Economists Predict 10% Price Decline Over Next Two Years

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Orlando Real Estate Market Update 6/22/07

Gitta Urbainczyk

While most are still trying to get over the grim news that has continually piled up in the marketplace, even more bad real estate news is coming across our desk, and poses to add even more problems. It is predicted that home prices will continue to drop, falling 10% more. Chances are, it will be another two years before we see any kind of leveling off. This is not a good trend to report. If you wish to find out the full findings, go to this website: www.uclaforecast.com.

Based on what I am seeing in the marketplace, things will certainly get tougher as long as we see the housing inventory levels increase and sales continuing their slowdown. Add to that tougher mortgage rules and increased property taxes, and the picture becomes more dismal. Foreclosures are also hitting epic proportions. Combine all of this, and we seem to have the “Perfect Real Estate Storm” brewing, with no short-term path through it.

I have been saying for over a year that the market is going to continue to take a steep slide. Prices are taking a continued backstep. But this is not just a local market problem. This same dilemma is hitting the national marketplace. If you talk to mortgage professionals anywhere, you will the nightmarish stories of how tough it is to get buyers approved due to increased and stricter mortgage guidelines. The more strict the rules, the less likely buyers are going to be able to buy a home.

With all of this trouble in just about every real estate market in America, what is a seller supposed to do to try to come out of this situation satisfied? Here are a few suggestions:

1. Sit On It! If you have any choice at all, keep your home off the market for a while. If you can sit on your property for another two years, or until you see a 10-20% reduction in available inventory, do it! Just remember to pay close attention to this weekly market update, or go to our blogsite: blog.gitta.com. Keep abreast of current real estate news, and be ready for positive changes in the market so that you can be one of the first ones to profit.
2. The Price Is Right. If it is imperative that you sell, decide on THE best price for your property so that your home listing will attract buyers and sell quickly, despite the conditions.
3. Reality Check. Expect to get a low offer! With a strong buyer’s market in place, they’re in control. They will take advantage! Be prepared to counter wisely so you can avoid loosing your only potential buyer.
4. Buyer Sentiment. Remember, buyers are very cautious right now because they are concerned about the continued decline in property values. This is a big consideration for them.
5. Keep It Simple! Make sure your home is spotless and easy to show! Lockboxes or formal appointments can turn off agents. A simple courtesy call will do.
6. 24/7 Agent. Make sure you list with an agent who is accessible. I have heard of agents who you cannot get in touch with after 5pm or on the weekends. What kind of service are they providing in this highly competitive real estate market?

Even with all of our market woes, there is good news. Over the past 30-day period, 1890 homes have sold in Lake, Orange, Seminole and Volusia counties! That represents an average of 69 homes per day. Admittedly, that’s not many compared to the 30,591 homes still in inventory. However, home sellers who prepared for the market by maintaining an immaculate and easily accessible home at the right price benefited greatly. They are proof that if you follow our suggestions above, you can have the good fortune of selling your home despite daunting market conditions.

There is also great news to report on the business front in the Orlando area. In yesterday’s issue of the Orlando Sentinel, there was a big article covering business news, especially regarding the “Medical City Momentum”. This will have a significant impact on the entire area. This is great news and something really good to look forward to for the future of the market. We thank Mayor Crotty, the Economic Development Commission, as well as many unnamed others involved, for their forethought and initiative to attract biotech and life-science companies to the greater Orlando area. Companies such as the Burnham Institute for Medical Research, the Nemours Orlando Children’s Hospital, The Veteran’s (VA) Hospital, and the approximately 150 other bio-tech companies coming soon to fill “Innovation Way” will put Orlando on the map for a long and prosperous future.

Thank you and have a great weekend!

Gitta

“The significant problems we face cannot be solved at the same level of thinking we were at when we created them.”

-Albert Einstein

Discussion Forum

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Referrals	1	Tears
PostcardsPLUS.com Launches Short Sale Postcard Series	1	ProspectsPLUS
Life Outside of Real Estate	16	melindaflynn
NEED AGENTS / & REFERRALS	68	DeeJ
MLS exposure without paying the commissions!!	11	DeeJ

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