subject: Running out of time in Orlando Latest statistics show the market is changing - fast [print this page] There's a couple of important USA related topics I'd like to cover in today's opinion piece, although as always, you can skip straight to the property deals of the week by scrolling down or by clicking on the quick links to your right. We have some great new Spanish and Birmingham projects for you to look through.
Orlando - Foreclosed Window Closing Fast
As regular readers will remember, we first identified the potential of this market around June 2008 and since an official launch in October 2008, we have been selling fairly large amounts of Orlando condos and single family homes to Irish, British and Scandinavian clients.
There were also quite a few investors who wanted to buy but preferred to wait a little until the market bottomed out - an understandable concern. However, as any honest broker would have admitted - bottoms can't really be identified until after they've happened and we weren't afraid to say so.
We're almost in June now and I'm pretty certain that the foreclosure market in Central Orlando bottomed out about three months ago.
According to statistics gathered by the Orlando Realtors Association, almost 50% more homes were sold this April compared to the same month last year. They are also selling 15% quicker than last year and there is now 20% less inventory to choose from - these are all enormous changes.
The consequence of this is that well priced properties are now much harder to get and price rises are more common. Under asking price bids on foreclosed properties are now being rejected immediately by the realtors.
Government Action
Two big government stimulus packages had a big impact on this market. One was the generous measures taken by the Bush Administration in August 2007 to help credit worthy homeowners who missed payments after their teaser rates expired. Many of these borrowers have been able to refinance at more manageable interest rates and 97% loan to values. This created much needed stability.
Demand for property was also increased this year by a tax credit for first time buyers. This can be up to 10% of the value of the house (max $8000), doesn't have to be repaid and is available for any home purchased between January and December 2009.
The US Foreclosure Market is Unique
In short, there isn't really much time left to make the most from what is very possibly a once in a generation opportunity. Let us not forget that prime residential and cash flow postive properties in high end resorts can be purchased for as little as 31,000 / 36,000 - up to 75% less than previous purchase prices.
What else in the world can an investor find deals like that? Maybe a couple of places in SE Asia, maybe a couple in South America. But what's the average monthly salary in these areas compared to a wealthy, diverse and sophisticated market like Orlando? Where do you think has a stronger resale market?
We still have a few units left in the Madison Development, which contains completed and tenanted properties in Metro West direct from a distressed developer. Sales were sluggish in February and March but they've recently taken off like you wouldn't believe (30 units in the last 10 days). Perhaps you'd like to fill in the enquiry form contained in the link above in order to receive the latest availability list before it sells out.
Torcana Blog
Many of the issues mentioned in this newsletter are explored in more detail in my Torcana blog, so please feel free to visit and to leave your comments & suggestions.
Running out of time in Orlando Latest statistics show the market is changing - fast
