Orlando boasts a range of real estate opportunities for buyers, sellers, and property investors alike. With its thriving and diverse local economy, growing population, and exceptional quality of life, it’s truly no wonder why Orlando is one of the best places to live and invest in Florida.
If you’re thinking of investing or moving to Orlando, understanding the previous, current, and future state of the real estate market is vital. Learn more about Orlando real estate and what it may have in store in the coming year.
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ORLANDO HOUSING MARKET RECAP: WHAT HAPPENED IN 2023?
Last year, the Orlando housing market started to steady after recovering from the erratic market shifts due to the COVID-19 pandemic. Many homebuyers in 2023 chose to hold off purchasing a new home as interest rates rose in the early half of the year. Interest rates played a significant role in Orlando real estate and influenced most of the buyer and seller activity.
- House prices increased: There was a lot of positive growth in 2023 according to data from expert real estate organizations such as Orlando Regional REALTOR® Association and Redfin. Notable developments include rising home prices at the tail end of 2023. In December 2023, Orlando home prices soared with an increase of 9.7% compared to 2022 figures during the same time period.
Overall median home prices in Orlando also rose, from $365,000 in 2022 to $370,500. Although it was just a 1.5% uptick, it’s still one of the highest median home prices recorded in recent years. Average house prices in Orlando, on the other hand, were at $450,842 in December 2023 which was a 6.9% increase compared to the same time in 2022.
- Interest rates significantly affected activity in Orlando, Florida real estate market: Recent data reveals that overall sales decreased by 20.1% in 2023 across the board in Orlando. There were lower sales for single-family homes, condos, and townhouses. The decrease in overall home sales could be attributed to high interest rates which swept the nation. October 2023 especially saw higher rates, which peaked at 7.8%– the highest they have been in over two decades.
Fortunately, 2023 ended with a milder interest rate: 6.8%. Although not as low as many may have wanted, it’s still a significant improvement compared to October 2023 rates. As interest rates started to fall during the fourth quarter of 2023, homebuying activity and sales increased.
In December 2023, total recorded closings were at only 1,982 which was a decrease of 0.7% from the previous month. The overall recorded closings for 2023 were 30,499, a remarkable drop compared to 2022’s 38,162 closings. The breakdown of the closings is as follows:
- Single-family sales had 22,530 closings
- Condo sales had 4,007 closings
- Townhome sales had 2,853 closing
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The average number of days houses spent on the market shifted: In Orlando, houses stayed on the market for an average of 30 days last year. By December 2023, the average time on the market for houses in Orlando reduced to only 34 days compared to 36 days from the previous year. Even though it’s not a remarkable decrease in average time spent on the market, it’s a good indicator of what’s to come this 2024.
- More homes are entering the market: At the beginning of 2023, the Orlando area recorded a 3.65-month supply or 6,115 active listings and pending sales. The housing inventory, similar to other housing market factors, fluctuated throughout the year.
The last few months, however, saw an increase in housing inventory supply. In November 2023, the inventory had a 4.11-month supply or 8,202 active listings, with 3,188 new listings in total. This was the highest inventory in Orlando since January 2019. Overall, 2023 was a seller’s market in Orlando with housing inventory closing with a 3.95-month supply of 7,838 listings. The average 2023 monthly inventory was recorded at 6,243.
OUR PREDICTIONS FOR ORLANDO, FL REAL ESTATE THIS 2024
Market trends that significantly influenced Orlando– and the national– housing market last year remain just as important this year. But luckily for 2024, the outlook for Orlando’s real estate market is optimistic. Early market forecasts indicate promising prospects for buyers, sellers, and investors looking to delve into the Orlando real estate market.
The latest trajectories predict an estimated 4.4% increase in overall market value for 2024 in the Orlando-Kissimmee-Sanford area. And as fallout from COVID-19 continues to subside, those looking to buy, sell, or invest in Orlando may find excellent real estate options.
- New developments in the market: Going on a year-to-year comparison of January 2024 and 2023, median house prices in Orlando have improved somewhat. The overall median house prices have increased by 2.6% from the same period last year.
From $350,000, the median property prices bumped up to $360,000. The median home price in January 2024 is still notably lower compared to December 2023, but there is a strong likelihood that median house prices could bounce back even higher as the year progresses.
While these numbers indicate that we’re still seeing the effects of COVID-19 on the housing market, Orlando real estate is slowly finding its stride. House prices have also been affected by the area inventory and the ever-changing interest rates.
- Real estate activity is picking up: In January 2024, new listings nearly doubled, rising to 46.3% (a total of 3,524 new homes on the market) from December 2023. The total housing inventory for January 2024 was at 8,217 which was a slight increase from December 2023’s total of 2,409. That said, sales activity was slow to pick up: it slightly declined between December last year and January, although the month ended with 3,203 pending sales. Properties also spent more time in the market– 57 days.
