In this video, Tom Nickley discusses the August 2021 real estate market conditions in Central Florida, from what we are seeing now to what we expect from the coming months. The market we have been in has been crazy, intense, and fast-paced over the last few months. It’s still extremely competitive and a great market for sellers, but this is starting to level off. We see a slow return to normalcy, which is good for everyone.
What was driving the real estate market in August?
Interest rates
Similar to last month’s market update, interest rates are still down compared to a year ago. In July, the average interest rate for a mortgage was 2.83%. Still historically low, but we are expecting and seeing signs from the fed that interest rates will start to increase slowly in the near future.
Inventory
We currently have 3,600 homes for sale in Orlando. This is 43% lower than the same time last year. Like we have seen all year, there are a lot of buyers and little inventory. The good news is that we have seen it increase each month for the last five months. The great news is, the number of homes for sale is 40% higher than in April of this year. This uptick in homes for sale brings more balance to the market for both buyers and sellers.
Sales
In Central Florida, 4,100 homes were sold in July. There was a 5% decrease in homes sold locally from June to July; however, that is a 14% increase from this time last year. Overall we still see a super hot and competitive market. There is still a lot of activity, and sellers are still able to capitalize. We are finally starting to see more inventory of homes, a little more balance/decrease in selling homes. All of this is really good.
In August, we always see a seasonal adjustment. Kids are going back to school, making it more difficult for families to move. The seasonal adjustment, coupled with more homes on the market, increase in inventory and a potential uptick in interest rates, are all great indicators of going into a more balanced market.
What has The Nickley Group been
Our team specifically sees that there are pockets, price points, and areas that are still super competitive. Some listings are still getting 20-25 offers, but we see that a whole lot less than we did over the last few months. The good news is that we are seeing other areas where homes are getting little to no multiple offers. This is showing us signs of the market getting into a balance.
The Good news is that this is great for both buyers and sellers. Sellers are still able to capitalize. The price of homes is still averaging an 18% increase year over year. The good news for the buyers is that we are seeing more buyers entering the market with the balance we are seeing.
If you are interested in buying or selling, give us a call at 407-906-2456 or shoot us an email at [email protected]. Our team of experienced, professional, and passionate agents are ready to help answer any questions you may have.