Stocks mainly pay when they appreciate and bonds via coupons, but real estate offers five profit centers, such as income, tax savings and principal paydown.

NEW YORK – If you invest in stocks or bonds, you may be more accustomed to one way of getting paid. For stocks, typically you’ll only get paid from stock price appreciation. For bonds, you’ll typically only get paid from the coupon payments (similar to net rental income of rental properties).

Since 2000, government bond yields have averaged 2-4%, while corporate bonds have averaged 4-6%. Bonds can also appreciate and depreciate in price if the investor sells before maturity.

In comparison, let’s take a look at the five profit centers in real estate investing and how they can impact your long-term investment strategy:

1. Net rental income: This is the money you make after all expenses (mortgage, insurance, property management fees) are deducted from your monthly rental income.

2. Tax savings: When you invest in real estate, you can take advantage of numerous tax deductions and write-offs. This can help you save a lot of money come tax time!

3. Principal paydown: Every month, a portion of your mortgage payment goes towards paying down your balance, paid by your renter. This is a great way to build equity in your property and reduce your overall mortgage balance.

4. Home price appreciation: Over time, the value of your property is likely to increase. This can provide you with a nice return on investment when you refinance or sell the property. Out of all of the profit centers, home price appreciation will have the greatest impact on return on investment over a full market cycle (10-20 years.)

5. Inflation hedging: When inflation goes up, the prices of goods and services also increase. But since your mortgage payments remain the same, your purchasing power actually goes up! This makes real estate a great hedge against inflationary pressures.

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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.

State of the Market
“The housing market typically experiences a slowdown during the holiday season, and with high interest rates and economic uncertainty, this season’s slowdown may be especially significant,” said Tansey Soderstrom, Orlando Regional REALTOR® Association President. “While there is a lot of uncertainty with where the housing market is headed, buyers in the Orlando area have twice as many homes to consider than they did a year ago, and for sellers, home values and prices continue to remain steady.”

– The median home price for November was recorded at $360,000, down from $365,000 in October.

– Overall sales fell from October to November. There were 1,996 sales in November – down 26.5% from 2,716 sales in October. This is the lowest number of monthly home sales in nearly four years, dating back to January 2019. Overall sales in November 2022 were 45.5% lower than November 2021 when there were 3,664 sales.

– Orlando area inventory slightly increased by 1.0% from October to November from 7,128 homes to 7,197 homes. Inventory in November 2022 was 136.3% higher than in November 2021, when it was recorded at 3,046 homes.

– Interest rates decreased from 7.0% in October to 6.6% in November. This is 122.9% higher than November 2021 when interest rates were 3.0%.

– 9 distressed homes (bank-owned properties and short sales) accounted for 0.5% of all home sales in November. That represents a 55.0% decrease from October, when 20 distressed homes sold.

– New listings decreased by 14.6% from October to November, with 2,597 new homes on the market in November.

ORRA’s full State of the Market Report for September can be found here.

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.

By: www.orlandorealtors.org

Orlando Area Residential Real Estate Snapshot for October-2022

State of the Market

• October’s interest rate was recorded at 7%, a 10% increase from September when the interest rate was 6.3%. The last time interest rates were this high was May 2002.
• That 7% interest rate in October 2022 was 131% higher compared to October 2021 when the interest rate was recorded at just 3%.
• Inventory rose 3.5% from September to October, from 6,884 to 7,128. This is the eighth straight month of inventory increases.
• Inventory in October 2022 was 109.3% higher compared to October 2021, when it was recorded at 3,406 homes.
• Homes spent an average of 38 days on the market in October, up from 31 days in September.
• New listings decreased by 8.3% from September to October, with 3,041 new homes on the market in October.
• Overall sales in October held steady from September. There were 2,716 sales in October – down one sale from September.
• The median home price for October was recorded at $365,000, the same median home price recorded in September. This comes after three consecutive months of decreasing median home prices.
• “We have the perfect storm of economic uncertainty in the U.S. accompanied by the highest interest rates Orlando has seen in more than 20 years,” said Tansey Soderstrom, Orlando Regional REALTOR® Association President. “Rapidly rising interest rates are having a huge impact on buying power. Home Prices and sales are flat from September to October, but rising rates are causing buyers to look at different price points in order to find a monthly mortgage payment that they are comfortable with.”

Market Snapshot

• Interest rates increased as the average interest rate for October was recorded at 7%. This is 131% higher than October 2021 when interest rates were 3%.
• Pending sales decreased by 24% from September to October for a total of 2,915 pending sales.
• 20 distressed homes (bank-owned properties and short sales) accounted for 0.7% of all home sales in October. That represents a 66.7% increase from September, when 12 distressed homes sold.

