This article by OPP Connect editor Adrian Bishop was originally posted on OPP Connect.
An experienced developer has targeted an up-and-coming area of Florida that has improving transport links for a new project and expects strong demand from buyers.
The Tuscany Preserve project, from leading developer Feltrim Group, is in the Poinciana district, by Kissimmee, and is set to be linked to Orlando by a new rail line.
The announcement comes as the Florida real estate market has seen rises in prices, listings and inventory during the first three months of the year, according to data from Florida Realtors.
Feltrim Group CEO Gary Kenny tells OPP Connect, “We picked this location for our next project, as I see great economic expansion moving to Poinciana, which is adjacent to Kissimmee. It’s an ideal project for vacation rentals, second-home location, or permanent residential and long-term investor rentals.
“On this project we are striving to deliver a very well-priced product. We are delivering a very nice two-bed/two-bath, single-story villa for $154,000 and a three-bed townhome from $180,000, so we are really working to deliver a value product in a market that is still recovering and where prices are climbing.”
There are two main reasons why Feltrim has targeted Poinciana. In mid-2015 the new Poinciana Parkway toll road is being opened, which will greatly reduce travel time to all major theme parks and is set to bring tremendous economic benefit to the area. The following year, it is set to get a new light rail station for the SunRail light railway train, cutting time travel to Orlando from 35 minutes to 20 minutes.
Feltrim, which is handling both sales and long- and short-term rentals, sees great potential in the area and project and is offering several special deals for buyers, which often includes a high proportion from overseas.
“We are so confident of this location, we are offering a guaranteed leaseback of 8.2 percent, which for a limited time will include where we are paying the property tax and the homeowners association fees for a limited time if buyers contract within the next 90 days.”
Florida’s housing market is prospering with higher median prices, more new listings, fewer days on the market and a rise in inventory during the first quarter of 2014, according to the latest housing data released by Florida Realtors.
The median (midway) sales price for single-family existing homes in the first three months of 2014 was $168,000, up 9.1 percent year over year, according to the Florida Realtors Industry Data and Analysis department figures.
Florida Realtors Chief Economist John Tuccillo says, “The first-quarter statistics reflect the fact that Florida, in part a derivative market, has felt the sting of the northern winter, yet, the market is showing some positive movement. Sales are up, particularly for nondistressed properties. Other data indicate that this is a market that is settling down and returning to more stabilized conditions.”
Townhouse-condos did even better, with a media value of $135,000, up 16.9 percent annually, but closed sales totaled 24,860 during the first quarter, down 0.8 percent reflecting a 55.8 percent drop in short sales, while short sales for single-family homes dropped 52 percent.
Closed sales of single-family homes were 50,251 in the first quarter of 2014, up 2.3 percent year over year, and new listings for single-family homes rose 12 percent year over year, while new townhouse-condo listings rose 8.2 percent.
Home sellers in both markets received more than 92 percent on average of their original listing price in the three months.
Florida Realtors President Sherri Meadows, who is also a team leader at Keller Williams in Gainesville, Ocala and The Villages, says, “The first three months of 2014 show a strong housing market in Florida, with diminishing distressed property sales.
“More jobs are being created, putting more Florida residents back to work, and our population continues to increase. All of these factors are bolstering the state’s economy and providing a solid foundation for a strong housing market.”
The median days on market (the midpoint of the number of days it took for a property to sell during that time) was 58 days for single-family homes and 56 days for townhouse-condos.
Inventory was at a 5.7-months’ supply in the first quarter for single-family homes and at a six-months’ supply for townhouse-condo properties.