Brought to you by Ember Realty
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.
Orlando Regional REALTOR® Association’s Annual Recap
As we enter 2024, Ember Realty looks at the Orlando housing market’s performance over the past year. The Orlando Regional REALTOR® Association has released its comprehensive data for 2023, highlighting significant trends influenced mainly by rising interest rates. These factors led to a deceleration in sales but an increase in inventory.
Key Highlights of 2023:
- Median Home Prices: The median home price in Orlando hit a record high in 2023 at $370,500, marking a 1.5% increase from 2022.
- Sales Overview: A notable decrease of 20.1% in overall sales was observed, with the total sales dropping to 30,499 from 38,162 in the previous year.
- Single-family homes saw a 19.6% decline.
- Condo sales dropped by 22.5%.
- Townhome sales fell by 19.7%.
Market Dynamics and Interest Rates:
- Interest Rate Fluctuations: Interest rates in 2023 saw a significant rise, peaking at 7.8% in October – the highest in over two decades. However, a slight decline was noted towards the end of the year.
- Average Interest Rate: The year averaged a 6.8% interest rate.
- Pending sales dropped by 8.9%, from 3,647 in August to 3,322 in September.
Inventory Insights:
- Starting Figures: The year began with an inventory of 6,115 properties, equivalent to 3.65 months of supply.
- Peak Inventory: November saw the highest inventory since January 2019, with 8,202 properties (4.11 months of supply).
- Year-End Figures: December closed with 7,838 properties, a slight decrease from November.
December 2023: A Closer Look
- Interest Rates: Continued their decline to 6.6%.
- Median Home Price: Slightly decreased to $367,250 from November’s $375,000.
- Market Days: Homes spent an average of 49 days on the market.
- Sales and Listings: A marginal decrease in sales and new listings was observed.
Ember Realty’s Perspective
Rose Kemp, the 2024 President of the Orlando Regional REALTOR® Association, reflects on the year: “2023 saw a stabilization in the housing market post-COVID-19 frenzy. Many buyers hesitated due to rising interest rates, but the late-year rate drop sparked new interest.”
Looking Forward
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.
