Rising number of Orlando foreclosures presents opportunity for buyers
The number of Orlando homeowners just entering the foreclosure process increased from the same month last year for the seventh consecutive month in July 2012, according to LoanSafe. Additionally, existing home prices in Orlando are forecasted to plummet at least 7 percent through early next year, according to a report by Fiserv. The results of each of these reports present an opportunity for buyers looking to purchase one of the homes for sale in Orlando, Florida.
"Forecasting what's happening in a market like Orlando right now is very hard to do," David Stiff, chief economist for Fiserv, told the news outlet. "It's because of the large inventory of properties in the foreclosure pipeline...at the moment, demand for foreclosed properties is outstripping supply."
More foreclosures on the way
This limited supply of foreclosed homes could be on the verge of shifting to a substantial increase in foreclosure activity overall in July. For the month, 3,219 homeowners in the four-county Orlando metro area received foreclosure filings, a substantial 39 percent increase from the same time period a year ago.
Providing good news for prospective homebuyers in the Orlando area, the number of bank sales of foreclosed properties continued to increase throughout the state, despite across-the-board declines nationally. Bank-repossession sales in the Orlando metro area doubled over the past year while simultaneously declining by more than 20 percent across the country.
"[The increase in foreclosures] is something we've been seeing over the last few months," Daren Blomquist, a local real estate agent in California, told the news outlet. "That trend kind of started in Florida earlier this year, and it's kind of spread to other states. These increases indicate there is going to be more supply, and that, in turn, could destabilize any home-price appreciation that has occurred during the reprieve period."
Low prices could attract homebuyers
Meanwhile, home prices around the country are forecast to drop by 1 percent through the first quarter of 2013. During that same time period, the prices of homes in Orlando are expected to drop by a substantially higher 7 percent. Immediately after the first quarter of 2013, Fiserv expects home prices to rise by 2.2 percent in Orlando. This should be a positive outlook for prospective homebuyers in Orlando, as that increase is significantly lower than the 5 percent forecast for the rest of the country.