Hello all, it’s been a while for a Monday Market report. It’s been a busy 2 quarters for 2016. If you’ve been paying attention to the real estate market you know the market is extremely hot. We are experiencing a “Seller’s Market” in Orlando and it is leading to multiple offers and homes selling for over asking price. A seller’s market occurs when there are not enough homes to support the number of buyers purchasing homes. It is simply the law of supply and demand. The demand is high and the inventory is low so the sellers have the upper hand.
Just last week I had a property sell for $12,000 above asking price. It’s times like these where we start to wonder, are we in a bubble? We have experienced year to year gains in the Orlando median sales price for 59 months straight. These kind of gains cannot be sustained. Before the market crashed in 2008 we had experienced 61 months of consecutive gains.
Now I don’t think anyone thinks we will experience the crash and great recession we had 8 years ago. Even billionaire Warren Buffett says we’re not in a bubble. About 2 months ago when speaking at a conference he said “I don’t see a nationwide bubble in real estate right now at all.” We are definitely not back to bubble prices. In fact, our median sales price right now is about 30% less than the highest median price Orlando and Central Florida in the last 20 years. And our affordability index in Orlando is 160%, meaning that Buyers who earn the reported median income of $57,152 can qualify to purchase one of 4,423 homes in Orange or Seminole County. (1) That is almost half of the housing inventory available. So those numbers aren’t too shabby.
Although no one can predict the future, we know that right now is truly a great time to be a home seller in Orlando. And I think we can all agree even with high affordability pushing demand, we cannot sustain many more gains before the market will shift to correct itself. It is the natural law of supply and demand. So if you are thinking of selling, this may be the last Summer season for a while to be in the driver’s seat in negotiations with buyers. Thinking of selling your home? Contact us today at 407-494-2820 or learn about your home value at www.RealOrlandoHomeValue.com
(1) Orlando Regional Realtor Association