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Orlando State of the Market August 2024

September 24th, 2024 by tisner

New Orlando Regional REALTOR® Association data shows August’s interest rate was recorded at 6.1%, down from 6.6% in July. This is the lowest interest rates have been since August 2022.

State of the Market

  • “Interest rates have dropped to their lowest level since August 2022, providing much-needed relief for buyers,” said Rose Kemp, President of the Orlando Regional REALTOR® Association. “This decrease can significantly reduce monthly mortgage payments by hundreds of dollars. Additionally, buyers have more leverage and options, with homes staying on the market longer and inventory increasing. Now is the perfect time to explore the market, find your dream home, and secure a favorable rate.”
  • The median home price for August was recorded at $384,500, down from $390,000 in July.
  • Overall sales held steady from July to August. There were 2,655 sales in August, compared to 2,652 sales in July.
  • Inventory for August was recorded at 11,511, up 3.2% from July when inventory was recorded at 11,158. This is the eighth month in a row inventory has risen. The last time inventory was this high was September 2015. Inventory in August 2024 was 88.2% higher than in August 2023.
  • August’s interest rate was recorded at 6.1%, down from 6.6% in July. This is the lowest interest rates have been since August 2022.
  • 11 distressed homes (bank-owned properties and short sales) accounted for 0.4% of all home sales in August. This is a 56.0% decrease
    from July, when 25 distressed homes sold.
  • New listings fell 5.2% from July to August, with 3,856 new homes on the market in August, compared to 4,067 in July.

  • Interest rates: The average interest rate for a 30-year fixed mortgage in September was 5.9%, down from 6.1% in August. This marks the lowest rate since early 2023.
  • Increasing inventory: The number of homes for sale in September rose to 11,825, up from 11,511 in August. This is the ninth consecutive month of inventory growth.
  • Stable prices: The median home price in September was $383,000, slightly down from $384,500 in August.

You can find ORRA’s full State of the Market Report for August here.

This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the Stellar Multiple Listing Service. Neither the association nor StellarMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or by StellarMLS does not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.

ORRA REALTOR® sales represent sales involving Orlando Regional REALTOR® Association members, who are primarily – but not exclusively – located in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.

Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Monday Morning Quarterback for September 8th, 2024 – September 14th, 2024

September 17th, 2024 by tisner

Every Monday, ORRA’s Monday Morning Quarterback Report gives you a snapshot of the previous week’s market activity, including sales, prices, days on market, and much, much more.

Monday Morning Quarterback for September 8th, 2024 – September 14th, 2024

Single-family existing homes

  • Sales of single-family homes increased to 405 during the week of September 08, from 331 the week prior
  • The median price of single family homes increased to $425,000 a change of 1.2%
  • The number of single-family home foreclosure transactions decreased to 1 from 2 the week prior
  • The number of single-family short-sale transactions increased to 1 from 0 the week prior
  • Single-family inventory increased by 95, and now sits at 7,544.

Condos, townhomes, and villas

  • Sales of condos, townhomes, and villas decreased to 105 during the week of September 08, from 120 the week prior
  • The median price of condos, townhomes, and villas decreased to $268,000 a change of -6.6%
  • The number of condo, townhome, and villa foreclosure transactions increased to 1 from 0 the week prior
  • The number of condo, townhome and villa short-sale transactions remains constant at 0
  • Condo inventory increased by 69, and now sits at 3,726.

Want to understand the Orlando market like a pro? Full report offers a deeper dive: https://www.orlandorealtors.org/mmq

https://www.orlandorealtors.org/mmq

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Monday Morning Quarterback for September 1st, 2024 – September 7th, 2024

September 10th, 2024 by tisner

Every Monday, ORRA’s Monday Morning Quarterback Report gives you a snapshot of the previous week’s market activity, including sales, prices, days on market, and much, much more.

Monday Morning Quarterback for September 1st, 2024 – September 7th, 2024

Single-family existing homes

  • Sales of single-family homes decreased to 331 during the week of September 01, from 501 the week prior
  • The median price of single family homes remains constant at $420,000
  • The number of single-family home foreclosure transactions remains constant at 2
  • The number of single-family short-sale transactions remains constant at 0
  • Single-family inventory increased by 78, and now sits at 7,449.

