As summer draws to a close, the Central Florida real estate market displays signs of cooling. The Orlando Regional REALTOR® Association’s recent data release sheds light on this transition, indicating notable shifts as the fall season approaches.
State of the Market
- Inventory Dynamics: The inventory for August stood at 6,115, reflecting a 6.9% increase from July’s figure of 5,720 homes.
- New Listings: August saw 3,620 new home listings, marking a 6.1% hike from 3,413 in July.
- Median Home Price: For the second consecutive month, the median home price decreased, landing at $375,000 in August, compared to $380,000 in July. This is nearly identical to August 2022’s median price of $377,750.
- Sales Overview: Sales in August totaled 2,792 homes, a 2.1% decline from July’s 2,852. Year-over-year, sales in August 2023 were 16.0% lower than in 2022, which reported 3,324 sales.
- Days on Market (DOM): Homes in August lingered on the market for an average of 41 days, a slight increase from July’s 39 days. This figure marks a substantial 51.9% increase from August 2022, when the average was just 27 days.
- Interest Rate Developments: August’s interest rate settled at 6.6%, down from July’s 6.8%. The rate has significantly risen compared to the 5.3% in August 2022.
- Market Insights: In a survey conducted amongst ORRA members in July, nearly half (48%) observed indications of the market cooling. Elaborating on this, Lisa Hill, Orlando Regional REALTOR® Association President, mentioned, “As we approach the fall season, a traditional slowdown in sales is evident. The cooling market of Central Florida can provide prospective homebuyers with less competition, a broader inventory range, and a slight rollback in median home prices.”
Market Snapshot
- Interest Rate Analysis: From 6.8% in July, interest rates reduced to 6.6% in August, indicating a notable 24.5% surge from August 2022’s rate of 5.3%.
- Pending Sales: The month witnessed a 4.2% drop in pending sales, decreasing from 3,808 in July to 3,647 in August.
- Distressed Home Sales: Distressed home sales, encompassing bank-owned properties and short sales, made up 0.8% of August’s total home sales. This represents a decrease of 16.0% from July when 25 distressed homes were sold.
Inventory Breakdown
- Monthly Growth: Orlando’s housing inventory experienced a 6.9% boost in August, with the count moving up from 5,720 homes in July to 6,115 in August.
- Supply Overview: The housing supply for August edged up to 2.19 months, a 9.2% increase from 2.01 months in July. It’s noteworthy that a balanced real estate market traditionally holds a six-month supply.
- New Listings Insight: A 6.1% growth was recorded in new listings from July to August, with numbers escalating from 3,413 homes to 3,620 homes.
Conclusion
Ember Realty remains committed to providing the most comprehensive market updates for the Orlando region. As fall approaches, discerning buyers may find unique opportunities in a cooling market. For tailored real estate advice and assistance, reach out to our expert team at Ember Realty.
