There’s been a lot of things going on in the Orlando real estate market. Buyers, sellers, and even real estate agents are in a frenzy because of the market’s current situation. With prices going up and inventory reaching record lows, sellers are expected to gain more profit than ever. However, buyers aren’t necessarily in an unfair situation either.
Tom Nickley of The Nickley Group gives a quick snapshot of what’s happening in the Orlando real estate market and why now might be the best time to sell or to buy.
The Market is Booming…For Sellers
The situation of the Orlando market is staggering. With more buyers in the market right now, the supply of homes for sale can’t keep up. As supply goes down while demand remains, prices will definitely go up. If you’re a seller, the market is leaning towards your favor.
We’ve got more closed sales if not higher median prices….Everything about this market is favoring a seller’s market—putting sellers in the driver’s seat to get top dollar, [to accept] multiple offers, and negotiate their terms.
However, even though it’s a seller’s market, buyers aren’t necessarily disadvantaged. There’s still more reason for them to buy even if prices are going up. Here are two main reasons why it’s advantageous to buy during a seller’s market.
1)Historically Low-Interest Rates
Though prices are higher as a response to a low inventory of houses, the market is still moving, and buyers are still interested in closing a sale because interest rates are low. Meaning, mortgage payments will be lower for the buyer.
The average interest rate is about 3.1 percent. Money’s never been as cheap. But, something to note is that it’s up from this time last month. If you look at a month ago this week, interest rates averaged about 2.8 percent.
Though rates are still low, Tom advises that interest rates are slowly creeping up. Hence, buyers should take advantage before the rates shoot back up.
One of the things driving the market and creating buyer interest is those super, super-low interest rates. As those interest rates increase, it will inherently cause some buyers to exit the market, sit on the sidelines and lessen the competition.
2)The Extreme Lack of Inventory
As emphasized earlier, there are fewer homes for sale in Central Florida right now. What’s even more
interesting is the number of buyers in the market right now.
Needless to say, there is more buyer demand. More than ever before, there are more people looking to move and buy a home in Central Florida. There are not many homes for sale. This lack of inventory is what’s creating this competition.
The lack of inventory creates multiple offer situations and makes the market turn in the seller’s favor. However, if you couple low inventory with low-interest rates, it creates more buyer demand. Moreover, sellers are not the only ones benefiting from this. Even people who bought properties in Central Florida over the last several years receive an indirect benefit from this.
If you bought a home in the Central Florida market over the last several years, you would benefit from this appreciation. Year over year, from February of 2020 to February of 2021 in Central Florida, [the] average value [of homes] has increased by 15 percent.
Why Now is the Best Time to Enter the Market
With more buyers eager to close a sale, sellers are looking at profits way above asking prices. Buyers, on the other hand, enjoy low-interest rates for their mortgages.
So the good news is—even though it’s a super hot seller’s market, It is a great time to buy and sell. If you’re a seller, now could be the best time to capitalize on this market [considering that] interest rates are creeping up, spring season [is coming, which raises competition, and the] low inventory [of homes for sale].
For buyers, now is the time to close a sale finally. It’s best to purchase homes in Central Florida while it’s still affordable compared to metro areas. Though the market is a seller’s market and buyers often lose in multiple offer situations, there’s still hope in this market.
In March alone, we did 100 transactions, and we put 100 deals under contract [of which] 80 of those were buyers. So, we’re still seeing huge levels of success with buyers.
Partnering with TNG
If you’re planning to put your house up for sale or buy a new one, we can help you with that, especially now that the market is competitive for buyers and advantageous for sellers. Having an agent that puts your concerns first is important. Now that the market condition poses advantages and disadvantages, TNG agents know how to make the current situation in your favor.
You [need] to have an agent that knows their stuff, an agent that knows how to negotiate, and an agent that understands the market. You need to have an agent that’s a professional [who] can advise and put you in the position to win these multiple offer situations.
Whether you’re a buyer, seller, or still contemplating entering the market, our doors at The Nickley Group remain wide open to entertaining your concerns and questions. The Nickley Group is the leading professional realtor in Orlando, and our agents know the local real estate market like the back of their hand.
Call us at now 407.906.2456 to get started with this new journey.