A Potpourri of Orlando Housing Facts on a Hot August Day

This warm but rainy August day offers a good chance to look over the highlights of Orlando real estate happenings. In a nutshell, sales are up, prices are down. Foreclosures are skyrocketing, which may assure future sales and affordable prices. At the moment, 84% of the nearly 17,000 homes for sale are foreclosed properties.

Sales are up. Single family sales in Florida rose 23% in the second quarter of 2009, while condo sales rose 29%. In the Orlando area, the increase was 36% for homes and almost 300% for condos. This is a vote of confidence for the Orlando area and living proof of how affordable housing sells.

Prices continue to fall. Spurring increasing sales were decreasing prices. Median sales prices statewide are $143,600 down from $203,200 a year ago. Condo prices are $111,000, down from $179,800. For Orlando, the figures for median home sales are $144,400 from $216,000 last year, while condos dropped to $52,000 from 127,000, a 59% drop. These trends mean that housing is very affordable, especially to first time buyers. According to area appraisers, property values are back to 2003 levels, when the Florida market was steady. This is good news to sellers who won't have to continue to decrease their asking price, while buyers feel confident that their new home won't lose much value.

Foreclosures continue to rise: The sunshine state was second only to Florida in July foreclosures, as nearly 57,000 homes were in some stage of the process. This is up 37% since last July. Orlando County showed a 41.9% increase, Seminole 67%, and Lake 50%Only nearly Osceola dropped by 19%. This may be a devastating circumstance for displaced homeowners but buyers have steady variety of homes.

Days on the market down. An average central Florida home is on the market 3.47 months or 104 days, a 2007 level. Though this means that successful sellers have to price their home right (which may mean less than they would like) this means buyers will have a fresh supply of homes as older ones drop form the market.

High percentage of cash sales. Nearly 43.5% of May and June home sales were cash transaction, while 26.2% were financed via conventional loans and 21.6% FHA. Less than 1% are ARM adjustable loans. This reflects increasing confidence that housing is a good enough investment to tie up money in. Unlike much financing in the past, the new sales are equity based.

Right now, first time homebuyers still have a couple months to take advantage of the $8,000 tax credit. Getting free money is always a great deal but when you can use it to reduce your housing costs, that's even better. Fulfilling a dream like home ownership is a wonderful achievement but it's better if you can get more for your money like you can right now.

Janice Petteway of Exit Real Estate Results can show you new and pre-owned homes, including foreclosure and bank owned bargains in Central Florida.