Where does the real estate market in the area stand? (Miami: appointed, sale) - Orlando - Florida (FL) - Page 3 - City-Data Forum

beckycat · 12-01-2011, 07:16 PM

Bump. Where are things at this point? Just looking for an update? I hate to say it, looks quite dismal

Starrman69 · 12-03-2011, 01:42 PM

Becky, we're doing a refi on our mortgage for the lower interest (3.5 from a 6 3/4 pct) and shorter period (from 30 to 15 yrs). Our house was appraised at 100k less than we paid for it way back in '07. We were able to refi as we're making up the difference in what we owe and what the bank will loan us.

our account was sold to a mortgage service company last year and they couldn't/wouldn't help us on a HARP.

We're now ready to wait for the economy to swing back around...

beckycat · 12-03-2011, 03:47 PM

Quote:

Originally Posted by Starrman69

Becky, we're doing a refi on our mortgage for the lower interest (3.5 from a 6 3/4 pct) and shorter period (from 30 to 15 yrs). Our house was appraised at 100k less than we paid for it way back in '07. We were able to refi as we're making up the difference in what we owe and what the bank will loan us.

our account was sold to a mortgage service company last year and they couldn't/wouldn't help us on a HARP.

We're now ready to wait for the economy to swing back around...

That is a very smart idea. It makes a big difference. I'd do that but we a planning to sell sooner than 7 years. They say if you refi, you should stay at least that long. Hopefully, the market will turn around sooner than later.

usp2 · 12-03-2011, 07:05 PM

I spoke with a mortgage lender at PenFed CU recently who said that the Florida housing market was a mess and that prices had much further to fall. Because of that, they required a 30% down payment on any house purchase in Florida. Florida was the only state where they require the additional down payment. My conversation was not specific to Orlando.

As others have mentioned, there is a huge shadow inventory of homes that are not on the market for a variety of reasons. I don't think this forum likes external links, but do a Google search for "Florida Shadow Inventory." Last time I checked, Florida had the largest shadow inventory of homes. Until this inventory starts getting cleared, prices will continue on a down trend, unless there is a change that brings a large number of jobs to a region.

I was chatting with the person in the Lake Nona welcome center who said that early buyers in those new developments had lost hundreds of thousands of dollars in their houses and that prices were not likely to recover within her lifetime. People who can't sell are renting out their houses.

As I drove around Jacksonville and Orlando this past year I kept running into large housing development projects that were frozen after being partially built, and none of the developers suggested that things were going to turn around soon. I think the only people you will find that have a positive spin on the Florida real estate market would be real estate agents who want you to buy a house.

Personally I'm going to rent for a year and buy cheaper next year, assuming I'll settle down in Orlando. The prices seem really cheap and it is tempting to buy, but I would be kicking myself if I bought a house that was $30,000 cheaper the following year, since I can have a nice rental for around $20,000 per year.

beckycat · 12-03-2011, 07:24 PM

Quote:

Originally Posted by usp2

I spoke with a mortgage lender at PenFed CU recently who said that the Florida housing market was a mess and that prices had much further to fall. Because of that, they required a 30% down payment on any house purchase in Florida. Florida was the only state where they require the additional down payment. My conversation was not specific to Orlando.

As others have mentioned, there is a huge shadow inventory of homes that are not on the market for a variety of reasons. I don't think this forum likes external links, but do a Google search for "Florida Shadow Inventory." Last time I checked, Florida had the largest shadow inventory of homes. Until this inventory starts getting cleared, prices will continue on a down trend, unless there is a change that brings a large number of jobs to a region.

I was chatting with the person in the Lake Nona welcome center who said that early buyers in those new developments had lost hundreds of thousands of dollars in their houses and that prices were not likely to recover within her lifetime. People who can't sell are renting out their houses.

As I drove around Jacksonville and Orlando this past year I kept running into large housing development projects that were frozen after being partially built, and none of the developers suggested that things were going to turn around soon. I think the only people you will find that have a positive spin on the Florida real estate market would be real estate agents who want you to buy a house.

