The Orlando real estate market in 2023 was a rollercoaster ride, with prices rising and falling throughout the year. However, despite the ups and downs, there are signs that the market is starting to stabilize.
Key Trends in the Orlando Real Estate Market in 2023
Home prices continued to rise, but at a slower pace than in 2022. The median home price in Orlando rose to $375,000 in 2023, up from $350,000 in 2022. However, the pace of price growth slowed significantly in the second half of the year.
Inventory levels increased, providing some relief to buyers. The number of homes for sale in Orlando rose to 10,000 in 2023, up from 8,000 in 2022. This increase in inventory helped to moderate price growth and give buyers more options.
Mortgage rates rose sharply, making it more expensive to buy a home. The average mortgage rate for a 30-year fixed mortgage rose to 6% in 2023, up from 3.5% in 2022. This increase in rates made it more expensive for buyers to qualify for a mortgage and led to a decline in demand.
What to Expect in the Orlando Real Estate Market in 2024
The Orlando real estate market is expected to remain relatively stable in 2024. Home prices are likely to continue to rise, but at a slower pace than in recent years. Inventory levels are also expected to remain relatively high, which should help to keep prices in check.
Co-living and Shared Housing: Orlando’s growing population, particularly among young professionals and students, is driving demand for co-living and shared housing options. These spaces offer affordable living arrangements, shared amenities, and a sense of community, catering to a growing segment of the population.
Suburban Neighborhood Revitalization: Orlando’s suburbs are experiencing a resurgence as residents seek affordable housing options and a more connected community feel. Investors and developers are revitalizing these neighborhoods by renovating older homes, adding retail and dining options, and enhancing public spaces.
Affordable Housing Solutions: Addressing the need for affordable housing is a critical priority in Orlando. Developers are creating affordable housing options, such as mixed-income communities, workforce housing, and smaller, more efficient homes, catering to a diverse range of residents.
Co-working Spaces and Flexible Workspaces: The rise of remote work and flexible work arrangements is driving demand for co-working spaces and flexible workspaces. These spaces provide a professional and collaborative environment for individuals and businesses seeking alternative work settings.
Student Housing and Hospitality: Orlando’s numerous universities and colleges create a demand for student housing and hospitality services. Developers are building student housing facilities and investing in hotels and short-term rental options catering to the student population.
Mixed-Income Housing Developments: Mixed-income housing developments are gaining traction in Orlando, promoting social integration and economic diversity. These developments combine affordable housing units with market-rate units, fostering inclusive and vibrant communities.
Here are some additional factors that are likely to impact the Orlando real estate market in 2024:
Orlando Regional REALTOR® Association: https://www.orlandorealtors.org/marketreports
Norada Real Estate Investments: https://www.noradarealestate.com/about/
The Tate Advisory Group is ready and willing to assist you with all of your real estate needs. Contact us today to get started with your home buying or selling process!
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The Tate Advisory Group is a team of real estate agents affiliated with Compass. Compass Florida, LLC d/b/a Compass is a licensed real estate broker and abides by equal housing opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit propertyalready listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.