Orlando Buyer Market Is Over!?

Yep. It is if you’re an investor looking for a condo deal under $50K.

Increasing numbers of observers have said of late that we’ve already hit bottom, and I’m inclined to agree, with one caveat. Bottom will arrive at slightly different times for different states, and different cities within states and, different communities within cities. There is no uniform national bottom. When I hear the refrain, “I don’t think we’ve hit bottom yet” I just roll my eyes. And then, there is your personal bottom.

With this in mind, if you’re looking to purchase a condo in Florida, in Orlando, then depending on the community you’re looking at, there’s a better than even chance that you’ve been looking at bottom for at least the last several weeks. In fact, in many cases, the buyer’s market is over. Most of you will be surprised at what follows but in the under $50K range, we are now in a seller’s market. As such, many of you have already missed the boat we’ve been talking about since Christmas.

The generally accepted definition of a buyer’s market is more than six or seven months of supply. A ‘balanced’ market has from five to seven months of inventory, and a seller’s market has less than five to six months of inventory. Now take a look at the chart below.

With only 4 months of supply in the under $50K range and low interest rates, we have now moved from a buyer’s market, through a balanced market to a seller’s market. I see evidence of this every day with multiple offers on bank owned (foreclosure) properties in this price range. And yet I still have folk trying to low ball what’s already the perfect deal. In this sector of the market, you’re usually wasting everyone’s time by making an offer – unless, of course, it’s more than asking price.

Fore more info see our dedicated Orlando Foreclosure page.

6 thoughts to “Orlando Buyer Market Is Over!?”

  1. Here in the Dade/Broward condo market, the bottom is still years off. There is literally NO financing available for condos, and how many cash buyers are there really? Most here can’t afford 10% down, let alone 100%. Even amongst the wealthy, much of their wealth is in the depressed stock/bond markets and they don’t want to sell now. And with several years worth of inventory on the market and continually slashed prices, they’re in no rush to buy now.

  2. Yep, Miami has a much more severe issue with condo inventory. This is why I stress so often the importance of understanding individual markets and individual ”bottoms”. There is no national bottom and I guarantee there will be thousands who miss Orlando’s bottom due to the crisis in the Miami arena. There is an assumption by some that Florida “is all the same”.
    Thanks for your comments Beachboy.

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