Orlando's housing market cools in advance of summer
April 2019 Recap
After 93 months of consecutive year-over-year increases in median price, the Orlando housing market saw its first decline in April. The decrease was only 1% but it comes at the start of our traditional summer selling season, which typically sees jumps in both median price and sales.
According to the latest monthly report from the Orlando Regional REALTOR® Association, the median price (the figure at which half of the homes sold for more and half sold for less) was $235,000.
The report also shows 3,315 homes were sold in April compared to 3,371 for a 2% decrease. The decline can be attributed to factors such Orlando's years of meager inventory (especially in the lower price categories) and years of steadily rising prices.
Regardless of a dip in sales, Orlando has just 2.38 months of supply. Since six months of supply is considered by economists to indicate a market that is balanced between buyers and sellers, Orlando is clearly still a seller’s market. However, the balance shifts when you consider price categories, with the lower price categories firmly favoring sellers and the higher price categories ($600,000 and above) favoring buyers.
The good news is that our inventory has been experiencing small-but-consistent increases. For April, the level of available homes increased by 2%. Each month since January has seen a year-over-year rise, with January in the lead with an 8% increase.
Condos are exhibiting the largest rises in availability; there were 20% more condos available in April of this year than in April of last year.
April Housing Market Indicator Comparison
Single-family Home Update
Single-family home sales dropped 4% in April, with 2,535 units sold throughout the Orlando area versus 2,636 a year earlier. April marks the fourth consecutive month of sales declines; January saw the greatest (-14%) and February saw the smallest (-2%).
The median price for single-family homes decreased by 1% to $255,000 in April. The inventory of this home type increased a tiny fraction of less than one%. There are currently 6,193 single-family homes available for purchase through the multiple listing service.
Condos are leading the field in Orlando! Condo sales are up by 19% (433); condo inventory is up by 20% (1,157), and condo median price is up by 6% ($138,000).
Sales Details by County
New Home vs. Resale: Which is Right for You?
Is a newly built home right for you? Do you want a home that you’ve helped design and that offers the latest in energy efficiency and design? Or a previously owned home that may need fix-ups, paint jobs, and walls moved around to create the types of open spaces that make sense today?
There are a number of reasons you might prefer a resale house, even if it needs work. For instance, you may have your heart set on moving to a specific neighborhood.
So it’s understandable that some buyers prefer an existing house in an older neighborhood. But have you seriously considered the potential advantages of buying new? Here’s a quick overview of some of the important pluses of new homes to think about:
Energy Consumption/Green Building: If you care about “green” — whether that means the money you spend on energy bills every month or your concern about the environment — a newly constructed home is virtually always the better option.
Flexibility for Space and Wiring Customization: When you buy a resale house, you get what’s already there. With a new home, by comparison, you can often participate in the design of interior spaces with the builder, in advance of actual construction.
Replacement Costs: By definition, with a new house everything is new, including costly components — such as the furnace, water heater, air conditioning unit, kitchen appliances and roof, — and doors, windows, and more. In a new home, most of these components come with a warranty, sometimes for up to 10 years. Bottom Line Here: Although you — and your budgetary resources — control what you improve and when, it’s highly likely that you’re going to spend money on at least several of these capital improvements in the early years following purchase of a resale house. They are the unadvertised costs of not buying new.
Safety Features (Especially from Fires): Newly-built homes come with modern fire retardants in materials such as carpeting and insulation, unlike most existing houses. Builders also hard-wire smoke and carbon monoxide detectors into their homes, making it unnecessary for new owners to install less-dependable battery-powered detectors. Many builders also back up their hard-wired detectors with battery power to handle electrical outages.
Mortgage Financing: Builders often have mortgage subsidiaries or affiliates, and are able to custom-tailor financing — down payments, “points,” other loan fees and even interest rates — to your specific situation. Many are also willing to work with you to help defray closing costs at settlement.
Resale Value: You may plan to live in your next home many years, but at some point, most people sell a given home for any of a myriad of reasons. While the home you sell will (by definition) no longer be new, a 5-year old home will often be more desirable — given all the features above — than a 25-year old home at resale.
The decision to buy a newly built or used home is ultimately best made by each home buyer. Now you know the questions to ask, and the relative costs involved, in order to make the best decision for you.
IF YOU ARE THINKING OF BUYING A PROPERTY IN THE DISNEY AREA:
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IF YOU ARE THINKING OF SELLING YOUR PROPERTY CONTACT US FOR A FREE-NO OBLIGATION COMPARATIVE MARKET ANALYSIS FOR YOUR PROPERTY.
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Jeri and Bob Anarumo are looking forward to assisting you with the sale of your home or your next purchase of a home!!