Personally I'm going to rent for a year and buy cheaper next year, assuming I'll settle down in Orlando. The prices seem really cheap and it is tempting to buy, but I would be kicking myself if I bought a house that was $30,000 cheaper the following year, since I can have a nice rental for around $20,000 per year.

Makes me wonder, am I going to go in the opposite direction in the future? If so, I'm really going to have to wait to sell. I can only hope that is not the case. I can only hope for the best and hope the market will at least stay where it is for now.

beckycat · 12-03-2011, 07:48 PM

Quote:

Originally Posted by beckycat

That is a very smart idea. It makes a big difference. I'd do that but we a planning to sell sooner than 7 years. They say if you refi, you should stay at least that long. Hopefully, the market will turn around sooner than later.

I just read an article stating that it takes approximately 2 years to recover fees from refinancing which I was not aware of.

kyle19125 · 12-05-2011, 07:35 AM

I was just talking with a good friend's neighbor in Safety Harbor who is also in city government. She had spent a few days in a seminar last week addressing the foreclosure issue and how municipalities can address/adjust to the upcoming glut. Apparently in a few months 90,000 more foreclosures will be released to the market (statewide) that the courts had ruled banks to sit on.

Banks get back to foreclosures | HeraldTribune.com

Soup Not See · 12-05-2011, 08:12 AM

Quote:

Originally Posted by beckycat

I just read an article stating that it takes approximately 2 years to recover fees from refinancing which I was not aware of.

Depends on the situation - there are refinancing calculators all over the internet ...

Refinance Calculator - Should I Refiance My Mortgage

beckycat · 12-05-2011, 05:17 PM

I spoke to a realtor and she actually gave me some good news. She did a market analysis and researched my home. She said the value should be $12K more than we bought it for if we were to list it today.

It's not that we don't like the house and especially b/c it's only 8 years old that we are selling. We are just looking to downsize and possibly relocate in the future. We are just trying to weigh everything out to see what the best option is.

The foreclosures being released may affect things but you have to keep some things in mind. All those months or even years those houses have been vacant. They may have water damage, mold issues, structural damage. missing appliances, cabinets, toilets, etc. All these things can add up when purchasing a home. Then the deal you thought you got ended up costing more than a traditional sale where the owners took care of the home.

Bottom line is that buyers may want to just buy a home by traditional sale than having to worry about all those things. There are not many of these b/c either people are upside down in their home and can't afford to sell or people are riding it out until the values go back up.

FL little foot · 12-07-2011, 07:31 AM

When I was searching for a home from July 2010- Jan 2011, in the Waterford lakes and surrounding area's, Mostly all of them were foreclosures. Not my choice to look at only foreclosures and shorts but thats really all that was out there. These houses were trashed. My husband asked our realtor: Why are you showing us only dumps? He replied it was the first time he was seeing the property himself. We looked at over 100 house's in 6 1/2 months. The few( maybe 3) regular sales were priced $25-$30k more then the shorts and the ones I saw still needed some work.
I thought I got lucky when the short sale I eventually bought was available for a quick closing due to the previous purchasers backing out. The bank had just approved the short sale price for those buyers, and it only took 3 weeks to close. Now, not even a year later, similar homes in my area are selling for $25-$30k less then I paid. And some of them are bigger and better. After searching for a home for so long and having most of my "house" packed in boxes, I settled for the house I have now. I call it buyer frustration.
I had to put in all new appliances, since the owners removed them, and a fence, for the dog, and it still needs all new floors, peeling linolium and builder grade beige carpet is whats in there now. The windows are failing, I have to hold them up with sticks and the house is only 5 yrs old. There is no way I'm putting any more money into this house until god willing these values go up. So the Deal I thought I got was short lived. Then I think of the folks who bought in 2006-07, and count my blessings that I am not that much under-water. Becki, I thought you were in the Lake Mary area? I hear that area is doing much better then my area. Can you test the waters so to speak? Do you have a realtor that would list you for a few months at the price you need to sell? You don't have to accept a price too low to move on but at least you could really see what the feedback from buyers would be. I did this yrs ago when I was selling a house out of state.