Condos, townhomes, and villas

  • Sales of condos, townhomes, and villas decreased to 120 during the week of September 01, from 148 the week prior
  • The median price of condos, townhomes, and villas decreased to $287,000 a change of -7.6%
  • The number of condo, townhome, and villa foreclosure transactions remains constant at 0
  • The number of condo, townhome and villa short-sale transactions remains constant at 0
  • Condo inventory remains constant at 3,657.

Want to understand the Orlando market like a pro? Full report offers a deeper dive: https://www.orlandorealtors.org/mmq

https://www.orlandorealtors.org/mmq

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Monday Morning Quarterback for August 25th, 2024 – August 31st, 2024

September 4th, 2024 by tisner


Every Monday, ORRA’s Monday Morning Quarterback Report gives you a snapshot of the previous week’s market activity, including sales, prices, days on market, and much, much more.

Monday Morning Quarterback for August 25th, 2024 – August 31st, 2024

Single-family existing homes

  • Sales of single-family homes increased to 501 during the week of August 25, from 424 the week prior
  • The median price of single family homes decreased to $420,000 a change of -2.3%
  • The number of single-family home foreclosure transactions remains constant at 2
  • The number of single-family short-sale transactions decreased to 0 from 1 the week prior
  • Single-family inventory decreased by 41, and now sits at 7,371.

Condos, townhomes, and villas

  • Sales of condos, townhomes, and villas increased to 148 during the week of August 25, from 120 the week prior
  • The median price of condos, townhomes, and villas increased to $310,750 a change of 11.5%
  • The number of condo, townhome, and villa foreclosure transactions decreased to 0 from 1 the week prior
  • The number of condo, townhome and villa short-sale transactions remains constant at 0
  • Condo inventory decreased by 8, and now sits at 3,657.

Want to understand the Orlando market like a pro? Full report offers a deeper dive: https://www.orlandorealtors.org/mmq

https://www.orlandorealtors.org/mmq

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Orlando State of the Market April 2024

May 24th, 2024 by tisner

New Orlando Regional REALTOR® Association data shows record-high median home price in Central Florida.


State of the Market

  • The median home price for April was recorded at $388,500, up from $386,500 in March. This is the highest monthly median home price on record in the Orlando area.
  • Overall sales rose 7.8% from March to April. There were 2,759 sales in April, up from 2,559 sales in March. This is the third month in a row that sales have risen.
  • April’s interest rate was recorded at 6.9%, up slightly from 6.7% in March. This is the third month in a row that interest rates have risen.
  • Inventory for April was recorded at 9,376, up 4.5% from March when inventory was recorded at 8,971. This is the fourth month in a row inventory has risen.
  • Pending sales increased by 2.9%, with 4,257 in March and 4,379 in April.
  • New listings rose 2.6% from March to April, with 4,230 new homes on the market in April, compared to 4,124 in March.
  • Homes spent an average of 54 days on the market (DOM) in April – down from 58 in March.
  • “April’s median home price was recorded at $388,500,” said Rose Kemp, Orlando Regional REALTOR® Association President. ” We saw an increase in homes for sale, providing a wider selection for potential buyers. Despite the supply remaining slightly over three months, homes are selling quickly, indicating a strong demand. This demand is a positive indicator of market stability and is expected to continue through the next few months as families look to relocate during the summer season.”

Market Snapshot

  • Interest rates rose from 6.7% in March to 6.9% in April.
  • Pending sales rose 2.9%, with 4,257 in March and 4,379 in April.
  • 26 distressed homes (bank-owned properties and short sales) accounted for 0.9% of all home sales in April. That represents a 13.0% increase from March when 23 distressed homes sold.

Inventory

  • Orlando area inventory increased 4.5% from March to April. Inventory in March was 8,971, and inventory in April was 9,376.
  • The supply of homes fell to 3.40 months in April, down 3.1% from 3.51 months in March. A balanced market is six months of supply.
  • The number of new listings increased from March to April by 2.6% – from 4,124 homes to 4,230 homes.

ORRA’s full State of the Market Report for April can be found here.

This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the Stellar Multiple Listing Service. Neither the association nor StellarMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or by StellarMLS does not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.

ORRA REALTOR® sales represent sales involving Orlando Regional REALTOR® Association members, who are primarily – but not exclusively – located in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.

Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Orlando State of the Market February 2024

March 19th, 2024 by tisner

New Orlando Regional REALTOR® Association data shows spike in listings kicking off the new year

 

State of the Market

  • Overall sales rose 26.5% from January to February. There were 2,174 sales in February, up from 1,719 sales in January. This comes after eight months of falling sales.
  • The median home price for February was recorded at $377,000, up from $360,000 in January. This comes after three months of falling median home price.
  • Pending sales increased by 17.8%, with 3,303 in January and 3,891 in February.
  • New listings rose 7.8% from January to February, with 3,799 new homes on the market in February, compared to 3,524 in January.
  • Inventory for February was recorded at 8,589, up 4.5% from January when inventory was recorded at 8,217.
  • February’s interest rate was recorded at 6.6%, up slightly from 6.5% in January.
  • Homes spent an average of 57 days on the market (DOM) in February – the same as in January.
  • “Super Bowl weekend is considered the unofficial kick-off to the spring homebuying season, and we definitely saw an uptick in the market this month,” said Rose Kemp, Orlando Regional REALTOR® Association President. “We had a lot of pending sales in January that finalized in February, causing home sales to jump as we approach this busy time for the market. Inventory and pending sales both increased from January to February, meaning we can expect to see another active sales month in March now that buyers have more options.”

Market Snapshot

  • Interest rates rose from 6.5% in January to 6.6% in February.
  • Pending sales rose 17.8%, with 3,303 in January and 3,891 in February.
  • 25 distressed homes (bank-owned properties and short sales) accounted for 1.1% of all home sales in February. That represents a 13.6% increase from January when 22 distressed homes sold.

Inventory

  • Orlando area inventory increased 4.5% from January to February. Inventory in January was 8,217, and inventory in February was 8,589.
  • The supply of homes fell to 3.95 months in February, down 17.3% from 4.78 months in January. A balanced market is six months of supply.
  • The number of new listings increased from January to February by 7.8% – from 3,524 homes to 3,799 homes.

ORRA’s full State of the Market Report for February can be found here.

This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the Stellar Multiple Listing Service. Neither the association nor StellarMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or by StellarMLS does not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.

ORRA REALTOR® sales represent sales involving Orlando Regional REALTOR® Association members, who are primarily – but not exclusively – located in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.

Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Orlando State of the Market December 2023

January 17th, 2024 by tisner

Orlando Regional REALTOR® Association releases overall 2023 data, revealing that rising interest rates were the biggest factor affecting housing market in 2023, slowing sales and boosting inventory.

December 2023 Summary

State of the Market

  • “The housing market in 2023 continued to stabilize from the frenzy we saw during COVID-19. Many buyers chose to wait on
    buying a home amid rising interest rates,” said Rose Kemp, 2024 Orlando Regional REALTOR® Association President. “Interest
    rates fell near the end of 2023, which enticed buyers who were waiting on the sidelines. Looking ahead, these rates will continue
    to be the biggest factor in the market.”
  • The overall median home price in 2023 was recorded at $370,500, an all-time high and a slight increase of 1.5% compared to
    2022 when the overall median home price was recorded at $365,000.
  • Overall sales in December decreased slightly – 0.7% – from November, with 1,982 sales recorded. Overall sales in 2023 decreased
    by 20.1% with a total of 30,499 sales. Overall sales in 2022 were recorded at 38,162.
    Single family home sales decreased in 2023 by 19.6% for a total of 22,530 sales compared to 28,022 sales in 2022.
    Condo sales decreased in 2023 by 22.5% for a total of 4,007 sales compared to 5,168 sales in 2022.
    Townhome sales decreased by 19.7% in 2023 for a total of 2,853 sales compared to 3,551 in 2022.
  • In November 2023, inventory was recorded at 8,202 – 4.11 months of supply. This was the highest inventory in the Orlando area
    since January 2019. (The real estate market is considered balanced when there is 6 months of supply.) Closing the year, inventory
    was recorded at 7,838 in December – 3.95 months of supply.
  • Interest rates rose nearly every month in 2023. In October 2023, interest rates reached 7.8%, their highest point in more than 22
    years. Interest rates began to fall in the two subsequent months, closing out the year at 6.6%.
  • New listings dropped in December, with 2,409 new listings, compared to 3,188 new listings in November.

