7 Reasons to Invest in Orlando Real Estate in 2007

With just a few months of 2007 remaining, the Orlando real estate market affords some promising opportunities for second home ownership, vacation rental properties, and condo hotels. The Orlando real estate market experienced a significant dip earlier this year, leaving homeowners in a flux with reduced demand and a steady decrease in housing prices. While this is an ideal situation for buyers from out of state, the Orlando real estate market is showing promise for both buyers and sellers into 2008. Here are just seven reasons to invest in Orlando real estate in 2007, and get a head start on next year's profit potential:

1. More choices in housing inventory. Orlando real estate housing inventory has slowly but steadily increased since the same time last year in conjunction with new construction in housing and condominiums. Luxury villas and condo hotels are the leading developments in the market for potential investors. The MLS report indicates that housing inventory available in August 2007 is almost 25% higher than the same period in 2006.

2. Lower prices. The Orlando Regional Realtor Association reports a 2% price drop over August 2006's median prices. Heavy competition between home sellers has led to a significant reduction in home values; a home priced at $400,000 in the summer of 2006 may now be selling for approximately $390,000 or less.

3. Potential for market turnaround. 2008 looks promising for Orlando real estate investments, especially with the increasing number of high rise condominium developments n the downtown and resort areas. Condotels in particular are being reserved rapidly, offering luxurious accommodations and amenities as an alternative to traditional housing-and all at a competitive price. Condo sales experienced a significant downturn in 2007, leading to lowered prices and more attractive options for buyers.

4. Housing has become more affordable. The Orlando Housing Affordability Index for 2007 indicates a steady increase, meaning that more buyers can actually afford their investment.

5. Affordability for first time homebuyers. The median income for first time homebuyers was $34,712 in August 2007 with an affordability index rated at 60.4%. This is only a slight increase since January 2007 where the median income to qualify was $34,441, and the range may stay stable through the end of the year.

6. Luxury homes are in high demand. Luxury villas and duplexes are the prime picks for Orlando real estate this year, and many can be rented out as short-term or long-term vacation properties. Prices continued to be competitive this year despite the market downturn. The Orlando Sentinel reported a higher than average sales rate for luxury homes in July 2007, and the remainder of the year looks just as promising.

7. New construction with extra amenities. With the steady growth in condominium and apartment complexes in the downtown area, resort properties are also undergoing renovations and construction improvements to lure buyers. This means higher quality properties for both short- and long-term residential investment.

The 2007 top sellers for Orlando real estate were duplexes, town homes, and villas according to the Orlando Regional Realtor Association. This means that condominiums, condotels, and other properties will be marketed heavily to attract new buyers--often with discounts, special offers, and price cuts.