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Orlando Real Estate - Home Prices, How Low Can You Go?
By Jerry | February 10, 2008
The question beckons - How Low Can You Go?
How much lower can this crazy Orlando Real Estate market go. Well, Here’s my thoughts and one way to look at it.
When a renter can pay only approx. 20-30% more in their rent payment and own a home, They’ll Buy!
OK, what does that mean?
Right now a 3/2 home at $200,000 would cost approx. $1600 Principle Interest Taxes & Insurance (PITI).
A 3/2 Home to rent in general is renting for $1200-$1300, meaning that when that average 3/2 home comes down to $200,000 that renter would rather buy instead of rent.
Right now that 3/2 Home is costing approx. $240,000. That means that that average home still has to come down $40,000 or 16% for that average renter to BUY.
OK, that’s my opinion and we know what they’re like!
Topics: Housing |