Economists seem to agree that in 2023 we are heading for a global recession. Prices are going up for goods and services and real estate is also shifting. If you are thinking about buying or selling a home soon in Orlando, Florida, then you may be wondering what this means for the housing market. Real estate prices are in flux across the country and in Orlando, home prices have gone up more than 23 percent in the last year, according to Zillow. In fact, the average value of a single-family home was $388,557 in October, 2022 with more than 28 percent of homes selling over the list price. However, not all homes are selling for more, with 51 percent of homes closing for under the list price. Here’s more about what buyers and sellers can expect from the current housing market and the recession.
What to know about the Market Downturn
Whether you are an Orlando buyer or a seller, one trend to be aware of is that the real estate market is in what’s considered a downturn. High mortgage rates (with six rate increases in 2022), are leaving many sellers in a situation where they are lowering their prices. Buyers who don’t need to move immediately may therefore put their moving plans on hold. But with the appeal of its tourist draw, in Orlando, the median number of days a home is on the market is 17, according to Zillow, making the city still a hot market, despite a downturn.
Considerations for Buyers
Buyers in Orlando may be in a situation to get a good price for their dream home, if they are among the 51 percent of buyers getting a home for under the list price. However, there’s still that 28 percent that may go for over the list price. The best strategy for buyers is to partner with an expert real estate agent who can advise them about how to get a deal on that dream home. Defining a budget and must-haves can help buyers stay focused in a difficult housing market.
Considerations for Sellers
For sellers, keeping expectations flexible and knowing that they may not get the price they are asking for is an important fact to keep in mind. Sellers who can take a wait and see approach instead of selling immediately may be in the best position. But with a recession, there’s no clear prediction about when the shift might occur.
While there’s no doubt that the economic situation across the US and the globe is influencing the Orlando real estate market, the market is still considered hot, according to some agents. Taking some time to study the market and look at real estate projections for the next few months can help you decide how to move forward with your real estate goals. Partnering with a trusted Orlando real estate agent through your network can help you stay informed and be aware of major shifts.