The Orlando real estate numbers are in and I’ve analyzed the data for you. 

 

Home sale prices have gone up yet again.  May set a new record with an average sales price reaching $445,554. That is 26.65% higher than this time last year!  Double digit gains again.  We have seen a slight increase in the number of home sales in comparison to April we are still sitting with a very low inventory.  The inventory did go up slightly but we still have less than 1 month of available homes for sale.  

The federal reserve raised the basis points.  What does that mean for me?  

At the Central Florida average sales price in the $400s, if all rates went up .75% that would increase your payment about $200.  If you’re shopping in a reasonable budget to begin with this won’t be a huge difference for your real estate needs.  Or if that stretches the budget too much, let’s look for creative ways to buy down the rate to keep your payment lower.  

Is the market going to shift or crash?

Rising rates may have a cooling effect, which is the point after all.  The Federal Reserve is trying to slow inflation so some buyers will be priced out of the market. That could lead to a more “normal market”.  We may see rates of appreciation slowing to normal rates of 5%  instead of the double digits of the years past, but we do not expect prices to actually go down.  Dave Ramsey recently reminded everyone that,  “House prices are caused by one thing and on thing only, how many houses are for sale and how many buyers there are”.  There have to be less buyers for supply and demand

Base your decision on data not feelings.  Here are some stats you need to know going forward about now versus the real estate crash: 

1) There are 5 million more 35 year olds now than there were in 2007.  Those are all prime home buying age.

2) There are 128 million households now versus in 2007 there were 116 million 

That’s 12 million more households that need housing, yet there’s a shortage of housing.  We have 50% less housing available as we had in 2007.  

If you are thinking of buying or selling, everyone’s situation is unique.  Give us a call to chat more about your specific needs and see if now is the right time.  407-982-7240