Orlando Area Real Estate Market Report: Balancing Act in April 2023

The Orlando, Florida real estate market remains a hot topic of conversation for both buyers and sellers across the U.S. For the Orlando residential real estate updates for April 2023, we uncover some interesting trends and figures that shed light on the current landscape of Orlando's vibrant housing sector. From inventory fluctuations to steady prices and shifting interest rates, let's explore the latest updates and what they mean for those interested in Orlando homes for sale.

Increased Inventory Points to a Balancing Market

In April 2023, the total inventory of Orlando properties reached 5,148, indicating a 1.9% increase compared to March 2023. 

Despite the rise in inventory, the total number of new listings experienced a slight decrease of 6.4% compared to the previous month. This decrease in new listings, combined with the increased overall inventory, suggests that sellers may be holding back slightly, potentially leading to a more competitive market for those looking to sell their homes in Orlando and throughout Central Florida.

Steady Prices Offer Stability

Amidst the shifting dynamics, the median price and average price of Orlando homes remained steady in April 2023. The median price stood at $370,000, marking a 1.4% increase compared to March 2023. Similarly, the average price reached $443,718, showing a 2.7% increase from last month. These steady price trends indicate a healthy and stable market, offering confidence to both buyers and sellers in the region.

Average Days on Market

One significant aspect to consider when analyzing the real estate market is the average number of days a property spends on the market. In April 2023, the average days on the market decreased by 8.8% compared to the previous month, reaching 52 days. While this reduction is encouraging, it is important to note that it represents a substantial 116.7% increase from April 2022 when the average days on the market were only 24 days.

The longer average days on the market compared to the previous year indicate a more deliberate buying process and a slight decrease in the sense of urgency among potential buyers. This change can be attributed to the increased inventory and a market that is gradually normalizing, providing buyers with more time to explore their options.

Months of Supply and Market Balance

Another crucial indicator of market stability is the "months of supply." In April 2023, the months of supply stood at 1.86, up from 1.72 in March. This metric measures how long it would take for the current inventory of homes to sell, given the current pace of sales. A balanced market typically hovers around 5-7 months of supply, indicating an equilibrium between supply and demand.

While the months of supply in Orlando are still below the balanced market range, the upward trend suggests a potential move toward equilibrium. As inventory levels continue to rise, it is essential to monitor how this metric evolves in the coming months, as it will provide further insights into the overall market conditions.

Impact of Interest Rates

In April 2023, the real estate market in Orlando, FL (Lake, Orange, Seminole, and Osceola Counties) experienced a slight drop in interest rates. 

The average mortgage rate is around 6.4% and cautions some would-be home buyers and sellers, as even a small increase in rates can significantly impact affordability. Therefore, it's advisable for those considering purchasing or selling Orlando homes to closely monitor interest rate fluctuations and consult with mortgage professionals to make informed decisions.

In conclusion, the Central Florida real estate market in April 2023 shows signs of a potential balancing act. With an increase in inventory and a steady median and average price, buyers have a wider range of options. However, the real estate market in the Orlando area and throughout Florida could be headed toward a more balanced market. The slight drop in interest rates provides some extra buying power, but it's crucial to consider the potential impact of future rate changes. Whether you're looking to buy or sell in Orlando, staying informed about the market trends and seeking expert advice will help you navigate this dynamic and exciting real estate landscape.