Happy August! In the blink of an eye, summer break is almost over. Kids are getting ready to go back to school. Hope you have enjoyed this summer. You might be interested to see the real estate market snapshot in the Orlando area. The latest data from the Orlando Regional Realtor Association include June.
The sales stat in this chart goes back 13 months, allowing year-to-year comparison. The latest median price in Orlando MSA is $207,000 (exactly half of the homes sold are above this price, and exactly half the homes sold are below this price). This is 15% higher than the median price of $180,000 for last June. Our average sale price is $251,600. This is 14.5% higher than the average price of $219,700 for last June.
This is an entire market’s average of course. I’ve described different market performance based on price range before. General rule of thumb in 2016 is: lower the price, hotter the market; higher the price, cooler the market.
Please note the black line denoting the number of sales. We are holding steady at 3,513 home sold, vs. 3,603 homes sold last June. Our inventory level has been holding steady this year between 10,000 and 11,000 homes for sale (see the graph below).
One market factor of major importance is mortgage interest rate. Despite prior industry predictions, the mortgage interest rate remains incredibly low (see the graph below on the 3-year Average Monthly Mortgage Rate). This helped fuel the 2016 real estate market momentum. Remember the rule of thumb: for every 1% decrease in interest rate, a buyer’s purchasing power increases 10%. The recent global economic uncertainty continues to hold down the interest rate (for now). Next year may be a different picture; we will have to wait and see.
We have helped many clients buy and sell homes this year, including upsizing and downsizing. If you are thinking about buying or selling a home, give us a call to discuss the right strategy in a market like this.