Orlando Real Estate comes in many flavors. From Downtown high-rise condos, to vacation homes near Disney through to luxury homes and estates in world class country clubs where, Orlando has something to meet everyone’s budget.
Since 2006, prices fell by well over 50% in many areas across the real estate sector in Orlando and Central Florida. This led to a huge amount of investors buying up cheap properties and renting it out, starting in 2011.
Foreclosures, short sales and foreclosures dominated the headlines and anyone with cash thought they could pick up a bargain. 2012 saw big name professional investment companies and fund managers who were massively funded, sweep through the country buying virtually any under-priced single family home that was on the market. Unlike traditional ‘flippers’ these companies have no intention of giving properties a quick makeover and them reselling them. Their strategy is to rent the homes out on annual contracts due to the very strong rental market which is driven by the same families who lost their homes a few years ago.
There are still bargains to be had, but unless you are ‘ in the know’ and an institutional buyer, it is highly unlikely that you will even know that the property is for sale. These sales are known as ‘whisper listings’ and rarely if ever get to be public knowledge until it is sold.
Prices on whole have been surging higher with Orlando seeing very healthy double digit increases fro the last 2 years. Even with these positive gains, prices remain extremely cheap when compared to prices in 2005 and 2006 and the upside potential for growth remains very strong for the foreseeable future.
Could there be another real estate bubble?
In short it is highly unlikely. Mortgage regulations have been completely revised and homebuyers need to satisfy very stringent parameters regarding their ability to repay any loan which is given. The fact the lenders could now be held liable by law, if they grant a loan to a homebuyer who later fails to repay, has made them very cautious.
With lenders having increased the minimum amounts required as down-payments PLUS the high volume of cash buyers, especially overseas buyers, we feel very upbeat about the future of real estate in Orlando.
Supply and demand
Florida is now the 3rd largest state by population and is forecast to grow by 3.5 million to 22.5 million residents by 2020. With an average of 3 residents per household that represents well in excess of 1 million new homes. This does not include second homes and vacation homes.
Orlando is no different and due to the lack of new development in recent years, there is a shortage of homes in many areas of the city. We are seeing an increasing number of builders starting new communities across the Orlando Metropolitan region and although the choice of homes is improving, the demand is getting stronger. This is driving prices higher with each new phase and each new release.
We are in constant contact with most of the builders in the area and are continuously updated about new communities, new models and any offers.
We specialise in new homes near Disney and in the Dr Phillips and Windermere areas.