According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index homeownership is a better way to produce greater wealth, on average, than renting. The BH&J Index is a quarterly report that attempts to answer the question:

Is it better to rent or buy a home in today’s housing market?

The index examines that entire US housing market and then isolates 23 major markets for comparison. The researchers at use a “’horse race’ comparison between an individual that is buying a home and an individual that rents a similar quality home and reinvests all monies otherwise invested in homeownership.” Ken Johnson, Real Estate Economist & Professor at Florida Atlantic University, and one of the index’s authors states: “The U.S. as a whole is still in clear buy territory. The cities of Cincinnati, Chicago, Cleveland, and New York City are deep into buy territory.” Miami and Portland had been inching closer toward renting being the better option but have “pulled back from the edge.” Johnson goes on to say, “that’s a good sign for home pricing as it suggests prices are going to level off in these metro areas.”

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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In school we all learned the Theory of Supply and Demand. When the demand for an item is greater than the supply of that item, the price will surely rise.

SUPPLY

The National Association of Realtors (NAR) recently reported that the inventory of homes for sale stands at a 4.8-month supply. This is significantly lower than the 6 months inventory necessary for a normal market.

DEMAND

Every month NAR reports on the amount of buyers that are actually out in the market looking for homes, or foot traffic. As seen in the graph below, buyer demand this year has significantly surpassed the levels reached in 2014.

Many buyers are being confronted with a very competitive market in which they must compete with other buyers for their dream home (if they even are able to find a home they wish to purchase). Listing your house for sale now will allow you to capitalize on the shortage of homes for sale in the market, which will translate into a better pricing situation.

HOME EQUITY

Many homeowners underestimate the amount of equity they currently have in their home. According to a recent Fannie Mae study, 37% of homeowners believe that they have more than 20% equity in their home. In reality 69% of homeowners actually do!

Many homeowners who are undervaluing their home equity may feel trapped in their current home, which may be contributing to the lack of inventory in the market.

Bottom Line

If you are debating selling your home this year, meet with a local real estate professional that can evaluate the equity you have in your home and the opportunities available in your market.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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Orlando Real Estate Sales Statistics for August 2015

Orange County Real Estate Sales Statistics – August 2015

Orange County saw 246 more homes sold in August 2015 than August 2014, a 14.77% increase. The average sales price increased by 9.21% and the median sales price increased by 11.43% from August 2014.  Market times rose by 1 day.

Osceola County Real Estate Sales Statistics – August 2015

Osceola County home sales increased by 29.28%. Prices increased with the average sales price up 9.83% and the median price increased by 12.37%.  Market times increased by 26 days compared to August 2014.

Seminole County Real Estate Sales Statistics – August 2015

Seminole County residential sales increased 10.43% with 71 more homes sold in August 2015 compared to August 2014. The average sales price increased by 3.86% and the median price increased by 7.95%. Market times dropped by 5 days.

Lake County Real Estate Sales Statistics – August 2015

Residential sales in Lake County increased in August 2015 with 19 more homes sold, a 3.55% difference. The average sales price increased by 5.24%, and the median sales price increased by 6.3% for the month compared to August 2014.  Market times decreased by 9 days or 9.78%.

Polk County Real Estate Sales Statistics – August 2015

Polk County saw 81 more homes sold in August 2015 compared to August 2014, a 18.4% increase.  The average sales price increased 10.31%, and the median sales price increased by 5.65%.  Market times dropped by 1 day.

Think you’re ready to buy?

Watch this short video to get advice on how to know when you’re ready to buy and find out what you need to get a competitively-priced loan.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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The National Association of Realtors (NAR) recently released their July edition of the Housing Affordability Index. The index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national level based on the most recent price and income data. NAR looks at the monthly mortgage payment (principal & interest) which is determined by the median sales price and mortgage interest rate at the time. With that information, NAR calculates the income necessary for a family to qualify for that mortgage amount (based on a 25% qualifying ratio for monthly housing expense to gross monthly income and a 20% down payment).

Here is a graph of the income needed to buy a median priced home in the country over the last several years:

And the income requirement has accelerated even more dramatically this year as prices have risen:

Bottom Line

Some buyers may be waiting to save up a larger down payment. Others may be waiting for a promotion and more money. Just realize that, while you are waiting, the requirements are also changing.

Things To Do Orlando:  Cake and SugarCraft Fair

The Cake and SugarCraft Fair is a three day, international expo showcasing the cake industry. The fair is open to the public and features demonstrations, competitions, a sugar arts fashion show, classes and much more. The famous Buddy Valastro from TLC’s highly related reality show “Cake Boss” is set to make an appearance. Registration for classes and admission is available now.

WHEN:  September 18, 2015 – September 20, 2015
WHERE:  Orange County Convention Center
COST:  Full day ticket $19.95

Visit the Event Website for more information.

Information courtesy of Orlando Real Estate Expert Teri Isner and the Orlando Avenue Top Team.

Access Teri’s one-stop Orlando FL home search website. Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale. You deserve professional real estate service!

You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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Interest rates remain extremely low making this a great time to think about refinancing you home. Here are a few tips for refinancing that will help you in making an informed decision.

• If you have an FHA loan you need to get rid of the mortgage insurance as quickly as you possibly can. Mortgage insurance on FHA loans can add up over the years more than you realize. You will need to refinance your FHA loan into a different mortgage in order to get rid of the mortgage insurance if your loan is for 30 years and you put less than 10% down.
• Be careful not to refinance too often just because interest rates have gotten lower. It is worth it to refinance for just half a percent these days but don’t keep going after lower and lower rates. It is best not to refinance more than two to three times during the life of your loan.
• If you do decide to refinance your home loan, it is best to refinance for a shorter number of years. Refinancing a 30 year loan to another 30 year loan is essentially adding another 5 years to your payoff date. If you refinance try to refinance for 15 years if you can afford to do so.
• If you are planning to sell your home anytime soon it is not a good idea to refinance because you are going to have to pay closing costs and therefore will be losing money in the long run. Be sure to take into consideration your long term goals when you consider refinancing.
• Shop around for your new loan. Just because you have had a good rapport with your current mortgage company doesn’t mean you have to refinance with them. Do your part by shopping around for the best rate and take the one that saves you the most money.

Refinancing your home can be a great way to get ahead in life and to save some money along the way.   If you want to refinance I would suggest that you get online to check out what rates are being offered these days and to get the ball rolling!

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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• Hiring a Real Estate Professional to buy your dream home, or sell your current house is one of the most ‘educated’ decisions you can make!
• A Real Estate Professional has the experience needed to help you through the entire process.
• Make sure that you hire someone who knows current market conditions & can simply & effectively explain them to you & your family!

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!