A period of stagnation characterizes the second half of 2009 in the Orlando real estate market according to the latest statistics released by the Orlando Regional Regional Association. The number of sales haves been hovering around 2,000, the inventory around 15,000, and mortgage rates around 5%.
Let me tell ya, stagnation is a good thing at least for now. It means prices are starting to stabilize. If you’ve been following the market the past few years, I’m sure you’ll agree.
Real estate is cyclical which goes in the following order: boom, bust, and stagnation. This means the next cycle is a boom although we don’t know exactly when the next boom will commence. The last boom and bust occurred in the early 90’s with the S&L scandals and the market was stagnant for nearly a decade. Just as in those times, the federal government printed a lot of money to bail out the financial institutions and we all know this is a catalyst for inflation which we’ll have to deal with in the near future.
For now, things appear to be stabilizing for the Orlando real estate market and mortgage rates are about as low as they’ve ever been.