Understanding Active Days on Market: Insights from June's Housing Report

The June housing market report for Orlando highlighted an average Days on Market (DOM) of 54 days. While this historical data provides a valuable snapshot of market trends, it's equally important to stay updated on the current state of active listings and pending sales. By understanding these dynamics, you can better position your home in today’s competitive market. Why Active Days on Market Matter Active Days on Market refers to the number of days a property has been listed and remains unsold. This metric is crucial because it reflects the current demand and pricing trends in the market. While the June report gives us an average DOM, the real-time numbers can vary significantly. Here’s why staying informed on active DOM is beneficial: Real-Time Market Insight: The market is fluid, and the conditions that applied in June might have shifted. Knowing the active DOM helps you gauge the current buyer interest and activity level. Effective Pricing Strategies: By understanding how long homes similar to yours are staying on the market, you can price your property more competitively. Overpricing can lead to longer DOM, while underpricing might mean leaving money on the table. Marketing Adjustments: If you notice that homes in your area are selling faster or slower than the June average, you can adjust your marketing efforts accordingly. This could mean increasing online visibility, staging your home differently, or offering buyer incentives. Current Market Conditions Today’s market dynamics are different from what they were in June. Several factors contribute to these changes, including seasonal trends, economic shifts, and buyer behavior. Here’s what you should consider: Inventory Levels: The number of active listings can influence the DOM. More inventory typically means more competition, potentially leading to longer DOM. Buyer Demand: High demand can reduce DOM as buyers act quickly to secure properties. Conversely, lower demand can increase DOM. Interest Rates: Changes in mortgage rates can impact buyer affordability and activity. Lower rates often stimulate buying activity, reducing DOM. How to Use This Information To effectively market and price your home, you need to be proactive. Here’s how you can use active DOM insights: Regularly Check Market Updates: Stay informed by regularly checking for updates on active DOM and other relevant metrics. This will help you stay ahead of market trends. Consult with a Realtor: Work with a local realtor who has access to the latest market data and can provide personalized advice. Their expertise can help you navigate the complexities of the market. Be Flexible: Be prepared to adjust your pricing and marketing strategies based on current conditions. Flexibility can be a key factor in achieving a successful sale. Conclusion Understanding active Days on Market is essential for anyone looking to sell their home in Orlando. While historical data like the June report provides a baseline, staying updated on current trends allows you to make informed decisions. The goal is to price and market your home effectively, ensuring a quicker sale and maximizing your return.

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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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Central Florida Housing Market Mid-Year Update: Opportunities and Preparations for Future Investments

*Source: Housingwire.com As we reach the midpoint of 2024, the Central Florida housing market, much like the national landscape, is experiencing significant changes in inventory, pricing, and demand dynamics. Here's a detailed look at the current trends and what they mean for potential real estate investments in our region. Growing Inventory: A Healthier Market Nationally, active inventory has increased significantly compared to last year, providing much-needed relief to the housing market. In March 2022, there were only 240,000 active single-family homes available for sale across the country. Today, that number has risen to 652,573, marking a substantial improvement from the lows of 2022. This increase in available homes has brought the market to a healthier state, though it still falls short of pre-pandemic levels. Weekly Inventory Highlights: June 29-July 5, 2024: Inventory rose from 645,770 to 652,573. Same week last year: Inventory fell from 466,534 to 466,001. All-time low: 240,497 in 2022. Inventory peak for 2024: 652,573. For context, active listings during this week in 2015 were 1,183,882. While we are still below those levels, the trend is moving in the right direction. New Listings: Seasonal Peak and Trends We are currently in the seasonal peak period for new listings. Recent New Listings Data: 2024: 71,181 2023: 58,289 2022: 89,221 Price Cuts: Adjusting to Market Conditions Price reductions are a natural part of the housing market, with about one-third of homes typically experiencing a price cut in an average year. This year, the percentage of price cuts is higher, reflecting the ongoing adjustments due to elevated mortgage rates and varying inventory levels across different regions. Weekly Price-Cut Percentages: 2024: 38% 2023: 33% 2022: 32% Pending Sales: Steady Demand Amid High Rates Pending sales data, which reflects real-time demand, shows a slight year-over-year growth, despite higher mortgage rates. This indicates a stable interest from buyers, particularly those who are also selling their homes. Pending Sales Comparison: 2024: 381,057 2023: 381,036 2022: 420,816 Mortgage Rates and Yield: Impact on the Market Recent fluctuations in the 10-year yield and mortgage rates have influenced the housing market dynamics. Despite these changes, mortgage rate spreads have improved compared to the worst levels seen in 2023. Purchase Applications: Fluctuations and Opportunities Purchase application data has shown volatility, influenced by weekly mortgage rate movements. Since the decline in mortgage rates started in November 2023, we've seen a mixed pattern of positive and negative trends in application data. Year-to-Date Purchase Application Data for 2024: Positive weeks: 9 Negative weeks: 14 Flat weeks: 2 Looking Ahead: Preparing for Future Investments As we look forward to the second half of 2024, it is crucial for potential investors in the Central Florida market to stay informed and prepared. Here are some key takeaways and recommendations: Monitor Inventory Levels: The increasing inventory provides more options for buyers and can lead to better negotiating opportunities. Stay Updated on Mortgage Rates: Keep an eye on mortgage rate trends, as even small fluctuations can significantly impact affordability and demand. Consider Timing: The market is expected to experience seasonal shifts, so timing your investments strategically could yield better returns. Prepare for Price Adjustments: Be aware of potential price cuts and use them to your advantage when negotiating deals.   For any specific inquiries or personalized advice, feel free to reach out. *Source: Housingwire.com

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