Orange county information

**Central Florida Real Estate led by hot commercialsteady influx of new residents and a booming job
sectorand commercial sector. People are moving in from the
Throughout 2005, commercial developers and realNortheast, from the Midwest, and from Latin
estate investors in the Orlando area have seen theAmerica.
same kind of impressive price increases as home**Effects of hurricane season on real estate activity
owners across Florida. One of the hottest segmentsshort lived
of the market is the sale of apartments. Two of theThe Florida hurricane season of 2005 was one of the
Orlando area's largest apartment brokerages haveworst on record. In the southern parts of the state,
done more than $2 billion in sales this year. It ishome sales declined in October slightly, primarily due
expected that 20,000 apartments have changedto insurance issues. Most insurers stopped issuing new
hands and will be sold as condos in Orlando in 2005.policies as Hurricane Wilma approached the state. And
One apartment complex developed by the Disneysome mortgage lenders required reinspections before
Co. recently sold to a developer planning to turnmortgage money was released.
them into condos. The sale price to the developerBut in the northern parts of the state, in Jacksonville,
was $402,000 per unit.where the hurricanes were not much of an issue, real
Other types of commercial buildings also were makingestate agents saw a 38 percent increase in the
impressive gains. The value of industrial buildings rosenumber of homes sold.
more than 15 percent in 2005. Space has gone fromMedian home prices continued to climb across the
$55 a square foot in 2003, to more than $70 in 2005.state. In October of 2005 the median home price for
Two bank buildings in downtown Orlando were in highall of Florida was $ 241,000 -- 28% higher than
demand among buyers. The AmSouth Bank drew 47$188,800 in October, 2004. In October of 2000 the
offers and sold for $ 50.4 million. And the Wachoviamedian price was $116,100.
Bank went for $30 million in 2002 and sold for $55.35For comparison sake, median prices in some other
million in 2005. That represents an increase of 85states in September were: California - $543,980, New
percent in two years.York - $275,000, North Carolina - $208,097. This
**Tampa Bay area office market very hotshows that Florida prices have actually been
Led by very high employment growth, the Tampaundervalued and are now approaching national
Bay office market is expected to be one of the bestaverages.
performing in the entire country for 2006.**Miami area experts predict 2006 real estate trends
In a Wall Street Journal article, the Tampa Bay areaAccording to a South Florida Sun-Sentinel poll of real
was ranked as the fourth most hopeful officeestate experts in the South Florida area, real estate
market in the country for 2006. The others on themay cool off a bit in 2006, but will generally remain
list included New York-Manhattan, Orange County,very active.
California, and Riverside-San Bernardino, California.Richard Bass of Keller Williams Realty in Boca Raton
The Tampa Bay area has one of the highestexpects a bit of a slowdown in the residential market
employment growth rates in the country (3.7in the first part of 2006. "Overall, I expect prices to
percent), and most of these jobs are in office-usinglevel off for a while and then pick right back up
positions. In 2005 office sales volume rose 35 percentwhere they left off." Gradually rising interest rates will
with a median price of $116 per square foot.have a bit of a dampening effect, but they will
**Jacksonville area not slowing down"continue to be low enough for the market to
Real estate activity in the Jacksonville area of Floridaexpand."
has been booming for a number of years. And itDavid Dweck with Re/Max Advantage Plus in Boca
shows no signs of slowing down. According to RayRaton thinks the lingering effects of Hurricane Wilma
Rodriguez, a real estate analyst with the Real Estatewill start to take their toll in 2006. He says "some
Strategy Center of North Florida, "We're OK. We willhomeowners and investors will get clobbered by the
let some steam off, but the bubble here wont burstincrease in taxes, insurance and potentially higher
anytime soon. It will slow down a little bit and we willinterest rates." He expects it to become more of a
get back to reality. Speculative buying is slowingbuyer's market "and we will return to 10 to 15
down a little bit due to rising interest rates."percent price appreciation rates."
New condo developments are going ahead at a briskJeff Kahn with Florida Beach Inc. of Fort Lauderdale
pace, with available, affordable land being the majoragrees the market will gradually turn from a stong
deciding factor determining where new developmentssellers' market to a more balanced one. "I believe
are taking place. On the beach, much of thethat in 2006 home prices will begin to recede. Listing
development is focused on "refurbishing" olderprices will become more realistic."
buildings. Small duplexes are being bought up, tornDavid Levin, a real estate industry consultant based in
down, and replaced by multi-floor condominiums.Delray Beach is more blunt: "In 2006, residential unit
As in the rest of Florida, the housing market issales and prices will decrease 10 percent from peak
complex and unpredictable. It is being fed by a2005 levels.