I believe we are not at the bottom of real estate prices in the metro Orlando real estate market. There are two many foreclosures that have to suppress the market. The tax credit gave excess demand right before the summer months and then we dropped in sales the most ever in a single month.
Here are some of my opinions on the Orlando home buying market:
If you are a cash buyer, stay on the sidelines with your money for a few more months.
If you are getting a mortgage, then run to your realtor and mortgage broker and get approved as fast as you can. One of my clients with average credit just got approved for a 30 year loan at 4.2%.
Prices in downtown neighborhoods like College Park and Delaney Park will not go down as much and will rebound even faster when the market stabilizes.
The math of this whole market drop is simple. When buyer A buys a house on Avalon Park Blvd, then buyer B wants an even better deal. A bank that has an reo listing on Avalon Park Blvd will then list the home at 98% of the previous sales price. Then buyer b comes along and offers 96% of the listing price. The bank accepts and we now have a new low. Then buyer C comes along and he wants to get an even better deal and Bank C will give grant him his wish to get it off their books as fast as possible.
This process is just in reverse of the boom times. Only now banks are in charge, not homeowners when it comes to setting prices.
If you are paying cash for a home in Orlando, wait a few months.
If you are getting a mortgage, run to your realtor and mortgage professional and get qualified and find the neighborhoods you like. Prices may go down a little more, but affordability will only increase because of artificially low interest rates.
About this Author
Todd Hutcheson is a realtor and owner of http://www.isellhomes.com To get more information on homes in 32828 please visit http://www.homesforsalein32828.com
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