The Orlando RE Market is insane. Inventory is very low, seemingly at all price points, and values have jumped 20% in the last year.

Winning offers are 10%+ over list, and no contingencies at all! No inspection, no mortgage… none!

I suspect it is a result of people from high tax states, such as New Jersey, Connecticut, New York and even California arriving cash-rich from selling their homes there.

If you think Orlando is bad, the San Francisco suburban area is far worse. My daughter paid $200,000 over asking in Orinda, Ca and no contingencies- was lucky to get it!

My oldest daughter is a realtor in the Tampa Bay area. She is getting contracts on multi-million dollar homes in as little as 24 hours. She just sold an old 1.5 mil house on the Intracoastal and the buyer is demolishing it to build a new home on the lot. Influx from the Communist states is adding fuel to the fire.

We have people in my area who have sold their homes for crazy prices to build new but can't get a contractor for a year or more. Barndominiums are becoming popular for folks waiting for a contractor.

We get letters all the time from developers wanting to buy our farm land. Of course they want it at 1970's prices. I tell them to talk to my grandchildren some day.

I don't know where the market is going but I believe the bubble must pop at some point. With energy prices and inflation skyrocketing and driving material and labor costs up, I am afraid a lot of folks are going to have their dream home bubble burst as well. The market has to correct somewhere and it would not be good to be holding the bag when that happens. If you pay $1m for a house that is worth $300k and it becomes worth $300k again you are holding the bag. FWIW they are going to have to carry me out of this house.

quote:

Originally posted by HayesGreener:

I don't know where the market is going but I believe the bubble must pop at some point.

I agree to a point. Interest rates are going to rise to stem inflation. The economy seems shaky. And if there was inventory, I would cash out now, lease back, then stay with relatives for another few months and see what was going to happen. But there is no inventory, at all.

And this isn't like back in 07-08 when people had 3-4 mortgages, flipping houses on the same day, tons of speculation. This is an influx of people from other areas.

And until some inventory starts to build, prices are very unlikely to go down.

Market forces are in play.
1) Pandemic--epic migration out of urban areas.
2) Florida has climate, tax benefit, and internet which allows telecommuting.
3) Low mortgage rates.
4) Low housing inventory.
5) Relative value of Florida property vs NY,NJ,LA,etc.
6) Shortage of building materials--garage doors are now unobtanium.

You have identified your desired location--Boone HS. Zillow search : Orlando, FLA-Boone HS. That is the current inventory and price point.
Get pre approved for a mortgage.
Make sure your house is ready for market--cost/benefit improvements (kitchens and bathrooms = more resale value)

Yup, what he said. This market has some indicators but it isn’t the classic bubble. These homes are being bought with real money, good loans, and the inventory is real low. Normally that would just drive a building frenzy which would cool the market overall but we all know how the building side of things is going. In my sisters case we found a couple “project” houses before this last one but the idea of trying to get anything done on a reasonable schedule at a reasonable price is a dream.

The market has to cool off but I don’t see any crashes necessarily. The mortgage rates increasing will see to that. I got in at 2.99% and I’m pretty happy. One of my sisters moved to TX. They sold their mostly paid off house for well over a mil and a half. They could have paid all cash with a bunch left over. A bunch. They made , to me, a smart call and financed some because we will never see these low rates anytime soon.

There was a thread about a guy robbing his 401k to sell off his house. In times like these, locking in ridiculously low interest rates isn’t the dumbest thing you could do.

I'm Florida Real Estate Attorney. I work in Boca Raton. Houses listing at 1.3 and selling for 1.5 has been happening for the last 18 months. There is nothing to buy.

I tried to buy a house a few weeks ago.

It went online on MLS and was having open houses saturday and sunday, listing agent published that they were not accepting any offers until Monday to give 2 days for buyers to bid.

Saturday open house was to open at 10 am.
By 830, the guard gate had been broken, there were 10 cars in line at the house and by 11am the open house was shut down by the owner as there was a fight in the yard between 2 new yorkers with piles of cash to pay the agents off strewn about the yard. Totally out of control shit.

