The Future of Orlando Real Estate: Trends to Watch in 2023 and Beyond

Toni Marie Cafferty | September 20, 2023

Orlando is a vibrant and dynamic city in the heart of Florida. Renowned for its world-class theme parks, including Walt Disney World Resort and Universal Orlando Resort, it attracts millions of yearly visitors in addition to its residents. Beyond the amusement parks, you’ll find various cultural experiences, including art galleries, museums, theaters, and multiple restaurants, bars, and nightlife. The city's pleasant subtropical climate and numerous outdoor recreational opportunities make it the perfect spot for those who enjoy the outdoors.

Orlando has a thriving economy and is a major center for technology, aerospace, and healthcare industries. Orlando real estate offers a range of options, from luxurious properties to affordable homes, amidst a thriving and growing market. Orlando is a captivating city that blends entertainment, culture, and business. If you’re interested in finding your next place in Orlando, you’ll want to learn everything about the market and its direction. Here are your insights into the local market from area experts.

Orlando housing market activity 2023

Here are the latest market statistics according to the Orlando Regional Realtor Association.

The current market in Orlando is gaining momentum, with overall sales rising 13.9% from April to May. While there were 3,150 sales in May of 2023, an increase since April, those sales were still 20.2% lower than in May 2022, when the area saw 3,946 sales. The median home price is also rising at $378,000, compared to the median price in April at $370,000. Median home prices have risen monthly this year and are expected to follow the same suit for the remainder of the year. Home prices have remained steady year over year despite a rise in interest rates, which were at 6.6% in May.

Orlando homes spend an average of 45 days on the market, down from the 52 days April saw but up nearly 114% since May 2022. Despite the increase, the new home inventory increased by 7.4% monthly, with May seeing almost 3,460 new homes on the market. Inventory remains stable throughout the year and has drastically increased since May 2022. May’s supply of homes decreased to 1.63 from 1.86 in April, lower than the six months supply a balanced market should have.

Let's discuss what the future of Orlando real estate holds.

Will a recession affect the housing market?

Many buyers and sellers in Orlando, as well as nationwide, have concerns about a potential recession. However, most experts agree that the market is unlikely to head toward a recession despite declining prices and rising interest rates. The market is at a standstill, with buyers waiting for prices to drop or for more homes to become available while hoping for lower interest rates.

It can be daunting for sellers, not knowing how many buyers can afford to move or where to relocate. Interest rates and inflation are expected to decrease, leading to a refinance boom and home sales. Buyers should not anticipate a significant drop in home prices as sellers still benefit from low inventory. This situation presents an opportunity for sellers looking to downsize, rent a home, or sell a second or inherited property.

Selling to a cash buyer can be advantageous as it eliminates concerns about interest rate hikes and mortgage costs. There is no waiting for a buyer who requires financing, and cash buyers may offer more favorable terms.

Home sales bounce back despite rising rates

Despite the current low inventory and increasing mortgage rates, home sales in Orlando increased in February and have continued to grow monthly. This is an encouraging indication of market activity.

As a seller, these statistics highlight the high demand for homes in the area. The current inventory shortage hasn't been seen in over a decade, and buyers are actively seeking more available homes. The housing shortage impacts the entire Orlando region, resulting in fewer options for potential buyers.

Home sales are rising despite increasing mortgage rates, which is positive news for sellers. It suggests that motivated buyers in the market are willing to purchase homes even with higher rates. This trend indicates a growing number of cash buyers in the buyer pool.

What does this mean for buyers?

As a buyer, it's natural to feel concerned about the limited availability of homes in the market. The scarcity of options can make the search for a new home daunting and nerve-wracking. The rising interest rates and inflation further complicate matters, making it more challenging to afford a house than just a year ago.

However, with patience and a stable financial position, homes that may meet your needs are still available for sale. If you have the means, this could be an excellent opportunity to pay in cash or increase your down payment to keep your mortgage payments lower or even eliminate them.

Why choose to sell in today’s market?

The current market conditions in the Orlando area present a favorable opportunity for home sellers. The low inventory of homes creates high demand among buyers, giving sellers an advantageous position. It’s natural to have concerns about selling in the current market, but the data works in your favor. Opting for an as-is or cash offer can help you navigate the challenges of inflation and mortgage interest rates. This also eliminates the waiting period for buyer loan approvals and bypasses mortgage-related complexities.

Why choose to buy in today’s market?

When searching for homes for sale in Orlando, there are several steps you can take. Firstly, consider saving for a larger down payment, as this will reduce the money you need to borrow. However, with the rising cost of living due to inflation, saving for a larger down payment can be challenging. If increasing your down payment is not feasible, consider waiting. Many individuals delay their purchase, allowing them time to build up a larger down payment and observe any changes in mortgage rates and overall housing prices.

Are you ready to work with a local expert?

If you’re considering buying or selling your Orlando real estate, you’ll want to connect with an expert. Toni Cafferty has extensive experience in the Orlando luxury market and dedicates herself to ensuring her client’s success. Contact her today to get started.

_{*Header photo courtesy of Shutterstock}

Toni Marie Cafferty

Luxury Property Specialist

Primary phone
(904) 449-2184
Email
[email protected]
Address
7940 Via Dellagio Way, Suite 100,
Orlando, FL 32819

About the Author

A true native, Toni Marie Cafferty calls Florida home. Originally from Jacksonville, she moved to Central Florida while attending the private university of Stetson where she graduated with a degree in Marketing and International Business. With time spent in Austria, Germany, Italy, Switzerland, and the Netherlands, she loves to explore other cultures. In her real estate career, she’s had the pleasure to work with buyers from around the world.

As a Realtors® daughter, Toni Marie was raised in the real estate industry and contributes her high level of client care to that of her mother. Toni Marie caters to the luxury market with a white glove-style all her own. Just as the Golden Rule states, “Do unto others as you would have them do unto you,” Toni Marie takes this to the next level offering superb client care. When asked, she says “it’s all about the details and being present with those you are working with whether it be in-person or over the phone. Be ahead of your client’s questions and help provide clarity and honest feedback.”

Toni Marie Cafferty’s Gold Standard (#tmcgoldstandard) has garnered respect from her colleagues and clients alike as she grows her real estate profession. In the past 5 years, she has managed over $74 million in sales and she’s not slowing down; rather she is expanding her reach with Compass to help more buyers find their place and continue to shatter records for her sellers. Most recently, Toni Marie has been the highest priced estate under contract in Windermere, Florida since 2019 and set a new price per square foot high in the exclusive community of Isleworth Golf & Country Club.

Toni Marie rounds out her career with a balance of time spent with her friends and family. Her husband, Brett, and their two dogs are looking forward to growing their family over the next few years as they continue to call Central Florida their home.