of the Central Florida area released the March 2010 Real Estate Sales & Inventory Report for the Orlando Regional Area (ORRA). There may be hope yet...while January and February were flat, March saw a significant increases across the board. The question to ask yourself is this the beginning of a trend? Or maybe outside market influences that will provide a false sense of hope that we have seen the bottom. Let's look at the numbers before you draw your conclusion.

The number of home sales that closed in the month of March increased significantly to 2,566 units, or an increase of 24% from February. Of those March sales, almost 73% percent of the homes were either bank-owned (48%) or short sales (24.5%). The remaining “normal” sales made up 27.5% percent. While inventory is very slowly being absorbed, there still is over 17,000 active homes available in the marketplace. MFRMLS currently shows a 6.6 month supply of inventory...WOW!!! While inventory may appear to be evaporating, these numbers are significantly distorted due to the large number of pending short sales which will most likely reenter the active inventory, or end up in foreclosure.

The current average list price of a home has increased 6.6% from February to March, but is still down 9.8% from March '09 to March '10. 

In regards to the average sale price of a home, we saw an amazing increase of 6.2% from February to March. But, over the last 12 months, values are narrowing and have still declined 8.3%, or approximately .69% per month. On a $200,000.00 property, this means a home has still lost about $1380.00 per month in value. Also consider the dynamic between Sellers and Buyers during the negotiating process. As of the March report, Buyers were negotiating an average of 6% off the asking price. A year ago, that number was 1% higher, most likely meaning Sellers finally are getting more realistic about the asking price of their homes.

The number #1 selling price range in the Orlando Region is still the $1.00-$49,900.00 range making up over 20% of the monthly sale. In this category last month, there was over 500 homes sold. Furthermore, the $0.00-$100,00.00 range accounted for 44.69% of the sales, while the $100,000-$200,000.00 range accounted for 34.76%. Lastly, the $200,001-$300,000.00 range accounted for another 12.55% of sales. Collectively year-to-date, the $0-$300K range made up 92% of all sales in the area. In comparison to the rest of the market, Seller above the $300,000.00 range must get very realistic regarding pricing and marketing strategies. On the flip side, Buyer are going to have a huge advantage in negotiating on a luxury home while benefiting from a lower market demand.

Where is the market heading from here? Many indicator point to mild to significant increases in sales price and volume over the next 60 days due to first-time homebuyers needing to get transactions closed before the end of the tax credit deadline on June 30th. Many Realtors in the Central Florida area are starting to get concerned not knowing what's going to happen once May 1st rolls around. Has Buyer activity increased due to the tax credit, or are they just reacting to favorable market conditions such as low interest rates, competitive pricing, and great deals. If Realtor predictions are correct, the summer may not fare well for anyone. Industry Analysts are predicting another significant round of residential foreclosure hitting the market place which could further erode home values. Also, don't forget about the looming commercial marketplace which could further erode any hopes of a recovery in the near future. Stayed tuned, I'm predicting a roller coaster ride over the next 6 months....

If you would like a full copy of the Orlando Regional Sale & Inventory Report, please email joe@rockspringsrealty.net and a copy will be amulet to you 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 Buying and Selling normal, REO (Bank Owned Foreclosures), and investment properties. We welcome the opportunity to confidentially 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 for a detailed list sent by email.

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