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Rental Market Trends in Orlando, Florida

5/25/2022

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The average rent for apartments in Orlando, Florida, is between $1,833 and $2,631 in 2022. 

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For a studio apartment in Orlando, FL, the average rent is $1,844. When it comes to 1-bedroom apartments, the average rent in Orlando, FL, is $1,833. For a 2-bedroom apartment, the average rent is $2,252. The average rent for a 3-bedroom apartment in Orlando, FL, is $2,631.
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How do Orlando neighborhoods compare?

The most affordable neighborhoods in Orlando are Lake Sunset, where the average 1-bedroom apartment rent goes for $730, Florida Center North, where renters pay $1,060 on average for a 1-bedroom apartment, and East Central Park, where the average 1-bedroom apartment rent goes for $1,100. If you're looking for other great deals, check out the listings in The Willows ($1,104 for a 1-bedroom apartment) or Millenia ($1,145 for a 1-bedroom apartment), compared to the $1,833 average for an Orlando 1-bedroom apartment.

The most popular neighborhoods in Orlando are Lake Sunset, where the average 1-bedroom apartment rent goes for $730, Callahan, where renters pay $1,695 on average for a 1-bedroom apartment, and South Eola, where the average 1-bedroom apartment rent goes for $2,089. If you're looking for other popular neighborhoods, check out the listings in Lake Eola Heights Historic District ($1,495 for a 1-bedroom apartment) or Lake Eola Heights ($1,900 for a 1-bedroom apartment), compared to the $1,833 average for an Orlando 1-bedroom apartment.

The most expensive neighborhoods in Orlando are Lake Nona, where the average 1-bedroom apartment rent goes for $2,808, Baldwin Park, where renters pay $2,157 on average for a 1-bedroom apartment, and South Eola, where the average 1-bedroom apartment rent goes for $2,089. If you're looking for other premium neighborhoods, check out the listings in Lake Eola Heights ($1,900 for a 1-bedroom apartment) or Downtown Orlando ($1,899 for a 1-bedroom apartment), compared to the $1,833 average for an Orlando 1-bedroom apartment.

Have an Investment home?
​Here's What To know About The Investment Market.

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Information & graphics provided by rent.com®
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Mortgage Rates Decrease Slightly; Homebuyer Competition Slows;

5/25/2022

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Mortgage rates decreased slightly this week. According to the latest Freddie Mac data, 30-year mortgages are averaging 5.25%—down from 5.30% last week and up from 3% one year ago.

Alongside this shift, homebuyer competition slowed moderately this week. According to the Mortgage Bankers Association, purchase applications decreased 12% from last week and was down 15% compared to one year ago.
“Mortgage applications decreased for the first time in three weeks, as mortgage rates – despite declining last week – remained over two percentage points higher than a year ago and close to the highest levels since 2009” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
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Refinances also declined for this week. They’re down 10% from last week and 76% from one year ago.
“For borrowers looking to refinance, the current level of rates continues to be a significant disincentive,” Kan said.

More News in Mortgage & Housing

  • Median list prices for homes continue to increase.
  • Realtor.com data, tells us the current median list price is 15.9% more than last year and has increased by double digits year over year for 21 weeks. Also, that this week’s 0.5% mortgage rate decrease is the highest decrease since March.
  • A Redfin analysis tells us that homebuyer competition is slowing. 60.7% of buyers faced competition in April, the lowest figure since March 2021. That’s down from 63.4% a month prior and down from 67.4% last year.
  • The recently released May 2022 commentary from the Fannie Mae (FNMA/OTCQB) Economic and Strategic Research (ESR) Group suggests a broader economic slowdown.

Information provided by Embrace Home Loans®
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Creating Opportunities In A Difficult Commercial Real Estate Atmosphere

5/25/2022

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There have been investment groups and individuals storing up cash in order to acquire what is, in their opinion, imminent distressed assets. Is this the "Great Reset"? The pandemic disrupted normal commerce and the nature of work, crippling the supply chain. The economy is also in the torturous act of trying to decarbonize and finding out that it is much more complicated and fraught with self-interest than planned.

I don't share the gloom of the day to vent, only to propose that this moment could be an opportunity for some.
Demographically speaking, a great deal of commercial property is set to go through a generational transfer. The next recipients of these properties are very different than their parents and thus view owning property in a different light — millennials overall prefer cleaner and more progressive values.

