by admin | Mar 18, 2015 | Long Term Rental, Uncategorized
Orlando Rental Properties
Rents in metro Orlando rising faster than incomes
Renters in the Orlando-Kissimmee-Sanford metro area are feeling a bit of a pinch in the pocketbook or wallet, as rents here rose 12.41 percent, while incomes only rose 9.48 percent between third-quarter 2009 to third-quarter 2014, a new study by the National Association of Realtors shows.
However, compared with other metros included in the study, things look a lot better for Central Florida. The top markets where renters have seen the highest increase in rents since 2009 are New York (50.7 percent); Seattle (32.38 percent); San Jose, Calif. (25.6 percent); Denver (24.1 percent) and St. Louis (22.3 percent).
“In the past five years, a typical rent rose 15 percent while the income of renters grew by only 11 percent,” said NAR chief economist Lawrence Yun. “The gap has worsened in many areas as rents continue to climb and the accelerated pace of hiring has yet to give workers a meaningful bump in pay.”
So how does Long Term Rentals Orlando stack up against other Florida metros? Jacksonville saw rents rise 10.01 percent in that time period, while incomes rose 8.11 percent. Miami fared worse, with rents up 16.47 percent and incomes up just 0.71 percent. Tampa, meanwhile, saw rents rise 12.89 percent and incomes up 6.14 percent.
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NAR: Rents could soon outpace household income
WASHINGTON – March 16, 2015 – The gap between rental costs and household income is widening to unsustainable levels in many parts of the country, and the situation could worsen unless new home construction meaningfully rises, according to new research by the National Association of Realtors® (NAR).
NAR reviewed data on income growth, housing costs and changes in the share of renter and owner-occupied households over the past five years in metropolitan statistical areas across the U.S. It found renters being squeezed in many metro areas throughout the country due to the disproportionate growth in rental costs to incomes. New York, Seattle and San Jose, Calif. are among the cities where combined rent growth is far exceeding wages.
The disparity between rent and income growth has widened to unhealthy levels and making it harder for renters to become homeowners, according to Lawrence Yun, NAR chief economist.
“In the past five years, a typical rent rose 15 percent while the income of renters grew by only 11 percent,” Yun says. “The gap has worsened in many areas as rents continue to climb, and the accelerated pace of hiring has yet to give workers a meaningful bump in pay.”
According to Yun, the share of renter households has been increasing; at the same time, homeownership is falling.
Americans who could afford to buy a home in recent years haven’t been impacted. Most took out a 30-year fixed-rate mortgage with established monthly payments, and, for most, net worth climbs because of upticks in home values and declining mortgage balances. The result has been an unequal distribution of wealth as renters continue to feel the pinch of increasing housing costs every year.
“Meanwhile, current renters seeking relief and looking to buy are facing the same dilemma: home prices are rising much faster than their incomes,” adds Yun. “With rents taking up a larger chunk of household incomes, it’s difficult for first-time buyers – especially in high-cost areas – to save for an adequate downpayment.”
NAR’s research analyzed changes in the share of renters and homeowners, mortgage payments, median home prices, median household income for renters and the rental costs in 70 metro areas.
The top markets where renters have seen the highest increase in rents since 2009 are New York (50.7 percent), Seattle (32.38 percent), San Jose, Calif., (25.6 percent), Denver (24.14 percent) and St. Louis (22.26 percent).
Looking ahead, Yun says a way to relieve housing costs is to increase the supply of new home construction – particularly to entry-level buyers. Builders have been hesitant since the recession to add supply because of rising construction costs, limited access to credit from local lenders and concerns about the re-emergence of younger buyers.
Yun estimates housing starts need to rise to 1.5 million, which is the historical average. Housing starts have averaged about 766,000 per year over the past seven years.
“Many of the metro areas that have experienced the highest rent increases are popular to millennials because of their employment opportunities,” adds Yun. “With a stronger economy and labor market, it’s critical to increase housing starts for entry-level buyers. (If not), many will face affordability issues if their incomes aren’t compensating for the gains in home prices.”
