The short and sweet answer is “location, location, location” and that is certainly true. No matter how ‘sweet the deal’ a bad location can certainly negate a ‘good deal’. Recent blogs have demonstrated that the Horizon West area that surrounds the Walt Disney World Resort is at the top of investment opportunities in the U.S. Everything required to have a very high quality of life setting for you and your family has all come together in this central Florida region from the Dr. Phillips area of Orlando all the way around to the Kissimmee Loop. This location has it all.
Location, however, is not the only key. Timing is also always a critical component. Bad timing can always sack a good deal. Today timing and location have come together to create the perfect opportunity to invest in real estate whether as the home of your dreams as a primary, as a second home in the perfect location, or as a real estate investment for short term income as a vacation rental home or for long-term capital gain. Timing and location have come together in central Florida.
Why is now the right time? First, prices will likely never be lower. Current projections are for housing in the Orlando area to rise between 9-10% in the next year. As an owner/investor a 10% growth in any asset in one year is an outstanding investment. Inventories are low in pre-owned homes and demand for new construction is huge. Any delay, if you are seeking this type of investment, will definitely cost you money in the cost of the acquisition either in the purchase price or the loss of appreciation or both.
Also, despite the Federal Reserve Bank keeping their benchmark short-term interest rate at 0% for now, all indications are that they will raise it soon, and the pressure is building substantially for increasing mortgage rates from their near record lows at the present. The average rate for the standard 30 year mortgage ticked up for the week of 10/12/15 to 10/19/15 from 3.75% to 3.82% and that trend is expected to continue, so if a mortgage is a consideration it is very likely at the lowest point for the foreseeable future.
This means for buyers/investors of real estate the time to maximize your potential gain is the best it will be today. For borrowers there is little advantage to be gained by delaying your purchase.
What about sellers? If you hold on a little longer, your gain could be higher. This is important if you are currently under water. If you are not, now may be the best time to sell your home. Why? Inventories are very low at this time so two key factors have come together to make this a great time to sell: the average time on the market in the Orlando market is currently 67 days to contract; and the average contract price is about 97% of asking. There have been few times in recent history where those statistics have been the case. As prices and mortgage rates begin to rise there may be a quick flurry of activity, but that will likely be followed by a downturn in both those statistics. Sellers may be at their best advantage to put their houses on the market today if they need or desire to sell their home in the near future.
With all this in mind the time is right for buying and/or selling real estate in central Florida. If you are in the market to do either consider letting Mike Horton and Wendy Morris Realty assist you in one of the most important transactions you will ever make. Wendy Morris Realty has a proven track record of excellence in selling homes, in procuring outstanding real estate investment opportunities, and in assisting clients in the successful and efficient completion of every aspect of your important real estate transaction. Call today!
* Every attempt has been made to provide current and accurate information in this blog article for the benefit of the reader. Each buyer’s and each seller’s needs and circumstances may vary and market conditions change daily. It is recommended that you consult you financial advisor for what is best for you.