Real Estate Investing Eyes Orlando
Florida’s Most Stable Real Estate Market
Savvy investors, take note! While Florida has been one of the hardest hit areas of the country in the wake of the mortgage meltdown, the market outlook in Orlando isn’t so bleak.
Although property sales in Orlando still felt the effects of the crash, with the median sales price of homes in Orlando decreasing by 17% over the past year, the fact that it has a large share of fast-growing industries such as tourism, health care, education and defense manufacturing, plays a major factor in it being the strongest residential real estate market in the state.
If this continues to be the case, savvy investors might stand to profit by getting in before the market begins to recover in earnest. Despite being the “strongest” market in the state, Orlando is still solidly in a buyer’s market and investors may comes across some potentially profitable deals in the area.
While property sales in Orlando are down by 24.52 % compared to the same time last year, that gap is expected to close by year-end as the number of homes currently under contract (3,258) is 26.72% greater than the number of homes that were under contract in July 2007 (2,571). Pending sales for the past three months have been greater than their 2007 counterparts as well.
With Orlando being a prime tourist location for both domestic and international travelers, holiday rental properties are likely to do well.
Investors should be wary though when shopping for a condo as the market seems over saturated. Also be aware that certain areas of Orlando may offer better stability than others, such as some neighborhoods in West Orlando. The rest of Metro Orlando may have an average of 5 percent of all homes for sale, but in the Lake Mann, Sunset Lake and Clear Lake areas, only 1.4% of homes are on the market. Houses in these middle-class neighborhoods rarely come up for sale and, when they do, are often sold to friends or family members. Investors interested in properties more likely to retain their values might consider seeking out available properties in these areas.
Savvy investors, take note! While Florida has been one of the hardest hit areas of the country in the wake of the mortgage meltdown, the market outlook in Orlando isn’t so bleak.
Although property sales in Orlando still felt the effects of the crash, with the median sales price of homes in Orlando decreasing by 17% over the past year, the fact that it has a large share of fast-growing industries such as tourism, health care, education and defense manufacturing, plays a major factor in it being the strongest residential real estate market in the state.
If this continues to be the case, savvy investors might stand to profit by getting in before the market begins to recover in earnest. Despite being the “strongest” market in the state, Orlando is still solidly in a buyer’s market and investors may comes across some potentially profitable deals in the area.
While property sales in Orlando are down by 24.52 % compared to the same time last year, that gap is expected to close by year-end as the number of homes currently under contract (3,258) is 26.72% greater than the number of homes that were under contract in July 2007 (2,571). Pending sales for the past three months have been greater than their 2007 counterparts as well.
With Orlando being a prime tourist location for both domestic and international travelers, holiday rental properties are likely to do well.
Investors should be wary though when shopping for a condo as the market seems over saturated. Also be aware that certain areas of Orlando may offer better stability than others, such as some neighborhoods in West Orlando. The rest of Metro Orlando may have an average of 5 percent of all homes for sale, but in the Lake Mann, Sunset Lake and Clear Lake areas, only 1.4% of homes are on the market. Houses in these middle-class neighborhoods rarely come up for sale and, when they do, are often sold to friends or family members. Investors interested in properties more likely to retain their values might consider seeking out available properties in these areas.
Views: 11
Replies to This Discussion
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Permalink Reply by mandiees on
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Is this also true for San Diego, they were hit hard, if not worse, than Orlando was.
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Permalink Reply by Kim Chen on
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I guess it's time to stop surfing and go lending! :) Thanks for the information Matt.
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Permalink Reply by Camille Brown on
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Where did this study come from? Was it one the news?
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It sounds like Orlando will soon be the Wild Wild West of Real Estate.
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Permalink Reply by Tamlyn Brooke on
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Timing is very important, so if we really want to succeed we have to act fast...
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