Glenda Philpot, CRP, GMS

1

• Glenda Philpot, CRP, GMS
• Senior Vice President
• Corporate Relocation Services
• Coldwell Banker Residential Real Estate, Inc.

2
Bubble Analysis

• Prices have risen faster than incomes bubble
• Media articles and headlines
• Bursting bubbles plummeting sales figures
• Bubble believers investors, short sellers,
  renters
• Bubble denial Realtors, builders, research
  institutes
• 2006 second best year on record for real estate
  sales

3
The Road Traveled

• In 2005 inventory shrunk to an 8 year low
• Multiple contracts and bidding up of asking
  prices
• Strong job market
• Housing affordability an issue
• Investors and flippers
• Interest only and ARM loans

4
Historical Overview

• 1990s era of conservative price appreciation
• 2001-2005 median home prices rose 73
• Sales Volume
• 2005 - 8,405,934,815
• 2006 - 8,264,563,889 (-1.68)
• Unit Sales
• 2005 - 31,230
• 2006 27,559 (-12)
• Median Price
• 2005 - 231,000
• 2006 - 248,000 (7.36)

5
Facts and Stats

• January 2006 vs January 2007
• 31.5 drop in sales
• January 2007 listing inventory
• 3,648 condominiums
• 1,848 villas, town homes
• 15,770 single family homes
• 53 increase over January 2006
• 15 months inventory
• Days on market and list/sale price differentials

6
The Market Here and Now

• Orlando last to fall and first to rise
• Heavy new construction east and west side (not in
  MLS)
• Condominium mania (oversupply)
• Conversions and new construction
• 2006 year of splashy incentives
• Associate bonus, increased commission, free
  cars, trips, pay all closing costs, pay
  commission up front, pay buyers mortgage for 1-3
  years
• Mortgage fraud

7
Questions to Ponder

• Have we bottomed out yet?
• Have we turned the corner?
• Are we finished with market corrections?

8
What Goes Around.

• Increase in activity from the buying public, more
  calls and internet inquiries
• More showings which should mean contracts in 30 -
  60 days
• Keen demands from buyers they want more for
  their money
• Renewed interest in newer styles and amenities
• Lower offers heavy negotiations
• New urban developments flourishing Celebration,
  Baldwin Park
• Increase in foreclosures on
  the horizon?

9
And the Answers Are

• Recovery predictions are not by charts and graphs
• Market correction was led by buyer and seller
  perceptions about investing and owning Florida
  real estate
• Recovery comes when buyers put the pen to the
  paper
• Inventory levels are stabilizing
• Sellers are listing competitively
• Property taxes and homeowners insurance are now
  on the agenda for possible revision

10
Current Facts

• Orlando is Floridas strongest real estate market
• Orlando and Tampa strongest in corporate activity
  in state
• Strong population growth 100,000 people move
  into the area each year
• World class destination

11
Orlando - My Favorite Place!