Even in Orlando, where there are plenty of pre-owned homes and condos available, newly constructed homes have their appeal.  That's why Orlando builders have continued to produce new homes.  According to Metrostudy, which keeps track of new home in various markets, new home construction i s up14% as of June, compared to last year. Housing starts are up 39% from the first quarter, though second quarter closings are off since the home buyer's tax credit expired.

AmericanHomeguides.com shows over 100 new developments in the greater Orlando area.  Many offer properties of $150,000 or less.  This makes new home prices competitive  with  those  of pre-owned homes in Orlando, which currently have a median sales price of $179,138. (Foreclosures and short sales are even less.)  The base price might not include any upgrades, but a buyer could purchase some upgrades with the difference and have a brand new home.

According to the Orlando Board of Realtors, the area has an affordability index of 243.74.  Since an index of 100 means that buyers have the income necessary to buy a median price home,  buyers whose income exceeds $53,162 are qualified to buy one of the 9,812 homes in Orange or Seminole county priced at $267,866 or less.  First buyers with incomes of $36,150 or more can qualify for one of the 6,837 homes prices at $161,910 or less. There are new home opportunities in the Orlando area for first timers as well as for repeat buyers.

Even though buyers technically have the wherewithal to buy homes. Anthon Crocco, director of Central Florida Metrostudy says they are hesitate to buy because they want to see sustained recovery and job growth before taking the plunge to homeownership. 

There is another unspoken impediment to homeownership at any price.  Banks have higher credit score requirements to make loans so many Floridians are out of luck. Regardless of income, those with credit scores below 700 or with recent foreclosures or delinquencies on their records are unlikely to qualify for home loans. With unemployment over 11.7% in the Orlando-Kissimmee-Sanford area, even working Floridians are cautious.

The lack of demand leaves an inventory 3,757 new homes unsold. This figure represents a nine month supply, two or three months more that is considered healthy.  Almost 70% of  the inventory is finished-but-vacant units, when 25-30% is healthy. 

Florida has always been a land of opportunity.  If you interested in taking advantage of the abundance of new construction at a time when interest rates are low, now is the time to find out your credit score and evaluate whether there is short term fix available to improve your credit score.  Some problems, such as having a foreclosure on your record, take a several years of ontime payments to overcome.  Most so-called credit repair companies won't help you, but you might check with your lender or local credit counseling center for a review.

Think you're ready to buy new construction or a pre-owned home? I'm Janice Petteway and I believe that buying Florida real estate is a great way to live out the American Dream for you and your family.  If you are prepared to take on homeownership, affordability , and interest rates on your side.   My   Exit Results Real Estate team can help you find the affordable home of  your dreams in the Orlando and other Central Florida cities. Call me today or visit my website.