Interest Rates, Federal Reserve Interest Rate Announcement

Federal Reserve Rate Increase

ORLANDO, FL – March 20, 2018 – The Q1 Federal Reserve meeting announcement is tomorrow, March 21st, with new Chairman, Jerome Powell, and the hot topic is a rate hike. At the beginning of the year, there were four planned rate increases, each estimated to be +/-0.25% bringing our total annual increase of the Federal Funds Rate to 1.0%. What I see many debating now is whether there will be three or four. Personally, I do not think we will even see three with the Fed wanting the keep the gas pedal on the economy.

The announcement of four projected increases came early in the year on the heels of an estimated 4%-5% GDP growth trajectory in the first quarter. Rate increases would be used as a measure to control inflation and slow economic growth to stay within the targeted 3% growth range while outpacing natural inflation.

The Atlanta Fed just released its most recent economic growth prediction for the first quarter, 1.8%. This is much, much lower than anticipated and not a good indicator of an increasing interest rate discussion. Total economic growth has not hit the target for rate-driven economic controls.

Interest rates, in the context of monetary policy, are used to control the cost and flow of money. Rates are increased to slow borrowing and spending, then decreased to increase borrowing and spending. At 1.8% growth, if that prediction turns out to be the actual growth for Q1, total economic production is not anywhere near a level where it needs to be slowed. Total economic activity needs to increase in order for rate controls to become a factor.

WHAT I THINK WILL HAPPEN (Two Scenarios):

The Fed will likely not be hot to slow down an already slow-moving economic engine. On a high level, if rates are increased without matched economic production, not only will government budget deficits rise faster than they are already planned, the markets are likely to react with equities moving further downwards.

1) Most Likely Scenario: Because the Fed wants to maintain the appearance of a healthy moving economic recovery, rates will be increased tomorrow by a nominal 0.25% or 0.125% to avoid having “egg on the face” of its lumbering monetary policy.

The markets are already anticipating this rise and traders are positioning themselves as though it is a guaranteed certainty. From there, the increase discussion in the June meeting will likely be pushed off if there is not a significant increase in total economic production over the next few months.

As the US government remains in its obstinate method of operation, there is no major economic policy on the immediate horizon aside from steel and aluminum import tariffs, a cumbersome issue itself, and the pending reform of Dodd Frank, which could actually relieve some regulatory restriction on small and mid-sized institutions and free up capital for lending. If this were to pass the House vote in the coming few weeks, Q3 would likely give us the first indications of the success or stagnation of new capital deployment.

This atmosphere of major economic initiative absence could very well lead to no further rate increases in 2018 in hopes of moving total, end-of-year GDP growth to the targeted 3% benchmark.

Overall, this scenario would not be bad for the mortgage market in terms of cost, but not so good an indicator of the Fed’s overall outlook of the US economy, given its 4%-5% early year GDP growth predictions.

The Fed’s reaction to the 1.8% GDP prediction is sure to set the tone for the balance of the year and what to expect from a policy position.

2) Secondary Scenario: A rate increase does not happen tomorrow. The Fed will cite the 1.8% Q1 outlook and will then push off the discussion until the June meeting when we’ll see that 0.25% or 0.125% rise and no further increase discussion until the December meeting.

HOW TO REACT TO MARKET CHANGE:

We have arrived. Those looking for the top-of-the-market should look no further. When the market turns, and it will, it will turn quickly. In residential markets, I expect that by Q3/Q4 we will begin to feel the slowing value effects through extended time-on-market and a more apprehensive buyer pool, as national news may begin to question economic policy and direction.

If there are any positive, pro-business initiatives passed, the narrative of the market condition may delay that timeline, but it will play out nonetheless.

Buyers and sellers of real estate alike must be prepared to react quickly, adjust accordingly, and not become entrenched in their starting position.

In the short term, as rates rise nominally, value adjustment must be top-of-mind in order to appropriately respond to affordability or yield concerns.

In the long term, whether you’re in the commercial or residential sector, we have to plan in consideration of an overall value correction, with an emphasis on reduction of acquisition yield pricing and mindfulness of hyper-valuation.

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About Stockworth Realty Group

Stockworth Realty Group is a concierge real estate brokerage serving the Orlando area.  Created by Tavistock Group, a globally respected real estate developer, Stockworth was founded to service the real estate needs of luxury clients outside the gates of both the Isleworth and Lake Nona Golf and Country Clubs. Stockworth has a successful track record in Central Florida and averages more than four closings per week with a dedicated, select group of experts.

As the preferred referral company for Tavistock Development, Stockworth has the privilege of serving as the official relocation company for Lake Nona’s Medical City, the United States Tennis Association and many other major employers in Central Florida. Nobody knows the Orlando real estate market better than our team who has been entrusted for years to relocate some of Central Florida’s most exciting new companies.

With experience in the fast-growing and dynamic marketplace of Central Florida, Stockworth Realty has a very experienced and sophisticated team to assist you in finding creative ways to get you the highest price and the quickest sale. To learn more about Stockworth, visit www.stockworth.com for more information.

Media Contact: Sara Cohen; 407-909-9936; scohen@stockworth.com

Jason Schmidt-ForbesCouncil, Interest Rates, Forbes Real Estate, Orlando Realtor

Jason Schmidt, CCIM, of Stockworth Realty Group, accepted into Forbes Real Estate Council

Forbes Real Estate Council Is an Invitation-Only Community for Executives in Real Estate

ORLANDO, FL – March 14, 2018 – Jason Schmidt, CCIM, Director of Operations, Stockworth Realty Group, has been accepted into the Forbes Real Estate Council, an invitation-only community for executives in the real estate industry.

Jason Schmidt joins other Forbes Real Estate Council members, who are hand-selected, to become part of a curated network of successful peers and get access to a variety of exclusive benefits and resources, including the opportunity to submit thought leadership articles and short tips on industry-related topics for publishing on Forbes.com.

Forbes Councils combines an innovative, high-touch approach to community management perfected by the team behind Young Entrepreneur Council (YEC) with the extensive resources and global reach of Forbes. As a result, Forbes Council members get access to the people, benefits and expertise they need to grow their businesses — and a dedicated member concierge who acts as an extension of their own team, providing personalized one-on-one support.

“We are excited about Jason’s acceptance into the Forbes Real Estate Council and what value this will bring to our community. Jason’s knowledge of the real estate industry will now be further cemented and help raise the industry standards,” Mark Hayes, President of Stockworth.

Scott Gerber, founder of Forbes Councils, says, “We are honored to welcome Jason Schmidt into the community. Our mission with Forbes Councils is to curate successful professionals from every industry, creating a vetted, social capital-driven network that helps every member make an even greater impact on the business world.”

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About Stockworth Realty Group

Stockworth Realty Group is a concierge real estate brokerage serving the Orlando area.  Created by Tavistock Group, a globally respected real estate developer, Stockworth was founded to service the real estate needs of luxury clients outside the gates of both the Isleworth and Lake Nona Golf and Country Clubs. Stockworth has a successful track record in Central Florida and averages more than four closings per week with a dedicated, select group of experts.

As the preferred referral company for Tavistock Development, Stockworth has the privilege of serving as the official relocation company for Lake Nona’s Medical City, the United States Tennis Association and many other major employers in Central Florida. Nobody knows the Orlando real estate market better than our team who has been entrusted for years to relocate some of Central Florida’s most exciting new companies.

With experience in the fast-growing and dynamic marketplace of Central Florida, Stockworth Realty has a very experienced and sophisticated team to assist you in finding creative ways to get you the highest price and the quickest sale. To learn more about Stockworth, visit www.stockworth.com for more information.

Media Contact: Sara Cohen; 407-909-9936; scohen@stockworth.com

 

About Forbes Councils

Forbes partnered with the founders of Young Entrepreneur Council (YEC) to launch Forbes Councils, invitation-only communities for world-class business professionals in a variety of industries. Members, who are hand-selected by each Council’s community team, receive personalized introductions to each other based on their specific needs and gain access to a wide range of business benefits and services, including best-in-class concierge teams, personalized connections, peer-to-peer learning, a business services marketplace, and the opportunity to share thought leadership content on Forbes.com. For more information about Forbes Real Estate Council, visit https://forbesrealestatecouncil.com/. To learn more about Forbes Councils, visit forbescouncils.com.

Mark Hayes, Director of Education for Lake Nona Institute, President of Stockworth Realty, Orlando Top Broker, Orlando Real Estate Brokerage

ORLANDO, FL – March 13, 2018 – The Lake Nona area is continuously growing with exciting new restaurants, shopping districts and school openings.