At the same time, many properties throughout the nation are soon to be due for refinancing and will be doing so at a higher rate during a time of inflation. I see this bringing forth much more scrutiny in the underwriting process and a possible inability to accomplish certain financial conditions to sell. Not to mention, if you are an operator of residential income property in many parts of the country, eviction moratoriums could also chill opportunities to refinance or sell.

If you can put together enough cash, I predict you will be able to purchase many types of properties at bargain prices. But the competition will be steep from corporations and Hedge funds 
seeking to create yield from the same situation; getting the deal won't rest on just having cash. As a smaller investor, you won't have the level of cash deployment. Time and market research will be your friend, and you may consider engaging a few brokers to assist in the search.

There will also be competitors who have in some cases been building reserves to purchase properties that have deferred maintenance and tenant issues, either directly or through select government and non-profits programs. This is another factor to consider when finding a commercial property in our current climate.

Ultimately, it is wise for you to find out why the seller is selling; could it be due to  rent moratoriums or other matters such as deferred maintenance hurting the property value? Will you have to evict tenants or refurbish the property? Make sure to factor these kinds of things into your pricing.
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States are currently considering how to increase their housing stock, and rent stabilization is of the utmost concern for many areas. But for now and into the near future, cash is king when buying real estate. Of course, you have to have some, to begin with.

Information provided by Michael J. Polk; Forbes Business Council Post®
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Florida's Higher Median Prices & Limited Supply

5/25/2022

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​Florida’s housing market may be showing some beginning signs of cooling in April: Mortgage interest rates and median home prices continued to rise amid a still-constrained supply of for-sale homes – resulting in fewer closed sales compared to a year ago, according to Florida Realtors®’ latest housing data.

“Rising interest rates and high inflation are impacting all of us, and those factors are definitely affecting Florida’s housing market,” said 2022 Florida Realtors President Christina Pappas, vice president of the Keyes Family of Companies in Miami. “However, our lack of a state income tax, our beautiful beaches and waterways, and warm sunny weather continues to attract new residents, investors and second-home buyers to Florida, especially in the work-from-anywhere world today. In April, the median time to contract for single-family existing was eight days compared to 11 days during the same month a year ago. And the median time to contract for existing condo-townhouse units was 10 days compared to 24 in April 2021.

“Buying or selling a home is a complex process, and a local Realtor can help consumers understand their local market and provide expert guidance to ensure peace of mind.”
Last month, closed sales of single-family homes statewide totalled 28,171, down 15.3% year-over-year, while existing condo-townhouse sales totalled 13,711, down 20.9% from April 2021. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

Florida Realtors Chief Economist Dr. Brad O’Connor pointed to the rapid rise in mortgage interest rates this year, particularly in March and April, as a major factor slowing home sales last month, along with still-rising home prices and restricted supply.

“Remember, 2021 was characterized by near-record low mortgage rates that allowed for a huge surge in home-buying demand,” he said. “So it’s simply unreasonable for us to expect that the market will perform just as well this year, now that we are in a higher interest rate environment. Closed sales are performing at about the level they were leading up into the pandemic, despite higher mortgage rates, low supply and much, much higher sale prices.”

The statewide median sales price for single-family existing homes in April was $410,000, up 21.8% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $310,000, up 24% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Dr. O’Connor added, “Again we need to remind ourselves that many home sales that closed in April actually had their prices determined when they went under contract a month or two earlier, just as rates were really starting to take off.

“In the longer run, price growth should start to moderate in response to these higher rates, so this is an important statistic to keep your eye on over the next few months as an increasing share of sellers will inevitably have to start adjusting their expectations to a degree.”

On the supply side of the market, inventory (active listings) remained tightly constrained in April 2022: Single-family existing homes were at very limited 1.1-months’ supply while condo-townhouse inventory was at a 1.3-months’ supply.
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According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.98% in April, significantly higher than the 3.06% averaged during the same month a year earlier.

fl_april_2022_msa_summary.pdf
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fl_april_2022_condo_detail.pdf
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fl_april_2022_single_family_summary.pdf
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Information provided by Florida Realtors®
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Strong Year for Home Sales

2/1/2022

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With no major economic news, the investor outlook for growth and inflation remained the same last week. Mortgage markets experienced some daily volatility, but rates ended the week with little change.

