Do you want to sell your home this Fall? Perhaps you’re wondering whether the time is right to become a homeowner! In either case, it’s not a bad idea to check out the housing market trends first. Fortunately, the outlook in Orlando looks pretty good as this year comes to an end.
How do we know this? There are several important factors we want you to take a look at.
Orlando’s Housing Data for October 2016
- Median Home Price: $205,000 (up 14% from 2015)
- Sales: 2,654 (Down 8%)
- Pending Sales: 4,719 (Down 11%)
- New Contracts: 2,271 (Down 12%)
- Interest Rate: 3.57% (Based on 30-year fixed rate mortgage)
That’s just a snapshot, but let’s delve a bit deeper into this data and what means for the housing market in Orlando.
The Median Price for a Home in Orlando
First of all, the median sales price for homes in Orlando was up 13.95% from $179,900 in October 2015 to $205,000 last month. If you’ve been keeping track, that’s now 63 consecutive months of increases! Additionally, the current median sales price is 77.49% higher than it was 5 years ago. This is a strong indicator how how Orlando’s housing market has improved.
Quick Breakdown of Orlando’s Housing Inventory
Another positive indicator for Orlando’s real estate market is the housing inventory. The number of homes that were available for purchase in October was 10,025– this is 12% less than a year ago.
- The inventory of normal homes decreased by 2%
- Foreclosed homes decreased by 67%
- Short sales decreased by 46%
Housing inventory is an important indicator of the sales taking place in Orlando. With a 3% decrease from September, the housing inventory has dropped to its lowest recorded point in two years.
What does this mean for home sales in Orlando? On average, homes are on the market for about 2 months before going under contract. Most sales are being completed at 97 to 100% of the asking price. When combined with increased home prices, it’s clear that we’re in the midst of a seller’s market here in Orlando.
If you’ve been considering selling your home, now is a good time to act!
Historically Low Interest Rates
Did you notice that interest rates are currently at 3.5%? This is historically low and has had a significant impact on our housing market. For potential buyers in Central Florida, this is an opportunity to purchase a home at a more affordable interest rate!
Just remember that the lower housing inventory will continue to drive up median sales prices.
Housing Market Outlook for 2017
So how do things look for next year? You’ll be pleased to know that housing market forecasts look positive for 2017. In fact, we expect to see an increase in first time homebuyers next year.
Realtor.com’s Home Shopper Survey states that first-time buyers will account for more than 50% of future buying potential in 2017.
While more first-time homebuyers could create issues with the affordability index in Orlando, some experts have a different outlook. Jessica Lautz, managing director for research at NAR, reported that a significant number of millennials have saved enough to bypass the typical starter home purchase. Lower interest rates certainly could support this prediction.
Speaking of interest rates, the prediction is that we could be seeing another year of low interest rates following this controversial presidential election. According to Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, uncertainty in the wake of Donald Trump’s win would not create an environment where we’d see a hike in interest rates.
As of right now, the Orlando housing market has a healthy outlook for 2017. It has been a seller’s market this year and we haven’t come across any news to make us believe that it’s going to change next year.