Market Conditions in 32835>Question Details

Pablo, Home Buyer in California

Are home prices dropping and if yes, when do we expect to recover?

Asked by Pablo, California Fri Jul 20, 2007

Help the community by answering this question:


Not sure if Pablo's question was really about Orlando, but is sure can be fun to look at two and half year old questions like this and see all the hemming and hawing that went on. Clearly home prices fell like a rock everywhere in the country not that long after this was asked.

Flash forward to 2010. When will they recover in the Orlando area? Depends on the market segment. The market for properties priced under $100,000 has gotten red hot and extremely competitive which is driving prices up at the low end of the market. It is almost entirely cash driven. The upper $100k's and lower $200k's are still bargain territory as there are a lot fewer cash buyers at that level. I expect we'll see prices in this band to start moving up within the next few months. But if you are talking about the over $250,000 market, I doubt we'll see a recovery this year.

Let's look back in two years and see how I did.

Mark LeMenager
Find your next house with the click of a mouse.
Search the MLS without obligation or registration from my website.
Just click on my picture.
1 vote Thank Flag Link Sun Mar 28, 2010
Home prices are definitely dropping in Orlando because there's too many homes on the market or oversupply. Demand is a pretty stable component because most people only own one home. Keep in mind that most people decide to buy because of low interest rates and not necessarily the rate of appreciation at the time so this works in this market's favor. Our current market is resembling the bust market that followed the S&L scandals in the late 80's. The market didn't recover until 1996. So the market recovery time should be 3-5 years with my estimates. I'm taking into consideration the Case-Shiller index, current supply of 19 months of homes, and assuming demand will remain constant.
Web Reference:
1 vote Thank Flag Link Thu Sep 20, 2007
Pablo, I'm a local guy and can tell you exactly what's going on here in Orlando. Are prices dropping?.....yes, in some area's.
I have a whole economic analysis based on raw local data of homes for sale, and homes sold, month by month since 2002. All the economic pressures are pointing to prices being pressured down, however the Real Estate market is a odd market to say the least. Tomorrow 10,000 homes can decide to come off the market and prices will stabalize, and every seller is an individual and many simply don't have to lower their prices and won't. However, all else being equal I see prices being pressured down (not necessarily going down) for at least the next year to year and a half, to rebound sometime in late 2009.

As long as you are buying a home for the long term anytime is a good time to buy. I see find amazing deals on almost a daily basis nowadays as I find more and more motivated sellers. Like how the boom in 2005 couldn't last forever, the slump and amount of great deals out there now can't last forever as well.
Web Reference:
1 vote Thank Flag Link Sun Aug 26, 2007
Everyone that I've talked to is saying that the prices will continue to trend down and we won't see any signs of recovery until around 2009. Who knows though, this is Orlando and it's a different type of city than most.
1 vote Thank Flag Link Thu Aug 9, 2007
You might get more answers if you specify what county or city you are asking about regarding prices dropping.
1 vote Thank Flag Link Sun Jul 22, 2007
A local Real Estate Pro can address your market area. No one has a crystal ball, but their insight into the recent trends will be informative for all.

Since you are a home buyer, I would recommend that you also evaluate the outlook for interest rates. If a price drops slightly, but interest rates raise, your net monthly payment may be higher as result.

Good Luck
1 vote Thank Flag Link Fri Jul 20, 2007
Deborah Madey, Real Estate Pro in Brick, NJ
For every 2 jobs created, 1 gets to buy a home. For every 2 jobs lost, someone loses a home. Prices will go up when there is more demand than inventory.
0 votes Thank Flag Link Tue May 24, 2011
If you want to know what home prices are doing in Metrowest go to

Great questions!

Connie Greene
0 votes Thank Flag Link Sun Mar 20, 2011
As prices have dropped over the past 2 years expect them to drop more in the next 2 years. It is far from over.
0 votes Thank Flag Link Sun Mar 28, 2010
Pablo- The overall trend in most of the country is a decline in prices. However real estate is local .. some areas will see big price declines while others.. within the same county or state will see prices remain fairly stable with only slight declines. Much depends on the demographics of your market.

I don't think the market will rebound until consumers begin to perceive stability and value have returned to the market. Right now there is a mindset throught ot the country that prices will plunge by massive amounts. Once people realize that is not happening then confidence will return. But don't expect to see prices rising other then nominally for a few years as prices and income need to readjust. This is what is known as a normal market. Stability will become the name of the game...
0 votes Thank Flag Link Thu Sep 20, 2007
Kaye Thomas, Real Estate Pro in Manhattan Beach, CA
Dear Pablo,

That's the Trillion Dollar question everyone wants answered. Although there may not be a real general answer, I agree with the others about the Markets being local. Here in Phoenix, AZ we have over 45,000 listings, and no where near that amount of buyers. With so many homes for sale its obvious that we are in a Buyers Market here in the Phoenix Market. However, while the number of homes for sale in Phoenix has been on the rise, prices in Phoenix, North Scottsdale, Fountain Hills, and Paradise Valley have been rising despite the market. So Real Estate is very local, as the other person has previously mentioned. It is important to remember to look for a Local Professional REALTOR to help you address any other concerns or questions about your Market.
0 votes Thank Flag Link Fri Aug 10, 2007
Pablo, You asked a great question! However know one can really answer this question because you did not list an area that you are interested in. Florida has some great pockets where the market has stablized. My suggestion is to find a FULL-TIME Professional Realtor to help you and guide you through the home buying experience.
0 votes Thank Flag Link Fri Aug 10, 2007
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer