Rising Sales Prices Mean Market is Moving Upward. St Cloud Florida Home Sales Show Impressive Gain

Yep, You heard that right!  For the fifth consecutive month existing home sales across the country are up.  St Cloud Florida homes sales are showing impressive gains.  The median sales price of existing Homes in St Cloud Florida rose to $185,299, and supply of existing homes is at 6.8 months.  Factors contributing the the increase of over 6% over last years figures, are historic low mortgage interest, combined with a pent up buyer demand. 

 Buyers are turning to “traditional” sales; those which are not shorts-sales or foreclosures.  As rents continue to rise, buyers who are qualified for home loans are moving for faster acceptance on offers, and are avoiding the distressed properties which often entail longer waits and obstacles to closing in favor of dealing directly with a seller not an institution.  As a result, sales prices have made gains.

  This trend is reflected on a National  level as well as short sale and foreclosed properties accounted for only a combined 24% of all sales in July 2012.

Typically distressed homes are sold at a 15-17% reduction off of fair market value. There was a time not too long ago, that the number of distress sales outnumbered traditional sales. As the available inventory was reduced, higher prices could and would be achieved.  Buyers are frustrated at finding themselves in multiple offer bidding wars. Particularly those who are currently renting.   Every month they spend “shopping” is costing them money.

It is  tough to compete for low priced homes. Those priced on the bottom tier, often attract numerous offers and investors with cash. Making a financed offer less attractive to lenders looking to quickly off-load excess inventory. Price wars often ensue, and first time home buyers may have to make repeated attempts before realizing that working with a traditional seller may be the easier path to home ownership.

 

 

RENTAL HOMES: SMALL INVESTMENT YIELD LARGE RETURNS IN ST CLOUD FLORIDA HOMES

RENTAL HOMES IN ST CLOUD FLORIDA– While news reports of a down housing market may have discouraged many would be homeowners from taking the plunge back into buying Real Estate;  investors flocked at the opportunity to scoop up distressed property at a huge discount. 

Contrary to popular belief,  Investors are not necessarily guys in business suits but rather average people with a basic understanding that timing is everything when it comes to buying and selling real estate. Buy low, sell high.  Declining value means opportunity. 

Investors watched the market here closely. As the glut of foreclosed homes hit the market, they had an ample supply of inventory to choose from. Most were looking for 3 bedroom 2 bath homes in St Cloud Florida. 

Why developments don’t work as good investments.

 While planned developments appeal to the average consumer, novice investors lost their shirts when the housing market peaked back in 2007.  Why?  Savvy investors look at the bottom line. Novice investors don’t. 

 Novice investors,  did not factor in the carrying costs and additional fees as part of their investment properties in St. Cloud Florida.  For that reason sub divisions while appealing to consumers as primary residences are attractive, are losing propositions for seasoned investors who know the burden of additional taxation such as CCD fees and Home Owners Association fees chipped away at their profit margins.

CDD fees (community District Development) are bonds the builders put in place to pay for amenities like sidewalks, street lighting,  club houses, community pools and common areas. These bonds are rolled into the property tax paid by Kissimmee and St Cloud Florida  home owners.

Comparing apples to apples, a 3 bedroom 2 bath home within the city limits of St Cloud Florida (outside of development) may have property taxes within a range of $2000-3000.  A similar home inside a development with  CDD fees would have a tax base of $3000-4000. Not including the additional cost of the home owners association fees.   It is not hard to figure out why they went belly up when the market went flat. They got caught short as value began to decline and the carrying costs were prohibitive from profitable renting.

Rental demand is on the rise.  The hundreds of thousands of people that got caught up in frenzy of the heated real estate market between 2005-2007 have lost their homes. As a result, they are now converted renters. Rents are predicted to rise annually as the demand for housing increases.  A 3 bedroom home in St. Cloud Florida will fetch $900-$950 a month.  A four (4) bedroom home can expect to yield $1200-1500 a month in the St Cloud Florida Area

While it is true that prices have slowly inched up over a year ago, at about a 6% gain, the selection of quality homes has decreased proportionately. What is coming to market now, are homes which have been in the foreclosure process for years in some cases. As a result they need a great deal of work to bring them back to rent-able status. 

