Orlando Housing Rebound to Continue in 2014 at Slower Rate
Monday, December 16, 2013
By: Amy Green

December 16, 2013 | WMFE - The rebound of Orlando's housing market is expected to continue in 2014 but at a slower rate. Florida realtors say that's a good thing.

Low prices and mortgage rates and an improving job market combined during the past two years to boost home values 15 percent. 

In 2014 that's expected to slow to 5 percent.  

Florida Realtors Chief Economist John Tuccillo says the trend signals Orlando's housing market is beginning to return to health after the last decade's boom and bust. 

"What we're seeing is a rebound. We're playing catch-up from the fall. In other words from when the market went down. We're playing catch-up from there, and as we continue to play catch-up you see a market that is returning to normality and operating on a pretty sound basis." 

He estimates nearly half of sales are cash sales, about the same as the rest of the state. He says that indicates strong investor presence but not another bubble.

"I think we should purge the word bubble from our vocabulary at the moment. This is a very different world from what we had just before the crash. Just before the crash the market was operating on a herd mentality. People felt they had to get into the market or else they would really lose out on something." 

Tuccillo says credit remains tight and mortgage rates are expected to rise. Meanwhile rising prices might encourage some investors to put their cash elsewhere and homeowners to sell. 

He says a 5 percent annual gain in home values is in line with historical trends.