Orlando Regional Housing Market Report - July 2023

The housing market in the Orlando Region experienced notable shifts in July 2023. This report provides an in-depth analysis of the key trends and developments that unfolded within the housing market during July 2023 in Central Florida (Lake, Orange, Osceola, and Seminole Counties).

Sales Activity

The impact of higher interest rates and the amount homeowners holding onto favorable mortgage rates, led to a mild slowdown in sales activity across the Orlando Region in July 2023. Closed sales recorded an 8.7% decrease compared to June 2023, indicating a modest reduction in buyer demand. Moreover, compared to the same period in the previous year, sales in July 2023 experienced a more pronounced decline of 13.8% from July 2022. This trend can be attributed to the cautious approach of potential buyers in light of the changing interest rate landscape.

Interest Rates

July 2023 witnessed interest rates hovering just under 7% (specifically, 6.8% in Central Florida). This marks the second-highest level in the past two decades within Central Florida. The impact of these rates on the housing market cannot be understated due to the influence on buyer affordability and demand.

Price Trends

The housing market in the Orlando Region experienced a moderation in price growth during July 2023.

• Average Home Price: The average home price in July 2023 settled at $444,555, signifying a decline of 3.6% from the preceding month when the average price was $461,242.
• Median Home Price: The median home price for July 2023 was reported at $380,000, reflecting a 1.3% drop from the median price of $385,000 observed in June 2023. Importantly, July 2023 marked the first instance in the year where the median home price experienced a decrease.

Single-Family Market Snapshot

As of August 15, 2023, recent data on single-family-only home prices (looking back 30 days) was:

• Median Price: $440,000
• Average Price: $540,516

Inventory

July 2023 saw a 15% increase in inventory when compared to June 2023. Despite this rise, the housing market remains characterized by tight supply, with inventory equivalent to approximately 2 months of supply. This scarcity of inventory continues to influence market dynamics and impact buyer choices.

Market Resilience

The Orlando Region's housing market remains resilient, influenced by various factors that are shaping buyer behavior. The recent migration of approximately 80,000 individuals from Miami to areas like the rural parts of Central Florida underscores the desirability of the region. The evolving interest rate landscape and Federal Reserve rate plans introduce an element of uncertainty to the market. Clarity on these plans is expected to provide a more accurate forecast of future interest rate trends.

Recap

The housing market in the Orlando Region during July 2023 has been influenced by a combination of high-interest rates and the propensity of individuals to hold onto lower mortgage rates. This has led to a slight reduction in closed sales, with a decline of 8.7% compared to the previous month, and a more significant decrease of 13.8% from last year. Price trends also indicate a moderation in growth, with average and median home prices experiencing declines. While inventory levels showed a marginal increase, the market remains supply-constrained. The coming months will provide better data on how the market adapts to changing economic conditions and buyer preferences.

*Source Orlando Regional Realtor Association State of Market Report for July 2023