Currently, the Orlando area has a 4.78-month supply which is among the highest it’s been in recent years, but it remains a seller’s market. For a market to be considered balanced, it must have around six months’ worth of inventory.
With median prices of homes at around $389,000 according to the most recent data from the Orlando Regional REALTOR® Association state-of-the-market report, the Orlando real estate market is still healthy but is in a bit of a spot because of the low inventory.
It’s still early. If Orlando’s housing inventory continues to increase– and interest rates remain reasonable– homebuying and selling activity will pick up in the coming months.
Latest Orlando real estate figures as of February 2024
Here’s a quick snapshot of the property sales for the first full week of February 2024:
- The median price of single-family homes is at $439,948.
- Single-family home foreclosure transactions are at 3.
- Single-family home sales are at 274.
- Single-family inventory is at 5,510.
- The median price of condos, townhomes, and villas is $283,000.
- Condo, townhome, and villa sales are at 112.
- Condo, townhome, and villa foreclosure transactions are at 1.
- Condo inventory is at 2,738.
IS IT WORTH INVESTING IN ORLANDO, FL REAL ESTATE?
Market trends change, interest rates rise and fall, but one thing remains clear and stable: Orlando is a prosperous city with a strong market and thriving local economy. Real estate investment opportunities can always be found, no matter the season or temperature.
Why should you invest in Orlando real estate?
If you’re still not convinced about the merits of investing in the city, here are just a few reasons why Orlando real estate is highly coveted:
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It has a strong and diverse job market: You can find over 150 international companies in the metro area alone. The key sectors in the Orlando area include advanced manufacturing, aerospace, biotechnology, and other high-tech industries. The booming local economy is a huge factor in the city’s population growth. As an investor, you can look forward to more demand for housing whether it be single-family homes or rental properties.
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Universities and colleges add to the rental opportunities: There are several high-ranking universities and colleges in the city, namely, the University of Central Florida, Rollins Colleges, and Stetson University. These schools make Orlando the ideal destination for college students. Investors can take advantage of the constant rental demand from students.
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It’s an established tourist destination: Orlando is a tourist haven with world-class amusement parks such as Universal Orlando, Sea World, and Disney World. In fact, the city is one of the top vacation destinations in the country. Tourists flock to the city by the millions every year making the city a great place for investors looking for short-term or seasonal rentals.
- It’s a great place to live: Orlando gained the moniker ‘The City Beautiful’ for its gorgeous lakes, pleasant climate, and excellent quality of life.
The area’s growing tech sectors make it an attractive place for young professionals. The top-notch school districts and universities are great for families and those who are seeking higher education. And the warm weather makes the city an ideal choice for retirees. If you’re investing in Orlando, you’re not limited to catering to a specific type of clientele. You’ll have plenty of opportunities to build your portfolio with long-term and short-term investments.
Is it a good time to invest in Orlando, FL real estate?
Although prices may seem higher than a few years ago, investing in Orlando real estate can still be a profitable venture in the long run. If you have the luxury of time and resources, now is as good a time as any to proceed with your real estate investment plans in the city.
There are also the fluctuating interest rates to consider. As of March 20, 2024, interest rates range from 5.20% to 5.25%— a dramatic improvement compared to last year’s rates. We’re optimistic that the Federal Reserve will continue to hold rates steady, if not lower, but if this seems like a good deal already, grab the chance. Delaying might make you miss out on a few deals.
As summer draws near, however, expect more competition. Spring and summer are historically the busiest seasons for homebuying. Inventories tend to increase around springtime, which can mean a larger selection of homes for sale to choose from. Meanwhile, families with children are enthusiastic about securing deals before the start of the school year; it gives them ample time to relocate, enroll their kids, and make the necessary adjustments.
Numbers and historical real estate data can help us make insightful forecasts about the market. The most important thing to consider, however, is your personal readiness. If the stage is set for you to buy a home or invest in Orlando, FL real estate, contact our team. We’ll help you with your next steps.
Preparation is the secret behind any successful real estate transaction in Orlando and other markets. Apart from being financially capable, you need to have the right tools and information in your arsenal if you want your real estate endeavor to go smoothly. Read up on what’s happening in the local market and recent developments. Keep abreast of any future developments as they could affect your investment chances.
With real estate being so localized, understanding the market trends of your target neighborhoods will provide you with an upper hand. One of the best ways to ensure success is by getting help from experts in the field. Find good local real estate professionals to work with. Their expertise and connections will make the whole investment process easier and likely to succeed.
BUYING OR SELLING A HOME? WORK WITH THE PREMIER REALTORS IN ORLANDO, FL
Our team at Robert Slack LLC are seasoned professionals who have been serving clients in Florida for almost a decade. With a record of over 24,000 transactions and $8 billion in sales, you can rest assured that you’re in the best hands.
Let us guide you through Orlando real estate with ease and make the most out of your sale or purchase. Our goal is to make your real estate journey as successful as possible. Get in touch with us today by calling 800.210.6610 or sending us an email.