What's going on with the housing market? (Orlando, Oviedo: credit, loans)

[beckycat]

Specifically, the Lake Mary area. With the recent economic issues, is anything selling? Or, do we have to wait it out and be in it for the long haul?

[MisterNY]

Not looking good all over. If you bought late, you're better off waiting, or just take a loss. No one is going to pay 2003-2006 prices anymore. Things are not looking good in most markets. Did you read what's going on in Wall Street today? If you can afford to break even, or make a small profit to sell it fast, try it. If not, wait. Good luck.

[beckycat]

Originally Posted by MisterNY

Not looking good all over. If you bought late, you're better off waiting, or just take a loss. No one is going to pay 2003-2006 prices anymore. Things are not looking good in most markets. Did you read what's going on in Wall Street today? If you can afford to break even, or make a small profit to sell it fast, try it. If not, wait. Good luck.

I did see what's going on at Wall street. It doesn't look good! I didn't think things would get worse, but fasten your seatbelts and hold on! I guess they said it may prompt the FED to lower interest rates again. At this point, I don't know what good it will do. I don't have to sell, I'd just like to. I'm not going to give my house away either.

[ucfjtm]

Originally Posted by beckycat

I did see what's going on at Wall street. It doesn't look good! I didn't think things would get worse, but fasten your seatbelts and hold on! I guess they said it may prompt the FED to lower interest rates again. At this point, I don't know what good it will do. I don't have to sell, I'd just like to. I'm not going to give my house away either.

Part of the problem is that prices during 2003-2006 weren't real values. They were artificially inflated due to investors jumping into real estate because of the extremely low interest rates. We won't see interest rates fall anywhere close to those rates for a very long time - the Fed doesn't want to repeat this housing mess again. People are just going to have to face the fact that their houses are only worth around year 2000-2001 values, and that there has been little real appreciation since.

The next part of the problem is a severe lack of buyers compared to the boom years. There are virtually no investors this time around - at least not unless a house is ridiculously underpriced. Nearly everyone who had a foreclosure the last couple years won't be buying anytime soon. Young people who haven't owned a home are priced out of the market and can't afford a $250k house on even a $50-75k salary - they won't have enough of a down payment. Also, banks aren't handing out loans to anyone who asks - even people who have reasonable jobs and a decent down payment are not guaranteed a loan. Finally, many of the few left who are capable of buying a house don't want to take the risk of buying a house that continues to lose value.

The jobs, salaries, and financial market will have to stabilize before house prices even begin to rise. We're no where near that yet.. so expect further real estate values to continue to decline in many markets.

[Guntersville Boomer]

I sold my home in a nice gated golf course community in Osceola County this summer, in my opinion, one of the best on the golf course, 4 bed, 3 bath, pool/jacuzzi, ended up accepting $245k, just at 10% below what my apprasial said fair market value was. I bought the house new in 1998 for $201k, had put silestone countertops in, inground jacuzzi, hardwood floors, I basically just broke even after having it 10 years. This is what I had to do to sell...........

[ucfjtm]

Originally Posted by Guntersville Boomer

I sold my home in a nice gated golf course community in Osceola County this summer, in my opinion, one of the best on the golf course, 4 bed, 3 bath, pool/jacuzzi, ended up accepting $245k, just at 10% below what my apprasial said fair market value was. I bought the house new in 1998 for $201k, had put silestone countertops in, inground jacuzzi, hardwood floors, I basically just broke even after having it 10 years. This is what I had to do to sell...........

Unfortunately those who bought before 2000, and owned them through the boom and bust, this is where we're at today. In 2005, that house sounds like it would have sold for around $450k. I remember many in Lake Mary with similar numbers in the $400k-550k range.

[GregTraub]

Specifically in Lake Mary, it depends on the neighborhood and price point, but yes homes are still selling there. There are currently 60 homes under contract right now, and over the last 6 months 232 homes actually sold...only 21 of those being Bank owned property (according to our local MLS). So that's good news.

There is still quite a bit of inventory out there (over 500 properties available, 150 being condos) so it may be some time before the market "comes back". From personal experience with several buyers looking in the area, the best homes are still selling relatively quickly in that area as long as they are priced appropriately. There are alot of dogs out there that won't sell for a long time. So if you were looking to sell, price it right (consult a qualified realtor...don't think an appraisal is the end all be all of your homes value) make sure it shows great, and market the heck out of it to get people in the door. I can see a probability of prices dropping a little bit more, but not nearly the kind of depreciation we've seen over the past few years.

[Mom2M&J]

Our (former) house in Oviedo has been on the market since March with nary a bite. It is a lovely house, in a nice development, and we've dropped the price several times.

[SimoneK]

We bought in 2004 for $215,000 and sold within 4 weeks for 222,000. 3 Bedroom home with Pool in Orlando. We had many showings but in this market we still had to write a check in order to get out. It was sad .......we put so much work in the house.

[aneftp]

Sorry to bust in on this post, but I have a question about Lake Mary too...

My husband and I are looking at a home in Lake Mary that is priced around $700k. The owners purchased in 2005 for $740k and they have decided to take a 3rd party buyout from his employer for I believe $675k-$685k. With the market in the condition it is we aren't sure what offer to make on the house or what we should be willing to go up to...Any advice?

We do have 20% to put down on the home, job stability, and excellent credit so we shouldn't have any problems getting approved for a loan...