 Early on, banks were reluctant to sell to investors, in fact, many would not.  They were holding out for the new wave of first time home owners who would finance the purchase through them giving them one more opportunity to try and recapture their bad debt.  That wave never materialized.  What did materialize were buyers offering cash for investment properties.

In a time where we are seeing values finally starting to rise, sompared to other parts of the country, Osceola County, specifically St. Cloud Homes have seen a median sales price rise on resale properties, which is  currently at $185,200.

HOW TO MAKE THE MOST OF THE REAL ESTATE MARKET IN KISSIMMEE/ST CLOUD

Wondering how to make the most of the Real Estate market in Kissimmee and St Cloud?  If you are like most people, you are very aware that there are some great  buys on homes for sale in the Kissimmee and St Cloud Florida area.  With current mortgage rates at 3.87% and the added benefit of the mortgage interest deduction, still available this is the prime time to be seriously looking.

Are Cheap Houses Really A Good Buy?

No. While the prices may be tempting, cheap houses may not be the bargain you think they are. Factors that need to be considered are:

Cost of Repairs

Cost of Insurance

Age of the home

Location

Cheap homes are often older (sometimes historic) homes.  They may need a lot of work.  A home inspection is a good launching point to determine the age and efficiency as well as functionality of the major components of the home.  A good home inspection can range from $200-400 depending on the size of the home. It is highly recommend you invest in one prior to making a purchase agreement.

Most people under estimate how much the actual repairs will cost.

Foreclosed homes are typically in need of several thousands of dollars of repair work as they have been long neglected and uncared for. 

 

   LOW END HOMES & HIDDEN PROBLEMS

 Hidden issues such as mold,  termite damage, water intrusion, and wood destroying organisms can be very expensive to eradicate.  Lenders make no warranties as to title or condition of the properties they are selling, therefore it is very important that you do your own “due diligence” and know exactly what you are buying before you sign on the bottom line. 

 Estimates do not include additional problems incurred while renovating.  Allow an additional 20-50% over the estimate for unexpected problems which will need attention and add cost to the job. 

MID RANGE HOMES YIELD THE BEST RETURN

Instead of shopping in the” bargain basement” of the home market, consider rolling in the repair costs and looking at mid-range homes.  Avoiding the “money pit” homes, and instead taking the repair money and applying it to a mid-range home will not only increase the inventory of homes you have to choose from, but the potential for the greatest return on your investment long term.

A cheap house is exactly that. It will not increase in value comparatively to a mid-range range home in dollar for dollar investment. An 800-1000 square foot house is never going to be worth what a 1500-2000 square foot house is.  Regardless of the market conditions.

Mid-range homes are newer, and often located in planned developments. They are larger and have a more favorable resale down the road. They will most often require a lot less work. 

Mid-range homes are usually short sale properties or in some cases traditional sales, where the owners have maintained the homes to a better extent than a foreclosed home which has been vacant. Short sale homes can still be purchased at a discount compared to a traditional sale as the price reflects current market value.

HIGH END HOMES- GREATEST POTENTIAL FOR RETURN

 The market downturn has hit the luxury market hard, making now a great time to capitalize on the larger homes which were once completely unaffordable.  Looking at long term holdings in Real Estate, bigger can be better. Especially for younger families looking to grow over time. If you are financially able, the best buys right now, are in the high end homes. They are much larger, have more upgrades, and location is always a factor in best return on our investment.

 

 

 

 

 

Selling Your Kissimmee Area Home-Insider tips from a local Real Estate Broker

 Selling Your Kissimmee Area Home- Insider tips from a local Real Estate Broker
Is your Realtor® inflating your ego by telling you what you want to hear, or what you need to know?  Too often in order to obtain a listing Real Estate Professionals despite what the market analysis reveals, will take an over priced listing to placate a seller.  The result is predictable; the house does not sell.  This is particularly true in my market, where we see homes for sale in Kissimmee, St Cloud Florida all over the place.

Our current housing market is price driven. There are so many properties for sale in Kissimmee and St Cloud Florida including bank owned, and short sales (where the seller owes more than the house is worth) and foreclosure properties (where the bank now owns the property and must liquidate) that traditional sellers face a real quandary. But, a traditional seller (real person) not a bank, or Loan Mitigation Department does have an advantage. 

Banks will hire professionals such as myself to give a Broker’s Price Opinion. This is done by determining the present value, based on location, size, condition and previous recent sales in the neighborhood.

