Equity home sales in Orlando have been overshadowed by short sales and foreclosure for the past 5 years in Central Florida. Home sellers in Orlando have finally seen an increase in home values and some are finally seeing their once under-water mortgages turn into equity real estate transactions. Here is a graph to show the increase of equity home sales in Orlando over the past 2 years:
Many factors have contributed to this shift from a buyer's to a seller's market and the number of short sales and foreclosures is starting to dwindle in Orlando and the surrounding neighborhoods. Here is a list of the reasons why the equity home sale is back in Central Florida real estate:
1) Low Real Estate Inventory - The amount of homes for sale in Orlando is at about a 3 month supply as of January 2012. Multiple offer situations are seen in just about every real estate transaction. Home seller's no longer have to wait months, maybe years, to sell their home and the days of low ball offers are long gone.Â Below is a graph showing the active listing trends in Orange County over the past 2 years:
2) Historically Low Mortgage Interest Rates - As of 2/6/2013, mortgage rates are at 3.75%. This extremely low rate has driven many buyers to start looking for their new home as the rental market becomes more expensive and they realize they can become home owner's for the same price or less than what they are paying in rent.
3) Diminishing Supply of Foreclosures - Foreclosures are becoming less and less common as an increase in the number of buyers in Orlando increases. Bank-owned properties used to be considered a "steal" but with a switch from a buyer's to a seller's market, the days of being able to buy a home for pennies on the dollar are history. Here is a graph to show the decrease in the number of new foreclosure listings over the past 2 years.
Â Traditional equity home sales are back and it is the perfect time for home owners who could not sell their homes in Orlando before, to once again be able to extract equity from their properties. Our inventory is extremely low in Central Florida so if you have been thinking about selling your home, click SELL MY HOME FOR EQUITY to find out if the time is right for you!
Francisco Orchilles is a RealtorÂ® who specializes in Orlando Short Sales with Keller Williams Classic Realty in Orlando, FL.Â Ask Frank a real estate question. You can also find Frank on Trulia and Zillow!
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