Distressed sales and foreclosure rates in Orlando
Homes for sale in Orlando have occasionally suffered from high foreclosure rates and a large number of distressed sales, but this is actually good news for the real estate market. As private investors and other buyers snatch up properties for discount prices, the inventory rises and the average home value often shoots up as well. If you are considering relocating to a new metro area, you might want to evaluate the Orlando market - recent acquisitions are pointing to a banner year for Orlando real estate.
The Orlando Sentinel reported that a California investment group recently purchased 150 of the homes for sale in Orange County. This was partly due to a $400 million surplus that came from oil money from Alaska. However, regardless of the underlying region, the investment is smart - as home prices continue to rise, the company stands to make a large profit if they sell the properties in the near future.
"I think you can commoditize these houses, and I think that kind of thing is beginning to permeate thinking with investors and entrepreneurs," said spokesman Daren Blomquist, according to the news source. "It is really an interesting trend that the prices have gotten so low that these kinds of investors and entrepreneurs are jumping in."
Individual homeowners can use the same strategy. Though purchasing a distressed property requires you to assume some form of debt, you'll be able to enjoy long-term profit through something like a short sale. Orlando has some beautiful homes for sale at incredibly low prices, so check out the MLS listings for available property today.
Average home prices
A clear indicator of an improving housing market is a constant rise in home prices over a few years. The Orlando Business Journal reported on such a situation, occurring in the Orlando-Kissimmee-Sanford area.
According to industry data, the region experienced an 8.7 percent increase in home prices in April of 2012 when compared to a year ago. In March, this number hovered at a 7.2 percent increase. Even when discounting the number of distressed sales, the region still saw a yearly uptick of 6.9 percent. When compared to other areas of the United States, Florida was listed in third for highest appreciation rates, with a 5.5 percent increase from a year ago.