Search Foreclosures for Sale in Orlando, Buy at 21% Discount

by Simon Lindsay on cities

Search foreclosures for sale in Orlando, Florida, where prices have gone down by 21 percent and where distressed sales comprise two-thirds of home resales.

According to California firm Clear Capital, Orlando lags other U.S. cities in home price increases. It reported that most cities have been improving their prices since last spring, except Orlando. Another foreclosure battered city, Detroit, has even performed better than Orlando in price appreciation.

Additionally, according to Orlando realtors, distressed sales still predominate the Orlando market. A huge 67 percent of pre-owned homes being sold are short sales and bank-owned properties.

In certain areas in Orange County, where Orlando is located, the percentage of foreclosure sales was even higher at 80 percent of distressed sales in the final quarter of 2009. In zip codes where most residents are renters and needy families, such as Washington Shores, Pine Hills and Oak Ridge Road, distressed sales define the housing market.

In contrast, in affluent neighborhoods like Baldwin Park, Waterford Lakes and Windermere, only around 50 percent of distressed sales of single-family homes were foreclosures.

According to Fred Allen, previous head of the Central Florida Realty Investors, prospective buyers can search foreclosures for sale in Orange County and buy them at attractive prices. He added that homes priced at $150,000 during the boom are now being sold off at about $50,000 to $60,000. In the Pine Hills Road area, a three-bedroom house can be purchased for $40,000.

In 2009, the pace of Orlando foreclosures stepped up by 54 percent compared to the previous year. More than 72,000 homes in the Orlando-Kissimmee area entered the foreclosure process, representing 8.2 percent of all households in the area and marking a staggering jump of 358 percent from 2007.

In Florida, the Orlando area was second only to the Cape Coral area in intensity of foreclosure activity. Nationwide, Orlando was seventh among metro areas in foreclosure rate.

According to Orlando real estate attorney Debra Wilkinson, foreclosure numbers are high in communities with a disproportionately big number of rental multi-family homes. While most homeowners do all what they can to save their homes, many landlords readily leave their properties when they are no longer profitable because do not have emotional attachments to their properties.

However, according to analysts, it is viable for investors to search foreclosures for sale in Orlando and then profit from them in the next few years, as prices have not been declining sharply over the past four months.