What Slowdown? Buyers Taking Out Florida Mortgage Loans for High End Orlando Property

While some sellers in the Florida housing market are turning to divine intervention for help, Fred Schaub doesn’t understand what all the fuss is about.

As the president and owner of Arlington Homes LLC, Schaub has never had one of his finished homes on the market for longer than 45 days. Moreover, more than half the homes in Arlington’s communities are sold before they are even built! He certainly has no inventory problems.

Prices range from $800,000 to more than $2.5 million on these units, so how does Schaub find those who can afford such pricey Florida mortgage loans? Especially in this market?

“The market, certainly from a volume perspective, is slowing,” says Hank Fishkind of Fishkind & Associates, an Orlando-based economic research and consulting firm. Fishkind says the weakest price range in the market is $1 million and above.

But Schaub - who sold $32 million worth of homes last year, at an average sales price of $1 million each - sees no sign of a slowdown for his firm. He attributes his success to the communities’ locations, the design of his homes and the buyers seeking a Florida mortgage loan.

Appeal of these expensive houses

Schaub, who has been in the residential construction business for more than 30 years, says he only builds in “A-plus locations,” meaning that his homes are built in highly rated school districts and are near or on a body of water. They also are built near shopping districts and golf courses.

“I would rather overpay for an A-plus piece of property than get a deal on some B or B-plus property,” says Schaub. “It’s like built-in insurance.”

Schaub says his buyers are more concerned about the location of their new home and its amenities rather than the cost, which is why his market niche rarely fluctuates. They don’t need to wait for FHA Florida home loan laws to pass in order to afford property.

“We try to sell to people with a passion for buying homes,” says Schaub. “They are not those who are looking for a better deal. But they do want to know they are getting a competitive deal, and they want to know that their property value will increase.”

Beverly Pindling, president of the Orlando Regional Realtor Association, believes that the market in Central Florida is still very strong. In fact, according to Orlando Regional Realtor Association research, sales are still 1.7 percent up from last year.

“Last year it was a seller’s market,” says Pindling. “Buyers were very eager and tripping over each other in bidding. This year, the buyer’s coin has flipped. Buyers can be more selective.”

A buyer’s market

Tony Tartaglia, director of sales and marketing for Arlington Homes, agrees that buyers have changed over the past few years.

“Buyers have become more cautious,” says Tartaglia. “Since the supply is greater than demand in the market, they are not as prone to make decisions as quickly as they were.”

Pindling says the high-end market in Central Florida has always been strong, especially considering the fact that many buyers in this market are not Florida natives. They are seeking a vacation house with their Florida mortgage.

“This is a high-demand area to live in,” says Schaub. “The world does not stop coming here because of the market.”