The Orlando real estate market is once again showing signs of stabilization. In addition to the increase in the inventory of homes for sale, the average price of the segment fell for the first time in 6 months, according to a report by the ORRA (Orlando Regional Realtor Association). The return to normality is well regarded by the market.
The association’s July report shows that the price of residential homes in metro Orlando was $380,900, down from $387,000 in June this year, down 1.6%.
Signs of a return to normality are most evident in indicators related to home inventory. Here the variation was more expressive. The jump was almost 20%. There are 6,518 homes for sale in July, against 3,542 in June. It’s already the third straight month of double-digit inventory increases.
Market sees indicators positively
Falling prices and rising inventory are usually seen as negative signs by the market or even signs of crisis, depending on the scenario. This is not the case in Orlando!
The new report is welcome and, in some ways, a relief. Orlando’s extremely heated market in recent years, as a result of the pandemic and economic stimulus measures by the government, has brought an unprecedented imbalance to the real estate sector, making the situation of buyers extremely difficult.
A single house received 6 cash proposals (in cash), in a movement dubbed by the market as the “Bidding War”.
The so-called “First-Time Homebuyers”, that is, people who buy a house for the first time for the purpose of housing, had no time in the market and needed to compete with investors and new residents coming from wealthy US states such as New York and California. .
Situation is still delicate and will take time to normalize
Any sign of a return to normalcy is welcome at this point. However, experts project that the balance seen in pre-pandemic times may take time to arrive.
There are several factors that lead to this conclusion. The main one is the still expressive demand for houses in the region. Florida is expected to welcome 849 new residents by 2026.
At the end of the offer, despite the efforts of the construction companies, there is no forecast of delivery of new units anytime soon. New condominiums take time to be approved and built. The situation is further aggravated by the lack of material and skilled labor.
Opportunity for investors
This is a great time for anyone thinking about buying homes in the city of Orlando. Vacation Homes near the theme parks in Orlando are one of the best real estate investments in the world, with high expected returns. In addition to making a solid dollar investment, you still earn passive income and can use the house whenever you want (enjoy the house on your vacation and rent the rest of the year).
About AMG International Realty
AMG International Realty is a global real estate company specialized in Florida. If you want to know more about real estate opportunities in Orlando, Miami or another region of Florida, contact me right now and chat with me by WhatsApp: +1 305 318 6968 (Heloisa Arazi).