Buy An Orlando Home If You Can Pull It Off!

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The time is now to buy an Orlando Condominium or Single Family Home!  Home prices are still cheap and the median single-family home price – half higher, half lower – hit its nadir in January, dropping to $154,600, the lowest since October 2001, according to the National Association of Realtors. Existing-home prices rose in June to a median $190,100, up 8 percent from June 2011. Those are still 2003 levels. The good news is that the enormous supply on the market is shrinking. It takes a wearisome amount of time for supply to shrink, in part because there are people who have wanted to sell their homes for many years, but haven’t been able to get the price they want.

As prices rise, more homes come on the market. Nevertheless, Ned Davis Research, a respected institutional research firm, estimates that excess supply of houses on the market should be eliminated by the end of 2013. When excess supply dries up, people start building more new houses, which has the virtuous effect of reducing the unemployment rate and increasing the economy generally. The average 30-year fixed-rate mortgage rate is 3.59 percent, according to mortgage giant Freddie Mac.

That’s above the all-time low of 3.49 percent the week of July 26, but close enough. It’s conceivable that at some point in the next 30 years, your interest rate would be less than the rate of inflation. Assuming you financed 80 percent of the median single-family home, or $152,080, your mortgage payment would be about $691, excluding taxes and other irritations.

About $5,589 of your first year’s payments would be tax-deductible mortgage interest. Thanks mainly to low home prices and interest rates, the NAR’s housing affordability index rose to its highest level on record. (The higher the index, the more affordable the average home. If you can pull it off, buy an Orlando Home: