By Michael Cordero, Ember Realty
The latest data from the Orlando Regional REALTOR® Association (ORRA) reveals some notable shifts in the local housing market. In August 2024, we saw interest rates dip to a two-year low, providing a welcome relief for buyers. Here’s a detailed look at the current state of the market, key trends, and what this means for prospective homebuyers and sellers in the Orlando area.
State of the Market
Interest rates for August 2024 fell to 6.1%, down from 6.6% in July, marking the lowest rates since August 2022. This dip comes as a welcome reprieve, especially for those seeking to secure more favorable mortgage terms. Alongside the drop in interest rates, homes in the Orlando area spent an average of 57 days on the market (DOM) in August—an increase from 55 days in July. This trend continues to reflect a slower market compared to last year when the DOM averaged just 41 days.
Inventory has also been on the rise, with August recording 11,511 homes on the market, a 3.2% increase from July’s 11,158. This marks the eighth consecutive month of rising inventory levels, a figure not seen since September 2015. Year-over-year, inventory is 88.2% higher than in August 2023.
The median home price saw a slight decrease, falling from $390,000 in July to $384,500 in August. Despite this, overall sales numbers remained steady, with 2,655 homes sold in August, just above July’s 2,652 sales.
However, pending sales took a hit, dropping by 11.1%, with 3,556 homes under contract in August compared to 3,999 in July. New listings also decreased by 5.2%, from 4,067 in July to 3,856 in August.
ORRA President Rose Kemp commented on these trends, stating, “Interest rates have dropped to their lowest level since August 2022, providing much-needed relief for buyers. 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.”
Market Snapshot
- Interest Rates: Fell from 6.6% in July to 6.1% in August.
- Pending Sales: Dropped 11.1% from 3,999 in July to 3,556 in August.
- Distressed Homes: Only 11 distressed homes (bank-owned and short sales) accounted for 0.4% of all home sales in August, a 56% decrease from July’s 25 distressed home sales.
Inventory Trends
Inventory levels continued their steady climb, with a 3.2% increase from July to August, reaching 11,511 homes. The current supply of homes now sits at 4.34 months, up slightly from July’s 4.21 months. For context, a balanced market typically has about six months of supply.
New listings saw a slight decline of 5.2%, dropping from 4,067 in July to 3,856 in August, further indicating that while inventory is rising, fewer homes are being introduced to the market.
Looking Forward
As interest rates fall and inventory rises, the Orlando housing market presents unique opportunities for both buyers and sellers. Buyers, in particular, may find this a favorable moment to purchase, with more options available and homes lingering on the market longer. Sellers, however, will need to navigate this evolving landscape carefully, as the competition increases and pricing strategies become more crucial.
At Ember Realty, we’re here to help you navigate these changes with confidence. Whether you’re looking to buy, sell, or simply explore your options, our experienced team is ready to assist you. Contact us today!
