According to the National Association of Realtors (NAR) only 9% of all existing loans are Sub-Prime.  Other sources estimate that within 18 months, up to 40% off homes in the market will be foreclosed properties or REO’s (Real Estate Owned by bank).  Of course, all this numbers are educated projections and the accuracy will probably rest somewhere in between.

All this numbers tickled my brain and I decided to run numbers based on the most accurate information available to us on the field, the Multiple Listing Service (MLS).  Our MLS in Central Florida encompasses 22 counties.  As of 12/26/07 there were a total of 67,726 homes listed for sale with 5,503 appearing as REO’s, In-Foreclosure or Pre-Foreclosures.  That accounts to 8.1% of all Central Florida listings being in some stage of foreclosure.  When we looked at the 5 central counties, Orange, Osceola, Lake, Polk and Seminole the numbers grows to 8.7%.  Osceola County alone accounts for 9.1%, and Orange takes 1^st place with 10.1%.

Opposed to the heavily distressed home we traditionally associate with an REO, what is different about this flood of foreclosures is that most of them are homes in near perfect conditions or needing very little repair.  The opportunity to purchase a home at a significant discount and with so much inventory to choose from has not been this great in the last 8 years.  Adding to that, interest rates continue to be at record lows and FHA loans have dropped outdated requirements to become very competitive and consumer friendly.

Opportunities abound and there has never been a better time to buy the home of your dreams.   Right now the Central Florida market is a smorgasbord for first time buyers, investors and home owners looking to get a bigger place.  In conclusion, sometimes what the media portraits as bad news are actually great news in disguise.