Orlando’s housing market experienced significant changes in September 2023, as indicated by the recent data published by the Orlando Regional REALTOR® Association. Notable findings point towards the market facing a slowdown this fall, with some of the most impactful changes directly attributed to the interest rates reaching their highest point in over two decades.
Key Takeaways from September 2023
- Interest Rates: A significant uptick in interest rates was observed as September’s rate hit 7.3%, up from 6.6% in August. To provide a historical perspective, the market hasn’t seen such rates since March 2002.
- Inventory Surge: Orlando’s housing inventory for September was reported at 6,758, marking a 10.5% increase from the August figures, which stood at 6,115. Interestingly, this has been the sixth consecutive month where the inventory rose.
- Dip in Sales: A decline in overall sales was evident. September saw 2,558 sales, down 8.4% from 2,792 in August. This decline in home sales is consistent with trends from the past four months.
- Median Home Prices: There’s a slight drop in the median home price. The reported figure for September was $370,000, down from $375,000 in August. This indicates a three-month streak of declining median home prices.
- New Listings: The month of September witnessed a 2.1% decrease in new listings, with 3,545 homes, in comparison to August, which had 3,620.
- Days on Market (DOM): Homes in September spent an average of 41 days in the market, consistent with the previous month, August. However, compared to September 2022, there’s a significant 32.3% increase in DOM.
- Orlando Regional REALTOR® Association President Lisa Hill weighed in on these findings, emphasizing the pivotal role of rising rates. “Rising rates in September led to the observed increase in inventory, alongside drops in sales and median home price,” Hill mentioned. She noted the seasonal patterns: “Home sales during the fall are traditionally slower than those in spring or summer. However, the deceleration might be even more pronounced, with rates peaking to a level unseen in over 20 years. High interest rates have undoubtedly been the dominant challenge for buyers this year.”
Additional Market Insights
- There was a 15.3% year-over-year increase in interest rates when comparing September 2022’s 6.3% to this year.
- Pending sales dropped by 8.9%, from 3,647 in August to 3,322 in September.
- Distressed home sales, which include bank-owned properties and short sales, constituted 0.6% of September’s total home sales. This was a 23.8% decline from August.
Inventory Insights
The upward trajectory in Orlando’s housing inventory was further validated with a 10.5% rise from August to September. The supply of homes also saw a surge, with September having a 2.64-month supply, up 20.6% from August’s 2.19 months. Notably, a market is considered balanced when there’s a six-month supply.
In conclusion, Orlando’s housing market in September 2023 showcased clear signs of a shift influenced by rising interest rates. Staying informed will be paramount as buyers and sellers navigate this evolving landscape. For more insights and details on Orlando’s real estate trends, visit Ember Realty.
Conclusion
Ember Realty remains committed to providing the most comprehensive market updates for the Orlando region. Discerning buyers may find unique opportunities in a cooling market as fall approaches. For tailored real estate advice and assistance, contact our expert team at Ember Realty.