House was originally to be listed at 1.1, by open house it was 1.250, sold by 1pm at 1.4, all cash no contingencies with a 10 day close.

If you are not in this Florida market right now you just don't understand how competitive it is. I have 4 closings today and everyone of them sold over 50K over asking minimum.

Small commercial space in west palm beach, like 1000-1500 sqft class A is trading between 60-80 a foot. All the NY folks are full on transition mode.

They come down and pay 1.5 for a house, and don't think twice about leveling it. Waterfront is ridiculous.

Doing a high end beach front. The seller bought in 2011 for 4.5, my buyers pays 10 million on Tuesday and he is happy to do it.

Anyone who wants to bounce a few questions off me, email is in profile.

quote:

Originally posted by SIGfourme:

You have identified your desired location--Boone HS. Zillow search : Orlando, FLA-Boone HS. That is the current inventory and price point.
Get pre approved for a mortgage.
Make sure your house is ready for market--cost/benefit improvements (kitchens and bathrooms = more resale value)

Should have added, we are pre-approved. We have 20% down. No contingency on our home sell. We are currently under contract on our home though. I have a vast network of friends, they have been posting on their HOA / community boards for me. Our agent is doing the same. We are seeing a house today not on the market yet, because of those posts. We have another for next week because of those posts. I do not think either is our dream home, but we have to at least look.

I feel very good about ours and our agent's efforts. But when there is nothing out there, there is nothing out there.

quote:

Originally posted by holdem:

Another came up that we saw today. A 5/3 in a tree lined neighborhood, amazing landscaping, a beautiful outdoor living space with a pool, an amazing living / dining / kitchen that all flowed perfectly well. The home was built in the 50's and was completely re-done. However, while the finish on the bathrooms had been updated, the size was still the same. These bathrooms were literally the size of cruise ship bathrooms. They were a deal breaker.

Did this house have enough square footage to expand the bathroom(s). I know you mentioned in another post the frustration you had when considering an additon to your current house, but if this house has the physical room, maybe get it and enlarge the bathrooms later when things calm down. Contractors are crazy busy right now and it's hard to find some supplies, but that will eventually change.

It sounds like you really liked this house and the location and the lot-all things that you can't change about a house. The inside you can change.

Florida housing market is absolutely insane right now.

Father in law is a realtor. There is no inventory. He will go look at a house and it will have went under contract between the time he got in the car, and arrived at the property. This happens multiple times.

The lower income folks cannot afford these rents. Minimum rent, for a shitbox 1 bedroom apartment is approaching $2000. And… you have to wait months to find one.

quote:

Originally posted by PASig:

quote:

Originally posted by holdem:
Here is what happened with my home sale.

Isn’t it amazing to be in a market where people are literally fighting over and kissing your ass and begging you to be allowed to buy your house for way over asking?

It’s nuts, I’ve owned homes since 2007 and actually had started in 2004 and decided to wait and never saw anything like this, even during that crazy housing bubble from 2003-2007 or so.

Except for the fact that most folks then have to turn around (literally ) and be the ass kisser to get their next house.

quote:

Originally posted by honestlou:

Did this house have enough square footage to expand the bathroom(s).

Man, I looked so hard. And I wanted it to be possible. The agent was trying hard to visualize it also. The house was perfect, except for those bathrooms. Sitting on the toilet, there would be an inch from shoulder to wall. That wall is the edge of the house. And 10 ft beyond that is the property line.

The other set up, the bathroom is against the back of house. And going backwards that would mean removal of a beautiful pergola and pavers leading to the pool.

The ex husband was a contractor, and they redid everything in 2018, including going from a flat gravel and tar roof to a pitched shingle roof. Why the did not do something about those bathroom then, I will never know.

I think it is going to be a slightly tough sell because of those bathrooms. A 5 bedroom is great, but that means a family. And a family is going to want some bathroom space.

quote:

Originally posted by a1abdj:
[QUOTE]

AQnd for the sake of full disclosure, I have had my real estate license twice, own investment properties, and come from a family of residential developers. The only reason my version of how it should be doesn't exist is because it would mean less money for Realtors, and they have lobbyists to ensure that doesn't happen. There's absolutely no reason that it should be as complicated or cost as much as it does.

