Orlando Housing Market Update and 2024 Outlook

Orlando Housing Market Update for December 2023 and 2024 Outlook

In December 2023, the Orlando housing market experienced notable changes. The year-end interest rates dropped from a peak near 8% in October to approximately 6.5% by December. Single-family home sales saw a significant decrease of 19.6%, totaling 22,530 sales, compared to 28,022 in 2022. Condo sales followed suit with a 22.5% decrease, reaching a total of 4,007 sales compared to 5,168 in the previous year. Townhome sales also declined by 19.7%, totaling 2,853 sales compared to 3,551 in 2022.

The real estate market's balance is typically indicated by a 6-month supply. Closing the year, the inventory in December stood at 7,838, equivalent to 3.95 months of supply. Despite the decline in sales, the average home price increased by 6.9%, and the median price rose by 4% in December 2023 compared to the same month in 2022.

On a national level, the existing-home sales pace for 2023 was recorded at 4.09 million, marking the lowest since 1995 when it was 3.85 million, according to the National Association of Realtors (NAR).

Despite these challenges, there are encouraging signs in the housing market:

1. Foreclosures increased by 10% in 2023 compared to 2022. However, filings were down 28% from 2019 and a significant 88% from 2010, according to data from Florida Realtors.

2. Mortgage applications showed a positive trend, rising by 22% in December compared to the previous year, as reported by the Mortgage Bankers Association.

*Orlando area stats reported by Orlando Regional Realtor Association