Orlando Amount Top for Real Estate Investments.

Orlando ranks in the top 10 for real estate investment.

That's the consensus coming from the National Association of Real Estate Investment Trusts' annual conference being held at the Doral Golf Resort & Spa.

In discussing the state of real estate and capital markets, conference participants identified the top investment cities for 2007. The cities include: New York City; Washington, D.C.; Los Angeles; Seattle; Austin; San Francisco; Orlando; Honolulu; San Jose; and San Diego.

Ron Donohue of Hoyt Advisory Services says that top investment classes in 2007 will be multifamily rental properties for moderate income, full-service hotels, multifamily rental properties for high income, warehouse industrial and community and neighborhood shopping centers.

Donohue also noted that while the industry remains solid, real estate investment activity in 2006 was slower than 2005.

"We've had a very strong run but we're starting to see some moderation," says Donohue. "The big question is how long will the cap rates remain at their current level? There an enormous amount of money on the sidelines waiting for cap rates to come up and prices to come down."

~Orlando Business Journal, 3/30/07.

 

 

Inventory, Interest Rates Set the Stage for a Healthy Housing Market in 2007.

As widely predicted the Orlando housing market in 2006 logged the second greatest number of home-sale transactions ever, trailing only 2005 and topping the previous record of 2004. In 2006 a total of 27,378 homes changed hands through members of the Orlando Regional RealtorŪ Association (ORRA), while 2005 posted 31,230 transactions and 2004 had 26,088.

Despite a lower number of sales taking place, compared to 2005, the median value of Orlando homes continue to appreciate at a steady rate. The median sales price in December 2006 rose 4.21 percent over December 2005 to $250,000. Interest rates also continue to play a major role in the dynamics of the Orlando housing market: Interest rates in December dropped to 5.74 percent, the lowest point since September 2005.

 

The area still saw its 2nd-best year, with more transactions in 2006 than in '04.

Orlando's hot housing market lost much of its spark in the second half of 2006, though the year still wound up as the second-best on record for local existing-home sales.

The Orlando Regional Realtor Association reported Wednesday that 27,378 homes were sold last year through its members in the core Orlando market, down from the record 31,230 sold in 2005 but ahead of the 26,088 transactions in 2004.

Even as sales fell last year compared with 2005 -- they were down more than 12 percent -- the median price of the homes sold in 2006 continued to rise: The December median -- half the homes sold for less, half for more -- was up 4.2 percent to $250,000 compared with December a year ago.

Local Realtor President Randy Martin said home sales are now being driven by economic fundamentals, rather than speculative buying, so the slower pace of the price appreciation is a "sustainable price-growth trend, good for the long term."

The number of homes for sale in December dipped below 20,000 properties for the first time since July, to 19,537 listings. But that still represented a more than 11-month supply at the recent, more sluggish sales pace -- well above the six-month supply that's generally considered the dividing line between a seller's market and a buyer's market.

 

~January 11, 2007, Orlando Sentinel