Orlando Housing Market Update: July 2024 - A Market in Transition

As we move deeper into 2024, the Orlando housing market is showing signs of stabilization. The July 2024 market data reveals some intriguing trends, particularly as buyers and sellers navigate the evolving landscape. Here's a closer look at the key trends shaping the market, with data sourced from the Orlando Regional REALTOR® Association.

Inventory on the Rise

One of the most notable developments in July 2024 is the continued increase in housing inventory. The total number of available homes reached 11,158, marking a 3.4% increase from June 2024 and a significant 95.1% jump compared to July 2023. This surge in inventory is the highest we've seen since November 2015, offering buyers more choices than they’ve had in years. This increase in available homes is a clear indicator that the market is stabilizing, moving away from the intensely competitive environment that characterized much of 2023.

Sales Activity: A Mixed Bag

When it comes to sales, the data presents a mixed picture. In July 2024, there were 2,652 closed sales, a slight 2.0% increase from the previous month. However, when compared to July 2023, this represents a 7.0% decrease, highlighting a slowdown in year-over-year sales activity. This could be indicative of buyers taking a more cautious approach, possibly due to economic uncertainties or the impact of higher interest rates.

Home Prices: Slight Decline, But Still Elevated

The median home price in Orlando for July 2024 was recorded at $390,000, a slight decrease from June’s record-high median of $395,000. Despite this monthly dip, the median price still reflects a 2.6% increase from July 2023. Similarly, the average home price in July was $469,630, down 4.1% from June but up 5.6% from the previous year. These figures suggest that while the market is cooling slightly, home prices remain relatively high, maintaining upward pressure on affordability.

Interest Rates: A Persistent Challenge

Interest rates continue to play a crucial role in shaping the market. The average mortgage rate in July 2024 stood at 6.65%, slightly down from 6.7% in June. According to a recent survey by the Orlando Regional REALTOR® Association, 52% of REALTORS® cited interest rates as the biggest challenge for buyers. Many buyers are either waiting for rates to decrease or adjusting their budgets to accommodate the higher cost of borrowing.

Market Time Increases

Homes in Orlando are taking longer to sell compared to a year ago. In July 2024, the average time on the market was 55 days, up from 54 days in June and significantly longer than the 39 days recorded in July 2023. This extended market time suggests that buyers have more negotiating power and are taking more time to make decisions, possibly due to the increased inventory.

Distressed Sales Remain Low

Distressed properties, including bank-owned homes and short sales, accounted for just 0.9% of all home sales in July 2024. This figure remains unchanged from last year, indicating that distressed sales are not a significant factor in the current market landscape.

New Listings and Contracts

July saw 4,067 new homes listed on the market, a slight 1.8% decrease from June 2024. Despite this dip, there was a 3.8% year-over-year increase in the number of properties going under contract, suggesting that buyer activity is beginning to pick up, albeit slowly.

Conclusion

The Orlando housing market is clearly in a period of transition. With rising inventory levels, a slight softening in prices, and a slower pace of sales compared to the previous year, the market dynamics are shifting. Buyers are gaining more options and, in some cases, more negotiating power, while sellers may need to adjust their expectations as the market continues to stabilize. As always, staying informed and working with a knowledgeable REALTOR® is key to navigating these changes successfully.

For more detailed statistics and insights, visit the Orlando Regional REALTOR® Association website.