Orlando Real Estate Market Predictions for 2023.
When it comes to real estate, Florida has some of the most desirable residential areas in the country, with Orlando being one of the most favorable. It is not currently a buyer’s market in Orlando. Home prices in Orlando could rise further before they fall.
The best time to buy a home in Orlando (or anywhere) is during a buyer’s market when demand for homes is low and supply is plentiful so there’s a lot of homes to choose from.
According to the Demographic Estimating Conference, Florida’s population is expected to increase to 22 million people by 2022.
Orlando Real Estate is a Seller’s Market.
Before buying a house in Orlando, you should know that inventory has been and seemingly will continue to trend downward. Living in Orlando is much more than meets the eye. Residents are holding onto their homes because they love Orlando, and because the value of their homes has been growing the longer they live in them.
Orlando is considered a hot seller’s real estate market for now. The inventory shortage, on the other hand, remains a major concern, especially in Florida, where many out-of-state residents have relocated during the pandemic.
Property values in Florida will begin to grow as people relocate from much more costly states such as California, New York, New Jersey, Connecticut, and others. People in these states are indifferent about paying $650,000 for a 4-5 bath, 4,000 square foot home because they are already overpaying for much smaller homes.
If you are thinking of moving to Orlando now, you could be making a great decision, but finding a house could be another story. So, if you find a home you want, act quickly because homes are flying off the shelves. The average home in Orlando receives three offers and sells in 17 days.
Living in Orlando.
Orlando is the number one tourist destination in the United States, so it’s no wonder that the city’s economy is booming. Orlando’s tourism is unmatched, with a large variety of world-famous entertainment, hospitality, and sporting venues, and it is a key contributor to local economic development.
With over 80 million people visiting this city living in Orlando, this city is often overshadowed by theme parks.
The advantages of living in Orlando are many. The cost of living is another component that adds value to Orlando’s appeal. Affordable property prices, and a growing population and job market makes it a great destination for many.
Weather plays part in the Florida lifestyle. And although Orlando may not be on the coast, they have Cocoa beach one hour to the east . If you drive 2 hours and a half to the west coast you have Clearwater below Tampa. and for those living in North Orlando, in one hour you have New Smyrna Beach or Daytona Beach, so there are plenty of beach varieties to enjoy.
Orlando also offers a variety of outdoor river springs to enjoy being outside. It has over 100 parks and 21 community centers where you can spend your free time and relax. Not to mention the Restaurants, theaters, shows, and tours Orlando offers. You’ll never run out of interesting things to do. Mostly blue skies all year around (except at 3 pm in the summer). You can see the city really puts an effort into making everything beautiful.
It is no wonder, the City Beautiful ranked No. 17 on the 2019 Top 100 Best Places to Live list, according to Livability.com. Indeed, Orlando has been named one of the best American cities to live in, according to U.S. News report.
What are the Orlando real estate market predictions for 2023?
It will continue to rise. Low inventory coupled with high demand continues to drive up home prices.
The median price trends recorded by Zillow over the past few years is that the Orlando home values have appreciated by nearly 123%, from $122,000 to $272,605.
For all types of homes increased by 14.6% from November 2019 to November 2020 and is now sitting at $275,000.
There exists a limited supply of homes in Orlando, and buyers are forced to compete often resulting in higher prices and/or quicker sales that tend to benefit sellers.
3D virtual tours have played an important role for the buyer’s market.
With over 75% of buyers looking for housing online. This would be a significant aspect for the vendor to consider when determining who to sell their home with, as virtual tours not only , benefit sellers, but they benefit buyers as well. More sellers are choosing agents who only show 3D virtual tours of their house. Such 3D tours also increase the probability of a faster sale due to increased interest from buyers. Hence, avoiding unnecessary visits, and leads to more qualified viewings of their homes to the right people. 3D tour providers in Orlando benefit Sell By Owner as well. As they make it easier to share in social media and reach a wider audience too.
Is it a good idea to buy a home in Orlando right now?
A new report released by the Orlando Regional Realtors Association says 2021 is the right time to buy and sell a house. However, If you do your research and spend your money wisely, your real estate investment can be a successful one.
Mortgage rates are still low–If you have a decent credit score and a steady job, you’re likely to get positive terms on a home loan.
While demand is high, supply is low. Right now, there are fewer homes for sale in Central Florida but low-interest rates are creating a high demand. Currently, Orlando real estate ranks 35th out of the top 50 metro areas for home appreciation.
According to the Orlando Regional Realtor Association, as of November 2020, total Orlando-area home sales were up 20%.
Investing in Rental Properties in Orlando. The Cost of Housing.
The cost of renting in Orlando are getting even more elevated, considerably quicker than middle home costs. This is particularly obvious with homes in Orlando and different areas of Central Florida. This implies that in case you’re ready to purchase now you’ll likely be paying less on a home loan installment than you would in rent.
Nonetheless, the Orlando housing market will continue the trend of the last few years as a strong sellers’ market. It is also one of the hottest real estate markets for investing in rental properties. Thanks to a strong economy, Orlando’s apartment market continues to boom — resulting in rising rents.
According to the 2020 census, in Orlando the rate for Owner-occupied housing unit rate is only 35.4%. So, there is a great rental potential in Orlando. As with all real estate decisions, the cost of rent is determined by three things: location, location, location.
Just last year during the Pandemic, 2,592 single-family homes sold in November, accounting for a 25% increase over November 2019, when 2,073 single-family homes sold.
While buying a home in a strong seller’s market can be challenging, it is still possible.
Remember that mortgage rates are at all-time lows. The average rate has dropped to 2.7%, a significant decrease from the previous two years, when it was 3.6% in 2019 and 4.9% in 2018.
There are several neighborhoods in Orlando that offer highly investable real estate. The Orange County area (which covers Disney World) accounted for more than 35% of all Orlando real estate sales in 2017.
Still, there are some neighborhoods and areas, you can see fruitful cash-flowing opportunities.
Top 9 popular areas include:
- Baldwin Park
- Thornton Park
- Lake Como
- Lake Nona
- Milk District
- Lancaster Park
- Delancy Park
- Central Business District
- Rose Isle
Will Orlando’s Real Estate prices drop in 2023?
Orlando’s cost of living (housing, food, and transportation) is currently 4% lower than the national average, in addition to its comparatively low median house prices.
Forecasts suggest prices will continue rising through 2021 and into 2022. U.S. home prices rose steadily in 2020, despite the coronavirus pandemic. Tight inventory conditions and low mortgage rates play a big role. But conditions vary widely from one real estate market to the next.
If you check listings in Realtor.com there are only 4,075 Homes listed in Orlando for sale in March 2022, whereas Miami Beach listed only 3,480 Homes. Inventory in November 2020 was down 26%, with just a few thousand Central Florida homes available.
Conclusion, is 2023 a good time to buy Real Estate in Orlando?
Bottom line… Not really, demand actually surpasses supply. This implies that Orlando home costs will keep on rising. By holding up it will be more hard to locate the ideal home at a value that is moderate to you.
Low mortgage rates won’t last– Unfortunately, we are showing up toward the finish of a period of lower than typical home loan rates joined with moderate estimating on Orlando homes. Home prices are expected to rise in the near future as are the mortgage rates.
With prices rising as high as they are, if you are thinking that eventually there will be foreclosures. You need to consider also this, homeowners who can no longer afford their payments likely have plenty of equity to avoid foreclosure.
Selling your house in Orlando? We can help you with a 3D Virtual tour. Contact us!
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