Friday, February 15, 2013
Orlando REALTOR® | January/February 2013
ORRA broker members share what they think 2013 holds in store for the Orlando market.
Penny Miller Properties
Historically we know real estate runs in cycles. Considering the forecasts made by economists nationwide this year and the current local trends here in Central Florida, I believe we will see a slight improvement of increased property values in sought-after neighborhoods while more foreclosed/bank-owned properties become available for sale in 2013. Short-sale listings will increase but not to the point that we will have a bigger supply of homes for sale than we did this year. Inventory will still remain low on resales but new-home starts will increase substantially while the demand will increase in the spring/summer for Central Florida. Interest rates will remain at record lows for those buyers applying for mortgages, and more programs will become available for first-time and new-home buyers.
Logan Land & Homes
I am very optimistic about 2013 and look forward to favorable market conditions for the real estate industry in Central Florida. Inventory has been shrinking steadily, and new-home sales are up. With the Hurricane Sandy devastating the northeast, there most likely will be a shortage of building materials. It’s all about supply and demand. The cost of new construction will increase, so builders will have to pass these costs on to the new-home buyer. When this happens, generally the existing-home prices follow suit. In many cases, existing homes had been selling for less than it cost to build, so a price increase in existing-home sales is certainly warranted and will hopefully reduce the number of short sales coming on the market.
Realty Executives Central Florida
My office specializes in the submarket of Dr. Phillips, Windermere, Metrowest, Ocoee, and Winter Garden. I see inventory remaining tight in this area, which will cause prices to rise slowly. In addition to low interest rates that lead many buyers into the market, we are fortunate to have many foreign buyers interested in this part of Orlando. My office is doing business currently with buyers from Brazil, Canada, China, Venezuela, Iceland, Mexico, Germany, England, and more. I am looking for a nice increase in homes sold in 2013!
Magic Properties & Investments, Inc.
Prices will rise 5 to 10 percent in 2013 as the market continues to stabilize. Short sales, along with bank- and institution-owned properties (including Fannie and Freddie) will still dominate the market. Interest rates will remain low until the summer, but loans will be time-consuming and difficult to secure as the big banks continue to worry about loan buy-backs and continue to put their profits from government-sponsored refinance programs over the interests of the housing recovery and the homebuyer. The effects of the Dodd Frank Bill will continue to hurt the free markets and negatively affect the availability of capital.
I believe 2013 will hold much of the same as 2012, with slowly recovering home prices driven by: supply, which will increase slightly because of the load of foreclosures that are finally making their way to the listing boards; demand, which is increasing alongside a slow improvement in employment; new-job creation at Medical City and at other medical facilities and the huge number of UCF graduates; and an increase in individual members of three-generation households who can now afford to buy; continued interest by investors and second-home buyers, especially if interest rates stay low; Canada’s finances remain unsullied; and folks faced with rebuilding in New York and New Jersey taking the opportunity relocate to sunny Orlando.
Lake Mary Presidential Realty
I think 2013 is going to be a bad year for our housing market. Obamacare and the 3.8 percent tax on real estate will cause uncertainty, confusion, and a falloff in buying. Since Fannie and Freddie will need another bailout, that will make things worse. Taxes on dividends, among other things, will hurt retirees and snowbirds and slow down their decision to purchase. Things will probably pick up later in the year, though, perhaps in the third quarter.
Susan Overstreet Filebark
Overstreet Real Estate, Inc.
In 2013 we will start to see more traditional sales of homes emerge on the market. Increasing prices will allow pent up home sellers that have not had the option of a short sale to place their home on the market. It will also be a good time for sellers to sell and then turn around and buy their move-up dream home while taking advantage of low interest rates.
Suzi Karr Realty
I expect 2013 to be a great recovery time. The inventory is low, but new construction is cranking up big time. This should be a good year for all!
Rei L. Mesa
Prudential Florida Realty
Consumer confidence will be a game changer in 2013. With the presidential election behind us, consumers are more likely to get ‘off the fence’ and move forward with their homeownership decisions. Jobs will be the most significant driver for business growth in 2013. Along with the creation of new jobs, we are seeing an increase in homeowner equity as home prices continue to rise. More homeowners who are no longer underwater and can move up, or make a lateral move or downsize because they are now in a position to sell their home. With this lift in homeowner equity, we should experience a rise in traditional home sales. We are also witnessing a more streamlined and efficient short-sale process. Since Florida is a judicial state, it can take an exorbitant amount of time for a foreclosure to get through the court system; lenders are finding that they can better monetize the asset through a short sale as opposed to a foreclosure.
Pindling Real Estate Services
Based on local, state, and national data that shows low inventory and rising prices, I think Orlando may very well be a gigantic sellers’ market for awhile. And as prices go up, traditional investors will leave the market and give first-time buyers a greater chance at the American dream. They will still have to contend with a possible increase in interest rates, tight lending standards, and fewer down-payment assistance programs.
I see investor buyers continuing to drive the market in 2013. With new inventory coming from the shadows, the institutional (hedge fund) buyers like the one I represent will be ready and willing to absorb it. This should keep the upward pressure on prices.
Theodora Uniken Venema
Downtown Brokers, LLC
The U.S. housing markets will flourish in 2013, thanks to foreign buyers' interest. Our markets will continue to offer the best values in the world, amidst the safety and security of a western society that offers and protects homeownership to any and all nationalities.