Orlando Regional Realtor® Association is reporting a 77% increase to housing inventory year-over-year from March 2023-2024. Home values remain resilient & sales remain strong with the median value up 5.9% year-over-year & closed sales down only modestly during same timeframe. Spring is typically when home sales start ramping up heading until the summer buying season. The surge in inventory may actually be a positive to help quench demand & offset the ongoing housing shortage that has persisted for the past several years. Average mortgage rate of 6.7% is one basis point lower than the Oct. ’23 high of 7.77%. However, the Federal Reserve is standing by its “higher for longer” stance on interest rates as it works to curtail historically high overall price inflation. The latest CPI data for March 2024 shows an annualized inflation rate of 3.5%, down substantially from a high of 9.1% in June 2022. The Fed has repeatedly affirmed that its target inflation rate is 2%. Next Federal Reserve Meeting & announcement on interest rates is scheduled for May 1, 2024. The Financial Markets are uncertain on what’s ahead & whether we’ll see a “soft landing,” “hard landing” or no landing at all. Full report is here: April 2024 State of the Market Report
Tag: Housing Market
ORRA Reports Swelling Inventory in its February 2024 State of the Market Report
The Orlando Regional Realtor Association tracks real estate market activity for Central Florida. Data from January 2024 indicates a 34.4% year-over-year rise in total inventory & 30.9% increase in months of supply. Homes values remain at historical highs with a median home price of $360,000, although nearly flat at a 2.9% marginal rise year-over-year. Other metrics also nearly unchanged year-over-year including closed sales, pending listings, & average-days-on-market. Average mortgage rate was 6.51%, which is actually down from a recent high of 7.77% in October 2023. Interest rates are a critical factor to the health of the housing market & have an adverse effect on home affordability. In December, the Federal Reserve revealed the potential for a loosening of monetary policy & interest rate cuts in 2024 as part of its “soft landing” strategy for the US economy. However, Chairman Powell seems to have taken this off the table for now as overall inflation remains at 3.1%, above the Fed’s 2.0% target. Inflation has declined substantially from a CPI high of 9.1% in June 2022, which was a 40-year high. As home supply swells in 2024 & demand weakens from elevated mortgage rates, be on the lookout for housing market changes ahead. Full Report is here: State of the Market
ORRA Reports Rising Inventory & Declining Sales in its December 2023 State of the Market
As expected, the annual holiday season is a time for joy, peace, family, bustling air travel and a slowdown in housing. But something was different this year — elevated interest rates are significantly impacting home demand. According to the Orlando Regional Realtor® Association, data based on December 2023 sales for Central Florida, showed 23% year-over-year increase in total inventory with 11% decrease in closed sales during the same period. Fortunately for homeowners, values are staying resilient. An all-time high median home value of $370,500 in 2023 was up slightly 1.5% over the $365,000 median value recorded in 2022, albeit flattening out over the long-term. The average mortgage rate peaked at 7.8% in Oct. 2023, a record-high, but receded in Nov/Dec closing-out the year at 6.6%. Notably, months’-supply-of-inventory spiked by +39% year-over-year, an indicator of lower inventory absorption. Bottom line, supply & demand look to be re-balancing & the future of interest rates will determine the future of the housing market. Financial markets rallied last month after the Federal Reserve hinted at interest rate cuts in 2024, but inflation remains “hot” in some sectors of the US economy. The next Fed decision on interest rates is scheduled for February 1, 2024. Full report available here: December 2023 State of the Market
Orlando Housing Market Remains Resilient Amidst Historically High Mortgage Rates
Orlando Regional Realtor ® Association’s State of the Market Report for sales data from October 2023 reveals a resilient housing market amidst record high mortgage rates. Despite a substantial rise in inventory & slowing sales, home values were up 3.3% year-over-year from October 2022 to October 2023. Total inventory up 9.6% year-over-year with months supply of inventory at 3.2 months, a 22% increase. Experts consider 6-months supply as a balanced inventory. As home affordability has declined during the past 18 months, condo & townhome sales have surged, doubling during the same timeframe.
Avg. mortgage rate in October was 7.77%, a 22-year high. A heated debate remains on whether or not the Federal Reserve has finished raising interest rates to combat record high inflation with the next announcement is scheduled for December 13, 2023. October’s annual inflation rate was 3.2%, ~2/3 lower than the 40-year high annual inflation rate of 9.1% in June 2022. The Fed has stated that it remains steadfast on a target rate of 2%. Full report available here: State of the Market
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 2nd 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
8813 Villa View Circle Unit 203, Orlando, FL 32821 — Listed For Sale
Modern, well-maintained 2nd floor condo located at Mirabella at World Gateway almost on the doorstep of Disney World. Condo is a 1/1 with open layout, dining area, porch/balcony, walk-in closet, laundry closet, & includes kitchen appliances & W/D. Covered balcony with serene retention pond in the rear. Kitchen has wood cabinets, solid surface countertops, microwave hood, bar top & common rooms merged into open space between kitchen, living room & dining area. Mirabella is a contemporary community with great curb appeal. Gated entry, community pool, & clubhouse with on-site property management. Spectacular location nestled between the Hwy 192/Irlo Bronson Memorial Hwy dining & entertainment corridor on the east & Disney World attractions on the west. Literally just minutes from ESPN Wide World of Sports, Epcot, Disney Springs, Blizzard Beach, Hollywood Studios & other world class theme parks & resorts. Also, conveniently located just north of Celebration, Old Town, Fun Spot Kissimmee, Falcons Fire Golf Course, 2 Publix locations, Walmart & countless dining & entertainment opportunities.
