Orlando’s Buyer Market: Game Over?

fence sitterTake a gander below at the condo projects that have gone south in the last month or so. It’s depressing. Or is it? What else does it signal? (other than an increase in the sales of Head On: Apply Directly To The Forehead).

I’m going to stick my neck out here and suggest that this “correction” might just signal the beginning of the end of the condo buyer’s market in Orlando. Because the combined value of these monthly flops is many thousands of condos that will never see the light of day – which means our condo inventory may be being absorbed faster than predicted. And as condo inventory is absorbed, the tide will inevitably turn. Reduced supply = increased prices. And of course, incentives like free HOA fees and granite counter tops will also disappear.

So, if you’re still sitting on that proverbial fence after Christmas, you might just to move before that piquet gets even more imbedded and you find yourself impailed there, left behind – with a numb behind.

For those who are trying to keep up with what’s hot – and what’s not, here’s the latest news and gossip from the Orlando condo scene. Rumor has it:

In MetroWest, The Element (condo conversion) is in receivership (but still selling); The Greens (condo conversion) has gone back to rental due to lack of sales (shame!); and The Madison (condo conversion) is all but closed while it restructures prices and incentives (again).

In Maitland, the Oasis (pre-construction) condos have been scrapped. Construction continues but the units will now be apartments. On the other side of the I4 freeway, Ravinia (pre-construction) opens its doors as Trevi’s new neighbor, against all odds, with 297 condos for sale.

In Baldwin Park, The Majestic (condo conversion) which has had more offs than ons, is finally “off” for the last time, while further south in Celebration, the stunning Icon (condo hotel) has been halted before the first spade of dirt was moved while they clean up their mess in Miami

Back up in Altamonte Springs Park Towers condominiums have been put on hold for at least a year and in the Millenia area, The Fountains (new construction) condos have converted to rental even before the last crane leaves (with 150 condo contracts down the drain). “Check’s the mail!” In Winter Springs, Isis is on a slow down - as are most of the downtown projects. Has anyone seen that crane at 55 West move this month? Finally, in the Dr. Phillps area, the developers much hyped Intermezzo at Rialto shut down the sales center last week and will now build apartments instead of condos.

Got the scoop on an Orlando condo community? Email tips to: Info@CondoMetropolis.com

7 Comments

  1. Mr. Burke, if you think the condo bust is about to end, might I interest you in some nice swamp land in the Everglades?

    Ha! Eric, I’ll take that swamp! Our globe isn’t getting any smaller and for some reason we are unable to stop breeding. In Florida, if you can drain it – you can build on it, so I’ll take that swampland. And I’ll build a 55+ community on it. Because baby boomers are about to land on Florida’s doorstep in droves and before you know it, we’ll have more colostomy bags than condos!

  2. Just wondering where you got the news that Rialto is going to be apartments instead of condos. I tried calling the sales office but did not get an answer.

    Precisely, get the hint!? lol The sales team have long since departed.

  3. I read your November article, and yes I would concur. Condo market, not so good. As a resident of one of these belly up properties I can tell you the results are horrid for an owner. All of the riff raff have now moved in due to desperate property management trying to save their skins by renting to the least common denominator. Crime is through the shoddy tin roof, and the carrots dangled for incentives have all dried up at the Oasis. There are no security guards to help keep the grounds secure, the gates to the community remain rusted open. The grounds themselves have declined into disrepair, littered and weedy. I actually came home to an evicted renters property strewn at the front gate of the property. The newly repaved parking lot that is advertised…a joke, they repaved just in front of the sales office and models. Not to mention, now that they have only sold less than 50% there is no HOA run by the homeowners. Thus we who have paid for the property and pay our dues have no representation here. We are at the mercy of the developer and their evil henchmen property managers.

    I WANT OUT!

    I’m sorry to hear that Adam – unfortunately your story is being replicated all over Orlando – maybe even the rest of the country. Exactly the same thing has happened where I live and I think it will take a couple of years for this mess to shake out and for things to get back to ‘normal’. Evictions are happening left and right and standards are so incredibly low right now in terms of renters. I’m not sure it’s fair to blame the property managers, the developers or anyone else – we’re all to blame as a nation for thinking we could cash in – and for carrying such incredible amounts of debt. Sub-prime ‘liar’ loans are only part of the cause. And I hate to be a bear, but I think there’s worse to come. Look out for more cries that we’re in a recession. Because we are.
    Marcus.

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