What is the Orlando real estate market like? Today, I’ll go over the latest market update as well as what you can expect from the market in 2017.
Right now, there is a shortage of inventory on the market, which creates a huge opportunity for sellers. There is less competition among people looking to sell their home, but demand is still incredibly high. There are many buyers in the market right now, and that heavy competition is expected to continue throughout 2017.
Due to low inventory, it’s fairly common to see bidding wars and multiple offers on the same property. Buyers have to go in strong with their offer price and move very quickly in our current market.
Throughout 2017, we expect to see an influx of millennial home buyers in the market. These first-time home buyers will create even more demand.
Right after the election, we saw a dramatic increase in mortgage interest rates. Rates had been in the mid-threes throughout 2016. Now, rates range from 4.25% to 4.85%, and they are expected to rise to 5% or even higher by the end of 2017.
Those rising interest rates will put downward pressure on pricing and impact inventory even more. People who want to move up into a larger home may get priced out of the market thanks to those higher interest rates. Buyers may stay in lower-priced homes to avoid paying a higher mortgage rate.
The good news is that Orlando is one of the top 10 growing real estate markets in the country. Next year, we can expect another 5% to 6% increase in home prices, so there are lots of opportunities for buyers and sellers.
That said, considering that prices and interest rates will both go up in 2017, now is the time to get off the fence and start your home search. If you have any questions about the buying process or would like to learn more details about our current market, give me a call or send me an email. I would be happy to help you!