2nd Floor Condo
1 Bedroom/1 Bathroom
765 Sqft., per Public Records
Built 2002
Zero Lot Line
Inside Utility Closet
Includes Kitchen Appliances – Refrigerator, Microwave hood, Dishwasher, Oven & Range.
Walk-in Closet
Screened/Covered Balcony
Mandatory COA $285.24/month. Dues are subject to annual changes & special assessments, if applicable. Please verify.
Community Amenities include Pool, Recreational Facilities, Gated Entrance, Clubhouse, Playground, & On-site Manager
Broker’s Protected 2% Commission (Seller does not pay commissions on concessions or seller paid buyer’s closing costs)
Subject to REO special addendum & REO procedures
Offer Management Platform charges buyer’s agent $150 technology fee payable at closing
MLS ID: o6141953
REO/Bank-owned
No Seller’s Disclosures
Listing Courtesy of Jason Crane Real Estate, LLC
Jason Crane Real Estate, LLC is a licensed real estate brokerage in Florida
Listed for only $197,600.
ORRA Reports Housing Market Slowdown Materializing in its August 2023 State of the Market
Orlando Regional Realtor ® Association sales data from July 2023 reveals evidence of an overall slowdown of the housing market, as interest rates reached 20-year highs. Year-over-year July ’22-’23, new listings down 28%, closed sales down 13.8% & average-days-on-market up 85%. Avg. mortgage rate up from 5.35% year-over-year to 6.84%, highest level dating back to early 2000’s. ORRA President provides commentary that homeowners locked into long-term fixed rate mortgages of 2-3% are choosing to remain in their existing homes & new potential homeowners being deterred by historically high i-rates. Median home value for Central Florida remains flat year-over-year & has been channeling in the $350k-$387k range for the past 14 months. Total inventory seems to be declining due to lack of new listings versus absorption of the existing inventory. Pundits are speculating on the potential for the Federal Reserve to begin reducing interest rates in 2024 considering recent changes in the inflation data. The 2022-2023 inflation crisis has been winding down significantly from 9.1% annual inflation rate in June ‘22 to only 3.2% annual inflation rate recorded in July ‘23. Full report available here: August 2023 State of the Market
ORRA Reports Home Values at a 2023 High in its July “State of the Market”
The Orlando Regional Realtor® Association reported a median home value of $385,000 in June 2023, which is the highest of the year, up from $378,000 in May. ORRA’s State of the Market report gathers sales data from all sales in June 2023. Home values are essentially flat year-over-year from June 2022 to 2023 rising by only 1.9% as well as total inventory flat at a negligible increase of 0.2%. Meantime, avg. days-on-market up by 105% year-over-year from 20 to 41 & months’ supply of inventory up 21.7% from 1.43 to 1.74. Homes are spending more time on the market & inventory in the early process of balancing supply & demand. Rising interest rates have been the story for the past 15 months & the avg. mortgage rate up 20.6% from 5.5% to 6.6% year-over-year. The next Federal Reserve Meeting & announcement is scheduled for Wednesday, July 26. Experts believe “the Fed” is nearing the end of its tightening of monetary policy in response to inflation/CPI data revealing an annual inflation rate of 3% in June 2023, lowest in over 2 years. Year-of-year inflation hit a 40-year high of 9.1% a year ago, however it has declined for twelve consecutive months. Full State of the Market report is here: State of the Market
ORRA Reports Flattening Home Values Despite Resilient Demand in its June 2023 “State of the Market” Report
Data from the report is gathered from May 2023 sales and provided by the Orlando Regional Realtor® Association. Central Florida home values remain flat year-over-year from May 2022 to May 2023 despite strong surge in demand going into mid-year. Median home value of $378,000 for Central Florida is roughly equal with a slight decline of 0.5% year-over-year down from $379,950.
Demand has been resilience in the face of rising interest rates with the median home value up $28,000 since January 2023. Overall, year-over-year inventory is rising, up 33.7% accompanied with increases of 114% in avg. days-on-market & 67.5% increase in months supply of inventory.
Average mortgage rate of 6.62% for May is more than double that of 2.97% just 2 years ago. On June 14, 2023, Federal Reserve Chairman Powell indicated possibly 2 more Fed rate hikes going into the 2nd half of 2023, despite annual inflation in May decelerating to 4%, well off its June 2022 annualized high of 9.1%. The Federal Reserve has made clear its target goal annual inflation rate is 2%. Further rises in interest rates will certainly curb future housing demand as cost of borrowing & declining affordability are key components of the overall market. However, it’s possible the housing market could remain resilient due to lack of overall supply. Homeowners locked-in at 15-year & 30-year fixed mortgage rates prior to 2022 are disincentivized to sell because they don’t want to trade in their current 3% mortgage rate (for example) for a new 6.6% mortgage rate (May’s avg. mortgage rate) on a new purchase.
For May 2023, months-supply of inventory was recorded at 1.63 months, which is still well below the 6 months experts consider a “balanced market.” Essentially, the current housing market is still considered “out of balance” with demand far out-running supply.
JasonCraneRE 