Some Orlando real estate statistics are so mind blowing that before 2008 no one would have believed that the market conditions seen today could actually occur. The Orlando Regional Realtor Association calmly reports that in July 2011, the percentage of “normal” sales of single family homes and condos rose to just above 41 per cent. This means that almost two-thirds of condo and single family home sales in Orlando are those that pertain to distressed properties. Foreclosures, short sales and REOs rule the scene as banks steadily continue to put more of these problem properties on the market.
One glaringly important statistic from the Orlando Regional Realtor Association concerns “condos sold in July in a certain price category.” 162 condos changed hands in the very low one dollar to $50,000 bracket. The fact that there actually is a bracket that begins at one dollar speaks for itself.
The single family home median price was $117,000 in July and the distressed property median price was $80,000. Obviously, if 60 per cent of sales were of distressed origin, the overall median price would be under $100,000.
Even amidst this doom and gloom, real estate professionals continue to find hope. Any upward movement and any wisp of an upward trend are jumped upon. Many agents have called or are calling this the bottom of this historic slide. Even if the bottom is here or near, one can be certain that a classic v-shaped recovery is not in the offing. Banks are still sitting upon mountains of distressed property which they are carefully controlling. If all distressed property found its way to the Orlando market tomorrow, the consequences of the crash would be even more severe.
As with many crises, there is always good news and bad news. The bad news has been explained above. The good news is that if one has cash, good credit and financing (or some combination of the three), great deals can be made. An all cash offer carries serious weight as does an 800 credit score. If one can qualify for an FHA loan, good deals can be made. Those with marginalized credit and low down payment resources may have to wait this one out.
Orlando, along with many other Florida locales still severely suffers form the financial crisis which began in 2008. Those who wish to find three bedroom $100,000 homes which were unheard of pre-2008 will find lots to choose from now. Likewise, the proverbial $50,000 three bedroom condo is out there also. These market conditions are rare and will probably not be seen in the future. Is the bottom here? No one knows; but those in the market for low priced property should probably start looking in Orlando now.
