Downtown Orlando developer Cameron Kuhn, who built a portfolio worth more than $100 million said Thursday he expects another bubble before the market stalls and falls again. Speaking to gruop of small business operators and owners in a panel discussion Kuhn said this weeks rate cut by the Federal Reserve by half a percentage point will probably help reinflate home sales and prices in the short term.
"You will have another residential bubble," Kuhn predicted, noting that the nation's central bank is planning on injecting more capital and liquidity into the market to prevent a possible recession, a downturn some economists fear might be sparked by the slowdown in the housing markets nationwide.
"There is no way to offload the current housing inventory," Kuhn said of additional homes and condos that will be built and sold as a result of an easing of lending and credit restrictions.
I strongly disagree with Mr Kuhn. Please Mr. Kuhn, explain to me how the recent rate cut will increase home values and reinflate home sales in the short term? The rate cut does not directly affect mortgage rates, however it will reflect lower rates for homes equity lines of credit and second mortgages which are tied to the prime rate. The mortgage rates have actually increased by a quarter of a point since the Fed's cut this week! What were you thinking Mr. Kuhn or maybe the question is were you thinking when you made those irrational statements?
Now, regarding the statement claiming the existing and new inventorty of homes will be sold off as a result of easing of lending and credit restrictions however that is not the case in the current lending environment. Fannie Mae and Freddie Mac the nations foremost purchaser of mortagages has STOPPED buying loans over the amount of $417,000 which is considered jumbo status therfore requiring the originating lender to portfolio their loans. Does this sound like the easing credit restrictions, certainly not Mr. Kuhn.
So, Mr. Kuhn, tell me when this next bubble will begin to form? I can't wait to hear your response to this question! With over a record 26,000 exiting homes for sale in the Orlando region and a challenging lending environment don't expect another housing bubble anytime soon....and you can bet on that!
All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independent verified. Listing information is provided for consumer personal, non-commercial use, solely to identify potential properties for potential purchase; all other use is strictly prohibited and may violate relevant federal and state law.
The source of the listing data is as follows:
My Florida Regional MLS (updated 10/22/17)
What Seniors Need to Know Before Purchasing a New Home
Purchasing a home can throw curve balls your way at any age, but the potential pitfalls can be magnified when the one doing the purchasing is a senior. Plenty of seniors, however, are able to finance a new home, move, and live comfortably in their new setting. Here are some of the things you must know before diving in headfirst. Read More
Karen is featured again in the premier REALTORS in Orlando Magazine
Whether you’re trying to buy or sell real estate, getting the best deal—especially in these challenging times—means finding an agent who possesses savvy and know-how and gets results. On these pages are some Central Florida agents who have demonstrated those skills.
Orlando magazine’s list of “Hot 100’’ real estate professionals is in alphabetical order and compiled from several sources. We consider data on sales volume, value of sales, number of sales, number of listings and value of listings. Read More