Condominium sales have improved in January and coupled with the increase in December, the numbers are showing that bottom might be here. If you’ve been sitting on the fence waiting for the bottom it has arrived. Historically low interest rates and deep discounts to move inventory have brought in buyers. That is exactly what we are seeing in today’s condominium market.
Pending sales recorded of new condominiums in January show an impressive four-month high, up 50 percent from December.
Developers are offering some of the best financing opportunities for new condos. In Seattle, Loft 42 and Mode offer great downtown buys. In San Jose, Villa Fontana’s is offering up to 100% financing, and if you’re looking for a condo in Phoenix you won’t find better buying incentives than Mountain Ridge. Condominiums
Like other markets, the Orlando condo market has suffered in recent months. A number of downtown condominium projects are now on hold – some have been cancelled indefinitely. But there’s also a sense that despite all the gloom and doom, the Orlando condo market appears to be weathering the storm better than many other urban markets. It’s fully expected that Orlando will be one of the first cities to exit the recent downturn, and there are reasons to suppose that even the mid-term condominium picture looks fairly healthy. Here are a few of them:
1.) Industry continues to move here. Last week, another simulation company moved to Orlando citing Orlando as the “capital of simulation.” Who knew? This week Lockheed Martin scored another $48 million contract.
2.) With so much industry moving here, unemployment is still at record lows. Unemployment was just 3.3% for January 2007.
3.) The number of Spring visitors are up. Last week, Orbitz placed Orlando as # 1 in it’s recent list of favorite spring break destinations – for non-students. How cool is that? An influx of cash, minus the beer and the hormones. Hotels are sold out.
For a variety of reasons then (including, of course, the… shhhh… m.o.u.s.e.) Orlando has been pretty well shielded from the brunt of the recent housing “correction” – at least, compared with other Florida cities and other condo-heavy states. And despite a slower market at present, the future of real estate and yes, even the condominium market, looks very bright for Orlando – which is slated for a massive amount of growth over the next decade.
Within the next two years, Baby Boomers will begin migrating to Orlando in droves, and the increased demand for condos (without the competition for jobs) should promote steady growth in building and consequent real estate equity for the next twenty to thirty years.
For the latest news and analysis on the Orlando condo market, visit the Condo Metropolis Blog at: CondoMetropolis.com – where you’ll also find the latest hot condo deals!
According to data gathered by the Orlando Regional Realtor Association, the median resale price of a home in Central Florida is about $250,000. At a quarter of a million dollars, most first time home buyers are effectively priced out of the housing market. But believe it or not, it is still possible to find an Orlando condo for under $100,000. And that could prove to be a vital first foot on the property ladder. In other words, condos are still affordable – just. But they probably won’t be in a couple of year’s time. Remember that between 2004 and 2005, the median resale price of a home in the Orlando area rose more than 60% according to ORRA and although prices are now dropping again, it is still likely that within the next decade, Orlando will be just another expensive city that regular folk can’t afford to live in – unless you’ve played your hand well today. Which means not allowing fear to make you keep your strongest cards until last.
Good card players play their cards at pivotal moments in the game. Aces are not your favorite pieces of candy in the packet, to keep until last so you can savor them at your leisure. When I did that as a kid, my friends would usually steal them right in front of me and then claim that because I wasn’t eating them, they figured I didn’t want them.
In short, it’s a mistake not to buy today because you’re unconvinced that the market is at its lowest. Because no one knows for sure when that is until it’s already passed – and rates are on the rise again. In truth, you don’t have to know when the market is at its lowest, just plain low is the right time – and we’re clearly there. Like Black Jack one must play the odds. You don’t have to make it exactly to 21 in order to win, you just have to be smart enough to know that 19 is probably close enough to win the game. Those who try and hit 21 nearly always “bust.”
Condo prices have dropped dramatically in the last year and are currently very low. They may go just a little lower before they begin to rise again. Then again, theyy may not.
Question: Are you going to “twist” and risk busting your whole hand by waiting another 6 months for an uncertain saving, or are you going to “stick” and buy one of the incredible deals that are out there right now?