Orlando Real Estate Market on the Road to Recovery
When you examine the current Orlando real estate market a few things are undeniable. The most important fact, there has been a huge decline in Orlando home prices since 2006. Secondly, the foreclosure inventory is still incredibly large. The third factor is that interest rates remain low.
There are two potential ways to look at these things. You could look at these facts and say that we are in weak real estate market and an economy that’s struggling. Orlando Real estate investors however, will look at this scenario and see dollar signs.
Currently, Orlando home prices sit around 35% below the peak price of 2006 and is starting to show some signs of a recovery. Foreclosure properties and REO’s are the biggest reason for lower than normal home prices. Even if you’re not in a distressed situation, that’s who you’re competing with. This will not change until there’s a demand for more inventory.
Here in Orlando, real estate is already showing significant signs of recovery. Banks are moving short sale files along a lot faster than they used to and inventory is moving.
There are many real estate analysts that say that we haven’t hit rock bottom yet. However, I believe differently. I think we hit bottom in Orlando about six months or so ago and we’re already on the comeback trail. I don’t think we’ll ever see what we saw in 2006 nor do I want to see inflated home prices.