Who do you trust for homebuying advice?

My friend Sara at the office shared the following today:

Los Angeles economist Gary Watts gave a talk to the Orange County California Realtors where the main message was - keep news about housing in perspective. The popular press has called an end to housing for some time, says Watts:

"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000." Business Week, 1969

"The median price of a home today is approaching $50,000 ... housing experts predict price rises in the future won't be that great." National Business, 1977

"The golden age of risk-free run-ups in home prices is gone." Money Magazine, 1985

"A home is where the bad investment is." San Francisco Examiner, 1996

Property is always a great long-term investment, and can benefit some in the short-term. Talk to a qualified Realtor to know what is going on in an area, and to learn what the media doesn't know yet.....

More people moving to Orlando soon

One interesting statistic that will affect the housing market in Orlando----the job market statistics.....Orlando was named the HOTTEST JOB MARKET in the nation, according to Business 2.0 Magazine. Approximately 72,600 new jobs coming our way in the next two years.

Buying a foreclosure is harder than it sounds

With a lot of foreclosures on the market, investing in some of them can seem like picking up found money on the ground. It's not as easy at it sounds. Not only will your expenses include the cost of the property, but repairs and holding costs.

The key is to buy at 30% below the after-repaired market value, according to Daryl White, a foreclosure investor in California. Never rely on appreciation to make a foreclosure deal work.

In Orlando, property is on the market for an average of 90 days----remember that you should figure in the costs of maintaining the property before it sells.

Should I buy now?

Buyers are looking at houses, and they see that they have been on the market for up to a year. They ask, "if I buy now in a slow market and I want to sell in a few years quickly, am I stuck?"

Short answer: Not likely.

Long answer: There is no doubt that home prices are soft, and there are lower interest rates. Yet people in Orlando need to remember that we are coming off a period of very quick appreciation. In 2005 and the beginning of 2006, due to limited supply, home prices skyrocketed. Prices in Orlando had been low, compared to other areas of the country. Investors flocked to invest and make some great money.

Some of the people who put their properties on the market at the beginning of 2006 did not sell them as expected, and the market took a dramatic slow down from August to December of last year. Some property prices have been overinflated, trying to capitalize on what happened in 2005.

As for a home appreciating, the projected existing home prices are expected to increase in the coming years. The stronger gains will most likely happen in 2008. It won't take off like 2005, but appreciation is likely.

Why is the market sluggish now? Because there are a lot of properties on the market. The real estate market is cyclical, and it does not respond quickly to shifts. Because of the time it takes to build a house and/or a person to decide to sell and list their house, the housing market does not bounce back in a matter of days---it can take months.

With the strong economic factors expected in Orlando due to employment, new business, and the average number of people moving here daily, there is no reason to expect a recession, leading to depreciated property rates next year.

Osceola County---great and growing

Forbes has recently reported that Osceola County, Florida is one of the fastest growing counties in the US. It is in the top 25, according to the Census Bureau's analysis between April 1, 2000 and July 1, 2006. This is one of several counties in Florida that is viewed as an alternative to the priciest areas in South Florida.

Florida ranks #1 in Foreclosures

CNN Money reported today that Florida had the most homes in the foreclosure process nationwide in February, according to RealtyTrac, which reported a two-fold year-over-year gain in delinquencies – more than 19,144 statewide.

Foreclosure filings are also recording double-digit increases in California, Nevada and Arizona, mainly because large numbers of speculative investors cannot sell properties purchased during the recent housing boom.

Artists unite!

Floridarealtors.org had an interesting article on it's website the other day. In determining where to invest in real estate in the next 5 or 10 years, look at where the artists are living now.

It seems that artists are the advance of what's cool, and due to their lower incomes, they have to seek out less expensive neighborhoods. One of the most significant reasons? An economist noted, "businesses don't often understand the extent to which art affects them. [Artists] are just as important as science and technology companies."

Brits: new company for your Florida property?

Jack Snyder with the Orlando Sentinel wrote yesterday about a new business debuting here---a London based firm, Global Property Audit Agency. For $600 a year, British owners of property in the Orlando area will receive home inspections and property reports so they will be aware of how their vacation /investment properties are maintained.

Interesting.....I'd love to hear how it goes!

Rising home values expected in Lakeland

Business 2.0 magazine ranked the top cities in the US for rising home values. On the list, Lakeland ranked 4th, with a 59% projected gain in home prices over the next 5 years. Between Orlando and Tampa, the home prices are much less than either city.

Two other Florida cities that could result in good investment returns include Panama City (#1) with an airport opening up next year and Vero Beach (#2) with moderate property taxes and beautiful weather.