Home Price vs Lifetime Cost of Mortgage

For the past few years, the real estate market has become more affordable, and has commonly been referred to as a “buyers’ market”. This has been great for buyers who were previously priced out of the market during the “boom years”, and many first-time homebuyers have taken advantage of the lower prices.

Housing Supply and Demand iin Celebration Florida
Housing Supply and Demand in Celebration Florida


Supply & Demand

The real estate market, like all markets, is greatly affected by the principles of supply and demand. When the supply goes up, the prices go down. Subsequently when the demand increases and supplies shrinks, the prices go up.

Celebration FL Downtown
Downtown Celebration

Celebration Florida Real Estate Market

We have seen a large shift in the inventory over the last 18 months here in Central Florida.  To use Celebration Real Estate as an example, we have  less than half of the inventory on the market as we did last year.  This is huge for consumer confidence.  It shows that people have so much faith in the housing market that they are buying again!

The Future of the Real Estate Market

Every now and then, when I take clients out or when I am discussing the market with  someone at an event, they will say that they think the prices are going to go down again.  They heard someone, somewhere predict that there will be another glut of bank owned properties come on the market.

As someone who spends almost all of my time entrenched  in this market, I have never seen any evidence to support this prediction.  If banks had  foreclosed properties that they needed to sell, you bet your bottom dollar they would get them on the market ASAP.  They don’t want to be property owners or pay carrying costs.  With that being said, I don’t think we will see prices take another dive.

Mortgage-Interest-RatesThe Price vs. The Cost

Some people have missed out on fabulous deals, because they have been waiting for the  “bottom”.  So, I would like to make a radical statement here that most people will disagree with at first, but here goes­‐ Price is not the most important factor! Some people may think that sounds crazy, but hear me out.

The most important thing to a buyer is the cost of  purchasing a property. Cost is not the same thing as price.  One of the major factors in determining a person’s financial ability to buy a home is the interest rate, or the cost of the money borrowed.  Right now the interest rate is the lowest is has been all year; the average 30-year fixed-­rate is 4.60%.

Here is an example of what I mean:

A buyer is looking to purchase a home for $200,000 now while the average interest rate is 4.60%.  If he puts 20% down and borrows $160,000, his monthly payment would be $820.23.  If he owned the home for the  entire life of the loan, he would pay 360 payments totaling $295,283.16.

The interest rate is not constant and it always changes, so let’s assume that it goes up in a couple of months.

Lower Mortgage with Higher Mortgage Rate Can Actually COST YOU MORE!
Lower Mortgage with Higher Mortgage Rate Can Actually COST YOU MORE!

That same buyer decided to wait and see if prices would come down, and maybe he got the home for $190,000.  During the time he waited though, the interest rate when up 1%.  He is  now getting a loan for $152,000 at 5.6%.  This puts his monthly payment at $872.60 and he will pay $314,136.02 for the home over the course of the 30 year term.

Initially it looked liked my buyer saved himself $10,000, but he actually cost himself over $50 per month and paid  almost $18,000 more for the home over time!

What I am trying to say is that buying a property is about more than price.  All costs should  be taken into consideration when deciding when is the right time for you.  If you have any  questions about this example or would like me to help you assess if now is the time to buy,  please feel free to contact me any time.



Celebration FL Bank-­Owned Home with Garage Apartment

So I try not to use the “deal” too often when I blog about real estate on our site. I have always found that it has a cheesy undertone that makes many people cringe. I often like to say things like, “good value” or “great opportunity”. In this rear case, I am going to use all three.

celebration fl real estate

1011 Oak Pond Drive Celebration, FL came on the market today, and it is all of those terms rolled into 1. This property has 4 bedrooms & 3.5 bathrooms in the main house, and then it has a 1bedroom/1 bathroom garage apartment over a large 3 car garage. The architecture of this house is the epitome of everything that Celebration FL real estate stands for. It has a huge front porch, perfect for engaging neighbors in friendly conversations. It has a downstairs master bedroom that is separate from the secondary bedrooms and it has a garage apartment.

These are important features, because if you live this close to Walt Disney World, they will come! Having the separation between living areas makes the home perfect for guest, extended family, or grown children to co-habitate peacefully. Granite counter tops, a fireplace, and cherry cabinets are just some of the upgraded touches on this home.

As I said before, I hate to say “deal”, but this home truly is. Listed at $499,900, this Celebration FL home will not last long, and it is a great opportunity to call Celebration FL “home”.

Watch the video tour of this Celebration property on the Nectar Real Estate YouTube Page. If you’d like to schedule a showing of the Celebration FL home, contact Nectar Real Estate today!

The Real Celebration Foreclosure Numbers

The real statistics on the state of Celebration in terms of homes in foreclosure.

How many times have you heard the phrase, “Don’t believe everything that you read?”

Countless, I am sure, but have you ever really heeded the advice?  As a Florida resident and real estate agent, people always want to ask me about the market, but they almost always have preconceived notions about what it’s like.

Bogus Statistics in the New York Times

The other day I was reading the New York Times online, and I was scrolling through the opinion section when I noticed an editorial on Celebration, FL.  As a resident of Celebration, I was immediately interested, and very shortly into the article I became angry. The article is fraught with misinformation.

