Understanding the Housing Market: How Supply, Rates, and Prices Affect Your Decisions

In the world of real estate, things are constantly changing. The number of homes for sale (supply), mortgage interest rates, and home prices form a delicate dance, each factor influencing the others. As a Realtor, I aim to help you understand this dance and use that knowledge to reach your goals. The Supply and Demand Dynamic Think of the housing market as a giant see-saw. On one side, we have a supply of homes for sale. On the other, we have buyer demand. When supply is low with increased buyers interested, prices go up – the sellers have the advantage! But, if in the situation with more houses available than people looking to buy, prices can soften, giving buyers more negotiating power. The Mortgage Rate Factor Interest rates are like the grease that keeps the housing market moving. When rates are low, more people can afford to buy a home. This fuels demand and can push prices higher. On the flip side, when rates rise, a buyer's monthly payments go up too. That means affordability could be challenging, potentially leading to less demand and a cooling in prices. Navigating Changes in Buyer Agency It's important to understand the new process for how buyer agency now works in real estate. While the traditional model of the seller typically covering both agent commissions still exists, there are some notable changes. Disentangling online information on this topic can be confusing. Homebuyers and sellers meet with a trusted Realtor to discuss these changes and how they apply to your specific situation in our local market. How I Can Help as Your Realtor Market Knowledge: Keeping a pulse on the local market with insights about current inventory levels, home price trends, and how mortgage rates affect buyer psychology. Realistic Expectations: Craft a plan that aligns with your budget and the market realities. Manage expectations and guide you toward areas where your money goes further. Your Competitive Edge: Market knowledge will help you be positioned to make strong, informed offers when the perfect property comes along.

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2024 Spring Home Buying Season in Orlando and Central Florida

With spring homebuying season just around the corner, homebuyers in Orlando find a market undergoing subtle yet significant shifts. Data from January 15 to February 15, 2024, reveals an average of 52 days on the market for single-family homes and an average sales price of $522,036. Orlando's real estate landscape remains dynamic and ripe with opportunities. Trends in the Orlando Housing Market Recent data indicates a slight uptick in inventory levels and average days on the market. The average days on the market reaching 52 days provides buyers with a wider window for decision-making and negotiation. Advantages for Home Buyers Favorable Conditions: With inventory levels rising and the average days on the market increasing, this could present homebuyers with a more favorable position. This trend offers buyers more options and breathing room for decision-making. Financial Considerations: As long as buyers have available funds for a downpayment and can budget for today's mortgage rates, they stand to benefit from today's market. The average Orlando area single-family home price of $522,036 (data from Jan 15 - Feb 15 2024) reflects the desirability of Orlando's real estate market and still presents opportunities for buyers. Desirable Environment: Beyond financial considerations, Orlando's appeal as a place to call home remains strong. With its desirable weather and friendly tax environment, Florida continues to attract buyers seeking a high quality of life. Tips for Home Buyers Secure Financing: Given the current market conditions, securing financing early in the homebuying process is essential. Buyers should work with lenders to assess their financial situation, explore mortgage options, and obtain pre-approval to strengthen their purchasing power. Define Priorities: With an increasing inventory of homes on the market, buyers should take the time to clearly define their priorities. Whether it's location, amenities, or specific features, having a clear understanding of what matters most will streamline the search process. Act Decisively: While the market may be shifting in favor of buyers, desirable properties still attract competition. Buyers should be prepared to act decisively when they find a home that meets their criteria. 

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February 2023 Orlando Housing Market Updates

The Orlando housing market has been experiencing rapid growth over the past few years. With interest rates hovering around 6%, February's month-to-month national home sales increased by 14.5%, making it all the more interesting for the housing market. In this blog post, we will explore the latest news and market updates for the Orlando housing market. The real estate industry in Orlando has been booming, and this trend is expected to continue through 2023. According to the Orlando Regional Realtor Association, the median home price in Orlando has risen to $358,000, up from $350,000 in January. Additionally, the inventory in February 2023 of available homes in Orlando has decreased to 2.48 months of supply, down from 3.65 in January 2023. This means buyers should expect to continue seeing multiple offers on homes for purchase in the Orlando area. Interest rates are still low (considering the historical highs in the 80s), remaining realistic for many buyers to secure a mortgage. However, experts predict that interest rates may slightly rise throughout the remainder of 2023 before leveling off, which could affect the housing market. As demand continues to outpace supply, the median home price is expected to rise steadily through 2023. This means that now may be a good time to invest in the Orlando housing market, as home values are likely to continue to appreciate. Orlando is a popular destination for tourists and residents alike, with a thriving economy and job market. The city is home to world-famous theme parks, including Walt Disney World, Universal Studios, and SeaWorld. In addition to tourism, Orlando is known for its healthcare, technology, and aerospace industries. With so much going on in the city, it's no wonder that the housing market is resilient. Finally, the banking turmoil may continue to be a factor in the housing market. As banks consider the tightening of their lending standards, it may be more challenging for potential buyers to secure a mortgage. The banking industry, interest rates and inflation are all areas you'll want to pay attention to moving forward this year. The Florida and Orlando housing market is expected to remain strong through 2023.

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