ORRA Reports September Housing Market Nearly Unchanged During Past 12 Months, in its State of the Market Report

Orlando Regional Realtor ® Association’s State of the Market Report for sales data from September 2023 reveals the market generally unchanged. Year-over-year, inventory is nearly flat with nominal change of -1.8%, median value up 1.4%, & closed sales down modestly at -5.9%. Distressed sales, comprised of REO/short sale, remain negligible at less than 1% of all sales.

Home values reached a slight peak in June 2023, but appear developing a plateau (or flatting-out) in the range of $365k-$385k, dating back to September 2022. Looking in the rearview mirror at the 10-year trend, Orlando home values have skyrocketed over 130% from a median value of only $156,000 in Sept. 2013 to $370,000 last month. Currently, the biggest headwind to high-flying home values are the historically high mortgage rates, attaining an average rate of 7.3% in September, the highest rate since 2002. The Federal Reserve established a position of “higher (rates) for longer” this summer in its effort to combat 40-year record levels of inflation. As mortgage rates rise, cost of borrowing rises as well, thus curtailing home affordability. Although the annual inflation rate has declined substantially since its high in June 2022, the fate of the housing market will remain at the mercy of monthly inflation data & in turn, the Fed’s management of interest rates. Full report is available for you here: ORRA State of the Market

ORRA reports Fall Season begins with Housing Market Slowdown

Orlando Regional Realtor ® Association’s September State of the Market Report for sales data from August 2023 reveals evidence of an overall slowdown of the housing market with median home value for Central Florida down for 2^nd month in-a-row along with a rise in inventory & decline in closed sales. Year-over-year from August 2022 to 2023, median home value is flat at a slight increase of 0.7% & closed sales down 16%. During the same period, average days-on-market is up 51.9% & months’-supply-of-inventory up 7.7%.

Although US inflation rate has declined substantially from its June 2022 high of 9.1% to 3.7% in August 2023, the Federal Reserve remains steadfast to maintaining elevated interest rates in pursuit of its 2% target annual inflation rate (that is 45% lower than where we are now.) For August 2023, the avg. mortgage rate was 6.58%, up sharply from 2.84% just 24 months ago. As interest rates rise, cost of borrowing rises with it & has an inverse effect on home affordability. Further market slowdown seems inevitable until this cycle of tightening monetary policy plays itself out heading into 2024. However, contrary to the major historical events of the past, the evolution of this housing market cycle is unfolding at a slower pace as reflected by the monthly sales data. The housing shortage & overall lack of inventory appears to be buoyancy against a hostile interest rate environment & only time will tell how long the market can stay afloat. Full report is available for you here: September 2023 State of the Market Report