PCS Update…

 

1 big thing: Orange County voters to decide rent controls Yesterday, Orange County Commissioners agreed to put an ordinance before voters in November to regulate rent increases. Why it matters: This is the first time in Florida history that such an ordinance has been put up for a vote.  Backstory: Orange County rents increased an average of 30% in the past year. A 1977 Florida law requires that municipalities prove that there is a “housing emergency” before they can place any limits on rent increases or other housing price or rent stabilization measures. The Commissioners heard legal arguments from a law firm on behalf of an association of apartment owners that said that it is extremely unlikely that Orange County will meet this high bar to passage.  The Commissioners voted in April to have a study conducted by GAI Consultants to determine whether there was a housing “emergency” under Florida law that would justify rent controls. The 54-page reportpublished earlier this month concluded that, while it may be a “crisis,” it’s not an “emergency.” What's next: The ordinance must be drafted by August 23 if it has a chance of making it on the November 8 ballot. Commissioner Emily Bonilla first raised the need for a temporary rent stabilization ordinance.  Protesters in favor of the tenant-protection measures rallied outside the county administration building and made speeches in favor of the measures before and during the commission’s three-hour meeting on the subject.  The bottom line: As long as there’s a shortage of affordable workforce housing, demand will outstrip supply. Go deeper: Orlando Sentinel’s Subscription site

2. Orlando in the top 10 for investor homebuyers Investors bought a larger share of homes in the US last quarter than they ever have with 20% of all purchases being investors. In Orlando, it was higher at 25.7%.  This puts Orlando at number 7 in the top 10 US metros where investors were buying homes in the first quarter. JAX, Miami, and Tampa were numbers 2, 5, and 8, respectively.  By the numbers: This is a 12.9% decreasefrom the previous quarter, but a 44.7% increase over last year at the same time. In real dollars, investors bought $1,092,176,213 worth of real estate in the Orlando metro in Q1 at a median sales price of $314,750. The top zip codes for investors to purchase?  Kissimmee - 34743, 34758, and 34741;  Sanford - 32771;  Ventura - 32822;  Lockhart - 32810; and Orlo Vista - 32811 The bottom line: Despite the increase over last year’s numbers, it’s clear that investors are hitting pause on purchasing like retail buyers are. Rising interest rates, increasing listing supply, and dropping prices are apparent to investors as much as to everyone else. Most investors I’ve spoken with are taking a short break, with plans to seek out good deals when the prices fall to a “comfortable” point.  Go deeper: Redfin News and Orlando Business Journal

3. What you’ve missed Nationwide home sales dropped in May by 8.6% over the previous year, but the median price still increased to $400,000.00, even as active listings supply increased. How can supply increase along with price? - Axios As mortgage lenders lay off huge swaths of staff, mortgage applications are actually up 4.2% since last week, the second week in a row of rising numbers. - MReport And a lot more of those applications are for adjustable-rate mortgages. - CNBC Expect the Fed to continue raising rates by three-quarter or half-point increments for the foreseeable future. - Fox Business News Real Estate Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker.  Real estate is the business of exchange and affects every person on the planet.  Real estate on all levels represents resources, access and ultimately, power.  Knowledge is power…