The Daily Soak - August 14

Orlando Housing Market Named Florida's "Most Stable"

A new real estate study commissioned by Attorney's Title Insurance Fund names Orlando the "most stable" real estate market in Florida. While Orlando has a glut of unsold homes like most regions of Florida, The City Beautiful's outlook is brighter than most given Orlando's economic diversity. “[The forecast] shows that Orlando continues to be the strongest residential real estate market in the state because of its large share of fast-growing industries, such as tourism, healthcare, education and defense manufacturing,” according to Reuters. The study also points to other positive trends including the area's appeal for foreign buyers, a rising number of homes under contract and an overall affordability index of 103.8%. Orlando is riding a recent wave of good publicity. HB.com reported last week that Orlando was named the best city in the U.S. for renters. The bottom line? Civic leaders and elected officials in other Florida cities would be wise to follow the Orlando model and court more high-growth, higher-wage industries.


Double-digit Foreclosure Spikes In Manatee, Charlotte Counties

News out of Southwest Florida suggests home foreclosures are on the rise, but some industry analysts see light at the end of the tunnel. In July, foreclosure filings in Manatee and Charlotte rose 74% and 59%, respectively, over the same period last year. Port Charlotte real estate consultant Dennis Black puts the blame on the City of North Port, "Those people were the first to walk away from their homes when the market blew up." Wachovia analyst Adam York says the monthly numbers are lagging indicators, so they aren't accurate reflections of the current environment. Sarasota banking consultant Tramm Hudson sees this as a natural progression, "What we're seeing is the housing bubble moving through the court system...we may see a few more quarters of this before banks are able to work through it all." Fortunately banks already have less paperwork in neighboring Sarasota County; foreclosure filings there showed no increase over 2007.


After Years of Neglect, Lennar Reaches Out to Florida Brokers

Call it a sign of the times, but homebuilding giant Lennar is courting outside brokers with a new, 3-tier commission structure. According to the South Florida Business Journal, "The company is offering a tiered commission schedule through Aug. 31: 3% commission for the first sale, 4% on the second and 5% on the third and subsequent sales. An additional 1% is payable if the sale is from existing inventory." The move represents a real shift in strategy for Miami-based Lennar which traditionally shunned outside parties in favor of Lennar's New Home Consultants. The company's website, which has an FAQ discouraging outsiders, is now covered with promotions targeted at Realtors. Real estate analyst Lewis Goodkin applauds the move, "These are desperate times for the industry...giving brokers a greater reason to bring prospects to your product has been working." Lennar currently sells homes in 122 different communities around Florida; The Oaks townhomes in Tampa are the most affordable, while Savannah Ranch Estates in Homestead are the most expensive.


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