Lately, I have heard so many so called experts comment on the number of foreclosures in Orlando real estate market. Many of these financial experts are also speculating on what effect these foreclosure sales are having on Orlando home prices. I guess to start with, we should get a good understanding of the actual numbers. At this time, listed in the MLS, we are showing 8202 active listings. Out of those, we have 623 bank-owned, 1873 short sale, and 1063 properties listed as pre-foreclosures.
Orlando housing inventory of homes for sale dropped below 20,000 listings for the first time since December 2006, when there were 19,537 listings, and down from the all time of 26,330 listings in October 2007.
It looks like HUD has come to realize that the tax credit would be more effective if new home buyers could use the $8,000 tax credit up front. See article bolow from the HUD website:
Orlando home sales of lower priced homes surge - REALTORs in April sold nearly seven times more homes in the lower-price range categories than in the upper categories, which according to economists is typical of a rebounding market. “Orlando’s housing market appears to be following a recognized healing pattern — from the bottom up — as evidenced by the greater number of sales in the lower-price categories,” explains ORRA President Les Simmonds, L.G. Simmonds Real Estate Corp.
Orlando home sales continue to rise as housing affordability hits record high - Orlando area home sales have again experienced an increase in activity, with members of the Orlando Regional REALTOR® Association involved in the sale of 47.59 percent more homes in March of this year than March of last year: 1,653 to 1,120.
Orlando area home sales increase as the median home price declines. Orlando Realtors were involved in 28.18 percent more homes in February of this year than February of last year: 1,219 to 951.
Orlando median home price decreased from last month to $148,274. This represents a 33 percent reduction from just one year ago.
Inventory levels crept up slightly to a total of 22,613 active listings in the Greater Orlando area. This is down from the 25,724 January 2008.
Orlando area homes sales increase as affordability improves – The Orlando real estate market for the fourth month in a row has seen an increase in month-over-month home sales as buyers respond to improved affordability.
With more affordable homes and lower interest rates, buyers that have been sitting on the fence are beginning to enter the market.
Fannie Mae has launched pilot projects in Phoenix and Orlando intended to reduce foreclosures by pre-approving short sales, agreeing on a price and the loss it will take prior to a deal even being made. It is hoped the program will improve the popularity of short sales among real estate agents.
Property professionals initially had welcomed short sales but soon found the process to be a frustrating one--due to squabbling about the sale price and slow approval times by the mortgage companies--that often ended with no sale at all.
Orlando's homebuyer affordability index soars in response to decline in median sales prices. - Orlando first time homebuyers have the best conditions since March 2004 to purchase a home in the Orlando area, as a decrease in the median sales price of homes sold in November pushed the first time homebuyer affordability index up to 96.09 percent. In addition, inventory of houses on the market is stocked with more than 6,030 homes in the average first time buyer’s price range of $136,422 or less.