The market for residential real estate in Orlando, Florida, USA is very competitive and dynamic. Whether you are a home buyer or a home seller, you need to be aware of the current trends and challenges that affect the Orlando housing market.
Orlando Housing Market Overview
According to the Orlando Regional REALTOR® Association, the median sale price of a home in Orlando was $375K in July 2023, up 0.5% since last year. The median sale price per square foot in Orlando was $232, down 0.22% since last year.
Homes in Orlando receive 3 offers on average and sell in around 18 days. The inventory of homes for sale in Orlando increased by 5% from June to July 2023, but it was still 13.8% lower than the same period in 2022. The low inventory levels create a seller’s market, where demand exceeds supply and prices tend to rise.
However, the Orlando housing market is also facing some challenges that could affect its future performance. One of the main factors is the rise in interest rates, which reached 6.8% in July 2023, the second-highest rate in the last two decades. Higher interest rates make mortgages more expensive and reduce the affordability of homes for many buyers.
Another factor is the potential impact of the COVID-19 pandemic on the economy and tourism industry of Orlando. Orlando is one of the most popular tourist destinations in the world, attracting millions of visitors every year. However, the pandemic has caused travel restrictions, lockdowns, and health concerns that have reduced the number of tourists and their spending in Orlando. This could affect the income and employment of many residents and businesses in Orlando, which could in turn affect their ability to buy or sell homes.
Orlando Housing Market Trends for Home Buyers
If you are a home buyer looking to buy a home in Orlando, you need to be prepared for the competitive and dynamic market conditions. Here are some tips and trends to help you navigate the Orlando housing market:
- Be flexible and act fast. Homes in Orlando sell quickly, so you need to be ready to make an offer as soon as you find a home you like. You also need to be flexible with your preferences and expectations, as you may not find your ideal home within your budget or desired location.
- Get pre-approved for a mortgage. Getting pre-approved for a mortgage will show sellers that you are serious and qualified to buy their home. It will also help you determine how much you can afford and what interest rate you can get. A lower interest rate will save you money over time and increase your purchasing power.
- Consider different types of properties. The Orlando housing market has a variety of residential properties for sale. You can find condos, single-family homes, townhouses, multi-family homes, and even unique residences. Prices of Orlando investment properties range from $55,000 to $3,840,000. Depending on your budget and preferences, you may find different types of properties that suit your needs.
- Use online tools and resources. Online tools and resources can help you find and analyze properties in the Orlando housing market. For example, you can use Mashvisor to search for properties by location, price, type, size, and other criteria. You can also use Mashvisor to get data and insights on the rental income, cash flow, cap rate, cash on cash return, occupancy rate, and Airbnb regulations of any property in Orlando.
Orlando Housing Market Trends for Home Sellers
If you are a home seller looking to sell your home in Orlando, you need to take advantage of the favorable market conditions and maximize your profit potential. Here are some tips and trends to help you sell your home in the Orlando housing market:
- Price your home right. Pricing your home right is crucial to attract buyers and sell your home fast. You need to consider the current market conditions, the demand and supply of homes in your area, the features and condition of your home, and the prices of comparable homes that have recently sold. You can use online tools and resources, such as Redfin, to get an estimate of your home’s value and see how it compares to other homes in your neighborhood.
- Stage and market your home well. Staging and marketing your home well can make a big difference in how buyers perceive and value your home. You need to make your home look clean, spacious, bright, and inviting. You also need to highlight the best features and benefits of your home, such as the location, the amenities, the upgrades, and the potential. You can use professional photos, videos, virtual tours, flyers, social media, and online platforms to showcase your home to a large audience of buyers.
- Negotiate smartly. Negotiating smartly can help you get the best deal for your home and avoid unnecessary delays or complications. You need to be realistic and flexible with your expectations and demands, but also firm and confident with your position and value. You also need to be prepared for multiple offers, contingencies, inspections, appraisals, repairs, and closing costs. You can use a professional real estate agent to help you with the negotiation process and represent your best interests.
