More Interest in the Suburbs Fuels New Construction

The number of new construction homes being built increased significantly in July, more new homes were being built than in the previous four years. When the recession first began with the first blow-up of the pandemic the housing market took a short dip, including new construction homes.

Housing starts increased by 17.3%, the largest increase seen or reported since October of 2016. Many of the new construction “booms” in America are currently happening in the South and the West. These areas have accounted for 75% of housing starts last summer. Builders were reporting an increased demand in single-family homes in locations of lower density (suburbs and rural areas). Some smaller metro areas also saw the demand. They credit this demand shift to areas further away from large dense city cores to the shift from in-office work to remote work during the pandemic. Some economists predict this shift to remain permanent amongst many American workers.

The biggest demand for all types of housing is being fueled by the lowest mortgage rates we have seen in years. These rates are not expected to rise for at least a few months, keeping the housing market hot through the winter. One thing that has been an impact on the real estate market is the very low amount of homes on the market for sale. This is another factor that is encouraging home builders to keep applying for those building permits and continue to build new homes. Right now homes are being sold at a record pace, some within hours of being listed for sale, some are ending up in bidding wars, and some are being sold above list price driving home values even higher.

There are many great new construction homes being built right now in the town of Clermont Florida. Since before the pandemic started, several homebuyers sought to find a home in Clermont as it is one of the best places to live in Central Florida, so says many different publications. Some would say it is THE best place to live in ALL of Florida and we would have to agree. Clermont is a great town with several great homes just outside of Orlando and is well recognized for a high quality of living.

If you are looking for a home in Clermont I would love to help you find one. I am a local experienced agent that can help you find the best home to meet your needs and your wants. For more information on homes in Clermont please contact me anytime.

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The Market Has Cooled Off, What Does This Mean for Buyers and Sellers?

It’s an interesting market around the Orlando area right now. As of the publishing of this post, we are in a neutral to cool market in many places and individual communities but, we are seeing a big difference from one micro market to another. Places like Clermont Florida might be great where other places such as Mineola or downtown Orlando might be a cooler market.

Right now the average home price in Orlando is about $165,000 but that varies greatly depending on the neighborhood or community we are talking about. We are leaning toward a seller’s market but it is by no means a hot market. A cooler market leans more towards buyers, meaning that there are more homes on the market and prices have come down. A hotter market leans towards the sellers, meaning there are fewer homes on the market and with a combination of more buyers, prices will naturally increase. The home value index for Clermont is about $232,000 and we are leaning toward a seller’s market. But, in many places around Orlando, we are seeing a cool off in a lot of the market areas.

So, what does this mean for buyers and sellers?

It’s hard to give you a hard and fast rule or advice when it comes to buying or selling because the market is so volatile in so many different communities. We don’t really have a blanket market across the Orlando area so depends on where you live or where you plan on buying.

If it’s a hotter market in your area you can tend to price on the higher side. However, it also depends on how quickly you want to sell. If you’re planning on selling and moving within a short amount of time, it’s important to price just lower than your closest competition. Take a look at how much you really need in the form of profit, your closest competition, what’s currently on the market and what has sold in the last three months. Because the market fluctuates so dramatically from month-to-month, getting research from the past six months is just not going to be as accurate. If you have time to sit on the market you may price it at market value and depending on how hot that market is, you may actually get escalation clauses or multiple offers but, I urge you not to overprice your home as this can backfire, making the homes sit on the market far longer than ever expected.

If you are buying, it’s important to look at the area in which you’re buying. Every community, neighborhood or small town around Orlando has a different market. If the market is leaning toward the buyers, find out why. Ask your real estate agent (or myself) about the general trend in that community. If homes sit on the market a long time or there something wrong with either the construction if it’s a new development, prices have dropped grammatically or there some external factor that’s causing prices to drop, this might be your chance to either get in at a lower price or stay far away depending on the factors involved. Some developments may be looking at new construction close by, which could be harming existing resale homes while other communities are increasing in value because of construction either due to modern commerce being put in or more conveniences such as Starbucks, Trader Joe’s or Whole Foods.

So, it’s hard for me to give you inexact answer to this question because the market is so different from place to place. If you’re looking to sell give me a call today. Feel free to contact me and give me your address and what you’re looking to get out of your home and I can give you some rough estimates as to what your home might be worth and how quickly it could sell.

If you’re planning on buying but are new to the area or just don’t have any idea where to start, give me your criteria and price range and what’s important to you in a home. I’d be happy to send you a list of plausible homes and properties that meet your price point and your needs.

Home Prices in Orlando Dropped in August

Home Prices in Orlando Dropped in August

Prices in the core Orlando market took their expected seasonal drop last month. They dropped from a middle of the road $170,950 back in July to $165,000 in August. These prices are according to Orlando Regional Realtor Association’s report.

