Orlando Housing Market Update: July 2024 - A Market in Transition

As we move deeper into 2024, the Orlando housing market is showing signs of stabilization. The July 2024 market data reveals some intriguing trends, particularly as buyers and sellers navigate the evolving landscape. Here's a closer look at the key trends shaping the market, with data sourced from the Orlando Regional REALTOR® Association. Inventory on the Rise One of the most notable developments in July 2024 is the continued increase in housing inventory. The total number of available homes reached 11,158, marking a 3.4% increase from June 2024 and a significant 95.1% jump compared to July 2023. This surge in inventory is the highest we've seen since November 2015, offering buyers more choices than they’ve had in years. This increase in available homes is a clear indicator that the market is stabilizing, moving away from the intensely competitive environment that characterized much of 2023. Sales Activity: A Mixed Bag When it comes to sales, the data presents a mixed picture. In July 2024, there were 2,652 closed sales, a slight 2.0% increase from the previous month. However, when compared to July 2023, this represents a 7.0% decrease, highlighting a slowdown in year-over-year sales activity. This could be indicative of buyers taking a more cautious approach, possibly due to economic uncertainties or the impact of higher interest rates. Home Prices: Slight Decline, But Still Elevated The median home price in Orlando for July 2024 was recorded at $390,000, a slight decrease from June’s record-high median of $395,000. Despite this monthly dip, the median price still reflects a 2.6% increase from July 2023. Similarly, the average home price in July was $469,630, down 4.1% from June but up 5.6% from the previous year. These figures suggest that while the market is cooling slightly, home prices remain relatively high, maintaining upward pressure on affordability. Interest Rates: A Persistent Challenge Interest rates continue to play a crucial role in shaping the market. The average mortgage rate in July 2024 stood at 6.65%, slightly down from 6.7% in June. According to a recent survey by the Orlando Regional REALTOR® Association, 52% of REALTORS® cited interest rates as the biggest challenge for buyers. Many buyers are either waiting for rates to decrease or adjusting their budgets to accommodate the higher cost of borrowing. Market Time Increases Homes in Orlando are taking longer to sell compared to a year ago. In July 2024, the average time on the market was 55 days, up from 54 days in June and significantly longer than the 39 days recorded in July 2023. This extended market time suggests that buyers have more negotiating power and are taking more time to make decisions, possibly due to the increased inventory. Distressed Sales Remain Low Distressed properties, including bank-owned homes and short sales, accounted for just 0.9% of all home sales in July 2024. This figure remains unchanged from last year, indicating that distressed sales are not a significant factor in the current market landscape. New Listings and Contracts July saw 4,067 new homes listed on the market, a slight 1.8% decrease from June 2024. Despite this dip, there was a 3.8% year-over-year increase in the number of properties going under contract, suggesting that buyer activity is beginning to pick up, albeit slowly. Conclusion The Orlando housing market is clearly in a period of transition. With rising inventory levels, a slight softening in prices, and a slower pace of sales compared to the previous year, the market dynamics are shifting. Buyers are gaining more options and, in some cases, more negotiating power, while sellers may need to adjust their expectations as the market continues to stabilize. As always, staying informed and working with a knowledgeable REALTOR® is key to navigating these changes successfully. For more detailed statistics and insights, visit the Orlando Regional REALTOR® Association website.

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Orlando Real Estate Market Sees Significant Shifts in May 2024

The Orlando housing market continues to evolve, displaying significant trends that signal both opportunities and challenges for buyers and sellers. The May 2024 housing report from the Orlando Regional Realtors Association (ORRA) paints a detailed picture of the current state of the market. Inventory Surge Signals Market Shifts In May 2024, the Orlando real estate market experienced a substantial rise in inventory. With 10,282 homes available, inventory levels surged nearly 100% year-over-year from May 2023. This marks the highest inventory level since September 2016, and the fifth consecutive month of inventory growth. This influx of homes on the market is providing buyers with more options, although it still remains below the six-month supply threshold that signifies a balanced market. Steady Sales Amidst Rising Inventory Despite the increase in available homes, the market remains active. May 2024 saw 2,909 closed sales, reflecting a 5.4% increase from April 2024. However, when compared to May 2023, there was a 7.7% decline in sales. This juxtaposition of rising inventory and steady sales indicates a complex market where homes are still moving quickly, but not at the previous year's pace. Price Trends: Stability and Growth Home prices in Orlando continue to rise, albeit at a moderate pace. The average home price in May 2024 was $482,295, a 5.3% increase from the previous year. The median home price also saw a slight uptick, reaching $385,000, up 1.9% from May 2023. While these price increases may challenge affordability, they also reflect the underlying strength of the Orlando housing market. Mortgage Rates and Affordability Interest rates saw a minor dip in May 2024, recorded at 6.6%, down from 6.9% in April 2024. Compared to May 2023’s rate of 6.62%, this stability in mortgage rates is crucial for maintaining buyer interest in a market with rising home prices. Lower rates can help alleviate some affordability concerns, although the overall impact is nuanced. New Listings and Contracts May 2024 was a busy month for new listings, with 4,521 homes entering the market, a 6.9% increase from April 2024. However, new contracts saw a decline, with only 2,653 new agreements signed, an 11.4% decrease from May 2023. This decline in new contracts suggests a potential slowdown in buyer activity, even as more homes become available. Market Balance and Competition The months of supply in May 2024 stood at 3.53, indicating a more balanced market compared to the extremely tight conditions of the past year. However, with inventory levels still below the six-month mark, the market continues to favor sellers. Homes are spending an average of 54 days on the market, unchanged from the previous month, underscoring the continued competitiveness. Decline in Distressed Sales A positive note for market stability is the significant decrease in distressed property sales. Only 17 distressed homes were sold in May 2024, making up 0.6% of total sales, a 34.6% drop from April 2024. This decline suggests a healthier market with fewer distressed properties influencing overall sales dynamics. Monthly Volume and Market Health The total sales volume for May 2024 reached $1.4 billion, a 7.0% increase from April 2024, but a slight 2.8% decrease from May 2023. This indicates strong transactional activity, even as the market adapts to the new dynamics of increased inventory and steady, though slightly tempered, demand. Conclusion The May 2024 housing report underscores the dynamic nature of the Orlando real estate market. With significant increases in inventory, steady sales, and rising home prices, the market presents a mix of opportunities and challenges. Buyers now have more options but must act quickly in a competitive environment. Sellers benefit from continued price appreciation but face the reality of a market with more choices for buyers. As we move into the summer months, these trends will be crucial to watch, providing insights into the market’s trajectory and the opportunities it holds for all stakeholders.

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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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