A recent report by the Florida Association of RealtorsÂ suggests that for the month of November 2007, Orlando saw a 35% decline in sales of single-family homesÂ compared with November 2006, while condo sales plumeted by a massiveÂ 55%. Orlando condo sales were a meagre 125, down from 276 sold in November 2006 (already a bad year!). Median condo prices fell 18% from $172 to $140.5
Statewide,Â sales dropped by 29% with a median sales price of $186,700,Â a drop ofÂ 9%Â from $204,500 in November 2006. (Source: Orlando Business Journal.)
All of which suggests that the strongÂ Florida buyer’s market is likely to continue at least into the first half of 2008.Â Something I’m noticing for 2008 that has the potential to drastically reduce inventory, is the trend for desperate developers to sell off their entire inventory at 50-60c on the $$ to investors who convert the conversions back to rental – and hold. Our business in this area grows dailyÂ and I expect it to have a serious impact on the number of condos available for sale by the end of 2008 – which will start to drive prices up again. 2008 could go down asÂ the year of the Great Condo Sell-off. If you’ve been waiting around for rock bottom pricing – I’d start moving, because when the vulture-investors start grabbing condos by the bucket load, you know that’s exactly where we are.
See also this Realty Times articleÂ for further analysis.