The price correction for all residential Real Estate in Central Florida has had a positive impact for first time home buyers. The latest affordability index shows that the Orlando housing market has slipped below the national average.  The index also shows that home prices affordability is relative to the local economy. 

The Cost of Living index uses a scale of 100 for the national average. The Orlando area housing cost index fell to 88.6 by the end of 2008. During the boom years, the Orlando index peaked at 105.9. Prior to the rise in home prices, Orlando averaged around 87.8. The latest data shows us that our housing market is returning to our normal average.

 

Not only have we seen the housing index improved but also the cost of living index. This index includes transportation, food, utilities, health care, and other services. Again this index rose during the housing boom years and has since dropped close to the national average.

 

What these indicators show us is what we already know. Housing prices are affordable, interest rates are at historic lows, and first time home buyers are eligible for a tax credit of $8000. This tax credit is also available for home buyers who have not owned a home for the past 3 years. Now is the time for home Buyers to seriously consider making that home purchase that was out of reach only 2 years ago.