What a home seller thinks their Kissimmee St Cloud Florida home for sale it is worth and what a property will actually sell for are often very different.

The most common question a buyer will ask me is: “How long has it been on the market?”
The time frame to maximize exposure is critically important.  In Real Estate the first 90 days, will attract the most interest in a property.  The longer a home sits on the market, it signals something is generally wrong.  Usually it is the price.

Pricing your Kissimmee St Cloud Florida home too high against others which are comparable, results in helping your neighbor sell their home. Not exactly what you had planned on right?

So here is the inside Scoop

The market changes daily. In declining areas, an over priced home chases the downward market losing prospective buyers each and every day.

 

Certain price ranges have numerous buyers competing for well priced properties. The lowest priced home will sell fastest. The highest prices ones usually do not.  Realtors do not set the market-they can only analysis it.  Buyers are controlling what sells and for how much with purchases.

Hitting the bulls eye in pricing your Kissimmee St Cloud Fl home will attract numerous buyers, and result in an offer. An offer can result in a sale. Goal Met.

You need a competent Real Estate Professional like myself, who understands the current market conditions, changing times , and can guide you through the process of listing and selling your Kissimmee St Cloud Home quickly.

St.Cloud Homes & Land, LLC is a full service Licensed Real Estate Agency Providing OUTSTANDING customer service and commitment to excellence for its clients. Kissimmee Homes, St Cloud Florida Homes, Kissimmee Vacation Homes, Kissimmee Town Homes, Kissimmee Condos, St Cloud Vacation homes, St Cloud Town Homes, St Cloud fl historic homes, St Cloud Fl condos, all OSceola County Real Estate Properties.

Our Customer call us ” The best in business”, call us 407-545-8002

Rise in sales Prices of Kissimmee St Cloud Florida Homes

WAITING FOR THE BOTTOM OF THE FLORIDA HOUSING MARKET?  People waiting for the bottom of the Florida housing market to hit, may have procrastinated a little to long.  Sales of existing homes in St Cloud Florida have risen 9.6% from this same period last year in a year over year comparison.  Buyers who purchased homes In St. Cloud Florida  last year, or at the beginning of this year actually saw an immediate benefit-this is a significantly different picture that what we have seen over the last 2-3 years.

Homes for sale in St Cloud Florida can expect to do slightly better when they sell than they would have a year ago.

The rise in prices can be attributed to a reduction of foreclosed homes coming on the market. This “shadow” inventory is being held by lenders, in hopes of an improvement in the economy overall. 

The slow down of the release of foreclosed homes, does not mean lenders are slowing on the estimated 1,000,000 foreclosures which are currently waiting  judicial review.   

 In Florida Short Sale Borrowers who purchased investment properties, for instance, will see little relief as lenders are looking to offset the losses they are taking on investment homes which gone into default. 

Often the seller contribution means bringing cash to the closing table in order to placate the lender and share the loss to some degree. If the home is NOT your primary residence, most programs will not help you. Consult our Short Sale Department for specific concerns. 

Tightening lending requirements, are still slowing the Florida Housing Market down. Despite the  rise in sales price in Kissimmee St Cloud Florida existing home sales; it is taking longer to get the properties sold.   Failed contracts still plaque the Housing Market Recovery in Kissimmee St Cloud which is trying to recover despite the economy.  learn more about the Home Buying Process here

Florida Realtors, like Allison Stewart of St Cloud Homes & Land LLC, have cautioned home sellers, to anticipate delays even when buyers seem well qualified.  Lenders, may ask for addition conditions prior to approving loan applications.  “Communication is extremely important, the key is to respond to the lenders requests as quickly as possible and provide all the documents they need to make a determination” Stewart said.  Long time Realtors with Short Sales Experience, Allison Stewart of St Cloud Homes & Land also made this recommendation “Having worked the short sales process successfully, I have found the best sellers are the ones who are properly prepared and have the all the documents readily at hand when the lender asks for them.  We assist them in by preparing a list in advance at the time we were review their short sale property. This has significantly increased our sales.”

The recent rise in Kissimmee St Cloud Homes Sales can be attributed to the stall in foreclosed homes coming back to the market. It can also be contributed to investors who are flipping  Florida properties at marginal gains. We have seen an increase in home being re-marketed after improvements have been made and yielding a profit of $10,000-50,000 for the new seller.    Looking at the a return on your investment of $10,000 over what you paid plus the cost of improvements still pays more than most stocks or bonds. For a short term turn around, this is popular among investors. 