© 2015 Florida Realtors®
Sources1: http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=2&id=320880
Sources2: http://www.bizjournals.com/orlando/news/2015/03/17/rents-in-metro-orlando-rising-faster-than-incomes.html?iana=ind_rre
by admin | Mar 13, 2015 | Uncategorized
Property for sale in Orlando
Orlando foreclosure inventory shrinks in January
Metro Orlando’s foreclosure inventory was 3.2 percent, down 3.3 percentage points from the same time last year.
Central Florida had 15,053 completed foreclosures for the 12 months ending January 2015, compared to 12,437 in the year-ago period, according to CoreLogic’s January 2015 National Foreclosure Report.
Meanwhile, the Orlando properties for sale and Kissimmee-Sanford area’s foreclosure inventory was 3.2 percent, down 3.3 percentage points from the same time last year.
Completed foreclosures indicate the total number of homes actually lost to foreclosure, according to CoreLogic. Housing market health is considered a bellwether for the economy as a whole, and fewer bank repossessions indicate a stronger homeowner market.
Nationwide, there were 43,000 completed foreclosures in January 2015, down from 55,000 in January 2014 and down 63 percent from the peak of completed foreclosures in September 2010. Completed foreclosures have declined every month for the past 37 consecutive months.
“The foreclosure inventory continues to shrink with declines in all 50 states over the past 12 months,” said Anand Nallathambi, president and CEO of CoreLogic. “Florida, one of the hardest hit states during the foreclosure crisis, experienced a decline of almost 50 percent year over year, which is outstanding news.”
Other findings from the report:
- The five states with the highest number of completed foreclosures for the 12 months ending in January 2015 were: Florida (111,000), Michigan (51,000), Texas (34,000), California (30,000) and Georgia (28,000). These five states accounted for almost half of all completed foreclosures nationally.
- Four states and the District of Columbia experienced the highest foreclosure inventory as a percentage of all mortgaged homes: New Jersey (5.2 percent), New York (4.0 percent), Florida (3.5 percent), Hawaii (2.7 percent) and the District of Columbia (2.5 percent).
- The foreclosure inventory has experienced 39 months of continuous declines and year-over-year double-digit declines for 28 consecutive months
by admin | Feb 24, 2015 | Uncategorized
Orlando homes for sale
Orlando home Owners, Attention – Average 30-year mortgage rate rises to 3.76%
Mortgage Rate Trend Index
Almost half (46%) of the mortgage experts polled by Bankrate.com this week predict that rates will go higher over the short term. Only 23% expect a decline, while the remaining 31% expect little change.
WASHINGTON (AP) – Feb. 20, 2015 – Average long-term U.S. mortgage rates have risen for a second straight week yet remained near historically low levels.
Mortgage company Freddie Mac said Thursday the nationwide average for a 30-year mortgage jumped to 3.76 percent from 3.69 percent last week. The average rate is still at its lowest level since May 2013.
The rate for the 15-year loan, a popular choice for people who are refinancing, increased to 3.05 percent from 2.99 percent last week.
A year ago, the average 30-year mortgage stood at 4.33 percent and the 15-year mortgage at 3.35 percent. Mortgage rates have remained low even though the Federal Reserve in October ended its monthly bond purchases, which were meant to hold down long-term rates.
The recent rise in mortgage rates has come as bond yields have jumped from record low levels. Mortgage rates often follow the yield on the 10-year Treasury note, which has climbed back over 2 percent. Bond yields rise as prices fall.
The 10-year note traded at 2.08 percent Wednesday, up from 1.99 percent a week earlier. It traded at 2.09 percent Thursday morning.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was 0.6 point, unchanged from last week. The fee for a 15-year mortgage also remained at 0.6 point.
The average rate on a five-year adjustable-rate mortgage was unchanged at 2.97 percent. The fee was stable at 0.5 point.
For a one-year ARM, the average rate increased to 2.45 percent from 2.42 percent. The fee remained at 0.4 point.
Copyright © 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
by admin | Feb 11, 2015 | Testimonials, Uncategorized
Property Management Services Orlando, Fl.
Our Property Management division continues to grow and it’s always a pleasure to hear from satisfied client – many thanks to Beth for this great review! We are happy to hear that you’ve found us and are never letting us go. Honestly, not only from out property management team and Tim Hack but the entire Bardell Team are just here to help whatever you need!
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