2023 Annual Market Recap

(Cumulative 2023 totals compared to cumulative 2022 totals)

  • The overall median home price in 2023 was recorded at $370,500, an all-time high and a slight increase of 1.5% compared to 2022 when the overall median home price was recorded at $365,000.
  • Overall sales in 2023 decreased by 20.1% with a total of 30,499 sales. Overall sales in 2022 were recorded at 38,162.
    • Single family home sales decreased in 2023 by 19.6% for a total of 22,530 sales compared to 28,022 sales in 2022.
    • Condo sales decreased in 2023 by 22.5% for a total of 4,007 sales compared to 5,168 sales in 2022.
    • Townhome sales decreased by 19.7% in 2023 for a total of 2,853 sales compared to 3,551 in 2022.
  • “The housing market in 2023 continued to stabilize from the frenzy we saw during COVID-19. Many buyers chose to wait on buying a home amid rising interest rates,” said Rose Kemp, 2024 Orlando Regional REALTOR® Association President. “Interest rates fell near the end of 2023, which enticed buyers who were waiting on the sidelines. Looking ahead, these rates will continue to be the biggest factor in the market.”

Market Snapshot

  • Interest rates rose nearly every month in 2023. In October 2023, interest rates reached 7.8%, their highest point in more than 22 years. Interest rates began to fall in the two subsequent months, closing out the year at 6.6%.
  • The average interest rate in 2023 was 6.8%.

Inventory

  • At the start of the year, inventory was recorded at 6,115 – 3.65 months of supply. Supply dipped in the following months before rising again.
  • In November 2023, inventory was recorded at 8,202 – 4.11 months of supply. This was the highest inventory in the Orlando area since January 2019. (The real estate market is considered balanced when there is 6 months of supply.)
  • Closing the year, inventory was recorded at 7,838 in December – 3.95 months of supply.
  • The average monthly inventory for 2023 was 6,243. The average monthly inventory for 2022 was recorded at 4,997.

ORRA’s full State of the Market Report for December can be found here.

This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the Stellar Multiple Listing Service. Neither the association nor StellarMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or by StellarMLS does not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.

ORRA REALTOR® sales represent sales involving Orlando Regional REALTOR® Association members, who are primarily – but not exclusively – located in Orange and Seminole counties. Note that statistics released each month September be revised in the future as new data is received.

Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

RE Development: 3 Fla. Cities in U.S. Top 20

June 15th, 2023 by tisner

Census data shows the last decade’s most active development is in the Sun Belt. Texas holds top spots with Jacksonville (7), Orlando (11) and Tampa (15) close behind.

ORLANDO, Fla. – A study of real estate development based on U.S. Census Bureau data covering the last decade finds Texas cities in the top five spots, but three Florida cities are close behind: Jacksonville ranks at No. 7, Orlando at No. 11 and Tampa No. 15.

The analysis from StorageCafe, Yardi Matrix and Commercial Edge found that 15 of the top 20 cities with the highest volumes of real estate construction from 2013 to 2022 were Southern or Southwestern urban hotspots. Texas, however, is “now in a league of its own and boasts the top five best cities for real estate construction.”

U.S. map of 20 cities that are tops for real estate development

StorageCafe analysis of data from the U.S. Census Bureau, Yardi Matrix and Commercial Edge (2013-2022)

For the analysis, researchers say they considered building permits for single-family homes and multifamily units, and new deliveries of square footage in the industrial, office, retail and self-storage sectors – and the self-storage sector saw strong growth.

I’ve asked Doug Ressler, business intelligence manager at Yardi Matrix, a research firm and our sister division, to provide some insights on the state of the development market and self-storage in particular:

“In the face of the recent headwinds felt across the real estate sector, industrial, multifamily and self-storage remained the most preferred commercial assets,” says Doug Ressler, business intelligence manager at Yardi Matrix. “The self-storage sector is currently performing well with new supply at healthy levels and demand stabilizing after the pandemic-induced spike. Street rates are still down year-over-year but the drop is moderating as the prime moving season kicks in. In fact, the average rent for a standard unit is slightly up from the previous month and now sits at $127 per month.”

5 most active Florida cities, 2013-2022

1. Jacksonville

  • Single-family permits: 37,000
  • Industrial space: 18.7 million square feet
  • Self-storage space: 2.6 million square feet

2. Orlando

  • Retail space: 8.8 million square feet
  • Industrial space: 22 million square feet
  • Self-storage space: square feet

3. Tampa

  • Retail space: 3.2 million square feet
  • Self-storage space: 2.1 million square feet
  • Multifamily permits: 21,500

4. Miami

  • Self-storage space: 4.7 million square feet
  • Retail space: 9.1 million square feet
  • Multifamily permits: 45,800

5. St. Petersburg

  • Multifamily permits: 9,700
  • Self-storage space: 975,000 square feet
  • Retail space: 1M square feet

For more information on how the individual commercial sectors, the multifamily sector and residential construction expanded over the past decade nationally and by city – including the three Florida cities in the top 20 – visit StorageCafe’s website.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Source: © 2023 Florida Realtors®
By: Kerry Smith

Real Estate Trends: What’s the 2023 Fla. Outlook?