On March 10th, 2018, EduX, the future of education conference was hosted by Lake Nona tech, showcasing a one-day event packed with interactive workshops, forward-thinking keynotes and hands-on learning experiences for parents, kids, educators and tech professionals.  Guests learned about all of the innovation coming in childhood education.

The keynote speakers included Mark Hayes, co-founder and the Director of Education for the Lake Nona Institute, Carrie Morgridge, of the Morgridge Family Foundation, Joann Newman, President of the Orlando Science Center and Marnie Forestieri, with the Amazing Explorers Academy.  Mark Hayes unfolded the Secrets on Launching Your Child’s Career.

Marnie and her team hosted an invitation-only event at Canvas Restaurant & Market to launch her new book, “Simple STEAM.”  Simple STEAM was written with the purpose that parents could implement STEAM lessons at home with their families. Marnie’s co-author is Dr. Debby Mitchell. If you wish to purchase a book, click here.

Our team is looking forward to all of these exciting changes at Lake Nona and love supporting our clients who call Lake Nona home. Call us at 407.909.5900 if you want a community tour at Lake Nona.

Lake Nona News, Lake Nona Impact Forum, Lake Nona Updates, Lake Nona Events

ORLANDO, FL – March 2, 2018 – There has been a lot of activity over at Lake Nona these past few days.  Each year, more than 250 of the nation’s top CEOs, healthcare innovators and thought leaders gather in Lake Nona, Orlando, for the 6th annual Lake Nona Impact Forum presented by Johnson & Johnson.

A few big announcements include Orlando approving an $18M Johnson & Johnson Human Performance Institute expansion in Lake Nona.  New construction will begin on a one-story performance training center, which will serve as the hub of the firm’s research and development for science-based high-performance energy management.

Tavistock also announced a new wellness, medically integrated fitness facility in Lake Nona in partnership with Signet, LLC, and its subsidiary Integrated Wellness Partners (IWP).

The new wellness institute is planned to be 110,000+ square feet located across the street from the Lake Nona Medical City in the second phase of development of the Lake Nona Town Center, Lake Nona’s premier entertainment, dining and shopping district.

 

Our team is looking forward to all of these exciting changes at Lake Nona and love supporting our clients who call Lake Nona home. Call us at 407.909.5900 if you want a community tour at Lake Nona.

Are we in a bubble_

ORLANDO, FL – December 29, 2017 – According to many news sources, including our Schmidt Report, we have said that we are NOT in a bubble.

The Best Real Estate Blog states: With home prices rising in many areas of the country, many people are worried that we’re headed for a housing crash like the one we suffered in 2008.

But here’s the thing: it’s just not true. While it’s understandable that people would look at the current market, consider it a “housing bubble,” and assume it’s going to pop, the truth of the matter is the market today couldn’t be any more different than they were before the crash of 2008.

Let’s take a look at four reasons why we’re not headed for another housing crash:

1. Banks have tightened their lending practices
The biggest contributor to the crash of 2008 was risky lending practices. Financial institutions had extremely loose standards in terms of who they’d lend to; they were giving out mortgages to people with low incomes, bad credit, and who were unlikely to be able to pay their mortgage once their interest rates increased. Getting a mortgage was easy, regardless of your financial situation. While this made homeownership possible for people who previously would have needed to rent due to lack of income or bad credit, it also led to serious problems when millions of people began defaulting on their loans, leading to the housing crash and the ensuing economic crisis.

Today, those predatory and unethical lending practices have been completely overhauled. Mortgage standards are much more strict, and lenders are much more cautious in who they grant loans to and the terms of those loans. This has led to greater stability in the market and will prevent another crash like the one we experienced in 2008.

2. Fixed rate mortgages are the norm
As mentioned, a huge part of the housing crisis of 2008 was subprime mortgages. The mortgages given to the riskiest borrowers were adjustable rate mortgages. Once the introductory period was over, borrowers saw their interest rates skyrocket and their mortgage payments quickly double or triple in size, making them completely unaffordable and leading to mass defaults on loans across the country.

But today, while adjustable rate mortgages still exist, they’re significantly less common. Fixed rate mortgages are the norm. When people borrow, they know exactly how much their mortgage payment is going to be for the life of their loan. This allows them to assess their budget and only borrow as much as they can afford, making it much less likely they’ll default on their loans in the future.

