The Orlando Sentinel featured an article on the continuing fall in property prices in the city. The "Metro Orlando index", used to gauge house prices in the region and based on the Office of Federal Housing Enterprise Oversight, saw prices drop 3.3% for the first quarter of 2008 - the fourth quarter in a row that prices have dropped. Essentially, this percentage drop diminishes any hopes that the housing market may improve in the near future.
The article also mentions a University of Central Florida real-estate specialist, Randy I. Anderson, and his belief that the downturn in prices was a:
...historic "shuffling of the cards" that many savvy real-estate
professionals will use to their advantage by snapping up bargains while others remain fearfully on the sidelines.
Meanwhile over in west Florida, the St Petersburg Times writes that the market may finally be bottoming out after two years of gloom. Or rather, there are signs that the market may finally becoming more stable. Some places report an increase in sales when comparing April of this year to April 2007, whilst condo sales have improved. Generally, though, this improvement in sales may largely be down to low prices, or vendors realising that they really need to price realistically in order to shift their homes.
The Fort Meyers News-Press features a blog from a local realtor, who speculates on the timing of any new property purchase. He talks about something I've mentioned before on this blog - the dilemma of when to buy. Property prices are falling, and may well continue to do so, so when's the best time to buy? Denny Grimes, the author of the piece, makes the bold statement that:
...we are going to witness what may be one of the best buying opportunities over the past 20 years. For some, it will be the last great real estate buying opportunity of their lifetime.
Essentially, his article makes the important point that the best time to buy isn't when prices are at their lowest (because you can only tell that the market has reached this point after it has happened) but when sellers are in their weakest position. When this occurs, they will likely to desperate to offload their properties and vendors can call most of the shots.
- Article: Hope dims for a turnaround in Orlando-area housing, experts find (Orlando Sentinel, 23rd May 2008)
- Article: House market seems to stabilize (St Petersburg Times, 24th May 2008)
- Article: When to buy is the most important question to answer (Fort Meyers News-Press, 25th May 2008)
2 comments:
You can also check out http://blog.topagent.com for articles on SW Florida real estate as well. Many of these are featured at the Fort Myers News Press as well.
One key factor in any market recovery will surely be the availability of financing - at least in the Central Florida markets we operate in.
For example, we have had one international client this week who is now unable to close on a second home deal - as of this week, his (European) home country's regulations have been changed to prevent refinancing funds being taken to the USA for property purchase. Before this change, he had 100% of the money he needed. Florida loan companies won't offer more than 50-70%, so our client will not buy.
Similarly, some condo, town home and even single family homes are difficult to finance.
That all increases downward pressure on prices and deters buyers.
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