Orlando Real Estate Prices Hit 100% on the Affordability Index...
Orlando Real Estate Home Prices
A new report was released today by the Orlando Regional Realtor Association. The report showed some great news for home prices in Orlando, showing that home prices in Orlando have now reached an affordable level for the average home buyer and first time home buyer.
The decrease in the median sales price has allowed the area’s housing affordability index to reach 100 percent, which along with a reduction in inventory by nearly 2,000 homes indicates a swing toward stabilization of Orlando’s current buyer-favoring housing market, according to the Orlando Regional Realtor Association.
The median sales price of a single-family home in the Orlando area in December 2007 dropped in one month by $11,000 to $223,900. This price represents a 10.44% drop from that of December 2006 prices.
The true affordability index is actually 100.3 percent. An affordability index of 99 percent would mean that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Buyers who earn the reported median income of $51,335 can qualify to purchase one of 6,936 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $230,617 or less.
The first time homebuyer affordability index climbed in December as well, to 71.4.
This is great news that the Orlando real estate market has been waiting to hear. Also great news is the fact that we are seeing nearly a 2,000 home reduction in the amount of inventory currently available on the market.
Better yet, the area’s average interest rate was 5.93 percent in December 2007 — which represents a continuing downward trend since a high of 6.60 percent in August. The lowered prices combined with the lower interest rates is positive news which will allow many more first time home buyers to afford a home in Orlando.
There are still a tremendous amount of foreclosure homes for sale in the Central FL area that offer fantastic deals often well below those of the average home for sale (contact me and I'll send you a list of foreclosures). If you are interested in locating foreclosure properties or investment deals, please feel free to contact me. I specialize in foreclosures and can show you how you can purchase one of these homes at way below market value.
Don't hesitate to contact me, should you have any questions.
Sincerely,
Chantal Gakwaya
(407) 346-5331