Orlando Property Values (real estate, foreclosure, rent)

[Soup Not See]

Will we see property values in Orlando return to peak-2006 values in the next 10 years ?

I think not, as the prices were artificially inflated in peak-2006 due to an overstated economy and bad lending practices.

[GLS2010]

maybe 20

[StreetSmarts]

Absolutely not. It was all ficticious and bloated numbers. FL real estate will probably drop a little more and maintain - I dont see 3/2/ 1700 sq ft cookie cutter homes on zero lot lines selling for $300k again ANYTIME soon in Central FL.

[Booya]

No chance. The prices were artificially inflated for a very short time.
Prices may rebound at some point down the road but not to the 2004-2005 year highs.
I think our economy is still in trouble and we may not have seen the worst of it yet.
The only upside is that people are being forced into being more responsible regarding mortgages etc. From what I have heard it is extremely tough getting mortgages now, which is how it should be.

[MotleyCrew]

Originally Posted by Booya

No chance. The prices were artificially inflated for a very short time.
Prices may rebound at some point down the road but not to the 2004-2005 year highs.
I think our economy is still in trouble and we may not have seen the worst of it yet.
The only upside is that people are being forced into being more responsible regarding mortgages etc. From what I have heard it is extremely tough getting mortgages now, which is how it should be.

I think Freddie and Fannie will continue to give out risky loans as the financial overhaul simply ignored their roll in this mess.

[GLS2010]

I don't think it's going to improve or get worse anytime soon. I think it's gonna be like this for awhile then eventually start creeping it's way up at a normal/healthy rate.

[justinmac]

2005-06 prices will never be back again. We have a brand new system of regulations and guidelines regarding getting a mortgage. These new policies help to ensure that people buying now, can actually afford it. I know prices are stable now and 1 million more foreclosure listing are currently trickling on the market. The congestion has been eased up of inventory, now its just a waiting game for prices to creep up

[beckycat]

Sorry to say, I don't think so. That's not good for me being a homeowner. I'd like to at least seem houses get back to the halfway point. During the boom, my house was worth $280. At this point, I'm lucky to get $170 if I wanted to sell it. I'd like to at least see it at $200K.

I agree with GLS2010 on this one. For now, we have to stay put. Eventually, things will slowly begin to recover. I'm just happy we live in a good area.

If you are planning on staying a long time, I think now is a good time to buy. Short-term, I'd say rent even though I don't like putting money towards rent.

[annerk]

I think that beginning next year we will begin to see a "normal" 3% a year rise in equity over what homes are worth right now. Anyone who "bought high" at the peak will need 20 years to see a return, but those of us who bought prior to that (or recently) will see our equity position rise each year on a gradual basis that matches typical inflation.

[hgebel]

The housing prices have historically tracked very close to inflation and more specifically to wages. Bubbles have happened periodically, there is nothing really new about the last one. They usually are at least two or three generations apart because it takes that long for people to forget the last one and begin to think that the current conditions are unique and consequently fool themselves into believing that a incipient bubble isn't a bubble.

Note that the actual value of house prices could return to 2006 levels if high inflation comes along, but it will be at least two or three generations before real values return to those levels, and they will then collapse again; those price levels are false and can never be retained.

Nothing about the housing bubble was really new or unique, I would recommend reading the first three chapters of "Memoirs of Extraordinary Popular Delusions and the Madness of Crowds", these chapters deal with an examination of three bubbles (a sort of hybrid stock-money bubble, a stock bubble and the tulip mania). Even though the book came out in 1841, much of it reads like it could have been written yesterday.

-Harry