The other benefit is by repairing  Kissimmee St Cloud Florida homes is the neighborhoods overall receive a direct benefit and the homes prices begin to slowly stabilize.  A Foreclosed home in disrepair can bring down neighborhood property values as much as 5%. Several homes abandoned can result in value declines as much as 15%.  With gains being made, revitalizing distressed properties actually helps the neighboring St Cloud Kissimmee Homes for sale to expedite the local recovery efforts.

St.Cloud Homes & Land, LLC is a full service Licensed Real Estate Agency Providing OUTSTANDING customer service and commitment to excellence for its clients. Kissimmee Homes, St Cloud Florida Homes, Kissimmee Vacation Homes, Kissimmee Town Homes, Kissimmee Condos, St Cloud Vacation homes, St Cloud Town Homes, St Cloud fl historic homes, St Cloud Fl condos, all Osceola County Real Estate Properties.

Our Customer call us “ The best in business”, call us 407-545-8002

St.Cloud Homes & Land, LLC
Providing Professional Real Estate Services
2490 Bronco Drive
St. Cloud, FL 34771
Phone: 407-545-8002 | Email: Allison@Kissimmee-stcloudflhomes.com

 

Harmony Florida-St Cloud Golf Homes

St Cloud Florida  Golf Communities

Golfing Enthusiasts  Tee Time in Florida! Golf homes in Harmony, Florida have never been more affordable. From small vacation get aways priced the $100,000+ range to impressive super sized homes with luxury appointments and custom charm. Need more info? Click Here

If golf is your hobby, and you enjoy playing  year round, then Harmony Florida,  is where you want to be.  The championship 18 holes golf course designed by Johnny Miller, is the perfect place to perfect your putting. Cap it off with a visit to the 19th Hole, for a lovely lunch and cool beverage and visit to the pro-shop in the multi-million dollar club house, located in the  Town Square.

Wintering in Florida?

The “town” of Harmony Florida is an  11,000 acre paradise is located in the heart of Osceola County. On the east side of St. Cloud Florida, 30 minutes from the Orlando International Airport, 30 minutes from Melbourne Beach, and 40 minutes to Disney, Universal, and Sea World, and downtown Orlando.

The “town” of Harmony,  does not have a mayor, but what it does have is a sense of that quaintness you will not find in most developments or sub division in St Cloud Florida. A unqiue ambiance, and a strong sense of community, which is different. Tree lined streets and eco-friendly lighting for star gazing, custom park benches, and meandering walking paths make this community very different from a standard sub division.  There is an ample selection of high end homes, intermediate priced homes, and town homes which will fit everyone’s budget.  If you want total luxury, these uniquely designed Golf Homes offer a showcase of custom appointments.  The two story town homes even have their own community pool.

2 Harmony Community School for grades K-8.  The school population is small, and caters primarily to residents. It also has an outstanding performance record.   Harmony High School is located within walking distance and offers a wide variety of programs.

There are 2 fresh water lakes located in Harmony Florida. Bear Lake and Cat Lake. Both are small, and no power boats are permitted. However, paddle boats re available to the residents along with an interactive water park and playground.

 
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 Whether Buying St Cloud Florida Homes & Land, or Selling St. Cloud Homes or Land, Allison will take the time to find out what is important to you, answer your questions, and share important information on current market conditions.

Licensed and Certified we specialize in ALL aspects of residential Real Estate. From contact to closing we are with you every step of the way, answering your questions, overcoming obstacles and getting you to the Closing table as stress free as possible. Our team consists of like minded, friendly knowledgeable Sales Associates who offer outstanding Customer Service. We guarantee you love what we can do for you in making your Home Buying or Selling Experience with us a good one.

You need a competitant Real Estate Professional like myself, who undertsand the current market conditions, changing times , and can guide you through the process of listing and selling your Kissimmee St Cloud Home quickly.

St.Cloud Homes & Land, LLC is a full service Licensed Real Estate Agency Providing OUTSTANDING customer service and commitment to excellence for its clients. Kissimmee Homes, St Cloud Florida Homes, Kissimmee Vacation Homes, Kissimmee Town Homes, Kissimmee Condos, St Cloud Vacation homes, St Cloud Town Homes, St Cloud fl historic homes, St Cloud Fl condos, all OSceola County Real Estate Properties.

St.Cloud Homes & Land, LLC is a full service Licensed Real Estate Agency Providing OUTSTANDING customer service and commitment to excellence for its clients. The best in business, call us 407-545-8002

St.Cloud Homes & Land, LLC
Providing Professional Real Estate Services
2490 Bronco Drive
St. Cloud, FL 34771
Phone: 407-545-8002 | Email: Allison@Kissimmee-stcloudflhomes.com

Leading Experts Say The Housing Market Will Not Recover..Really? What is Happening in the Florida Housing Market

Leading “Experts” Predict the Housing Market will not recover…really?  As leading St Cloud RealtorFlorida Realtor and Kissimmee Real Estate Expert-I beg to differ. Real Estate has always been a cycular commodity. Even in the Great Depression of 1929, the housing market did bounce back then; just as it will again, but in a much more controlled slow manner. If one expects instant gratification and rebound-that will not happen.

How will the housing market  recover occur? Let’s Look at the Florida Housing Market. As a leading Realtor/Broker in St. Cloud Florida, I can say with certainty that the recovery of the housing market in St. Cloud and Kissimmee Florida Housing market is largely dependant upon the banking industry and foreclosed homes being held in silent inventory.

 If the banks release  too many foreclosed homes  at one time, the market will be oppressed for an extended duration. However, if the foreclosed inventory is released incrementally, prices will make gains, as they are currently in the St Cloud and Kissimmee Florida areas, although modestly. These areas were among the hardest hit in the Housing Market Crash. So the fact that gains are being made is noteworthy.

The real question is it sustainable?

Only if the banks continue to make foreclosure  releases in moderation. It will take years to liquidate the surplus inventory of homes they currently are holding as a result of defaulting borrowers.  However, as history indicates here in the US, 6% annual gains in the housing market were sustainable for over 30 years prior to the artificial creation of the housing bubble which was attributed to the media fueling a  manufactured frenzy, lenders offering loan products which were designed to put borrowers in jeopardy and lack of consumer knowledge in general regarding the terms and conditions of the loan they were being offered which were too good to refuse for many. The frenzy created  was unsustainable and unrealistic, causing hyper inflation of homes and subsequently had no other reasonable course but to decline when borrowers failed to meet their mortgage obligations. 

So FOUR years later….

The housing market in the US is making gains in year over year comparisons. They are not overly impressive gains, but are gains none the less.  There  is ample opportunity for first time home buyers to enter the housing market from which they were previously excluded due to hyper inflation of housing prices.  .

FACTORS OFTEN OVER LOOKED BUT WORTHY OF A MENTION

 Renters: Shut out buyers have been laying in wait, and have now discovered they can afford housing. Prices have reverted to previously low levels which is opportune timing for them. They will transition from renting to buying.

Women will buy in larger volume than they did previously. As much as as 20% is predicted to be female professional women

We have the return of thousands of Veterans with benefits reentering the housing market.

 Loans will be secure, and they also now have opportunities available to them to  utilize those VA benefits which they earned while in Military Service.

They will now, just as they did back in the 1940’s after WWII stimulate the housing market.

In addition, we have a growing population of baby boomers who are well qualified and funded with retirement income, dividends from other investments, and pension plans looking to invest in housing as a shield from higher proposed taxes, and as a means of protecting their estates from increased taxation.

They are in an excellent position to purchase now, hold for future generations, or subsidize their previous investment income by transitioning into rental ownership until such time the market recovers.

 There are four or more sectors of the population which can and will sustain the housing market.  The key is in the hands of consumers as well as the control of release of the previsously foreclosed  home inventory.  Do not expect instant gratification- there is no quick fix other than time for the housing market to heal and regenerate which is slowly beginning to do.

St.Cloud Homes & Land, LLC is a full service Licensed Real Estate Agency Providing OUTSTANDING customer service and commitment to excellence for its clients. Kissimmee Homes, St Cloud Florida Homes, Kissimmee Vacation Homes, Kissimmee Town Homes, Kissimmee Condos, St Cloud Vacation homes, St Cloud Town Homes, St Cloud fl historic homes, St Cloud Fl condos, all OSceola County Real Estate Properties.

Our Customer call us ” The best in business”, call us 407-545-8002