Celebration, FL Foreclosure Statistics not as bad as reportedIs it no longer considered necessary to do research in order to publish in a well-respected newspaper?  I understand that it is an opinion piece, but the data that is used to make the author’s point is astonishingly incorrect.  I live and work here, and while I will be one of the first people to tell you that yes, our values have dropped back to a more reasonable level, our town is by no means littered with foreclosed and dilapidated homes!

The article stated that there are currently 492 foreclosures in Celebration.  When checking the Multiple Listing Service (a database that all real estate agents use to market and gain access to available properties) today, I found that we currently have 6 bank‐owned homes on the market here in Celebration.  Six is a far cry from 492!

Where Did the Author Get Those Inflated Statistics?!

My only guess at this gross misrepresentation is that the author searched by zip code. The 34747 zip code is not unique to Celebration. It covers several square miles of Kissimmee, FL as well as Celebration, and the areas of Kissimmee that are included in that zip code are mostly vacation properties.
Many are zoned for short‐term rentals and owned by overseas investors whose own currency has fallen in value over the course of the last couple of years, thus forcing them to relinquish their second homes or rental properties back to the banks that financed them.

Celebration is a Great Place to Live!


Celebration, on the other hand, is mostly occupied by full‐time residents, and our property is much more valuable than the surrounding areas due to its quality and unique small‐town feel.
I sell and list properties here day in and day out, and I know that the picture painted in this New York Times opinion page is just that, an opinion.  An opinion offered to readers by an author who has not lived here in almost 12 years.
I would also like to point out that while many people do feel that life here is safer than many other areas, and that they are comfortable letting their kids play and ride their bikes in our neighborhoods, that no one that I know came here looking for ‘utopia.’ That is an awfully high standard to live up to.
If you are looking for a lovely town that is a nice place to live and raise your children, as well as a sound financial investment, then Celebration Florida is a great place to be!
Celebration, FL would be a great place to live

Foreclosures Slow?

What’s going on in the real estate market and how it relates to bank foreclosure cases being delayed.

Bank of America is planning to re-file paperwork in over 100,000 foreclosure cases.

Bank of America, GMAC, and JP Morgan suspended foreclosure proceedings in 23 states 2 weeks ago while their practices were being reviewed.  Bank executives have admitted that they often just sign the documents put across their desks and don’t read them due to the volume that pass through their offices, approving foreclosures without even evaluating or verifying all the documents.  As of yesterday, GMAC and Bank of America have lifted the temporary freezes on their foreclosure processes.  Bank of America is planning to re-file paperwork in over 100,000 foreclosure cases.

But according to some news reports, some 30,000 foreclosure cases will be delayed.

What does this mean for the overall real estate market though?  Well it is a bit too early to tell at this point, but it looks like full steam ahead in most areas.  Many investors have come back into the market, taking advantage of the opportunistic prices and the record low interest rates.  As an agent who works with lots of investor clients, I wonder if this will mean that there are less opportunities available to them in the immediate future.  I also work with many sellers though too, and I can see how they would appreciate having less bank-owned properties on the market as competition decreasing their values.

A prolonged review process could have hurt the nation’s economic recovery, and delay purchases for many buyers looking to fulfill their dream of home-ownership.  This market is a perfect opportunity for many hard-working families and individuals, who were priced-out during the housing boom of a few years ago, to finally be able to purchase.

It would have been wrong for them not to be able to fulfill their dreams!

Welcome to the Nectar RE Blog!

Information about how the Pending Home Sale Index rose for the second consecutive month in 2010.

Welcome to the Homes by Nectar BlogThe real estate market is one of the most popular topics featured in the news.  Whether the news is good or bad, we are riveted.  For the majority of us, our home is one of the biggest investments we will ever make, and so the information affects us both emotionally as well as financially.

My goal with this blog to engage you as well as provide information.  I welcome your questions and feedback and hope you will take this opportunity to gain further knowledge and share your experiences.

“Pending Home Sales Rose For The Second Consecutive Month”

One of the most talked about topics in real estate news yesterday was the press release regarding the Pending Home Sale Index.  According the National Association of Realtors, the Pending Home Sale Index rose for the 2 second consecutive month.

I find  it amazing that the media only seems to publish negative real estate news.  Everything on the front page of the news is always doom and gloom – foreclosures everywhere or decreasing property values.  The reality is that I have seen a considerable amount of upward progress in the real estate market since the beginning of the year.

The interest rate has stayed consistently low (4.32% wow!), and the inventory has shrunk accordingly as buyers have jumped back in to take advantage of the opportunities out there.  The most important thing I believe that is not reported is that homes priced at market value are selling and selling quickly.  As someone who is entrenched in the real estate market everyday, I see a lot of positive strides being made.

Pending Home Sale Index not as negative as media reports

Even with the vast amount of “news” out there, sometimes it is still hard to see the whole picture!  If you’re looking to buy or sell a home in Central Florida, contact Nectar Real Estate for the help of a knowledgeable Florida Realtor.