If you own real estate in the Orlando, Florida area, then you have probably taken a hit on the value of your home in the last two years. You are not alone. Since the recession, very few homeowners have escaped a loss in housing market. However, the home prices in the Orlando area have not fallen at as drastic a rate as in other areas of Florida. Many signs indicate that the recession is coming to an end, and the housing market is beginning to stabilize.
The median home price in Orlando has remained steady for several months at around $170,000. The great news for those who are looking to sell is that inventory is down from the saturated market of 2008. Another bit of good news for the area is that homes seem to be selling equally in every price range. With mortgage rates at all time lows and the new federal tax credits, the scales in this market are still tipping in favor of the buyer. The sellers, however, are starting to see more traffic viewing their homes and do not have to drop prices as dramatically as had been the case just a few months ago.
A big factor in any real estate market is the unemployment rate. If unemployment is high, there will be an increase in homes for sale with fewer buyers looking to make a purchase. The unemployment rate in Orlando is slightly higher than the national rate. Unfortunately, Orlando is in the top ten list of highest number of foreclosures of a metropolitan area. However, this area is unique in that one of its major industries is tourism and hospitality. There is a large sector of the housing market here that is fueled entirely by investment from outside the state. As employment increases in other parts of the country, increased travel to Orlando will follow and home sales will increase.
The outlook for the Orlando new home market is mixed. Sales are expected to increase until the home buyer tax credits run out in the spring. However, there may be another inventory increase with additional foreclosures. Mortgage rates are predicted to increase and mortgage loan approvals will continue to happen for only those buyers with the best credit ratings. In any real estate market, your best bet to navigate through the ups and downs is to find a qualified agent to help you understand the trends and how they impact your real estate transaction.
