The Orlando real estate market has experienced significant shifts in October 2024, marking the end of nine consecutive months of inventory growth. Despite some signs of a slowdown, the data indicates that the market remains more robust than at the same time last year, offering relevant opportunities for buyers and investors.
Inventory Decline, But Solid Numbers
The inventory of available homes in Orlando was recorded at 11,357 properties in October, a 1.8% decrease compared to September, when the figure stood at 11,560. However, compared to October 2023, inventory is still 45.4% higher, indicating a more balanced market with greater availability than the previous year.
The housing supply reached 5.45 months in October, a 6% increase from the 5.14 months recorded in September. This is the highest supply level since January 2015, bringing the market closer to a healthy balance of six months of inventory.
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Interest Rates and Their Impact on the Market
Mortgage interest rates rose from 5.9% in September to 6.4% in October, which impacted buyer behavior. The rate increase reflects general economic conditions but also contributed to a reduction in pending sales, which fell by 20.7%, from 3,490 in September to 2,767 in October.
Prices and Time on the Market
The median home price increased, reaching $388,990 in October, compared to $380,000 in September. This rise demonstrates continued appreciation, despite signs of a slowdown in other metrics.
The average time homes remain on the market also rose slightly, from 58 days in September to 60 days in October. This slight increase reflects the impact of higher interest rates, which can slow the pace of sales.
Sales Performance and New Listings
Total home sales dropped by 7.3% compared to September, with 2,085 transactions recorded in October versus 2,249 the previous month. Additionally, the number of new listings fell by 7.6%, with 3,260 homes listed in October compared to 3,530 in September.
These figures underscore a typical seasonal slowdown, influenced by the end of the year and rising interest rates.
A More Balanced Perspective for Buyers
Despite the slight slowdown in some metrics, the Orlando market offers a more favorable environment for buyers than last year. With significantly higher inventory compared to 2023, there are more options available, providing opportunities for those seeking primary residences or investors aiming to benefit from the region’s consistent appreciation.
With the holiday season approaching and the conclusion of an election period, the coming months will be critical in determining the direction of Orlando’s real estate market. While interest rates and housing supply influence buyer behavior, the market continues to demonstrate resilience and adaptability.
Why Orlando Remains Attractive
Orlando stands out as one of the fastest-growing regions in the United States, offering a balance between quality of life and affordability. The city combines employment opportunities in diverse sectors, excellent infrastructure, and a real estate market with consistent appreciation potential.
Proximity to major tourist attractions, such as Disney and Universal theme parks, also helps attract new residents and investors. Additionally, the city is one of the top destinations for those seeking a second home or a property to generate rental income through short-term leasing.
Want to Buy Your Home in Orlando?
The Orlando real estate market offers a promising outlook in 2024. With increased inventory, stable financing conditions, and constant demand, this is a strategic time for anyone looking to purchase a property in the area.
If you’re interested in learning more about real estate opportunities in Florida, contact me now via WhatsApp: +351 91 252 9601 (Carlos Barros).