Realtor Group Sees Sharper Dip In Market

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Orlando Real Estate Market Update 6/08/07

By Gitta Urbainzyck

Gitta’s Real Estate Team

Orlando, Florida

Some of you may have seen and read the rather small article on Wednesday in the Orlando Sentinel regarding the news release by the National Association of Realtors. It projects a deeper dip in home sales from a projected decline of 2.2% just 2 months ago. That dip will lead to an adjusted decline of 4.6% nationwide. What does this translate into for Florida? Less buyers will come to the state because they simply cannot sell their home. Consequently, they cannot buy our homes. This amounts to a certain ripple effect which will lead to further decline in our home prices, an increase in our home inventory and a cause for more foreclosures and hardships.

I would really welcome a 4.6% decline in our market any day. Why? Because, the way we are going right now in the greater Orlando area (including Lake, Orange, Seminole, and Volusia counties), we are seeing a 30% + decline in sales so far this year. When I project out, I see that we will be more into the 45% + decline range unless something drastic happens. What might this be? An event such as a huge drop in property taxes especially on your primary and secondary home may be one answer. Our property taxes are a huge hindrance to people buying; in fact being able to qualify for home mortgages remains tough due to property taxes existing as part of your overall payment. These insane property increases, by default, are causing property tax revenues to decline due to lower home sales and, consequently, lower tax revenues.

It seems like a vicious circle which we must emerge from to see any kind of substantial increase in home sales. This may be the only way to stop the flight of people going to North Carolina, Georgia, Tennessee, etc. There is, in fact, a name for these people. They are called ‘Halfbacks”. Look at the numbers, again this month, and it seems like a broken record, compared to the same period of last year. Our sales in the 4 county area are 46% below last year’s totals. This represents a huge amount of sales loss.

Thank you and have a great weekend,

Gitta

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