Foreclosure discount dropping, home values increasing

ORLANDO, Fla. — A new report shows foreclosure deals aren't the bargain they used to be. According to Zillow, Orlando homebuyers can expect to get a 4.5 percent discount on a foreclosure over a traditional home sale. That's a big change from 2010 when the discount was closer to 24 percent.

"It used to be that every strip of town homes had a for sale, for rent (sign). A lot of investors came in here first, then when the bubble burst everybody got out. It's good to see those signs aren't there anymore," said homeowner Sean Burke.

Across Metro Orlando, there are fewer for sale signs and housing inventory has dropped 20 percent over the last year.

"When you have the supply way down and you have the demand way up, the prices are starting to move higher and higher," said Ray Lopez of Keller Williams Advantage II.

Lopez said he's seen a healthy appreciation in home values around the Orlando-Metro area -- anywhere from 12-17 percent. Lopez said finding the best deal is all relative to the neighborhood.

"You're buying at super-duper low interest rates. And you're still buying at prices still way below let's say 5 to 6 years ago. So you're getting a good value for property," Lopez said.

The gap between foreclosure prices and typical home prices seems to be closing in other cities as well.

Nationwide, the foreclosure discount was around 7.7 percent in September, compared to 9 percent a year ago.

WFTV