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

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What the $418 Million Settlement Means to the Real Estate Industry

If you missed the big news in the real estate industry last week, I wanted to bring your attention to some significant changes unfolding. The National Association of Realtors (NAR) has recently settled a commission lawsuit for just over $400 million. This settlement marks a pivotal moment in the industry, prompting reflection and adaptation for both buyers and sellers. For buyers, this settlement underscores the importance of transparency and clarity in their transactions. As Realtors representing buyers, it reinforces our commitment to open and honest communication, starting with clear agreements regarding compensation from the outset. Yes, a standard buyer agreement should have always been part of our practice; however, this change in the industry emphasizes more accountability and transparency. As listing agents, we must engage in candid discussions with sellers regarding the compensation of buyer's agents. Sellers now have the opportunity to determine the extent of compensation, if any, they are willing to offer to buyer's agents. The real estate industry is cooperative and these changes should lead to more collaboration and honesty. Throughout this process, sellers need to know and understand the breakdown of commissions and the role of buyer's agents in the transaction. Greater transparency and trust should strengthen the bond between homebuyers and sellers, ultimately enhancing the integrity of the real estate industry.

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Orlando Area Housing Market Brief for September 2023

September 2023 reported a 10.5% increase in inventory compared to August 2023. For buyers, this means more options and the potential for negotiating more favorable terms. As for sellers, this could be a sign to get a bit more strategic and creative in your listings. The median home price in Orlando took a subtle dip, falling by just 1.3% from the previous month to $370,000. Meanwhile, the average home price remained virtually unchanged, with only a slight drop of -0.1% to $446,888.  Remember, home sales tend to slow down in the fall compared to the vibrant spring and summer months.  For our sellers, it's essential to be patient in this shifting landscape. The average days on the market have increased to 41 days compared to 31 days last September. Additionally, new listings have seen a 2.1% decrease compared to the previous month. The higher interest rates are the number one contributor to the increased inventory in September 2023. However, a balanced market typically hovers closer to 6 months and with only 2.64 months of supply sellers still hold some cards.  The wait-and-see mentality from both buyers and sellers caused by high-interest rates has kept overall inventory lower, leading to home price stability.  When studying monthly real estate updates, it's about understanding the market dynamics, and for sellers, it's a reminder to stay steady. For buyers, it's an opportunity for increased inventory and potentially negotiate better contract terms. As always, if you'd like to connect, don't hesitate to reach out. *source Orlando Regional Realtor Association

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