Central Florida Real Estate Blog

On June 9, 2010, the MFRMLS-My Florida Regional Multiple Listing Service (http://www.mfrmls.com) which covers most of the Central Florida Region released the May 2010 Real Estate Sales & Inventory Report for the Lake & Sumter County areas. There has been heightened anticipation throughout the real estate community that we might be close to the bottom of the real estate market, but the current values released clearly indicate otherwise. While the first-time homebuyer tax credit and low interest rates propped-up home values earlier in the year, the average sales price from April to May was down over 6.4%. With rumors of a significant amount of "Shadow Inventory" foreclosures lurking behind the scenes, let's hope this trend does not continue through the springs and summer buying season. That is unless you're an active or prospective buyer...then the outlook looks very promising for some great opportunities in the marketplace.

On a more positive note, we continue to see an increase in the number of homes that sold month to month. From Apr-May '10 there was an increase of about 3%, or 416 total units closed in the month of May. This represents a 34.6% increase from a year ago (May'09). While inventory is being absorbed, there still is almost 4,600 active home listings in the marketplace. MFRMLS currently shows a 10.9 month supply of inventory, but these numbers are 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. Another point worth mentioning is that Florida is a judicial state in regards to bank foreclosures. The courts are severely backlogged with pending actions and many analysts predict a second-wave of REO foreclosure properties hitting the market later this year which will most likely add additional downward pressure to home values.

The current average list price of a home decreased by a whopping 9.1% from April to May. Over the last six months, we have been on a teeter-totter seeing these numbers move in an upward & downward range from month-to-month. During the last 12 months from May'09 - May'10, the average list price is still down 10.6%.

In regards to the average sale price of a home in Lake & Sumter County, we saw a major decline of 6.4% from April to May. In comparing May'09 to May'10, the decline has been over 8.7%, or approximately 3/4% per month. On a $150,000.00 property, this means the average home is still losing about $1,125.00.00 per month in value. Also consider the dynamics between Sellers and Buyers during the negotiating process. As of May'09, Buyers were negotiating on average 8% off the asking price. During the year, we have seen this number decrease to as little as 5% 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 May'10, that number had increased to 6%. It's hard to predict where the market goes from here, but many indicator still show signs for continued volatility and downward pressure.

The number #1 selling price range in Lake & Sumter Counties is the $120,000-$139,999.00 range and makes up almost 13.5% of the month sale, as of the end of May. Furthermore, the $0.00-$100,00.00 range accounted for 35.69% of the sales, while the $100,000-$160,000.00 range accounted for 36.07%. Collectively, the $0-$160K range makes up over 71% of all sales in the area. This should come as no surprise as first-time and step-up Buyers were still taking advantage of the updated federal tax credit. 

While there are many questions still to be answered about the direction of the market, one thing for sure is that there still is tremendous buying opportunities available for all buying groups.  What do you think?

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. You can also link to the Realtor Association of Lake & Sumter Counties for additional market statistics and research at http://www.ralsc.org

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
Email: joe@rockspringsrealty.net