Still the Buyer's Market

Home sales dropped three percent in the first quarter of 2011, the sharpest quarter over quarter decline since 2008, according to Zillow.

This sharp drop has caused Zillow to revise its forecast for when home prices will bottom out. Earlier, Zillow had expected the market to show some recovery by the end of this year. Based on this quarter's results, Zillow now believes that home prices will not start to recover until sometime in 2012. In the month of March alone, 1 in every 1000 homes across the nation was in foreclosure.

The Orlando metro area is one of the 25 metropolitan areas tracked by Zillow. Our area experienced a dip of just about the average, at 2.9% decline for the first quarter.

So, what does this mean for potential Orlando area homebuyers?

First of all, it means that homes in the Orlando area are still at great prices. Inventory is high and prices are low. Many homes have been on the market for quite some time, so list prices are often negotiable. There are also lots of foreclosures and short sales in our area. With patience, you may be able to land a foreclosure or a short sale at a fraction of what the home was once worth.

Zillow's forecasts do predict that home prices may fall even further over the next year, before they begin to rebound. However, for the person who is serious about finding the right home, it may not be a good idea to wait.

The real estate market can be quite volatile, so predicting an exact bottom or top of the market is difficult. And, in Orlando, the economy is growing more than in many other cities because of the new businesses that are continually coming to our area every year. This means that it is likely that the Central Florida real estate market will rebound faster than many other areas of the country. If you find a home that you love, don't delay because there's a chance that the price might fall a little more over the coming months.

Each time one buyer makes the commitment to purchase a home; they help to improve the economy and the real estate market just a little bit. As more and more homebuyers get the money and the confidence to jump back into the real estate market, we will begin to see the market turn around. Investing in real estate has historically been a great way to make money and to help realize a big part of the American dream.

The real estate market has been a little scary by anyone's standards since 2008. And, there are certain to be bumps in the road to recovery that lies ahead. But, it's also certain that central Florida is one of the country's fastest growing areas, so our recovery is expected to be faster and more significant. So, if you're in the market for a home in the Orlando or surrounding areas, now is still a great time to buy.

Search for waterfront homes in the Florida real estate market at RealtyExecutivesFL.com. You'll also find beautiful Orlando condos with our easy-to-use MLS Search.