Rising interest rates and property values drive Orlando sales up by fifteen percent
The numbers are in and home sales are up! Median home prices jumped more than 25% this July compared to July of 2012. This is the greatest increase we’ve seen year to year since the peak of the Orlando real estate market back in 2006, as reported by the Orlando REALTOR Association.
Steve Merchant, the current ORRA Chairman, says that continued price increases are jump starting buyers to take action. People have a sense of urgency now because they feel like soon they will be out of reach of still getting a good deal on an Orlando home. Mortgage interest rates are on the rise just as fast as home prices and potential home buyers are trying to get in on a good opportunity while they still can. It’s now wonder why home sales are up by fifteen percent when compared to July of last year.
Are We Headed for another Bubble Burst?
With this dramatic increase in home sales and property values over the past couple of years, one can easily speculate and say that we are headed for another market crash sooner than later. When you look at it, this was kind of the same pattern that was taking place back in 2004-05. Property values were increasing at astronomical levels, buyers were like hungry sharks and banks were lending money like it was going out of style. It’s impossible to predict how all of this will play out over the next year or two but I’m hoping that people don’t forget what not only Orlando went through but what the entire nation went through when the market crashed in 2007.
Potential home buyers should beware to not fall into that trap of feeling of having to buy a property as if their life depended on it. Many times I will recommend to certain clients to rent as another option to buying. To some people it just makes more sense to rent and even though I lose a potential buyer by doing this, it’s my job as an Orlando realtor to do what’s in the best interest of my client. I believe that many home buyers are set up to fail just as soon as they sign those closing papers. You have to be realistic with your financial situation. People tend to let their emotions get involved when purchasing a home and that’s OK to a certain extent but it can also get you into deep water. Don’t let that thought of yourself having margaritas with your friends in the pool of that house you just fell in love with [that you really can’t afford] cloud your judgement. Buying in a new house is a special feeling kinda like being a newlywed. However, just like a marriage if you picked the wrong one, your headed for some pretty rough times.