3. Today’s rising prices are a supply and demand issue, not the makings of a bubble
In 2008, prices rose rapidly because everyone wanted to buy property. Real estate experts called it a “mania” because so many people who weren’t able to buy property suddenly had the ability to do so. Purchasing a home in the US accelerated to a frenzied pace, which drove up prices.

But today, prices aren’t rising because there’s a flood of frenzied buyers in the market. Instead, it’s a supply and demand issue. People are staying in their homes longer, which means there’s less inventory available in competitive markets. When there’s less inventory, there are more people vying for the limited homes available, which drives up property prices. This kind of price increase is just a normal part of a competitive market, not a reason to worry we’re headed for another housing bubble.

4. There’s economic growth to support rising prices
Perhaps the biggest reason you don’t need to worry about the US heading for another housing crisis, is the fact there’s economic growth to support rising prices.

The reason the most competitive markets in the country (like Silicon Valley or Seattle, WA) are rapidly growing and showing historic price increases is due to economic growth. The most competitive housing markets in the US are the markets with the most opportunity. People are flocking to areas where there are jobs, stable economic growth, and opportunities for the future. Potential homebuyers want to purchase property in a place they know will offer them plenty of career and economic opportunities.

When there’s economic growth to support growing prices like there are in today’s hottest cities, it makes for a much more stable market—and a market unlikely to head towards a housing crash.

If you’re worried that rising housing prices are an indicator another housing crash is on the horizon, take a deep breath. The conditions in the market today are completely different from the conditions in 2008, and thanks to the changes made in lending practices after the crash and our booming economy, you can rest assured we won’t see a housing crash anytime soon.

See Full Article Here: http://www.bestrealestateblog.com/4-reasons-not-headed-another-housing-crash?m=fisaHboqeyqdUDVMmvuA

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ORLANDO/LAKE NONA, FL – December 12, 2017 – JUST LISTED IN LAKE NONA!

Tucked behind the gates of Nona Crest is this three-bedroom, two-bath, plus study, pool home situated on a cul-de-sac lot and conveniently located to Medical City, shopping, major highways, and the international airport.

The owner has made many upgrades to the property, such as adding a heated pool with rock waterfall and heated spa, and the oversized paver patio and pool decking along with the mature landscaping provides privacy for the backyard and pool area, creating the ultimate in outdoor living enjoyment! Entertaining is easy with the open concept kitchen and great room with fireplace and French doors to the covered lanai. Additional upgrades made within the past several years include Kempas wood flooring throughout the main living areas and bedrooms, granite counters in the kitchen and both baths, stainless steel appliances including range, microwave, dishwasher, and fridge in the kitchen, and updated fixtures in the baths. Not only will you find the upgrades gratifying, you will also enjoy the privacy of the split bedroom plan with a generously proportioned master suite and large bath offering a soaking tub, separate shower, and his-and-her vanities with vessel sinks. Don’t miss your chance to own this jewel in Lake Nona!

**Property Tax Amount inlcudes Narcoossee CDD Assessment and Orlando Stormwater Assessment. **

Click here to see more information on this property. Call Julie at 407-909-5900 to schedule a private tour or click here to email now and set up a showing.

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ORLANDO, FL – December 12, 2017 – COLLEGE PARK HOME HITS THE MARKET! Amazing, lakefront home in the highly desirable College Park neighborhood, just listed by Irhelma Pieterse of Stockworth Realty Group.

Welcome to Spring Lake Terrace, one of the most sought-after addresses in Orlando. With commanding views of the fairways and bunkers of Country Club of Orlando and nestled on the shores of Spring Lake, this home offers elegant living minutes from the hustle and bustle of Downtown Orlando, and to Winter Park shopping and dining. Renovated down to the studs in 2017, no detail was overlooked in remodeling this beautiful home. Every bell and whistle you can imagine was added to make this home a show stopper. The circular driveway welcomes you home to large double front doors. The wrought iron staircase is a perfect centerpiece and forms the heart of this home that is flooded with natural sunlight. The kitchen is a delight with a large center island and french doors leading out to the terrace and pool beyond. The main living area is downstairs featuring a private office, and informal living spaces, all with exquisite lake views. Wood and tile floors complement the designer details found everywhere. Upstairs you will find 4 large bedrooms, with en-suite bathrooms and walk-in closets. A four-car garage with a half bath ensures that you have plenty of room for all the “toys”. The large private lot leads out to your own covered dock where you can sit and relax at the end of a busy day.

