Home-Price Recovery in Metro-Orlando Inconsistent

Orlando Home Owners Could Make The Best Of The Situation

Residential real-estate property prices rose by an average of 20 percent, in the Orlando metropolitan area, from February 2013 to May 2014, says a new Orlando real-estate industry report. The report, which compared the sales of the same Central Florida residential properties over time, found price gains to be rather inconsistent over different communities. In Orlando for example, recovery has been insignificant.

Realtors in Orlando note that home prices in Orlando remain far below (approximately $100,000) the peak value. A common observation was that neighborhoods where property prices reduced the most, after the crisis of 2007, were the neighborhoods where the recovery was the highest.

Newer communities around Orlando bounce back the most

Interested in finding out the neighborhoods of Central Florida where residential real-estate property prices have recovered the most? You’ll have to look, not at Orlando but at the neighborhoods located at the periphery of the city.

Reports reveal that communities of Lake County and south Osceola County, witnessed price gains of at least 30 percent, in the period extending February 2013 to May 2014. Top Orlando realtors note that the said neighborhoods could register maximum recovery because they were hit the hardest during the housing crisis.

The Orlando short sales experts have another factor to add to the list of reasons for the inconsistent recovery – the impact of foreclosures. Newly developing communities in the Orlando metropolitan area were hit the hardest by foreclosures, primarily because owners of the homes that were constructed just before 2007, when the real-estate market crashed, possessed minimal to zero equity on their homes.

Such owners formed the lot of lenders going through short sales or through foreclosures. The rate of homes in these foreclosure-affected areas of Metro Orlando and Central Florida dropped the most. The recovery so has been more dramatic in areas that were hit hard by such foreclosures.

Impact On Buyers And Sellers

Real estate agents in Orlando note that the inconsistency in prices has made buying inconvenient and confusing for many buyers. Sellers, on the other hand, can use the confusion of the out-of-Orlando buyers to their own advantage.

When searching for a home in Orlando, prospective buyers are often coming across properties that are priced according to the sales in high-recovery neighborhoods and not the slower-rebounding communities nearby. Assessing the fair market value has become more difficult and prospective buyers are turning to the top realtors in Orlando for help.

For people hoping to sell/lease their properties, this may be a good time. When dealing with buyers from out of town, they can use inconsistency and confusion to price properties according to their own choice.

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Home Prices Expected to Rise Through the Next Year

Market reports at the end of the first quarter of 2014 reveal the US real estate industry is inching toward increasing home prices. Almost 20 percent of the nation’s metro residential real estate markets have freed themselves from the pangs of declining home rates experienced during the recession. Further, the median prices of homes experienced a one percent hike nationwide.

Amidst the new information, is speculation that home prices would continue to grow through the four subsequent quarters. According to analysts, a 3.3 percent hike in home prices can be expected through March 2015.

Homes To Sell At Pre-recession Prices by March 2015

Compared to peak housing prices in 2007, before the market crashed and housing prices fell by 22.6 percent in 2011, the nationwide increase in 2014-Q1 is still low by 13.5 percent. However, compared to last year (fourth quarter of 2013), the value of homes saw a nationwide increase of 0.5 percent.

According to a recent industry report, 527 cities and towns out of the 6,781 that witnessed at least 10 percent decline in housing prices, have already recovered or will recover by March 2015. Further, in close to 60 metro housing areas, prices have already exceeded (or are predicted to exceed) the pre-recession values by 2015.

Affordability Not A Concern For Orlando Home Buyers

Orlando Home buyers need not be concerned about the steady appreciation in housing prices. Not yet at least, according to a majority of the real estate agents in Orlando. Top realtors hold that housing affordability will not be affected by the rise.

Affordability has been strong and will continue to be so in a majority of metro markets including the Orlando real estate market. In a couple of markets, however, San Diego, San Jose, and Los Angeles to name a few, the situation is a little different. According to the report, affordability is already a concern for these metros, with rents rising 2.7 percent from their value in the first quarter of 2013. Low affordability often causes home values to drop in certain places, especially when buyers are forced to look for affordable housing farther from the business hubs and urban job centers.

For metros, where affordability is not a concern, the first quarter presents some great home-buying opportunities. Rates of fixed and variable-rate mortgages have reduced significantly and banks have become more lenient in lending.

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