In the article, "Strong Year for Home Sales," Economic Outlook specifies "that sales for all of 2021 still were 8.5% higher than in 2020," even though there was an unexpected dip in December, inventory levels were down 14%, well below the 6-month supply which is considered a healthy balance between buyers and sellers, and a record low level. The median existing-home price was 16% higher than last year at this time at $358,000.

Also notable, the mix of homes currently selling has been changing. Sales of homes priced between $100,000 and $250,000 were 23% lower than a year ago. Rising prices and competition from investors have made it more difficult for buyers to find affordable homes, especially at the lower end of the market. By contrast, sales of homes priced between $750,000 and $1,000,000 jumped 32% during that period.​

Investors have been watching the monthly reports on housing starts closely, as well as closely following any news on the omicron variant, and after the shortage of available homes in many areas, the most recent data was encouraging. Building permits, a leading indicator of future activity, also beat the consensus forecast, rising to the best level since January 2021. Though higher prices and shortages for land, materials, and skilled labor remained obstacles to a faster pace of construction.
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Inflation Remains High

11/8/2021

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As anticipated, the GDP report released last week reflected the negative impact of the pandemic and supply chain issues on growth, and the latest inflation data matched expectations. Mortgage rates ended the week slightly lower, ahead of the upcoming Fed meeting.

The core PCE price index is the inflation indicator favored by the Fed. In September, core PCE was 3.6% higher than a year ago, matching the consensus forecast. This was the same annual rate of increase as last month, but up from levels below 2.0% during the first three months of the year, and the highest annual rate since 1991. Economists have differing views on whether higher inflation will be short-lived or persist for years.

With the spread of Covid and major supply chain disruptions in many sectors, it came as no surprise to investors that economic growth slowed last quarter. Third quarter gross domestic product (GDP), the broadest measure of economic activity, showed annualized growth of just 2.0%, below the consensus forecast of 2.7%, and down from 6.7% during the second quarter. The impact of the report was small, however, since investors believe that the consumer appetite for goods and services remains very strong. Growth is anticipated to accelerate as production issues are resolved and companies are able to catch up to meet the demand.

In September, sales of new homes jumped 14% from August to an annual rate of 800,000 units, well above the consensus forecast of 760,000, and the highest level since March. The median new home price of $408,800 was 19% higher than a year ago. In general, the pace of both new and previously owned sales is being dictated by the supply of homes available each month. Builders point to shortages of key materials and skilled labor as obstacles to faster construction.

Investors will closely watch Covid case counts around the world. Beyond that, the next Fed meeting will take place on Wednesday, and investors will be looking for guidance on the timing for tapering the bond purchase program and for future rate hikes. The key Employment report will be released on Friday, and these figures on the number of jobs, the unemployment rate, and wage inflation will be the most highly anticipated economic data of the month. The ISM national manufacturing index came out yesterday and the ISM national services sector index on Wednesday.
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Orlando Mansion Sells for 12.5 Million

11/1/2021

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$12.5 million on Oct. 13 in an all-cash deal, listing agent and broker/owner of Windermere-based Florida Golf & Beaches LLC Karan Wienker said. It's the most money ever fetched by a single Orange County home, according to MLS data.
"It's not just a feather in our cap," Wienker said. "This is a freaking plume.” 
Wienker represented the sellers, KC and Monica Craichy. Meanwhile, the unnamed buyer was represented by Patricia France of Kissimmee-based Happy Days Realty LLC.

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Home Sales Rise

11/1/2021

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Although there was little major economic news released over the past week, mortgage rates continued to rise, as investors worry about higher inflation.

Sales of existing homes in September rose 7% from August but still were a little lower than a year ago. Inventory levels were down 13% from a year ago, at just a 2.4-month supply nationally, well below the 6-month supply which is considered a healthy balance between buyers and sellers. The median existing-home price was 13% higher than last year at this time at $352,800.

Also notable, the mix of homes currently selling has been changing. Sales of homes priced between $100,000 and $250,000 were 23% lower than a year ago. Rising prices and competition from investors have made it more difficult for buyers to find affordable homes, especially at the lower end of the market. By contrast, sales of homes priced above $1,000,000 jumped 30% during that period. One consequence is that first-time buyers made up just 28% of sales in September, the lowest level since July 2015.