Click here to see all photos: 1317 Spring Lake Drive, Orlando, FL 32804

Call Irhelma at 407-909-5900 to set up a private tour while this home is still available!

PropertyManagement

ORLANDO, FL – December 5, 2017 – Property management companies have efficient systems in place to effectively collect rent and maintain on-time payments, and help remove the stress from homeownership.  A good property management company will manage all aspects of the tenant-landlord relationship. There are many property management companies in Orlando. At Stockworth, we have a concierge approach to property management.

Zillow says, “Are you a hands-on landlord, or would you prefer to avoid weekend maintenance calls or monthly rental income and expense management? If you’d rather have someone else handle the details, hiring a property management company to manage your real estate investment might be the right choice for you. Yes, they’ll take a cut of your rental revenue, but they can also help streamline your business and free up your time.”

And at the end of the day, time is money.

Stockworth Management is pleased to offer concierge property management services. Our clients trust us to find and screen only the best tenants, supervise the proper caring and management for their homes and serve as their ongoing tenant liaison. In essence, you place your home in our hands and we will care for it like it is our own. And, when you are ready to sell, you will have access to our world-class team of agents. Mark Hayes, Stockworth’s President and Broker, has been selling, managing and renting properties since 1985. Under his leadership, Stockworth Realty has the experience, the team and the systems in place to care for your property the way you would. Now you can hand over all the stressful and time-consuming responsibilities that come with being a landlord. We will handle everything while your property generates income. Most importantly, you can be confident that your property is in good hands. We look forward to serving you.

Karen Thigpen leads Stockworth’s Property Management division with more than 20 years experience in sales, marketing and management. Known for her energetic, relatable and focused work-style, Karen is passionate about helping her clients monetize and protect their real estate investments. Her career has spanned multiple industries, from earning a Pink Cadillac as one of Mary Kay Cosmetics’ top producers to working on Wall Street for JP Morgan. A resident of Central Florida for more than 17 years, Karen is a graduate of the University of Michigan and lives in Winter Park with her husband and their four children.

For more information on this Orlando Property Management company, please visit: www.stockworthpropertymanagement.com.

Homes for Sale by Owner: 5 Reasons Why FSBO Sales Fail

ORLANDO, FL – November 27, 2017 – According to Realtor.com, “homes for sale by owner, or FSBO, transactions are commonly seen in seller’s markets or whenever homeowners want to maximize their profits by not having to pay commission.” Sellers believe they are saving money, when in fact, they are losing money.

 

Statistics show that selling your home with the assistance of a professional real estate agent will garner you a higher profit, enough to cover the commission, as well as put more money in your pocket. According to the National Association of Realtor®’s 2016 Profile of Home Buyers and Sellers, the average FSBO sales price was $185,000, while the average price for a home represented by an agent was $245,000. That’s a difference of $60,000 and, over 30% higher!  When you do the math, a real estate agent is only 6% and saves you time, money on marketing that you would spend on your own and negotiation skills.

There are many other reasons why someone should hire a real estate professional.

“If the seller does not use an agent and doesn’t know every law and required paperwork specific to their community, they open themselves up to lawsuits,” sourced from Realtor.com

Home-selling-tips-and-tricks

ORLANDO, FL – October 27, 2017 – Tips on getting your home ready to sell. If you are thinking of selling your home, here are some quick tips to keep in mind:

  • First impressions are important
  • De-clutter and remove personal items
  • Don’t over-upgrade
  • Always have your home “show ready”
  • Lighting & details matter

Maximize your digital presence – the home exterior is the first photo that potential buyers will see. You must be ready for people to pop in at a moment’s notice. Professional photography is key to grabbing their attention online, as well as a property video to fully maximize the digital presence of your home on the internet.

Inside your home, create inviting sitting areas and intimate spaces. Make sure the bed is made every day. $20 for fresh flowers makes a huge difference. Remove personal items/photos so people focus on your home, not your pictures. Themed bedrooms are not a good selling point. The kitchen comes first – they can make or break a sale.

And finally, pack before you list your home – decluttering is very important so that potential buyers can envision their own personal items in the home without any distraction. They can visually “move” themselves in!

Our expert real estate team would be happy to help you with any real estate advice on your Orlando home! Call us at 407-909-5900 and we can provide a free consultation on your home.

Sources: Today, HGTV, Forbes, Realtor.com

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