May 2023 Data Reveals Strong Momentum For Orlando's Real Estate Market

The residential real estate market in the Orlando area is displaying continued momentum as summer 2023 approaches. The inventory level in Lake, Orange, Osceola, and Seminole counties remained steady at 5,149 homes compared to April 2023. There was a notable increase in closed sales during May, with a rise of 13.9% (totaling 3,150) compared to the previous month. The uptick in closed sales points to a healthy housing market in the Central Florida region.

Additionally, in May 2023, the average cost of homes in the Orlando area stood at $458,116, representing a 3.2% increase from April. The rise in average home prices can be attributed to factors such as limited supply, high demand, and the overall growth of the housing market throughout Florida. The decrease in months of supply, from 1.86 in April to 1.63 in May, further underscores the market's limited inventory. With fewer homes on the market, in addition to families commonly relocating during the summer months, the Central Florida region could experience an active home buying and selling season.

While the Federal Reserve decided to maintain the fed fund rates at 5% - 5.25% during their June 2023 meeting, rate increases are expected later in 2023. Eventually, clarity from the Fed on a wind-down plan from its current policies will provide insight for future economic projections and allow the financial market, housing industry, and economists to forecast more accurately. The timing and extent of these rate increases will have implications for the real estate market, potentially influencing buyer affordability and mortgage rates. Therefore, investors in the Orlando Floria area will closely monitor the decisions made by the Federal Reserve to assess the potential impact on the residential real estate sector.