The Orlando real estate market continues to shine as we head into the summer months. With a surge in sales and rising prices, both buyers and sellers have reasons to be optimistic. Let’s take a closer look at the state of the market and the latest trends shaping the Orlando housing scene.
Sales and Prices on the Rise
May witnessed a remarkable 13.9% increase in overall sales compared to April. A total of 3,150 homes were sold, marking a substantial improvement from the 2,766 sales recorded the previous month. While sales in May 2023 were lower than the same period in 2022, with a 20.2% decrease, the market has rebounded impressively since the slight cool down towards the end of last year.
Accompanying the surge in sales, median home prices experienced a steady climb. In May, the median home price reached $378,000, showing a $28,000 increase since January. This upward trend has been consistent throughout the year, with median home prices rising month after month. Interestingly, May’s median home price was almost identical to that of May 2022, which was recorded at $379,950.
Interest Rates and Market Activity
The interest rate for May rose slightly to 6.6%, up from April’s 6.4%. Although this change may seem modest, it reflects a 25.4% increase compared to May 2022, when interest rates were at 5.3%. While interest rates impact affordability, they remain relatively favorable, providing opportunities for both buyers and sellers to navigate the market effectively.
Homes in the Orlando area are spending less time on the market, signaling a faster pace of transactions. In May, the average days on the market (DOM) dropped to 45, down from 52 days in April. However, when compared to May 2022’s average DOM of 21 days, we see a significant increase of 114.3%. This data suggests that buyers should act swiftly when they find their dream home, as the market is becoming more competitive.
Inventory and New Listings
Orlando’s housing inventory remained stable, with 5,148 homes available in both April and May. Despite this consistency, inventory levels in May 2023 were 33.7% higher than in the same period in 2022 when only 3,851 homes were listed. This increase in inventory provides buyers with a broader range of options to choose from and potentially more negotiating power.
Furthermore, new listings experienced a welcome boost, rising by 7.4% from April to May. The Orlando market saw 3,459 new homes hit the market in May, compared to 3,220 in April. This increase in fresh listings contributes to the growing inventory and enhances the opportunities available to prospective buyers.
Expert Insights and Future Expectations
Lisa Hill, the President of the Orlando Regional REALTOR® Association, expressed optimism about the market’s trajectory. She noted that prices continue to rise, while homes spend fewer days on the market. Hill highlighted the upcoming summer season as a potentially busy selling period since families often choose to make their moves when school is out.
In Summary
The Orlando real estate market showcases a thriving environment for buyers and sellers alike. With increasing sales, rising prices, and a stable inventory, the current landscape provides opportunities for both sides of the market. As we head into the summer months, it’s an exciting time to explore the diverse range of options available and make the most of Orlando’s vibrant housing market.
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