It’s typical for prices to drop at the end of summer, but this decline is partly being attributed to the result of large amounts of distress properties selling last month that furthered the depressing of the region’s median price.

The amount of foreclosures has been increasing as well as auctions of foreclosed properties. Orlando foreclosures have increased by a third of the amount they were this time last year. They have increased more than 20 percent from July.

Last month year over year prices in the core Orlando market increased 26 percent for short sales, 9 percent for foreclosures and only 5.5 percent for normal sales. Overall home prices were up 6.4 percent year over year. This is only a fraction of the year over year increases that Orlando buyers and sellers realized last year, which was 24 percent.

2,449 houses sold last month, which is down from both a month ago as well as a year ago.

Homes are currently spending an average of 68 days on the market.

There is concern that the future holds a potential of becoming a buyers market as inventory increases.

Under contract homes last month, consisted of 34 percent shorts sales, 42 percent normal properties and 24 percent bank owned properties.

Want to know more about the Orlando and Clermont real estate market? Please check out the following articles:

– Winter Garden Village Has a New Owner

– Curb Appeal Check List to Sell That House!

– What to Do When Your Offer is Rejected on a Home in Clermont

Winter Garden Real Estate Values

Winter Garden is located just a few miles outside of Orlando just South of Lake Apopka and covers quite an extensive amount of land from paradise Heights South to Windermere and Lake Hancock. It covers waterfront and lakefront properties, lots and land for sale as well as condominiums, townhomes and manufactured properties. Currently there are about 1300 homes for sale within the town of Winter Garden priced from $12,000 for lots and vacant land to a beautiful single-family home with over $3 million. Of course there are plenty of homes for sale between that huge range.

Currently the median listing price is about $243,000 and the average listing price is about $338,000 which is down a couple of percent over last month at this time which is normal for this time of the year. The median sales price however is up 15.6% over last year at this time which is equal to $27,750 topping out at $206,000.

Currently we have more foreclosures, bank owned and short sales on the market than owner/seller properties which certainly means that buyers are apt to get a really great deal on a home in Winter Garden.

The median sales price for Winter Garden hit its peak in 2007 topping out at $366,000. It wasn’t until the middle of 2012 that the market really started to turn around and has been creeping upwards over the $200,000 mark since 2013. The lowest price was in 2011 which was at about $180,000. The number of sales hit its peak in 2005 with about 750 sales per month. The lowest was in 2008 over the last 10 years at about 150 homes sold per month. Currently we are at around 200 homes sold each month in the Winter Garden area.

If you’ve been wondering what your value currently is on your Winter Garden home or surrounding communities call me anytime. We can run over some preliminary numbers or I can do a complete an extensive background check to find out exactly what your home would sell for today should you list it. I look forward to speaking with you soon. Image from Local MLS

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Real Estate Prices

Home prices in Orlando Florida are starting to get a little out of hand. Since we’re coming back from our real estate bubble in the early 2000’s, home prices, especially in downtown Orlando, are starting to skyrocket. This is forcing a lot of people out of town and into smaller communities such as Winter Garden, Pine Hills, Minneola, and Clermont.

Home prices in Clermont

Clermont Florida is a beautiful community just to the West of downtown Orlando in amongst Lake Minnehaha and Lake Louisa. Just about every home has some form of Lakeview or lakefront property and home prices are much more reasonable starting at around $120,000. Homes can reach as high as over $400,000 that this is the more luxury, larger acreage home. A beautiful home of around $300,000 sits on larger lots and offers 3 to 5 bedrooms with over 3000 ft.² of living space. Many of these homes you can find below market value in a short sale or foreclosure option.

For around $180,000 you can find a beautiful home in Clermont for a three bedroom two bath home about 2000 ft.². Many of these homes or even nestled around Lake Louisa with gorgeous lakefront property and views.

To the North you can find homes starting at around $60,000 but many of these will be manufactured or mobile homes. Site built homes start at around hundred thousand dollars and you can find many homes with larger floor plans of over 2000 ft.² with five and six bedrooms for under $200,000. Several of these homes may need a little TLC a chill never know what you find until you get out there and look.

Because I love the Clermont, Winter Garden, and Pine Hills area I more apt to promote these areas than the busyness of downtown Orlando. For more information and to find homes in these areas give me a call anytime or start your online search here for free.

Your Florida and Orlando Expert

I love living, working and playing in the area and if you love it just as much, give us a call to find your perfect dream home in the Orlando real estate market. I help buyers and sellers in Winter Garden, Clermont, Minneola and all over the Orlando area. Where know where to live in Orlando!