Inventory

• Orlando area inventory increased by 3.5% from September to October from 6,884 homes to 7,128 homes. Inventory in October 2022 was 109.3% higher than in October 2021, when it was recorded at 3,406 homes.
• The supply of homes increased to 2.62 months in October. This is the third month since June 2020 with over two months of supply. A balanced market is six months of supply.

• The number of new listings decreased from September to October by 8.3% down to 3,041 homes.

ORRA’s full State of the Market Report for September can be found here.

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.

By: www.orlandorealtors.org

Orlando Area Residential Real Estate Snapshot for September-2022

New Orlando Regional REALTOR® Association data shows interest rates surge as home sales see biggest drop since January 2022

State of the Market

• September’s interest rate was recorded at 6.3%, a 19.5% increase from August when the interest rate was 5.3%.
• Overall sales in September dropped by 18.3% for a total of 2,717 sales compared to 3,324 sales in August.
• Overall sales dropped 28.3% in September 2022 compared to September of last year.
• The median home price for September 2022 was recorded at $365,000, a decrease of 3.4% compared to August’s median home price, $377,750. This is the third month in a row that the median home price has fallen.
• Inventory rose 1.8% in September, from 6,762 to 6,884. This is the fifth straight month of inventory increases.
• Homes spent an average of 31 days on the market in September, jumping 14.8% from August when the average was 27 days.
• New listings decreased by 27.1% from August to September, with 3,318 new homes on the market in September.
• “We are starting to feel the impacts of rising interest rates on the Orlando housing market as they have more than doubled over the past 12 months,” said Tansey Soderstrom, Orlando Regional REALTOR® Association President. “Rising interest rates are causing buyers to be more cautious, resulting in fewer Orlando home sales for the month of September. This cooling off in sales does have an upside for buyers, as they now have the luxury of being more patient when looking for a home.”

Market Snapshot

• Interest rates increased as the average interest rate for September was recorded at 6.3%. This is 120.9% higher than September 2021 when interest rates were 2.9%.
• Pending sales decreased by 8% from August to September for a total of 3,838 pending sales.
• 12 distressed homes (bank-owned properties and short sales) accounted for 0.4% of all home sales in September. That represents a 100% increase from August, when 6 distressed homes sold.

Inventory

• Orlando area inventory increased by 1.8% from August to September from 6,762 homes to 6,884 homes. Inventory in September 2022 was 87.9% higher than in September 2021, when it was recorded at 3,664 homes.
• The supply of homes increased to 2.53 months in September. This is the second month since June 2020 with over two months of supply. A balanced market is six months of supply.
• The number of new listings decreased in September from August by 27.1% down to 3,318 homes.

ORRA’s full State of the Market Report for September can be found here.

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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By: www.orlandorealtors.org

New Orlando Regional REALTOR® Association data shows median home price falls for second consecutive month as homes spend more days on the market

State of the Market

• The median home price for August 2022 was recorded at $377,750, a slight decrease of 0.8% compared to July’s median home price, $380,900. This is the second month in a row that the median home price has fallen.
• Inventory rose 3.7% in August, from 6,518 to 6,762. This is the fourth straight month of inventory increases.
• Homes spent an average of 27 days on the market in August, jumping 28.6% from July when the average was 21 days.
• Interest rates remained relatively flat – 4% in July vs. 5.3% in August.
• Overall sales in August also remained flat, with a 0.5% increase for a total of 3,324 sales compared to 3,309 sales in July.
• Overall sales dropped 16.9% in August 2022 compared to August of last year.
• New listings decreased by 4.1% from July to August, with 4,550 new homes on the market in August.
• “With a drop in median home price and another inventory increase, we are seeing the Orlando housing market level out as we continue to move away from a period of volatility and enter a period of stability,” said Tansey Soderstrom, Orlando Regional REALTOR® Association President. “This is good for both buyers and sellers, as they can take a slower, more measured approach to buying or selling a home.”

Market Snapshot

• Interest rates fell slightly as the average interest rate for August was recorded at 5.3%. This is 86.1% higher than August 2021 when interest rates were 2.8%.
• Pending sales increased by 3.5% from July to August for a total of 4,171 pending sales.
• 6 distressed homes (bank-owned properties and short sales) accounted for 0.2% of all home sales in August. That represents a 66.7% decrease from July, when 18 distressed homes sold.

Inventory

• Orlando area inventory increased by 3.7% from July to August from 6,518 homes to 6,762 homes. Inventory in August 2022 was 85.9% higher than in August 2021, when it was recorded at 3,638 homes.
• The supply of homes increased to 2.03 months in August. This is the first month since June 2020 with over two months of supply. A balanced market is six months of supply.

• The number of new listings decreased in August from July by 4.1% down to 4,550 homes.

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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By: www.orlandorealtors.org

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!

By: www.orlandorealtors.org