Orlando Realty Sales are slowly overtaking the number of distressed properties coming on to the market
Chief Economist Dr. John Tuccillo says “The fear is that the inventory of delinquent and foreclosed loans will be released onto an already weakened market,” , explaining the findings of a new report conducted by the Florida Industry Data and Analysis department. “But the reality appears to be different, even here in Florida where distressed properties make up a significant portion of the market.”
Lenders have no reason to flood Florida’s real estate market with more homes especially if it ultimately affects their profit. Think about it, if the Orlando real estate market gets flooded with homes all at once then this would drive prices down significantly. Many people thought that lenders were holding inventory back on purpose when the true cause of this hold up was because of all the robo-signing issues they had to figure out.
Tuccillo says, “We looked at the recent history of distressed property listings and transactions relative to normal market data, as well as estimates for the shadow inventory, and came to some conclusions about the likely course for the future.”
These are the findings of recent studies done using data from the Florida MLS
* Even though Orlando Florida remains one of the Country’s hardest-hit areas for distressed property sales, foreclosure sales keep dropping while Orlando short sales continue to steadily rise.
* Prices for all residential properties including both distressed and normal property sales have been steadily increasing.
Orlando Realtors have learned how to cope with distressed properties in a way that stabilizes the market. It’s no longer an issue whether the property is in distress or not.
