If you ask a home buyer in Orlando today if we’re in a buyer’s or seller’s market, they would probably tell you a seller’s market. The inventory of homes for sale is low and that does seem to give seller’s bit of an edge if their home is priced well and in good condition relative to the competition.
If you ask someone selling a home in Orlando today, they would probably say the opposite. Over the last few months the number of homes for sale has been teetering around 11,000-12,000 listings and only about 18-20% of these listings are actually selling each month. That leaves many sellers sitting with no offers.
The reality is that the Orlando real estate market is pretty balanced right now. At the end of January the months of inventory available was about 6. That means if no new listings come on the market it would take 6 months to sell all the homes available for sale in Orlando. A seller’s market is generally considered anything 0-4 months and a buyer’s market is over 7 months.
Buyer’s Market Advantages/Disadvantages:
- Lots of options to choose from for buyers
- Less competition with other buyers
- Because of the conditions, buyer’s may be able to get special contingencies accepted and have the upper hand in negotiations for repairs/etc.
- Sellers will experience longer time frames to get a home sold
- Sellers also will have to make more price reductions to get their home sold
Seller’s Market Advantages/Disadvantages:
- Fewer home options for buyers
- More competition with other buyers – multiple offer “bidding wars”
- This competition may lead to paying more for a home
- Buyers will have to forego unusual contingencies or risk having their offers rejected. (for example: A contingency to sell your home will not go over well in a seller’s market)
- Homes will sell quickly for sellers and buyers will be forced to make decisions quickly
- Prices will be on the rise for sellers
A balanced market is created when there is enough supply to meet the current demand. In a balanced market, seller’s are accepting reasonable offers and homes are selling in a reasonable time frame. This is about where we are at this time. However, if the number of listings increases and the number of sales declines we will shift into a buyer’s market. Of course we don’t have a crystal ball; but after several years in a seller’s market a shift is inevitable at some point.
Are you thinking of selling your home? It may be an ideal time to list before a shift occurs. Call us to discuss your personal situation and see if now is the right time to make a move. 407-494-2820 or visit our website RealOrlandoHomeValue.com to see how much your home is worth in today’s market.