When is the Right Time to Buy?
Orlando Vacation Homes – Charles Valeston, La Rosa Realty: If you are like most of us you are thinking I want to buy that Vacation home in Orlando, Florida but when is the right time to buy? If you will allow me to draw some distinctions in the market place; most people think the real estate market is divided into two parts:
- Residential consisting of single family detached homes, villas, townhomes and condos.
- Commercial consisting of office buildings, multi-family apartment buildings, retail centers and strip malls and industrial buildings.
So where does that leave the vacations homes? Well the real estate industry lumps vacation homes in with residential homes.
In an earlier article we talked about the vacation home as being both a personal benefit to you and your family for vacation/holidays and as an investment. In fact, if you plan to make your vacation home available for short term rent then you must get a license form the state of Florida because you are operating a mini-hotel business. Still sound like residential? How about commercial real estate? This writer contends it is its own market.
Let’s look at some history. Everyone knows the Residential real estate bubble burst in 2008, to be more accurate during the 3rd quarter of 2007. The Commercial real estate market soon followed suit during 2008. What most people do not know is the Vacation Home market first experience the decline in the very beginning of 2007. It was as if one day someone went and turned the spigot and purchases of vacation homes jut stopped. Vacation home sales and property prices continued to decline during 2008, 2009, 2010. Actually during this period the majority of vacation home purchases were either “Short Sales” or “REO Bank Foreclosures”.
- Short Sale occurs when the home owner of record’s mortgage balance that is greater than the Fair Market Value of the home.
- REO (Real Estate Owned) is a property where the bank has completed the foreclosure process and it is now owned by the bank.
There is no better time than NOW!
During 2008, 2009, and 2010 70% + vacation homes offered for sale where either short sales or REO sales. The recovery in the Vacation Home market is preceding that of the Residential Home market. As of this writing 95% of Vacation Homes offered for sale are regular sales. This means, a huge shift in inventory has taken place between the end of 2010 and the present. Prices are starting to creep up slowly in the Vacation Home Resort communities. In the next six month we will have returned to a normal market. So, when is the right time to buy? There is no better time than NOW!
Please visit www.vacationhomes-orlandofl for other tips about vacation home ownership. Also, please share this site with your friend/family. In the meantime good luck and good house hunting.