The Orlando real estate market in 2024 is experiencing much-needed rebalancing and normalization after the whirlwind years of 2020 to 2022. During those years, the market was marked by rapid sales, soaring prices, and intense competition that left many feeling overwhelmed. Now, in 2024, we’re seeing a return to a more balanced market, which is both welcome and essential for long-term stability.
Rebalancing the Market
The hectic pace of recent years required a shift in the market. That shift has come through increased inventory and higher interest rates. These higher rates have slowed the pace of sales, allowing the market to catch its breath. This rebalancing has led to an increase in the number of homes for sale in Orlando, which is a positive sign for both buyers and sellers. More inventory means more options for buyers and a healthier market overall.
Year-Over-Year Sales and Inventory Growth
When looking at year-over-year numbers, closed sales are down by about 7%. While this might seem like a cause for concern, it’s important to note that this decrease is not alarming. Instead, it reflects a shift toward more motivated buyers who have a genuine reason to move. This trend is indicative of a market that is returning to normalcy after the chaotic rush of the previous years.
The decrease in sales has also allowed the market to catch up with the growing inventory of homes available for sale. In fact, the number of homes on the market has doubled in the past year. Part of this increase comes from short-term rental properties hitting the market, but the overall trend is clear: more homes are available for purchase in Central Florida.
Steady Prices and Orlando Real Estate Market Health
Despite the changes in inventory and sales volume, prices in Central Florida have remained strong. In July, prices reached an all-time high, and year-over-year, they’re up 6%. This rate of increase is much more manageable and sustainable than the rapid spikes we saw between 2020 and 2022. The steadiness of home prices is a key indicator that the market is healthy and resilient.
Another trend we’re seeing is an increase in the average days on the market. Homes are taking about 50% longer to sell than they did last year, which means that properties are sitting on the market a bit longer. However, this is not necessarily a bad thing. It’s all part of the market’s rebalancing, and it indicates that buyers now have more time to make informed decisions rather than feeling rushed into a purchase.
Looking Ahead
As we move into the second half of 2024, the Orlando real estate market is well-positioned for continued health and stability. The increase in inventory and the recent drop in interest rates are making homes more affordable, which is likely to bring more buyers into the market. This could lead to a pick-up in the pace of sales as we head into the latter part of the year and beyond.
If you’re curious about what these market trends mean for you—whether you’re looking to buy, sell, or simply want to understand your options—feel free to reach out. At The Nickley Group, we’re here to provide you with the insights and information you need to make the best decisions for your real estate journey.
For more information or to get in touch, shoot us a message, give us a call, or visit us online at thenickleygroup.com. We’re always here to help you navigate the ever-evolving real estate landscape.