Orlando Condo Conversions Hit Bottom

Condo prices have fallen more in Orlando during the past year than in any other metro area in the state and, most likely, the country. That’s according to today’s Orlando Sentinel.

Statistics from the National Association of Realtors show that the median price for a 2-bedroom Orlando condo is currently about $50,600 – that’s a 56% reduction from the same time last year ago, when the average price was $114,000.

The result is that more than 1,600 condos sold in Orlando during the third quarter, up 265% from 2008. Add to that the fact that many complexes are reverting to rental operations, and it’s easy to see why Orlando condo foreclosure inventory has dropped sharply.

Downtown Orlando condos are less a part of this equation since most of the deals that account for the most recent $50K data are condo conversions in areas like MetroWest.

Sales wise however, downtown Orlando is selling fewer units since the lack of financing means cash is required in most cases, and the price points are far higher downtown, leaving both buyers and sellers frustrated.

Back in the burbs, the lack of loans are less of a problem and about 99% of the deals remain cash (unless the condos are FHA approved like Stonebridge Reserve (pictured)). In most cases, however buyers are having to make bids on multiple properties before they are lucky enough to get one.

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