The Orlando real estate market has really shifted over the last year and although we are seeing multiple offers in many situations and prices increasing slightly, there are still issues at hand.
Due to the extreme shift, appraisals in some cases can’t keep up with the active and pending prices. Appraisers typically pull comparable sales from the last few months. Things have moved so quickly that homes sold in the last 3-6 months may not match the listing prices and the sometimes higher than asking price offers.
This creates a situation where a buyer may have to pay over appraised value to get the home that they want because if they don’t there is probably someone else who is willing and able. This isn’t true in every situation but it is starting to feel like the boom years and I’m not sure it’s a good thing.
All in all, we do sort of expect this high demand/low inventory scenario to keep up through the end of the year as large investor groups will continue to buy up homes and compete with primary home buyers. Then it will probably start to fade a little as prices rise to levels where investors are no longer comfortable.
Once that happens, things will maybe return to a normal or equal market for a while. We do still have a lot of pent up demand and inventory that will creep onto the market probably at a pretty similar rate in the future.
Don’t get me wrong I love quick offers and higher sales prices, but I think we have seen that cannot sustain for too long before things level off or shift again. Have you experience increasing home values in your neighborhood? If you have been thinking of selling, now is a nice window of opportunity where you have little competition and very solid sales prices.
Contact me today for more info at 407-494-2820 or visit ThinkLiveBe.com to get a quick market analysis for free.