Last night on the Central Florida 11:00 news, there was a segment dedicated to the Local real Estate Market. I grabbed my notebook and jotted things down here's what they said.
According to a Professor of Real Estate at the University Of Central Florida, Housing Prices are reaching all time lows for seller's of single family dwellings. The current slide in home prices is expected to drop another 10% in the next year. The experts are predicting that things will probably take two to three years to even out. By his recommendation, sellers should consider holding their homes until the market recovers.
Numbers wise this is how it shakes out. There are 22,000 homes currently listed for sale in the Orlando area alone. This number does NOT include homes that are for sale by owner or homes that have recently been taken off the market. Nor does this reflect the massive number of Bank foreclosed homes, known as REO's or Real Estate Owned or Tax lien properties. These numbers are estimated to be between 15,000 and 18,000. Bringing the Total estimated market for single family homes for sale to almost 50,000.
The average listed home is being advertised at $15,000 to $30,000 dollars below its appraised value. With Interest rates hovering at their lowest point in almost 50 years, Now is the time to get into the market, for first time home buyers and Real Estate Investors, alike.
Real estate professionals who are in a position to purchase homes and hold them as rental units or lease purchase options stand to make vast sums of money when the market does its inevitable climb back up.
According to the numbers quoted, there are a huge surplus of homes for sale in the Central Florida Area with very few buyers coming in. Home rentals are up 39% from this time last year. Many people are relocating to the state, but insurance rates and fears of future hurricane's have made a tremendously negative impact on home sales in the area.
Coastal area's of Florida are suffering an even worse fate in the real estate market , as insurance premiums have almost tripled in the last 2 years. After having a cap threatened to thwart the incredible rate increases by insurance providers. Many providers have simply notified the Home owners that they are no longer providing coverage and packed up their things and left town. Leaving homeowners without insurance coverage and at the mercy of predatory insurance providers.. "This is really making it difficult for people like us seniors who are already on a tight, fixed budget." A source was quoted as saying.
Senior Citizens retiring to the state of Florida make up 16% of the new owner market place every year as they look to retire to more friendly climates.
Several plans are on the negotiating table right now concerning property tax increases and the dropping home sales in Florida. politicians are scrambling to come up with a solution to bring the states real estate market back. Some of the Idea's proposed by Florida's Governor Charlie Christ include doubling the homestead exemption, or cutting the property tax all together. To accomplish the total removal of property taxes in Florida the Governor proposes a statewide sales tax increase to an average of 8.5 cents. This would be great for the property Owners of Florida but what, benefit would that be to anyone who does not own real estate in the State? None.