August 2023 Orlando Area Housing Market Update

In August 2023, the Orlando housing market showed some interesting trends that could significantly impact both buyers and sellers. With inventory on the rise, closed sales slipping, and mortgage interest rates remaining over 7%, the real estate landscape points to a cooling period this fall. What does the rest of 2023 hold for Orlando's housing scene? One of the standout features of the Orlando housing market in August 2023 is the notable increase in inventory. Compared to July 2023, there was a 6.9% month-over-month rise in available properties. However, it's crucial to note that inventory is still 9.6% lower when compared to August 2022.  Closed sales in August 2023 have taken a hit, with a 2.1% decrease compared to July 2023 and a substantial 16% decline year over year when compared to August 2022. This decline in closed sales can be attributed to several factors, including rising interest rates and the increase in inventory. Buyers are now more cautious, taking more time to make decisions and many backing out of deals, which has contributed to the overall decrease in sales. The rise in interest rates on 30-year fixed mortgages has and will continue to affect the Orlando housing market (now hovering over 7%). These higher rates have made it more expensive for buyers to finance their homes, reducing the pool of qualified buyers. As a result, many potential buyers and sellers are adopting a wait-and-see approach, hoping for more favorable conditions in the future. Traditionally, the fall season tends to bring a cooling effect to the real estate market. Given the increased inventory and decreased closed sales, it appears that Orlando is poised for a buyer's market this fall. Buyers can expect less competition, a wider range of choices, and potentially some relief in home prices. Sellers, on the other hand, may need to adjust their expectations and pricing strategies to attract buyers in this changing landscape. As we move closer to 2024, there is a lot of uncertainty in the housing market, primarily driven by the Federal Reserve's actions and policies. Many are eagerly awaiting more clarity on the Fed's direction, as it will undoubtedly have a substantial impact on interest rates and the overall economic environment. Orlando's housing market will likely continue to evolve in response to these broader economic factors. In August 2023, the Orlando housing market is experiencing a shift towards a buyer's market. Rising inventory, declining closed sales, and the challenge of high-interest rates are the defining characteristics of this period. Buyers have a unique opportunity to benefit from reduced competition and more choices, while sellers may need to adjust their strategies to accommodate changing market conditions. The future remains uncertain, we are hoping to gain more clarity - on the Orlando housing market - from the Federal Reserve as we head into 2024.

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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

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Lake Mary, the Rural City on Orlando's Doorstep

Known for its beautiful landscapes and perfect location in Central Florida, Lake Mary is a hidden gem that blends rural living with the vibrancy of nearby Orlando. Lake Mary boasts a plethora of attributes that elevate its quality of life, from its innovative school systems and appetizing dining options to its strong housing market and proximity to urban adventures. Education in Lake Mary Lake Mary's commitment to education shines brightly, offering a school system beyond the conventional. The city's schools embrace a progressive approach that combines academic rigor with creative exploration, fostering an environment where young minds thrive. Innovative teaching methodologies and a strong emphasis on extracurricular activities empower students to reach their full potential. Culinary Delights For those who appreciate an exceptional dining experience, Lake Mary's restaurant scene is a delightful surprise. Despite its small-town charm, the city boasts an array of gourmet restaurants, trendy cafes, and international eateries that cater to diverse palates. From savoring farm-to-table to global flavors, residents, and visitors are treated to a journey that satisfies even the most discerning taste buds. A Quiet Retreat Close to Orlando While Lake Mary provides a serene escape from bustling city life, its strategic location ensures that the magic of Orlando is never too far away. Residents can easily access the theme parks, entertainment, and cultural experiences that Orlando offers. This harmonious balance between rural charm and urban excitement is a defining feature of Lake Mary. Strong Housing Market and Community Bonds Lake Mary's housing market is a testament to its desirability. The city's real estate landscape is characterized by diverse options, ranging from luxurious estates to cozy suburban homes. The strength of the housing market reflects the community's unwavering commitment to preserving the city's unique character while embracing modernity. The strong sense of community and neighborly bonds further contribute to the area's stability and appeal. Embracing Nature Nestled in the embrace of Florida's lush greenery, Lake Mary offers abundant opportunities for outdoor enthusiasts. From hiking trails and serene lakes for kayaking to sprawling parks that invite picnics and strolls, nature's beauty is seamlessly woven into the fabric of everyday life. This connection to the outdoors not only enhances physical well-being but also fosters a deeper appreciation for the environment. In conclusion, Lake Mary, FL, stands as a testament to the harmonious all things rural and nearby urban excitement. Its innovative education systems, diverse dining experiences, strong housing market, and proximity to Orlando make it a captivating destination for those seeking a high quality of life. Whether you're captivated by the charm of small-town living or love nearby adventures, Lake Mary offers a unique blend of both worlds. As this city in Central Florida continues to shine, it's bound to attract those who yearn for a life that combines the best of all worlds.

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