Central Florida’s housing market is experiencing a significant surge in inventory, with over 12,000 homes now available for sale. This increase, equating to roughly six to seven months of supply, comes amid buyer caution due to interest rates and economic uncertainty. The average time a home spends on the market has extended to 76 days, indicating a shift towards a more balanced market.
A Record Number of Homes Available
Prospective homebuyers in Central Florida are finding an unprecedented number of properties on the market, with the Orlando Regional Realtor Association reporting more than 12,000 homes currently listed. This substantial inventory provides buyers with more choices and opportunities than in recent years. Real estate professionals anticipate this number could climb even higher as the summer buying season approaches.
Navigating the Current Market
Despite the abundance of homes, the market presents unique challenges. The average 30-year fixed-rate mortgage, while under 7% for twelve consecutive weeks, remains significantly higher than in 2022. This has made it difficult for first-time homebuyers, who face stricter lending criteria and increasing down payment requirements. However, home prices have not decreased, with the median home price in Central Florida reaching $385,000 in February.
A Balanced Market for Buyers and Sellers
Experts describe the current Central Florida real estate landscape as a balanced market, where neither buyers nor sellers hold a distinct advantage. Sellers are advised to present their homes attractively to attract buyers, while buyers have more options to consider. While purchase applications are rising, the affordability of homes is largely dependent on individual lending capabilities and financial situations.
Future Outlook and Interest Rates
The future trajectory of the market is closely tied to interest rate movements. While some predicted a decrease in rates by the end of 2024, they have remained relatively stable. Mortgage professionals suggest that if rates were to fall into the high five or low six percent range, a surge in demand and potential bidding wars could ensue, driving prices upward in this desirable region.
Key Takeaways:
- Over 12,000 homes are currently for sale in Central Florida.
- The average home stays on the market for 76 days.
- The 30-year fixed-rate mortgage has been below 7% for twelve weeks.
- The market is currently considered balanced, with no clear advantage for buyers or sellers.
- Rising interest rates continue to pose challenges for first-time homebuyers.
Sources
- Record number of housing inventory in Central Florida, Spectrum News 13.