As we write this post, interest rates drop to their lowest levels on record.

Although things still look grim, one of the scenarios we envisioned was that some Orlando Fl villas and resort communities would possibly become more permanent resident oriented due to the fact that home prices had dropped to such levels. They now become appealing to such user groups for valuation reasons.

It seems clear that the rental revenue to support Fl villas is currently dropping, and conversion to a primary residence potentially becomes the highest and best financial use for homes in some areas. This basic principle of finance, highest and best financial use of assets, becomes a viable option for some areas that have become the hardest hit in terms of foreclosure. We’ll keep our eyes on this potential trend.