Nearly Half of Central Florida Home Buyers Pay Cash as Lower Priced Condominiums and Homes Impact Housing Market

Nearly Half of Central Florida Home Buyers Pay Cash as Lower Priced Condominiums and Homes Impact Housing Market

ORLANDO, Fla. - Almost half---42.3 percent---of all home buyers in Central Florida during the first five months of this year paid cash, according to recent figures from the Orlando Regional Realtor Association (ORRA).

Roger Soderstrom, founder and owner of Stirling Sotheby’s International Realty www.StirlingSIR.com in Orlando, said while ORRA’s information includes condominiums and single-family homes that buyers have been snapping up for as low as $70,000, his firm has been closing cash sales in most price ranges this year.

“I think the historically large volume of cash sales is due not only to a large inventory of lower-priced condominiums – many left over from the deluge of condominium projects and conversions between 2005 and 2007 – but also homebuilder inventories and resale properties priced under $350,000, Soderstrom said.

Soderstrom said new conventional loans totaled just over 27 percent of all home sales during the period. FHA loans totaled 23.62 percent of all homes sold.

“FHA financing is becoming very popular today because of the low 3.5 percent down payment required, and the maximum loan amount has been raised to $417,000, which would apply to most homes sold in Central Florida,” Soderstrom said.

Soderstrom said he was surprised by the relatively low number of homes – 1.78 percent of the total – sold with Veterans Administration financing.

“Many individuals in Florida qualify for VA loans, which require no down payment on a mortgage of up to $417,000,” Soderstrom said.

“We are currently encouraging our buyers to utilize the VA loan program if they are eligible,” he added.

During the first five months of the year ORRA reported 7,834 home sales closed.

For more information please contact:
Roger Soderstrom, Owner/Founder, Stirling Sotheby’s International Realty 407.588.1260; http://www.StirlingSIR.com;
Larry Vershel or Beth Payan, Larry Vershel Communications, 407.644.4142

About Stirling Sotheby’s International Realty:
Stirling Sotheby’s International Realty is affiliated with Sotheby’s International Realty, the largest luxury real estate brand in the world. Stirling Sotheby’s exclusive services include luxury residential, new homes, commercial, worldwide auctions, property management, in addition to supporting builders, developers, lenders, and asset managers. The company operates five performance centers which serve all of Central Florida.