The current real estate market in the Orlando area has been experiencing a remarkable surge as home values reached an all-time high in June. Homeowners are clinging to their properties due to existing low mortgage rates, and a scarcity of homes for sale has caused the typical home value in the area to be $460,000. This surge in values surpasses the previous peak set in July 2022. In this blog, we will explore the factors driving this housing market phenomenon and how homeowners can make the most of this situation.
The Current Real Estate Landscape
Despite rising mortgage rates and prices, homebuyers have remained steadfast in their search for properties in the Orlando area. On the other hand, many homeowners choose to hold onto their homes, further reducing the already limited inventory. The reduced number of available homes has resulted in sellers having the upper hand, as they can receive top dollar with multiple offers when they list their homes at the right price. One example of inventory is the total pool of homes for sale in the Orlando area. Homes on the market have dwindled by 15% compared to last year and an astounding 40% from 2019. This scarcity of available properties creates a highly competitive market where demand outweighs supply, tipping the balance in favor of sellers.
Reasons for Homeowners Holding On
Several factors contribute to homeowners’ reluctance to sell their properties despite a hot market. Firstly, many homeowners hesitate to give up their low-interest mortgage rates. Holding onto these rates can significantly lower their monthly mortgage payments, making homeownership more affordable in the long run. Additionally, some homeowners are adopting a wait-and-see approach. They’re hoping for home prices to climb even higher before listing their properties for sale. This speculation stems from the robust demand in the market and the belief that delaying the sale may result in an even higher selling price.
Our Advice for Prospective Buyers
Despite rising mortgage rates and prices, homebuyers remain determined to find their dream homes. The current advice is to “marry the home, date the rate” – secure your ideal home now, taking advantage of reduced competition, multiple offers, and other challenges in the market. Later, when interest rates decrease, local lenders can offer refinancing options without fees which will provide additional savings.
Guided Toward Success with The Nickley Group
With historically low inventory, surging home values, and sustained buyer demand, navigating the market can be exciting and challenging. For homeowners looking to capitalize on this advantageous situation, seeking expert guidance is crucial. And now more than ever, if you are searching for your next home, having a trusted and reliable REALTOR is a must. The Nickley Group is ranked in the top 3 of all Keller Williams. We are well-equipped to assist homeowners in making informed decisions in this competitive market. Whether you’re a homeowner ready to sell or a prospective buyer, having expert assistance can make a difference. It may just be the perfect time to take the next step in your real estate journey. Give us a call today!