I usually keep my mouth shut when the bashing of Realtors starts but I have had my license for over 22 years and your blanket "Only Reason" statement is your personal opinion and please provide me some facts that your "opinion" is a fact and we are all in cohoots together....ever hear about the Federal anti trust law?

You are from St Louis and as such you should have a vague idea of our market at the Lake of the Ozarks and I believe that you have mentioned having clients here. Trying to sell a property for as much as I can so that my commission is more is one of the farthest things from my mind.
With this area swamped since Covid and way more Buyers than sellers multiple offers are very common....so how would you handle a multiple offer situation when the offers are all over the recent document comps? Choose the first offer although there are a dozen more at a higher price received in the first few hours??
You may be from St Louis but from your comments you do not have a clue about this market even though you are only 175 miles away.

Yes there are some bad apples in this profession but don't lump me into your unfounded and incorrect assumptions

All this is nothing new in the housing market.

In 2005 I put my house on the market for $400,000.00. In a couple of days, I had 10 offers and I sold it to the high bidder for $470,000.00

And the lowest bid was around $450,000.00 but bear in mind that was 17 years ago.

quote:

Originally posted by SummersAtTheLake:


I usually keep my mouth shut when the bashing of Realtors starts but I have had my license for over 22 years and your blanket "Only Reason" statement is your personal opinion and please provide me some facts that your "opinion" is a fact and we are all in cohoots together....ever hear about the Federal anti trust law?

I’m going to guess that a1abdj has a grudge against realtors and how the home selling process goes because he got burned somewhere along the line. Maybe he got beat out in a bidding war and has been pissed off about it ever since?

Ironically, I got a random text from a local realtor this morning asking if I wanted to sell my home to one of her clients. I have thought about it - but there is really nothing to buy here without entering a bidding war and rental properties are practically non-existent. (seacoast NH)

quote:

Originally posted by Graniteguy:
Ironically, I got a random text from a local realtor this morning asking if I wanted to sell my home to one of her clients. I have thought about it - but there is really nothing to buy here without entering a bidding war and rental properties are practically non-existent. (seacoast NH)

I get at least one text a day now from someone wanting to sell my condo....that I sold May of 2021

My name and number must have gotten put on a list somehow

quote:

Originally posted by Graniteguy:
Ironically, I got a random text from a local realtor this morning asking if I wanted to sell my home to one of her clients. I have thought about it - but there is really nothing to buy here without entering a bidding war and rental properties are practically non-existent. (seacoast NH)

My house is way overpriced, IMHO.

Whenever i get a cold call, i double that overpriced value and add 50%. (No contingencies, no inspections.)

One caller was getting belligerent in a polite sort of way, wanted to know exactly how i came up with such a number.

My answer, "if you or your "client" is willing to pay that i’ll sell at that. Oh and you need to decide right now and the paperwork delivered in 72 hours otherwise, price goes up another $200K."

Eventually the calls have stopped.

I have recently found out from old neighbors houses in my tract are trading for a lot more than even we sold for. Which I thought was a stupid price for 1100 foot 3/2. Yeah it sucks to leave money on the table but 1) house I moved to has increased. 2) I am no longer in CA. The mental and physical and legal freedom I have now is priceless.

Yep, more people from NY and NJ ruining shit.

I hope remote work goes away or at least there's a hybrid so they have to go work at an office in their state.

Can we build an inspection station on 95 and turn away those with NY and NJ plates?

quote:

Originally posted by holdem:

quote:

Originally posted by 71 TRUCK:
Good luck, What do you consider the Orlando market?

Boone High School district. Staying in Pershing K-8 would be a bonus, but not required. So unfortunately, it's a fairly tight radius which we will consider.

I live about 3 miles south of Boone High School off Orange Avenue near Conway, and my son graduated Boone HS a few years ago. I know the Boone area well, and all I can say at this point in time is, good luck finding anything. Inventory is historically thin, and prices are off the charts and bear no correlation to reality. Remember too, your kid(s) can probably get into Boone via one of its magnate programs, so living in the Boone district isn't completely necessary.