January 26th, 2023 by tisner

ORLANDO, Fla. – What should consumers, Realtors® and policymakers expect when it comes to Florida real estate over the next year? After the unexpectedly strong years of 2020 and 2021 despite an ongoing pandemic, Florida’s housing sector in 2022 was affected by rapidly rising inflation and higher mortgage interest rates, Florida Realtors® Chief Economist Dr. Brad O’Connor told nearly 500 Realtors during the recent 2023 Florida Real Estate Trends summit.

“Now, we expect the state’s residential real estate market to return to a more typical pace,” he said. “I believe 2023 will look more like the ‘traditional’ housing market years of 2018-2019 in Florida as supply and demand become more balanced.”

The event was part of this year’s Florida Realtors®’ Mid-Winter Business Meetings at the Renaissance SeaWorld Orlando. In addition to O’Connor, the summit featured John Leer, chief economist of Morning Consult, which uses high-frequency survey data to capture insights into consumer attitudes and concerns. Leer leads global economic research and oversees the firm’s economic data collection, validation and analysis. He is an authority on the effects of consumer preference, expectations and experiences on purchasing patterns, prices and employment.

It also included a panel of Realtors who use Florida Realtors’ SunStats resource regularly, sharing how it helps them in their business. Panelists were Peter West, broker/managing partner, Bishop West Real Estate; Kara Wisely, broker associate, Berkshire Hathaway HomeServices Florida Realty; and John J. Adams, president, Adams, Cameron and Co., Realtors. Jennifer Warner, Florida Realtors economist and director of economic development, served as the moderator.

Dr. Brad O’Connor, Florida Realtors chief economist

One major question currently on the minds of real estate professionals, homebuyers, home sellers and others: Is a price correction on the way?

“Well, prices are determined by both demand and supply,” O’Connor said. “Falling demand is only one ingredient needed for a large correction; we also need a flood of supply – in the last housing cycle, this came from overbuilding and foreclosures. And it’s unlikely that we’re going to see a flood of newly built homes on the market for several reasons. First, fewer home builders currently exist than in years past; builders are more conservative when it comes to taking on new builds; and home builds are taking longer to complete. Supply is also being affected by homeowners who don’t want to list their house and buy a different one because they’re likely to have to pay more on the next home due to higher mortgage interest rates.

“So it’s true some owners are feeling ‘locked-in’ to their current home and current mortgage rate, but it’s not all homeowners. We are seeing gains in inventory (active listings) and closed sales are continuing. And we are going to see some relaxing or easing in prices, but we’re not going to see a great drop unless or until we see more supply available.

According to O’Connor, inflation will continue to be a factor in 2023, though recent economic news shows the Federal Reserve’s action to fight inflation appears to be having a positive effect. Buyer demand in Florida in the coming months will continue to be challenged by insurance costs, mortgage rates – especially if rates start rising again to 7% or higher – and ongoing economic uncertainty that erodes consumer confidence.

“Mortgage rates will come down, but it’s all dependent on different factors,” he said. “All of the current forecasts on existing home sales in 2023 rely on where the 30-year mortgage rate is going to be, and that’s in flux.

Recent 2023 forecasts for U.S. existing home sales compared year-over-year to 2022 include:

National Association of Realtors® (12/13/22): Existing home sales fall 7.0% Y/Y in 2023

Fannie Mae (12/12/22): Existing home sales fall 21.1% Y/Y in 2023

Mortgage Bankers Association (12/19/22): Existing home sales fall 13.7% Y/Y in 2023

Redfin (12/6/22): Existing home sales fall 16.0% Y/Y in 2023

Realtor.com (11/30/22): Existing home sales fall 14.1% Y/Y in 2023

National Association of Home Builders (1/4/23): Existing home sales fall 15.7% Y/Y in 2023

O’Connor said, “In the first half of this year, I feel confident that we’re going to see home prices flatten out on average, and I think sales will kind of hug below the line of 2018 (closed existing home sales). I expect closed sales to hover a bit below the more usual pace of Florida home sales, such as what we saw in 2018. However, because home prices are much higher now than in 2018, we are still going to see a higher dollar volume of closed existing home sales, just not at the level of last year or in 2021 with dollar volume.”

