September 2024 Greater Orlando Housing Market Overview

The latest data from the Orlando Regional Realtor Association highlights key trends in the September 2024 housing market, pointing toward a more balanced landscape as inventory rises and interest rates decline. Key Trends: Rising Inventory: September saw a 71.1% increase in available homes compared to the same period in 2023, marking the ninth consecutive month of inventory growth. The total number of homes for sale reached 11,560, a slight 0.4% increase from August 2024. Slight Decline in Home Prices: The median home price in Orlando decreased to $380,000 in September from $384,500 in August, reflecting a small 1.2% drop. However, year-over-year, prices have risen by 2.7%. Sales Activity: Home sales took a dip in September, with 2,249 properties sold, a 15.3% decrease from August. Additionally, new listings dropped by 8.5%, with 3,530 new homes entering the market in September, down from 3,856 in August. Interest Rates: Mortgage interest rates have decreased to 5.9%, the lowest since August 2022, offering potential relief for buyers who have been priced out in previous months. This decline from August's 6.1% signals better borrowing conditions as we approach the end of the year. *As of October 15, 2024, the rate was 6.62% (https://www.cnbc.com/quotes/US30YFRM) Distressed Sales: While distressed properties remain a small portion of the market, their sales have increased by 54.5% compared to August, making up 0.8% of the total home sales (17 homes) in September. Conclusion: Lower interest rates and rising inventory levels are setting the stage for a more balanced market in Orlando as we enter the final quarter of 2024. For buyers, these conditions could present new opportunities, especially for those who have been waiting for the right moment to jump in. For sellers, competitive pricing will be key as more homes come to market. Stay updated on these trends by checking out the full report and additional details at https://www.orlandorealtors.org/marketreports

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Fed Meeting Tomorrow: What to Expect and How It Could Impact the Housing Market

As the Federal Reserve prepares to meet tomorrow, the housing market is closely watching for the outcome. There is a high probability of a 25-basis point decrease in interest rates. While the Fed has made no official announcements, the markets—and especially the bond market—are already pricing in this move. Here’s what we can expect and how it could shape the real estate landscape in the months ahead. Mortgage Rates Already Responding Mortgage rates have already started to shift in response to market expectations, thanks to bond traders getting ahead of the Fed's likely decision. As of September 17, the 30-year fixed mortgage rate stood at 6.12%. This movement suggests that even if the Fed announces the rate cut, we might not see immediate relief in mortgage rates beyond what’s already been priced in. However, the signal to buyers is clear—rates are starting to improve, which could unlock new opportunities in the near future. More Sellers, More Buyers One of the interesting dynamics in today’s market is that most sellers are also buyers. As interest rates decline, many would-be sellers who’ve been sitting on the sidelines, reluctant to trade in their historically low rates for higher ones, could feel more confident entering the market. This increase in listings would help build upon more healthy inventory levels and could stimulate more purchase activity. A Busy Fall Ahead? After a historically low spring sales season, a rate reduction could give the housing market a much-needed jumpstart heading into the fall. Improved rates tend to lower monthly mortgage payments, making homes more affordable for buyers who have been priced out by the rapid rate increases over the past two years. With more sellers entering the market and buyers finding more attractive financing options, this fall could bring a surge of activity to what has otherwise been a sluggish 2024. Optimism in the Air While we await the official outcome of tomorrow’s Fed meeting, the general sentiment is one of cautious optimism. If the expected rate cut materializes, it will likely further bolster confidence in the housing market. And while the immediate impact on mortgage rates might be modest, the ripple effect on inventory and sales activity could be significant. Stay tuned—this could be the shift we’ve all been waiting for. Source: Florida Realtors

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Mortgage Rates Drop, Offering a Positive Outlook for the Housing Market

This week brought good news for homebuyers and the real estate industry. The 30-year mortgage rate traded earlier this week as low as 6.11%, with a slight uptick to 6.15% as of this morning. While still relatively high compared to the historically low rates of recent years, this movement marks a positive trend that could benefit buyers and sellers. One of the key drivers for the positive mortgage rate decline is the bond market. The spreads between Treasury yields and mortgage rates have narrowed, helping ease pressure on borrowing costs. The bond market has gotten ahead of the Federal Reserve's next moves. With the Fed meeting next week, it's unlikely that the results of this meeting will lead to significantly lower rates. The bond market has already factored in most potential outcomes, meaning we may not see much additional downward movement from here. However, any trend toward lower mortgage rates, no matter how small, is a welcome sign for the housing industry. A drop in rates can make homeownership more affordable for buyers and help stimulate demand, which is particularly important as the market balances inventory levels and buyer preferences. If you're considering buying or selling a home, keep an eye on these rates. Even small adjustments can make a significant difference in what you pay over the life of a loan, and a favorable market can help both buyers and sellers meet their goals. Let's stay tuned to next week's Fed meeting, but for now, the slight drop in rates is a step in the right direction.   *source housingwire.com

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