Orlando Real Estate Update: Inventory Up, Prices Bounce Back, Rates Key Factor

Hey LinkedIn connections! David Miller here from the Miller Group at Keller Williams Realty. Today, we're diving into the latest Orlando real estate stats to help you stay informed.

Inventory on the Rise

Good news for buyers! Inventory levels are climbing. Compared to January, there's a 5% increase, and a whopping 55% jump year-over-year. This means there are more than 8,580 homes available, the highest since September 2017.

Why the Increase?

Previously, high-interest rates caused a "lock-in effect." Sellers, happy with their low rates, were hesitant to list their homes. But life happens – relocations, downsizing, or growing families necessitate moving. People are adjusting to the new interest rate reality, leading to more listings.

Absorption Rate: A Balancing Act

The absorption rate indicates how long it would take to sell all available houses. Last month, it reached nearly five months, still favoring sellers. However, it's now back down to around four months. This decrease might seem counterintuitive, but it's due to a rise in sales (the denominator) outpacing the growing inventory (the numerator).

Pricing Trends: A Rollercoaster Ride

The past four months saw a 5% drop in median home prices. But there's a twist! February saw a 5% jump, bringing the average price to $376,700 in Metro Orlando. Keep in mind, this is a median price, so a few high-value sales can skew the data. Regardless, prices are slightly higher than last year's average of $358,000.

The key factor influencing affordability? Interest rates. Higher rates decrease demand. Unfortunately, with recent positive economic news, the Fed is unlikely to lower rates soon.

Stay Informed, Get Real Estate Smart

Remember, these are just snapshots. The market is dynamic. To stay ahead of the curve, subscribe to our YouTube channel, "Get Real Estate Smart." We tackle common myths and answer your burning questions to empower you as a real estate player.

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