Florida’s New Real Estate Bubble? Home prices are on the rise. Even though that is great news for sellers, it has caused concern for some economists. This is definitely a sign of the growing economy because over the past 18 months, home prices have increased 42%. As economic forecasters worry this may create another housing bubble, homeowners who have been waiting to sell are wasting no time. Prices on the Rise Rick Nayar of Centurion Realty Groups states that during the first half of 2012, homes in Orlando, Florida saw a 25% increase in price. These statistics are based on actual sales data for similar home sales in comparable neighborhoods. This is great news for sellers, especially during an economic period which still isn’t near the height of recovery. Areas like Miami realized impressive price increases, but then values became stagnant again as the Euro and Brazil’s real weakened in the world market. Home prices and the general economy are not all based on the American dollar. World fluctuations can effect pricing as well. Sales are Faster A few years ago, homes in Orlando, Florida took quite a few months to sell. Some residential homes were on the market for years and still had no buyers. However, during the month of May, 2012, homes were selling three weeks faster than the same time period only one year ago. Not only are homes selling quicker, but the current inventory of homes in Orlando, Florida for sale is at a new low. This means that when a home comes on the market, eager buyers are making attractive offers to snap the property up. Interest Rates Recently termed a “seller’s market” once again, buyers are also feeling less pressure when searching for a home. Newly available homes in Orlando, Florida are an excellent example. Interest rates have dropped to some of the lowest seen in years, making it easier for buyers to manage monthly payments on higher priced homes. Of course, borrowing money is not as easy as it was a few years ago. Lending institutions are protecting themselves by requiring higher credit standards to ensure that home buyers do not default on loans and cause another round of banking struggles. Quick Fluctuations Although the real estate market is looking up, the stall of home sales and value in Miami is an excellent example of how things can change quickly. There is currently a higher demand for available homes, interest rates to attract buyers, and yet sales this spring were lower than one year ago. Pricing increased and sales were completed faster; however, buyers are still skeptical about value fluctuation and where the market is headed. Homes in Orlando, Florida were quick to follow this new buying trend, keeping pace with the rest of Florida in sale patterns.
The housing market will always go up and down, but now is the time for sellers to enjoy higher pricing for their homes and buyers to get out there and search homes that are available. It is an excellent time to relocate to Central Florida, so begin the search, contact an agent, and discover that dream home.
Centurion Realty Group can assist with your search for the following: Orlando Homes for Sale. Brought to you by Centurion Realty Group LLC 37 N. Orange Ave, Suite 500, Orlando Fl 32801 (407) 905-0001 For more information, please visit our website at http://www.blueorlando.com .