As Prices are Falling, Sales Rise

According to the Florida Association of Realtors while interest rates and home prices are down, sales are up significantly over this time last year. Orlando is outperforming the State as a whole.

Interest rates have come down from an average of 6.43% in July 2008 to 5.22% in July this year.

Median sales price for existing homes decreased 24% in the State (from $193,800 to $147,600), and sales volume increased by 37% statewide year over year (July).

By comparison Orlando's median sales price decreased a bit more - 35.1% (from $208,000 to $135,000). Home sales by Realtors in Orlando increased by 45.11% July 2009 over 2008.

Evidently, the market believe prices and interest rates (which are at 2003 levels) are a "buy." While we doubt the real estate environment will become feverish as in the past - this only forecasts an illness (as the word feverish indicates) - economists generally concede that our economic recovery will start in Real Estate.

The foreign exchange rate remains favorable and with a banner year for weather, Florida is a favorite for International second homebuyers and we are seeing a resurgence of interest from buyers in Europe. Their economies have already begun their recoveries and so Florida is now viewed as a buying opportunity.

Only time will tell, but we are cautiously optimistic.