NEW YORK – Sept. 22, 2016 – According to the second quarter mortgage fraud report from CoreLogic, Florida continues to lead the nation, but the total amount of mortgage fraud in the Sunshine State dropped significantly – 19 percent in a year-to-year comparison. Nationwide, mortgage fraud rose over the same period by 3.9 percent.
Miami ranked first nationwide for mortgage fraud risk, and seven out of the top 10 high-risk cities are in Florida.
The CoreLogic Mortgage Application Fraud Risk Index is standardized to a baseline of 100; each 1-point change in the index represents a 1 percent change in the share of mortgage applications with a high risk of fraud.
Florida cities in the top 25, by rank, for mortgage fraud risk
1. Miami-Fort Lauderdale-West Palm Beach: 278 risk index
2. Lakeland-Winter Haven: 226 risk index
3. Tampa-St. Petersburg-Clearwater: 213 risk index
5. Jacksonville: 198 risk index
6. Deltona-Daytona Beach-Ormond Beach: 193 risk index
7. Orlando-Kissimmee-Sanford: 181 risk index
11. Palm Bay-Melbourne-Titusville: 163 risk index
12. Cape Coral-Fort Myers: 161 risk index
14. North Port-Sarasota-Bradenton: 152 risk index
Increase/decrease of risk by fraud type (nationally)
Income fraud: Up 12.5%. With income fraud, applicants lie about their income in order to qualify for a mortgage.
Transaction fraud: Up 3.2%. With transaction fraud, the nature of the deal isn’t fully revealed, such as falsified downpayments or undisclosed agreements.
Occupancy fraud: Up 2.9%. In this case, applicants lie about their intended use of the property.
Undisclosed real estate debt fraud: Down 3.4%. Applicants who fail to disclose other real estate debt, such as another mortgage or taxes, commit this type of fraud.
Identity fraud: Down 10.8%. Considered one of the worst types of fraud, applicants apply under a name other than their own.
Property fraud: Down 14.2%. In this case, the application contains lies about the property or its value.
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Inventory declines drive Orlando home sales down, squeeze median price up
The median price of Orlando homes sold in January increased nearly 14 percent over January of 2015, amid an inventory level that has seen year-over-year decreases for the last seven months. The current lack of inventory is also having an impact on sales: ORRA members participated in the sale of 1,745 homes that closed in January 2016, a decrease of 17.69 percent compared to January 2015 and a decrease of 33.88 percent compared to December 2015.
Inventory declines drive Orlando home sales down, squeeze median price upward in January
The median price of Orlando homes sold in January increased nearly 14 percent of January of 2015, amid an inventory level that has seen year-over-year decreases for the last seven months.
The overall median price (all sales types and all home types combined) for the month of January
2016 is $176,500, a 13.87 percent jump compared to the $155,000 median price in January 2015. The median price is down 4.59 percent compared to the December 2015 median of $185,000.The Orlando median home price has now experienced year-over-year increases for the past 54 consecutive months; as of January the median price is 52.81 percent higher than it was in July 2011.
The year-to-year median price of normal sales increased 7.03 percent, while the median price for foreclosure sales increased 4.19 percent and short sales decreased 2.94 percent.
The median price of single-family homes increased 12.73 percent when compared to January of last year, and the median price of condos increased 11.71 percent.
In addition to squeezing prices upward, Orlando’s current lack of inventory is also having an impact on sales, explains Orlando Regional REALTOR® Association President John Lazenby, Colony Realty Group, Inc.
“We traditionally experience a big drop in sales between December and January after the rush to close for tax purposes,” says Lazenby. “But in addition, right now we just do not have enough supply to satisfy demand. REALTORS® are telling me they have plenty of buyers, and they simply can’t find them homes to buy.”
Members of the Orlando Regional REALTOR® Association participated in the sale of 1,745 homes (all home types and all sale types combined) that closed in January 2016, a decrease of 17.69 percent compared to January 2015 and a decrease of 33.88 percent compared to December 2015.
Single-family home sales decreased 15.07 percent in January 2016 compared to January 2015, while condo sales decreased 32.26 percent.
Homes of all types spent an average of 78 days on the market before coming under contract in January 2016, and the average home sold for 96.69 percent of its listing price. In January 2015 those numbers were 82 days and 96.36 percent, respectively.