With the shortage of available homes in many areas, investors have been closely watching the monthly reports on housing starts, and the most recent data contained mixed news. In September, overall housing starts unexpectedly declined from August, but still were 7% higher than a year ago. However, the weakness was seen in multi-family units, while single-family starts were roughly flat from August. Rising prices and shortages for land, materials, and skilled labor remained obstacles to a faster pace of construction.

The Department of Labor releases the total number of new claims for unemployment insurance each week, and the latest reading was 290,000, the lowest level since March 2020 near the start of the pandemic. This was down significantly from the inflated figures in the millions seen last spring during the partial shutdown of the economy, and just a little above the readings around 250,000 which were typical during 2019.

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​Investors will closely watch Covid case counts around the world. They also will look for hints from Fed officials about the timing for changes in monetary policy. Beyond that, the next European Central Bank (ECB) meeting will take place on Thursday. Third quarter gross domestic product (GDP), the broadest measure of economic activity, also will be released on Thursday. The core PCE price index, the inflation indicator favored by the Fed, will come out on Friday
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Inflation Moderates

8/31/2021

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During a light week for economic data, investors were mostly focused on the CPI inflation report. The results were roughly in line with the expected levels, however, and mortgage rates ended the week with little change.

The core Consumer Price Index (CPI) is a closely watched inflation indicator which excludes the volatile food and energy components. In July, this index rose just 0.3% from June, down from a massive increase of 0.9% last month, as price gains moderated for many items such as used cars. Core CPI was 4.3% higher than a year ago, down from an annual rate of increase of 4.5% last month, a level not seen since 1991.

While still very high by historical standards, investors were primarily interested in the moderation in inflation from the prior month. Fed Chair Powell has repeatedly said he believes that higher inflation has mostly been the result of disruptions caused by the pandemic and will be "transitory," returning to more normal levels as the economy recovered. If the downward trend continues in coming months, it would lend support to his view and keep the timing of Fed policy tightening on the expected path. If Powell is incorrect and inflation remains elevated, the Fed might decide to tighten sooner. Since inflation is negative for bonds, the outcome will have a large influence on mortgage rates.
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The JOLTS report measures job openings and labor turnover rates, and the latest data indicated that the labor market is extremely tight. At the end of June, job openings unexpectedly surged to 10.1 million, shattering the former record high. Openings are now about three million higher than they were in January 2020 prior to the pandemic. A high level of job openings reflects a strong labor market, as companies struggle to hire enough workers with the necessary skills. A large number of employees also willingly left their jobs in June. This is viewed as a sign of labor market strength as well, since people usually quit only if they expect that they can find better jobs.
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Orlando home prices are a record high; here’s where they climb the fastest

8/23/2021

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While it’s probable most Central Florida homeowners experienced a jump in home values this year, some are seeing increases of more than 50%. 

Migration triggered by the Covid-19 pandemic and low interest rates supercharged the local housing market last year. That led to rapid price increases that continue to this summer. In the first half of 2021, Windermere, Ocoee and Lake Nona were among the local communities with the fastest home price growth, according to the Orlando Regional Realtor Association. 

Trends in the residential real estate market are important, as the housing market often is considered a reflection of the local economy's overall health. Escalating home prices can make homes unaffordable for buyers. At the same time, they create more equity-rich homeowners, The Business Journals report.

Across Central Florida, the median home price leaped 14.5% between January and June, according to the Orlando Regional Realtor Association. The June median home price of $315,000 is the highest on record at the Realtor association.

Nationwide, home prices in June increased at their fastest rate since 1979, according to an Aug. 3 report by Irvine, California-based property data firm CoreLogic Inc. While CoreLogic recorded a 12.5% year-over-year price increase in metro Orlando, Central Florida home prices are not skyrocketing as fast as the 17% increase registered nationwide. 

“Florida in general still looks relatively affordable compared to the rest of the country,” said Lesley Deutch, managing principal of John Burns Real Estate Consulting LLC.

Despite blistering price increases, CoreLogic predicts the rate at which home prices climb will slow in the next 12 months. The firm expects demand to taper off and housing inventory to recover, according to the report. 
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Likewise, National Association of Realtors Chief Economic Lawrence Yun in June said a slight slowdown in price gains may happen later this year or next year. "Home price growth will be in the single digits in 2022 … A home price decline is unlikely.” 
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