If you can believe it, it is almost May. That means it’s time to look back at the first quarter numbers for 2014 and see how things are going in the Orlando real estate market and where the road will lead for the rest of this year. The general word on the street is that real estate market in Orlando is back. I agree that the market has had a huge turn around since the lows of 2010; but some people are getting a little ahead of themselves.
The median sales price in Orlando is up about 14% since last year at the same time. That’s a great increase as an average market only goes up about 3-5% per year. The problem I’ve been seeing lately is that sellers believe that the market has increased by much larger numbers. If you were under water a year ago, you may in fact have enough equity to sell, but you won’t
have enough to make a sweeping profit.
We are in what is called a normal market at the moment. Meaning there is a balanced number of buyers and sellers in the Orlando housing market. I realize that over the last 10 years no one has seen this type of market and this new (normal) market confuses people. Over the last 10 years we’ve seen a bubble burst, a huge downturn with epic declining home values, and a shift back to a sellers market and multiple offers in what seemed like the blink of an eye. Now we’re finally to an pretty stable market and this is a good thing for now.
Things to Watch:
1. How many new listings come on the market? We have more listings and more competition since last year. In fact, the number of listings since last year is up 40% – that’s almost double! That’s a lot more competition and as the prices go up and the competition goes up that can make things more difficult to sell. If we are flooded with new listings, we will quickly see a shift back to a buyers market and possible flat-line.
2. How many pending sales are in motion? Pending sales are an indicator of future sales and how the market will do in coming months. The number of pending sales was on the decline towards the end of 2013 but they are back on the rise from January as we enter into the busier season.
Where do you think the real estate market will be at the end of 2014? Need help navigating the real estate world? Call us today 407-494-2820
Image credit: “Darwin’s Shot” by Scott Robinson via Flickr and Creative Commons