Orlando by the Numbers

Orlando's median single-family home price for the third quarter 2010 was $140,500. The state average was $136,600. The U.S. national average was $170,100. Prices are down in Orlando 11% since the third quarter 2009. Employment rates have remained steady and are beginning to increase. Orlando has also had a decline in the 60-day and 90-day delinquency rates from February 2010 - August 2010, suggesting that foreclosure rates will begin to drop.

If you are looking to buy a foreclosed home, you should think about doing it now. The market is flush with the homes from Fannie and Freddie and the rate that newly foreclosed upon homes will enter the market is going to decline. In plain terms? You better get while the getting's good.

New Lending Guidelines from Fannie Mae

Fannie is in the news a lot these days! Thankfully it is all good news. Fannie has revised its lending guidelines, effective Dec. 13. The change will allow buyers to use gifts and grants from non-profit organizations to meet their minimum five percent down payment. Previously that money had to come from the buyers' own funds. Confused about which non-profit groups are handing out money? They are more commonly known as mom and dad.

Here is the small print: the loan balance must not exceed $729,000 in high-cost areas like NYC. But here in affordable Orlando, (relatively speaking, of course), our limit is $417,000. The debt-to-income ratio is dropping from 55% to 45%. If you have a spotty history on debt repayment, expect five percent of the total loan balance to be added to your debt-to-income ratio. And if you have had a foreclosure within the last seven years, don't bother applying after Dec. 13. The old rules only looked at foreclosures within the last four years.

What does this all mean? Loans are easier to get for people just starting out, but the loan balances will be more in proportion with what people can actually afford. Too bad they didn't think of this years ago.

Fannie Mae and Freddie Mac Resume Foreclosures

Our good friends Fannie and Freddie are getting back into the foreclosure market. Stalled since September due to concerns over the integrity of the foreclosure process, the two mortgage giants have decided to resume foreclosure sales. Real state agents can start marketing these properties as 'for sale' once again and properties that were under contract can now close. Fannie and Freddie are still not continuing with evictions and with locking people out of their homes.

This is great news for prospective buyers, particularly those buyers who walked away from contracts on homes due to the freeze. Fannie and Freddie own or guarantee approximately 50% of all U.S. mortgages- that translates to 31 million homes worth five trillion dollars.

Before Buying a House, Should You Test for Meth?

Below is a link to a story about a couple who bought a home that had previously been a meth lab. Unfortunately, the presence of the chemicals has sickened them and they have been forced to move out. And the bill to clean up the house? $61,000. There are no laws in Pennsylvania that require disclosing whether a home has been found by the government to have been a drug house.

Before you buy a house, you should consider having it tested for methamphetamines. You should also check to see if the home is registered on the U.S. Drug Enforcement Administration's National Clandestine Laboratory Registry. http://www.justice.gov/dea/seizures/index.html

http://www.cnn.com/2010/US/11/29/couple.buys.meth.house/index.html?hpt=C1

Orlando is Fourth Most Affordable City in Florida

According to Coldwell Banker's most recent Home Listing Report, Orlando's average home price is $202,238, making us the fourth most affordable city for housing. We rank behind Jacksonville, Port Charlotte, and Pensacola, respectively. Another 13 cities rank behind us, with Key West pulling up the rear at a whopping $643,333!

Interested in checking out the list? Here's the link: http://hlr.coldwellbanker.com/FullData.aspx

Consumer Confidence Index Up

The Consumer Confidence Index increased to 50.2 in October 2010, up from 48.6 in October.

Condominium Sales Up in September

Existing condominium sales increased 10% in September 2010 from September 2009. Happily, 5675 units sold, versus 5140 a year prior. The September 2010 median sales price was $83,400, down from $102,300 a year before.