Home prices likely to fall next year nationwide. Moody's Economy.com analyzed 379 US Cities and concluded 133 will experience slumps in their existing home prices in 1 to 4 years. More thab 20 metro cities in Florida will see a crash of 10%+ as projected. Median prices nationwide is expected a 3.6% decline. While Central Florida looks more promising, Orlando has experienced a 3% decline in prices during the first 6 months of 2006. Prices in Volusia, Brevard, and Polk counties are not expecting a decline.
Orlando existing home market is experiencing challenges of affordability, speculation, and overbuilding, according to Chief Economist of Moody's Economy.com. Orlando is experiencing a correction as buyers are purchasing properties after prices have been reduced a few times. Homeowners who have had their property for at least 4 years will have gains, but investors will make little or no profit. Buyers will not lose, but can expect to make some gains.
While this report predicts that the real estate market will bend, it is not expected to break as seen during the 1980's and early 1990's.
Courtesy of Orlando Sentinel 10/5/06.
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