Orlando Metro Area Real Estate Market Update

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It goes without saying that as a Realtor® I am frequently asked about the state of our real estate market. That’s why I will be sharing regular real estate market updates with you so you can maintain an understanding of what’s going on in our local marketplace.

Today, I want to talk about list-to-sale ratios. We had a look at the numbers this year as compared to the same time last year and there is a significant jump! First let me explain what “list-to-sale ratio” is exactly. When a homeowner lists their home for sale on the market the selling or list price is of course what they expect to receive for the sale of the home.

Through all negotiations the ending sale price is often different from the price originally listed. At the end of the day, sellers want to get top dollar so the higher the amount yielded from the sale, obviously the better.

2012 Sees Increased Sale Prices By Two Points

The most significant change we have seen in our marketplace is that through September 2012 as compared to the same time the year prior the average list-to-sale ratio has gone up two points. In other words, for a home with an asking price of $100,000 if it sold last year for $94,000 by the same token it would have sold for $96,000 as per this year’s ratio. The list-to-sale ratio at Ramey Group is already as high as the new level for this year so we haven’t seen an increase because we are already achieving the higher sales price.

Prices Are On the Rise

With our market the way it is these days, we are seeing increased prices as a result of fewer homes available on the market. When you factor in the pent up buyer demand from prior to the election as well as buyers wanting to lock in phenomenally low record setting interest rates, then you start to see inflated prices. More demand, less supply usually indicates a seller’s market.

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As you come to negotiation table, regardless of whether you are a seller or a buyer, it is critical to have a strong negotiator at bat for you. We use the same methods for our buyers as we do for sellers, so that our clients receive the maximum benefit possible on their transaction.

If you would like to explore your options in the real estate market today, contact us today at 407-956-6164 or via email at mramey1@cfl.rr.com. We look forward to helping you!

Who Said Buying a Home in the Spring Is Better Than Buying in the Fall/Winter?

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Other than the age-old trend of people buying homes more so in the spring season as opposed to the fall and winter, there really is no reason that one might choose one season over the other. Sure, there may be more homes on the market – but equally there are as many more buyers circuiting the market too.

The question prospective buyers ought to be asking themselves is whether or not they would prefer buying a home that is right for them regardless of the time of year or does it just suit them more to buy when it’s warmer outside?

Spring Is In the Air – And So Is Much More Competition

Many buyers like to be out shopping for a new home at a time that they feel there are a lot more homes on the market. But one very important thing to consider is that there are equally as many other buyers out there also looking. And with a greater number of buyers at any given time, there’s a good chance you will come across more buyers looking for the same type of property that you are seeking.

So when the perfect home shows up on the market, in great condition and priced just right – you guessed it – more than one buyer will likely show up to make an offer on it. What does that do to your chances of securing the home of your dreams? Having multiple buyers vying for the same property dilutes your chances a good amount. Not only will you find a greater likelihood of competing against another buyers’ bid but you will also face the risk of multiple offers and ultimately a bidding war. Despite the low, low interest rates, the last thing any buyer wants is to deal with artificially inflated prices.

Real Estate Market in Fall and Winter Slows Down But Doesn’t Stop

Contrary to what many people believe, the real estate market does not stop during the cooler months of the year – rather it just slows down a little. But this can work in buyers’ favor when you consider that there is fewer buying competition to contend with. Yes there are fewer homes on the market since the same people that believe springtime is a better time for real estate also remove their homes from the market. However, with fewer sellers there are also fewer buyers which means that when you do find the perfect home there is a much better chance at successfully closing the deal – and without all the hoopla that goes along with multiple offers or bidding wars.

Consider also that by the time the holidays begin to roll around, many sellers have had their property on the market for one, two or even more months and they are eager to sell. This translates to their willingness to negotiate more than ever before.
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With today’s record setting low interest rates and with them the very low cost of borrowing money combined with increased buying power, it only makes sense to jump off the fence and embark on your home buying journey. We invite you to contact us today so we can begin helping you find your perfect home.