It's hot in Orlando, nearly 90 degrees. For the first time in a long time, the housing market is hot too. According to the Orlando board of Realtors, home sales in Orlando for the past two months exceeded sales in March, 2008 by 47.59% and in April, 2008 by 42%. About half the sales for each of the two months this year were distressed or bank-owned.
It's a great thing that the distressed and bank owned homes are moving. This has made Realtors® like us who specialize in placing people in homes like this crazy busy, while showing our customers affordability they haven't seen in a while. In April, 2009, for example, when 1,741 homes closed in Orlando, 865 were bank owner or distressed. The median price for the bank-owned properties were $89,000 vs. $146,000 for the distressed homes vs. $161,245 for the conventional ones.
Though the median reflects an average price, in this case the number is pretty chose to the price homes actually sold for. According to Orlando Regional Realtors Association, 7% of homes went for less than $200,000. Only 10% sold for over $300,000.
The affordability index in the area was 194.01 - which means that area buyers, who enjoy a median income of $52,307, are more than qualified to buy homes valued up to $257,840! The figures are slightly different for first time buyers, where the expectation for median income is $35,569 and the maximum price is $155,850. The April affordability figure was 137.96.
When the affordability index is 100, buyers who earn the median income for the state can buy median-priced home. An index figure below 100 means the buyers lack income; a figure above means buyers have more than enough income. Since many distressed homes require repairs, it is likely that prudent buyers will qualify for 203k loans or have access to cash or other funding sources to get the home in shape.
First time homebuyers in Orlando, like most Florida cities, are not dominating the market. While the first time homebuyers tax credit may an incentive to some people, many actual buyers do not appear to be first timers. Many buyers are investors, often foreign and often paying in cash. The net effect of the buying activity is that inventory of homes on the market has been deflated to a nearly "normal" seven month inventory of homes.
Help heat up Orlando! Contact Janice Petteway and the Exit Real Estate Team to buy a home today. We can help you find the perfect bank-owned or conventional home in Central Florida.
Janice Petteway
Exit Real Estate Results
365 Wekiva Springs Rd. Suite 151 Longwood, FL 32779
407-788-1226 Office 800-788-2150 Toll Free Contact Janice
I had clients from New york, and they were looking at terrific condo conversions at incredibly low prices, and they ended up deciding to wait. Well, in just 2 months the prices changed dramatically.
They waited, they lost.
What you say is so true, Jon. We have many foreign buyers in this area who come ready to buy & loaded with cash! Thanks for your comment.
Janice -
Glad things are beginning to turn around, although at a lower price point!
Same here in Chicago - but it seems as you often have to work three-times as hard, for half the money.
Frustrating! But . . . THIS, TOO, SHALL PASS!
DEAN & DEAN'S TEAM CHICAGO
Well, Dean, what we have to do right now is turn around our big stock of REO properties & hope demand stays hot to absorb the next round of foreclosures that's coming our way. I don't know if you had all the speculation and overbuilding there like we have had but those are other factors in our mix!
Good luck to you in the Windy City!