- Choose the right time to sell. Choosing the right time to sell can affect the demand and price of your home. Generally, spring and summer are considered the best seasons to sell a home in Orlando, as more buyers are active and willing to pay higher prices. However, you also need to consider your personal situation and goals, as well as the local market conditions and trends. You can use online tools and resources, such as Zillow, to see how the Orlando housing market is performing and what are the projections for the future.
Neighborhoods of Orlando, Florida
Orlando, Florida is a popular destination for tourists, but it is also a great place to live for home buyers and home sellers. The city has a diverse and vibrant culture, a thriving economy, and plenty of attractions and amenities. Whether you want to sell home or buy home in Orlando, you need to know the different major neighborhoods and their market conditions. Here are some of the best neighborhoods in Orlando, Florida for home buyers and home sellers.
Lake Eola Heights
Lake Eola Heights is a historic neighborhood in downtown Orlando that offers a mix of old charm and modern convenience. The neighborhood features beautiful homes from the early 20th century, many of which are listed on the National Register of Historic Places. The neighborhood is also close to Lake Eola Park, which is a scenic spot for walking, jogging, boating, and enjoying events and festivals. Lake Eola Heights is ideal for home buyers who want to live in a central location with a lot of character and history. The median home value in Lake Eola Heights is $407,500, which is higher than the Orlando average of $275,000. The market conditions are favorable for home sellers, as the demand is high and the inventory is low.
Audubon Park is a picturesque neighborhood in northeast Orlando that has a strong sense of community and a vibrant business district. The neighborhood has a variety of mid-century homes that are well-maintained and affordable. The neighborhood also has a fantastic mix of food, retail, and nightlife offerings, including the Audubon Park Garden District, which is a hub for local and organic businesses. Audubon Park is perfect for home buyers who want to live in a neighborhood with a lot of green space, culture, and entertainment. The median home value in Audubon Park is $325,000, which is slightly higher than the Orlando average. The market conditions are balanced for home sellers and home buyers, as the supply and demand are moderate.
Colonialtown North is a trendy neighborhood in north Orlando that has a lot of charm and personality. The neighborhood has a mix of bungalows, cottages, and townhomes that are cozy and stylish. The neighborhood also has a lot of amenities and attractions, such as the Colonialtown Neighborhood Center, which has a pool, a gym, and a playground. Colonialtown North is also close to downtown Orlando, Winter Park, and Baldwin Park, which offer more options for dining, shopping, and entertainment. Colonialtown North is suitable for home buyers who want to live in a neighborhood with a lot of character and convenience. The median home value in Colonialtown North is $315,000, which is slightly higher than the Orlando average. The market conditions are favorable for home sellers, as the demand is high and the inventory is low.
Lake Nona is a master-planned community in southeast Orlando that is one of the fastest-growing areas in the city. The community has a range of homes from single-family homes to luxury estates that are spacious and modern. The community also has a lot of amenities and facilities, such as golf courses, parks, trails, schools, and health centers. Lake Nona is also home to the Medical City, which is a cluster of hospitals, research institutes, and universities that focus on health and innovation. Lake Nona is ideal for home buyers who want to live in a community with a lot of opportunities and quality of life. The median home value in Lake Nona is $450,000, which is much higher than the Orlando average. The market conditions are balanced for home sellers and home buyers, as the supply and demand are moderate.
Metro West is a large neighborhood in southwest Orlando that offers a lot of diversity and affordability. The neighborhood has a variety of homes from condos to single-family homes that are comfortable and budget-friendly. The neighborhood also has a lot of amenities and services, such as schools, shopping centers, restaurants,Universal Studios Florida,Islands of Adventure,Volcano Bay,The Mall at Millenia, and Orlando Premium Outlets. Metro West is also close to major highways, such as I-4 and Florida’s Turnpike, which make commuting easy. Metro West is perfect for home buyers who want to live in a neighborhood with a lot of options and value. The median home value in Metro West is $200,000, which is lower than the Orlando average. The market conditions are favorable for home buyers, as the supply is high and the demand is low.