Dr. John Leer, Morning Consult chief economist

How consumers are affected by the economy, inflation and other factors – or how they feel about what’s going on in the world around them – influences consumer confidence and factors into their buying decisions or saving habits, according to Dr. John Leer, chief economist for Morning Consult.

“In 2023, consumer confidence is starting to rise across most of the U.S. but remains far off from where it was a year ago,” he said. “It’s going to take a prolonged period of real wage growth and fairly stable policy outcomes for consumers to feel more comfortable and confident about the economy and their future. In December, consumers reported rising credit balances at the highest rates since tracking began. Research shows more consumers are finding it difficult to make ends meet at the end of the month, and the share of adults able to save each month continues to shrink.”

Leer pointed out this is a sign that consumers have been pushed to the brink and are having to pull back on spending as higher expenses erode their savings and sense of financial stability.

“While we’re seeing in the news that inflation is starting to cool, inflation is still impacting consumers,” he said. “They still feel and see that inflation is costing them more. Consumers are under financial stress and they’re trying to downsize their spending. Over the last two months, what we’re seeing is the outlook for the U.S. economy has really deteriorated, particularly among consumer fronts. Consumers have exhausted their sources of spending. We expect to see consumers continue to draw back from spending as small business and other sectors reduce hiring, expenditures and otherwise also contract.”

However, Leer also noted that housing and homeownership remain a top priority for many consumers. “Housing prices are beginning to flatten but continue to resist declines as buyer interest perks up,” he said. “Buyers are still waiting in the wings, interested in purchasing a home as soon as they’re able to do so financially. We continue to see that homeownership remains a strong goal for consumers, particularly for young adults looking to start a family and who feel secure in their jobs and ready for that next transition.”

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

By and photo credit: www.floridarealtors.org

Orlando State of the Market September 2022

October 27th, 2022 by tisner

Orlando Area Residential Real Estate Snapshot for September-2022

New Orlando Regional REALTOR® Association data shows interest rates surge as home sales see biggest drop since January 2022

State of the Market

  • September’s interest rate was recorded at 6.3%, a 19.5% increase from August when the interest rate was 5.3%.
  • Overall sales in September dropped by 18.3% for a total of 2,717 sales compared to 3,324 sales in August.
  • Overall sales dropped 28.3% in September 2022 compared to September of last year.
  • The median home price for September 2022 was recorded at $365,000, a decrease of 3.4% compared to August’s median home price, $377,750. This is the third month in a row that the median home price has fallen.
  • Inventory rose 1.8% in September, from 6,762 to 6,884. This is the fifth straight month of inventory increases.
  • Homes spent an average of 31 days on the market in September, jumping 14.8% from August when the average was 27 days.
  • New listings decreased by 27.1% from August to September, with 3,318 new homes on the market in September.
  • “We are starting to feel the impacts of rising interest rates on the Orlando housing market as they have more than doubled over the past 12 months,” said Tansey Soderstrom, Orlando Regional REALTOR® Association President. “Rising interest rates are causing buyers to be more cautious, resulting in fewer Orlando home sales for the month of September. This cooling off in sales does have an upside for buyers, as they now have the luxury of being more patient when looking for a home.”

Market Snapshot

  • Interest rates increased as the average interest rate for September was recorded at 6.3%. This is 120.9% higher than September 2021 when interest rates were 2.9%.
  • Pending sales decreased by 8% from August to September for a total of 3,838 pending sales.
  • 12 distressed homes (bank-owned properties and short sales) accounted for 0.4% of all home sales in September. That represents a 100% increase from August, when 6 distressed homes sold.

Inventory

  • Orlando area inventory increased by 1.8% from August to September from 6,762 homes to 6,884 homes. Inventory in September 2022 was 87.9% higher than in September 2021, when it was recorded at 3,664 homes.
  • The supply of homes increased to 2.53 months in September. This is the second month since June 2020 with over two months of supply. A balanced market is six months of supply.
  • The number of new listings decreased in September from August by 27.1% down to 3,318 homes.

ORRA’s full State of the Market Report for September can be found here.

 

Access Teri’s one-stop Orlando FL home search website.Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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By: www.orlandorealtors.org

Teri Isner, CIPS, CRS, GRI
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