Foreclosures and short sales have become a commonplace in the Dr. Phillips and Windermere market as well as most other areas in Orlando and bringing your home’s value down. It appears we’re all at the mercy of banks to set prices for our homes.
You’d think the appraisers would take this into account when valuating homes that do not involve banks, but who do you think hires appraisers? Appraisers raised appraisals for banks during the boom and now lowering appraisals in the bust. I don’t know about you, but that’s not exactly a free market system setting prices is it?
I remember the days when home sellers would not accept a price for their home out of concern they would bring the value of their friend’s home down the street. Well, the banks don’t care about this and we’re at their mercy to set home prices.
A significant proportion of home sales in SW Orlando this past year involved banks this past year and their actions will have a significant impact on our home’s value…. not in a good way neither.
For a healthy market to return to our area, artificial manipulations have to cease and that won’t happen until the foreclosures and short sales are mostly gone.
I don’t know when that’ll be, but you can be assured that the worst is over.