Orlando Real Estate A Steal

The value of homes in the Orlando area has fallen 20.7 percent from the previous year. The numbers released by the Zillow report (released February 3, 2009) confirms that there has not been a better time in the last 5 years to pick up a deal on Orlando real estate.

The report shows the current value for all homes in the Orlando area was $172,188 by the end of the 2008. Single-family home values were down 20.7 percent to $177,625 and condo values declined 16.2 percent to $130,047.

About 39.8 percent of the homes purchased in 2008 had negative equity and 94.5 percent of homes in the market lost value over the last 12 months, based on Zillow values. The report estimated that 35.5 percent of homes sold in the Orlando area were sold for a loss.

Nationwide, home values fell for the eighth straight quarter, dropping 11.6 percent to $192,119. That means homeowners lost $3.3 trillion in home values during 2008, with much of it coming in the fourth quarter.

Orlando Real Estate: Market Conditions

Real estate sales are still down in Orlando - and nationwide, including in the new home sector which experienced a 2.9 % decline. This news by the Commerce Department, who say that this is the slowest home sales pace since January 1991.

The report shows that regionally, new-home sales were mixed in November 2008, with two regions posting gains and two posting declines. The Northeast and West each regained some ground, with 14.3 percent and 11 percent gains, respectively, while the Midwest and South posted declines of 16.4 percent and 7.1 percent, respectively. All four regions were reported to be down by more than 25% on a year-over-year basis.

“The fact that new-home sales continue to decline even in the face of substantial builder incentives, very favorable mortgage rates and improved housing affordability shows how fearful consumers have become about making a home purchase in the current economic environment. That’s why it is absolutely necessary for the government to take action that will reassure home buyers and stimulate demand in order to help revive home sales and economic growth,” said National Association of Home Builders (NAHB) Chairman Sandy Dunn, a home builder from West Virginia.

Orlando real estate roughly mirrors the national trend. This, of course means there are some tremendous bargains out there at the moment in the Orlando metro area. “We’re not just talking about Orlando home prices being down from their 2005 peak to where they would have been,” says Marcus Burke, broker of the Orlando Real Estate Pros, “We’re now seeing some foreclosure deals that are almost too good to be true. For those that have been waiting on the sidelines, now’s the time to jump in and cherry pick those deals.”