The real estate market throughout Florida has been robust over the past few years. Low interest rates, significant population growth, and the work-from-home movement have helped home sales boom and prices to escalate. However, there are changes ahead — especially in the Orlando area.
Home Prices Expected to Rise
Home prices continue to rise in Orlando. The Zillow Home Value Index shows that homes in the Orlando, Kissimmee, and Sanford metro area have gone up in value by 27% over the past year. Despite these price hikes, homes have held their value fairly well, selling at just 1.68% below the asking price.
According to Realtor.com, the median listing price for Orlando homes was $385,000 at the end of 2022. This will continue to increase by 2.9% in 2023.
While home prices are trending down in many major metro areas, Orlando's continued economic growth is keeping prices high and is expected to continue to increase in 2023, albeit at a slower rate than the past two years.
Home Sales May Go Down
Like nearly every area of the country, however, rising home prices and high interest rates are causing buyers to be more cautious and slow down movement. Home sales are forecast to drop by 8.5% in 2023. Overall sales in November 2022 were 45% lower than in November 2021 — the lowest number of home sales since January 2019.
“While there is a lot of uncertainty with where the housing market is headed, buyers in the Orlando area have twice as many homes to consider than they did a year ago,” said Tansey Soderstrom, Orlando Regional REALTOR® Association President. “And for sellers, home values and prices continue to remain steady."
Still, Orlando is rated as a seller’s market with more people looking to buy than available homes.
Continued Population and Employment Growth
One of the world’s most popular tourist destinations, Orlando continues to attract visitors, new residents, and employers each year. The Orlando Economic Partnership reports that 1,500 people per week are moving into the Orlando region, driving continued population increases through at least 2030 when the population will hit 5.2 million residents. Employment is also forecasted to grow consistently at a rate nearly twice as fast as the U.S. average, adding an additional half a million new jobs.
That makes Orlando one of the top 15 fastest-growing cities in the U.S. and the top 10 for housing markets.
As the tourism business continues to grow after pandemic worries ease, it’s created new jobs and demand for housing. Orlando has the highest level of job creation in the state and an unemployment level of less than 3%.
Affordable Housing
Despite price hikes, Orlando ranks highly when it comes to affordability. While other Sunbelt locations like California, Arizona, and Texas are seeing many buyers priced out of the market, the U.S. Federal Housing Finance Agency shows that Orlando is one of the most affordable major markets in the country when comparing home prices to income levels.
More homes on the market and smaller price increases should keep it that way in 2023, although Orlando faces the same constraints as other areas of the country in the form of higher interest rates and high prices for construction materials.
Becoming a Real Estate Agent in Florida
If you are thinking about becoming a real estate agent in Florida, Aceable offers online courses, approved by the Florida Real Estate Commission (FREC), to help prepare for your licensing exam. You can work at your own speed and hit the ground running with everything you need for a successful career in real estate.
Learn more about Aceable’s real estate license online course today.
Updated 1/13/23