The average interest rate paid by Orlando homebuyers in January was 3.93 percent. Last month, the average interest rate was 4.02 while this month last year homebuyers paid an average interest rate of 3.67.
Pending sales – those under contract and awaiting closing – are currently at 4,934. The number of pending sales in January 2016 is 18.23 percent lower than it was in January 2015 and 10.33 percent higher than it was in December 2015.
Normal properties made up 59.89 percent of pending sales in January 2016. Short sales accounted for 20.84 percent, while bank-owned properties accounted for 19.27 percent.
The number of existing homes (all types combined) that were available for purchase in January is 7.34 percent below that of January 2015 and now rests at 10,777. Inventory increased in number by 143 properties over last month.
The inventory of normal homes increased 5.72 percent, while foreclosures decreased 50.42 percent and short sales decreased 43.53 percent.
The inventory of single-family homes is down by 6.71 percent when compared to January of 2015, while condo inventory is down by 10.81 percent. The inventory of duplexes, townhomes, and villas is down by 6.52 percent.
Current inventory combined with the current pace of sales created a 6.18-month supply of homes in Orlando for January. There was a 5.49-month supply in January 2015 and a 4.03-month supply last month.
The January affordability index is 177.36 percent, a decrease from December’s index of 167.23. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.)
Buyers who earn the reported median income of $56,924 can qualify to purchase one of 4,512 homes in Orange and Seminole counties currently listed in the local multiple listing service for $313,032 or less.
First-time homebuyer affordability in January increased to 126.12 percent from last month’s 118.92 percent. First-time buyers who earn the reported median income of $38,708 can qualify to purchase one of the 2,368 homes in Orange and Seminole counties currently listed in the local multiple listing service for $189,210 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were down 32.26 percent, with 210 sales recorded in January 2016 compared to 310 in January 2015.
Orlando homebuyers purchased 149 duplexes, town homes, and villas in January 2016, which is 16.29 percent less than in January 2015.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in January (2,537) were down by 0.24 percent when compared to January of 2015 (2,543).
Each individual county’s monthly sales comparisons are as follows:
• Lake: 9.57 percent above January 2014;
• Orange: 6.02 percent below January 2015;
• Osceola: 5.26 percent above January 2015; and
• Seminole: 3.58 percent above January 2015.
This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the My Florida Regional Multiple Listing Service. Neither the association nor MFRMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or MFRMLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.
ORRA REALTOR® sales, referred to as the core market, represent all sales by members of the Orlando Regional REALTOR® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.
Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA.
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When you realize that your home no longer satisfies your family’s needs and you desire one that is spacious, stylish, luxurious and at its best value, then it is time to upgrade–and this is the perfect moment to buy.
With the present economic condition of the country today, there has been a decline in the number of interested buyers for high-end properties or luxury real estates, and so goes the original values. But with the optimism of national and global economic players, the low values of these properties may have already been established and current value trends are displaying upward curves again. And by the time the curves move up, your best decision to buy your dream home too soon, may be too late.
Many successful celebrities and businessmen gain their huge fortunes, not only from their hard work and luck, but equally, from their skills and access to successful and best trading practices. One of these is buying great properties like luxury real estates or luxury homes when their prices are low. And once the market rebounds back, they sell it high. Investment opportunities in Orlando, Windermere, Celebration or Montverde, are worth the look for these kinds of wealth growing strategies. Ask any known individuals who have spent decades in the real estate industry, and many, if not all, would advise the same thing–not to wait for the economy to get back to its all-time high.
However, one must understand that acquiring extravagant properties, like in Windermere Luxury Homes or Orlando Luxury Homes, is not like buying a regular home purchase. To live in this kind of lifestyle is to pay not just for the house but also for the lavish amenities accorded with it, and also the specific location where it stands. Therefore, beyond the potential return of investment we seek, one must be wiser enough to engage in the best practices buying luxury homes. These are to name a few, visiting the home physically and not just rely on photos or videos and knowing what is really around the vicinity, scrutinizing the financial documentation vis-à-vis to other investments.
Equally important is to secure the service of professionals who have the experience and competencies in buying luxury real estates. We have the best know-how, resources and connection to guide you through the step-by-step process in home-buying.
In summary, buying luxury homes, while they are still at great prices, and doing what real smart people do is really what matters most in buying your dream luxury home. But don’t just dream it, buy it at its best.
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