One of the questions that we get asked all the time is: what’s going on in the Orlando real estate market? It’s a fair question, and understandably so. To say that the last year and a half has been a roller coaster in real estate would be an understatement. In fact, the last few years have been quite a ride.
Interest Rates are the Name of the Game
Just a couple of weeks ago, interest rates were sitting at around six percent, and it seemed like everything was going well in the Orlando market. Spring had seemingly arrived early, and we saw an increase in buyer inquiries, mortgage applications, multiple offers on listings, and packed open houses. However, just like the past year, interest rates are the main factor affecting the market, and they will dictate its health and speed this year.
In the last few weeks, interest rates have gone up dramatically, reaching over seven percent. Despite this, we are still seeing steady buyer demand. One of the notable changes in the market is that more homes are coming off the market than new listings coming on. This is great news for sellers as they are still in the driver’s seat, and there is a supply and demand dynamic allowing them to cash out on their homes for top dollar.
Resilient Property Values
Fortunately, property values have remained resilient over the past year, even though they aren’t going up as fast as they did in previous years. For sellers, this is great news as we head into the spring season. There is still a lot of buyer demand, and mortgage applications are still strong. Interest rates and their fluctuation don’t seem to affect the market as much as they did last year. Serious buyers who have the motivation to move are staying resilient, which is a good sign for sellers.
While interest rates are higher, there is still a lot of good news for buyers. Our agents are negotiating great deals for them, including below-asking-price offers, seller closing cost contributions, and contributions toward rate buy downs, allowing buyers to lock in lower rates for the first few years of their mortgages.
A Healthy, Balanced Orlando Market
Overall, 2023 is still a mystery, but we anticipate a healthy, balanced market. We will deal with the fluctuations in interest rates until the Fed gets inflation completely under control, which should happen by the end of the third quarter. Until then, it’s still a great time to buy and sell if you have the motivation to do so. If you have any questions about the real estate market in Orlando, please reach out to us. We’re happy to help in any way possible. Thanks for reading, and have a great day!