By Michael Cordero, Ember Realty
The Orlando housing market has welcomed the new year with significant activity, as seen in the latest data from the Orlando Regional REALTOR® Association. January 2024 has been a month of notable changes, with a surge in new listings, a slight adjustment in home prices, and fluctuations in interest rates, indicating a dynamic start to the year.
Surge in New Listings
A remarkable 46.3% increase in new listings was recorded from December 2023 to January 2024, with 3,524 new homes entering the market. This surge indicates that sellers are becoming increasingly confident in the market’s prospects, leading to more options for prospective buyers.
Inventory and Home Prices
The total inventory of homes available for sale in January rose to 8,217, marking a 4.8% increase from December’s 7,838. Despite this inventory growth, the median home price experienced a slight decline to $360,000 in January, down from $367,250 the previous month. This trend of falling prices, observed for the third consecutive month, has resulted in a total drop of $17,000 since October 2023.
Interest Rates and Market Sales
Interest rates have also slightly declined, with January’s rate recorded at 6.5%, down from 6.6% in December. This ongoing reduction in rates, the third consecutive month of decrease, provides home buyers with a more favorable borrowing environment.
However, overall sales have witnessed a downturn, falling 13.3% from December to January, continuing an eight-month trend of declining home sales. Conversely, pending sales have shown significant growth, with a 32.4% increase from December to January, indicating a potential rebound in finalized sales in the coming months.
Market Dynamics
Homes spent an average of 57 days on the market in January, an increase from 49 days in December, reflecting a slower pace in sales closure. The number of distressed homes, including bank-owned properties and short sales, rose significantly by 69.2% from December, although they still represent a small fraction of the total sales.
Rose Kemp, President of the Orlando Regional REALTOR® Association, commented on the recent performance, “We closed out 2023 with the healthiest market we’ve had in years, making both buyers and sellers optimistic for 2024. With falling rates and considerable equity for many sellers, January’s spike in new listings is a sign of renewed confidence among market participants.”
Looking Ahead
The Orlando housing market shows signs of balance, with increased inventory and a steady influx of new listings. While the median home price and overall sales have seen adjustments, the market dynamics indicate a healthy level of activity that could benefit both buyers and sellers in the long run.
With the supply of homes reaching levels not seen since January 2016, the Orlando area is poised for a potentially vibrant real estate market in 2024. As interest rates stabilize and inventory grows, the market could see a resurgence in activity, making it an opportune time for those looking to buy or sell in the area.
As Ember Realty, we remain dedicated to helping our clients navigate the complexities of the real estate market. The trends of 2023 have set a unique landscape for 2024, and we are here to provide expert guidance every step of the way. Whether buying, selling, or simply exploring, Ember Realty is your trusted partner in all things real estate in Orlando.
