Thank you to our friends at Stirling Sotheby’s International Realty for the latest Central Florida Property Market Trends.
2010 Market Trends Review and 2011 Forecast Observation
· 2010 Started out very strong through the second quarter. This was fueled by the governments Home Ownership Tax Incentive Program, which artificially stimulated the real estate market.
· 2010 Close sales peaked in June with 3,059 closed transactions and then declined monthly through November followed by an up-tic in December of 18%.
· 2010 year end sales were 19.57% ahead 2009 sales.
· Listing inventory has steadily declined with just under 15,000 listings on the market in December 2010, which is considerably below the nearly 26,000 listings that were on the market in February 2008.
· After 5 years of declining home values, many property owners are coming to the realization that we will not see a quick recovery in home prices.
· We are seeing signs of more home sellers returning from the sideline and repricing their properties to what we are calling the “New Price Normal” allowing them to sell their current home and move on to purchase their new dream home at prices that are 40% to 60% below the market peak and in some situations we are seeing some properties under valued.
· 50% of all closed monthly transactions are for cash.
· Central Florida’s luxury market of $1 Million plus properties in 2010 dramatically out performed $1 Million plus sales in 2009, with Orange County seeing the bulk of the sales activity.
· Distressed sales which include bank owned properties and short sales continues to be an active part of our overall Central Florida sales, hovering in the 65% to 70% range monthly for most of 2010.
· Short sales and bank owned properties will continue to be an active part of our market in 2011, which will continue to hold back area home price increases.