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 Region released the March 2010 Real Estate Sales & Inventory Report for the Lake & Sumter County areas. While there was strong anticipation that we have seen or were close to the bottom of the real estate market, values continue to fall. There has been much anticipation that the homebuyer tax credit and low interest rates would start to prop-up home values, but the average sales price from Feb. to March was down almost 3%. Unfortunately, this is not a good sign for where the market is heading.

On a very positive note, we've seen a huge increase in the number of homes that sold from Feb-Mar '10 with an increase of 23.5%, or 408 total units closed in the month of March. This represents a 36% increase from a year ago (Mar'09). While inventory is being absorbed, there still is almost 4,700 active home listings in the marketplace. MFRMLS currently shows a 11.5 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. Another point worth mentioning is that Florida is judicial state in regards to bank foreclosures. The courts are severely backlogged with pending actions and many predict a second-wave of REO properties hitting the market this year which could add additional downward pressure to home values.

The current average list price of a home decreased 2.2% from February to March. Over the last six months, we have been on a teeter-totter seeing these numbers move in an upward and downward range from month-to-month. From a trend standpoint, during the last 12 months from March'09 - Dec'10, the average list price is still down 16%.  

In regards to the average sale price of a home in Lake & Sumter County, we saw another decline of 2.9% from Feb to Mar. In comparing March '09 to December '10, the decline has been over 15%, or approximately 1.25% per month. On a $150,000.00 property, this means the average home is losing about $1875.00.00 per month in value. Also consider the dynamics between Sellers and Buyers during the negotiating process. As of March '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 March '10, that number had increased to 7%, 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 many indicator still show potential for continued volatility and downward pressure.

The number #1 selling price range has shifted upward in Lake & Sumter Counties to the $120,000-$139,999.00 range and makes up almost 15.5% of the month sale in March. Furthermore, the $0.00-$100,00.00 range accounted for 35.3% of the sales, while the $100,000-$160,000.00 range accounted for 38.24%. Collectively, the $0-$160K range makes up over 73.5% 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 until the end of April'10.

While there are many question marks still looking, one thing for sure is that there is tremendous buying opportunities still available for first-time & step-up homebuyers, investors, flippers, and speculators. We have seen tremendous activity during the month of March and April as the frenzy continues to get under contract before the end of April. The million dollar question is what happen on May 1st. Once the tax credit deadline has expired, will Buyers still see value in the market or retreat to the sidelines? 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