February 15th, 2016.
As we start a new year, real estate professionals are already looking ahead in Orlando and the surrounding areas. Whether you’re in the industry, or you’re a home buyer or seller looking to make a move in 2016, there are some fast facts to understand about Orlando and the real estate. Orlando has certainly seen substantial ups and downs in the market since the Great Recession, but things are looking up in the area, which could mean a great year for real estate.
Median Home Prices Are On the Rise
According to the Orlando Business Journal, a report from the Orlando Regional Realtor Association shows median home prices rose by 10.3% in November. Despite the fact that overall sales were slightly down, this increase in median prices is good news for sellers who want to make a move in 2016. It wasn’t just November that showed price increases—the Orlando-area median home price has seen year-over-year increases for 52 consecutive months.
2015 Was a Bullish Year in the Real Estate Market
Along with rising median home prices, the Orlando-area market showed strong numbers throughout 2015, and in particular in June and July. The Orlando Sentinel reported summer and fall home closings in Orlando increased about 30% over 2014.
New Industry Appears To Be Moving to the Area
There’s no reason to think Orlando real estate won’t continue to show strong performance, particularly as the area is gaining new industrial and commercial properties, which could bring jobs to the area and strengthen the local economy. Recently the Orlando-based Crews Commercial Venture LLC., which is related to CNL Commercial Real Estate, spent more than $11 million buying 53 acres of land in unincorporated Orange County. The Orange County Commission has already given the green light for future development, and reports are circulating that plans are to build an industrial park on the land.
Buyers Are Flocking To the Area’s Most Popular Neighborhoods
According to Trulia’s Market Trends report, there are certain areas in Orlando that are seeing the most interest from buyers. These communities include Meadow Woods, Metro West, Pine Hills, Lake Nona, Doctor Phillips and Lockhart. Of those, Lake Nona is perhaps one of the most popular, offering luxury buying options such as access to lake-front homes, golf and country club access, and new construction properties. The average listing price for Lake Nona, according to Trulia, was $578,118 at the end of 2015.
Inventory Is Dropping
If you’re a seller, news that Orlando and Central Florida home inventory is dropping can be great news, however if you’re a buyer it means now is the time to make a purchase. In November 2015, the number of existing homes of all types available to buy was 6.77% lower than the inventory numbers a year before. Additionally, if you’re searching for an investment property or a foreclosure, the availability of those properties dropped nearly 40%, and short sale availability went down almost 46% in the past year.
Price Per Square Foot Is On the Rise
Along with general median home sale price, the Orlando area is seeing increases in price per square foot, which is a key metric for realtors. One year ago the average price per square foot for a home in the area was $88 while right now it stands at $98 per square foot.
Making 2016 the Year to Buy or Sell
Based on the current news and trends coming out of Orlando and the greater Central Florida area, it could be a great time to make your move, whether your plan is to buy or sell a home this year. Inventory is shrinking while prices are going up, so buyers should be proactive to get great deals while they still exist, and sellers should take advantage of a market that continues to heat up.