Predictions from Florida real estate experts in 2008 have proven to be true. 2009 will be another year for a housing market slump and more Florida foreclosures.
Since Florida foreclosures have gone up, home sales in the Metro Orlando area have risen to double-digits. According to Central Florida Realtor and broker Tony Marino, sellers will have to deal with low property prices, most of which are owned by banks.
So far, Orlando is at the top of home sales, with Tampa as the only other strong market the past months. Buyers are attracted by the area’s low prices due to high foreclosure properties rates. Meanwhile, the median home price in Orlando has plunged to about 25 percent which translates to way below the $200,000 mark. However, Marino says that the prices seem unlikely to go down any further, though he expects bank-owned properties to set the pace for home sale prices around the area.
In a 2009 forecast of The Urban Land Institute, Orlando together with Miami and Detroit emerged as the weakest in new home construction among 50 urban communities. At a scale of 1 to 10 (10 being “excellent”), Detroit was the lowest with 1.67 followed by Miami at 2.13 and Orlando at 2.84.
Also according to analysts, apartment construction is projected to decrease by 19 percent this year in Orlando. Renters could expect to find good deals as landlords try to attract more tenants.
Other experts agree that foreclosures will continue to be the name of the game in 2009. Due to the record low prices and interest rates, owner of Re/Max Select in Oviedo and broker Gary Balanoff expects that more will invest in the housing market, including first-time home buyers.
With more foreclosures and the continuing economic crunch, residents should not expect the housing market to completely recover any time soon.
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