Orlando House Prices: Despite a January Dip, It’s Still a Seller’s Market
By Space Coast Daily // March 7, 2022
With over 3,000 properties sold in the Orlando area each month, the skyrocketing house prices don’t seem to be stopping the stream of new and seasoned house buyers flocking to the city.
It is true, home prices in Orlando dipped by $5,000 in January 2022. But should this slight price drop be read as a sign that the local house market is becoming more accessible?
Data tells us that no, the city is very much still a seller’s market – and it is planning to remain so for the next 12 months at least. Here’s what you need to know before you start your house hunting in Orlando.
What To Expect From Orlando’s Housing Market in 2022
Over the past years, Orlando has consistently been ranking among the top fastest-growing largest cities in the US. And, with over 1,000 new residents finding a home in the city each week, this trend is not showing signs of stopping.
While the influx of families and professionals is certainly enriching the city, the sharp population change has been taking a toll on the housing market, making it far less accessible than most US cities.
In 2022, property prices in Orlando grew by a whopping 18% compared to the previous year’s average, thus bringing the median property price in the city to a record-breaking $325,000.
But what is truly making this situation harder for buyers is the drastic, year-on-year 45% reduction in inventory. In turn, the lack of available properties is causing houses for sale to remain on the market for barely two weeks on average – a decrease of ten days compared to last year’s statistics.
What Does This Mean For Sellers?
For homeowners in the Orlando area, the state of the current seller’s market can be highly beneficial. 2022 might be the perfect time for owners and investors to sell their homes – if that was in their future plans. After all, even a property bought in 2017 might be worth nearly twice its original value this year!
Even if selling doesn’t fit your goals, you might still consider using your home’s equity to work towards your financial aims. For example, the current house price increase can help you secure a Home Equity Loan or a Home Equity Line of Credit.
Taking The First Step On The Orlando’s Property Ladder: 3 Tips For Buyers
If for sellers and homeowners the state of the current housing market in Orlando might be beneficial, for buyers it can be quite difficult to navigate.
While the dip in house prices offered a quick glance into a more accessible market, the following spike has made it clear: the city’s seller’s market is to remain so for at least the next 12 months.
So, if you are looking to take the first step up the property ladder in Orlando, there are a few aspects to keep in mind.
Be Clear On What You Are Looking For
As we have seen, properties are on the market for 14 days on average, which means that buyers might not have as much time to think about whether a house is right for them.
If you are getting ready to buy in the area, it is recommendable to get preapproved for a mortgage in advance, so that you know how much you can actually spend. And, it can be beneficial to know exactly what you are looking for in your future property. These simple steps can help you snatch the right property without having to think it over.
Find an Affordable Mortgage
The house prices in Orlando might be prohibitive, but the right mortgage loan can help you afford the right property for your needs. Make sure to shop around for a solution that fits your monthly budget and downpayment expectations. Since you might be looking for a 20- or 30-year mortgage, make sure both the interest rates and terms of your agreements fit your future plans.
Don’t Settle For Something That Does Fit Your Needs
Finally, the housing market in Orlando might not fit your standards right now. This doesn’t mean that you shouldn’t invest in a property year, but you might wait for more favorable conditions.
While data shows that this is all but a quick bubble and Orlando’s house prices might continue to rise for a year, new properties find their way to the market daily, and dips in prices happen. So, make sure to keep going with your house hunting project and be ready for the right property to come around.
