Orlando Real Estate Market Sees Record Prices Amid Rising Inventory and Slowing Sales in June 2024

The Orlando real estate market experienced notable shifts in June 2024, as inventory levels soared to their highest since November 2015, with record-high home prices and a marked slowdown in sales activity. These dynamics paint a complex picture for buyers and sellers navigating this evolving landscape.

Inventory Surge Offers Buyers More Choices

Inventory levels reached 10,796 units in June 2024, reflecting a 5.0% increase from the previous month and a 98.1% year-over-year jump. This surge in available homes marks the sixth consecutive month of rising inventory, signaling a potential shift towards a more balanced market where buyers gain increased negotiating power.

Record-High Home Prices Set New Benchmarks

Despite the rise in inventory, home prices in Orlando continue to climb, with the median home price hitting a record $395,000 in June 2024. This figure represents a 2.6% increase from May 2024 and a 6.2% rise year-over-year. Similarly, the average home price reached $489,845, underscoring the strong demand persisting in the market despite higher inventory levels.

Sales Activity Declines, Indicating Market Cooldown

The Orlando market saw a significant slowdown in closed sales, which fell to 2,601 in June 2024—a 10.6% drop from May and a 16.7% decrease compared to June 2023. This decline breaks a four-month streak of rising sales and suggests a cooling market as higher prices and increasing mortgage rates impact buyer activity.

Interest Rates and Distressed Sales on the Rise

The average mortgage rate in Orlando was 6.7% in June 2024 up slightly from 6.6% in May. While this increase is small, it adds to the financial burden on buyers. Additionally, the market witnessed a 47.1% rise in distressed sales, although these properties only accounted for 1.0% of all home sales in June.

Market Dynamics Favoring Buyers

The months of supply jumped to 4.15 months in June 2024, up from 1.74 months a year earlier, indicating a more balanced market. This increase gives buyers more leverage, although sellers must adjust their strategies to stay competitive amid rising inventory and slower sales.

Strategic Recommendations for Homebuyers and Sellers

For buyers, the current market conditions offer an opportunity to explore a wider range of properties and negotiate better deals. Sellers, on the other hand, should consider pricing their homes competitively and remaining flexible during negotiations to attract buyers in a more saturated market. Investors might find lucrative opportunities in distressed properties and other segments, given the increased competition among sellers.

In conclusion, the Orlando real estate market in June 2024 is characterized by a unique blend of rising inventory, record-high prices, and slowing sales. These trends suggest a shift towards a more balanced market, presenting both challenges and opportunities for buyers, sellers, and investors alike. As always, staying informed and adapting to the market's evolving dynamics will be key to navigating this complex landscape effectively.

*source www.orlandorealtors.org