Orlando and its suburbs hold the designation of being named the Worst Real Estate Market in the Nation in 2010 by FiServ, a financial service provider. The regions market was able to greatly rebound in 2011 through growth of alternative lending methods such as lease to own and owner financing, a unique supply and demand need, and uplifting news that the region is poised to be number one in the nation in 2012 in respect to pricing gains.
Although the real estate market in Orlando has greatly improved, many buyers are being held up from purchasing property due to tighter credit restrictions on home loans. In 2011 the region reported a 4 percent increase in canceled contracts over the prior year. This resulted in nearly one in three deals being denied within the course of a month period. Buyers looking to purchase a home with bad credit are turning towards alternative lending methods. The area can expect to see a boost in sales of homes through rent to own options along with owner financing throughout the next year.
One of the largest issues with the Orlando market at its worst point was an overwhelming supply of empty homes and a lack of buyers. This helped to drive down home prices in the area and made many area homeowners go “upside down” in their mortgages. Throughout 2011 the region saw a flip flop in supply and demand. In January of 2011 the area had over 15,000 listed homes. By December of 2011 that number had decreased to just over 9,000, an almost 40 percent decrease. In addition, the region has seen a fall in bank owned properties from 44 percent in 2010 to 25 percent in 2011.
Recently the region received uplifting news from Clear Channel, a California based real estate research firm which reported it expects Orlando will lead the nation in 2012 for home price gains. In 2011 Orlando home prices rose 6.7 percent and the region was the second largest gaining market in the country. Currently the median home price in Orlando stands at $152,594.
Orlando’s real estate market should continue to rebound throughout 2012 due to increased alternative lending practices, increased demand for homes with a decreasing inventory, and price gains that may lead the nation.