Market Analysis: Selling Your Orlando Home During COVID-19
The global COVID-19 pandemic has shaken up the world economy to an extent not seen since the Great Depression, with 2020’s second quarter, in particular, showing unparalleled losses across every industry imaginable.
It’s not all doom and gloom though: As societies come to terms with what’s being billed as “The New Normal”, and we begin to see the rollout of mass vaccination programs, experts are tentatively suggesting that a recovery might be around the corner.
So where does that leave the real estate sector in 2021? And is now the right time for Orlando homeowners and sellers to enter into the market?
Right now, we’d say with some confidence that the short answer is a firm “Yes”!
To that end, we’ve put together a brief overview of where we feel the real estate market sits at present, and how things could progress through 2021:
The Real Estate Landscape in 2021:
First up, it’s important to understand that the US real estate sector as a whole didn’t fare anywhere near as bad as many members of the public would imagine: Yes, at the beginning of the pandemic house sales virtually ground to a halt, with many states seeing a drop in sales of over 33%.
It’s important to understand that whilst the number of houses on the market dropped significantly during the early period of quarantines and closures, values themselves remained largely unaffected.
As the year progressed, the housing market saw a resurgence of growth that hadn’t been witnessed since the boom of 2005.
How COVID-19 Affected Home Values in Central Florida:
Before COVID-19 struck, the Orlando (and Central Florida) housing market was in great health. Despite a brief slump at the beginning of the pandemic, sales have continued to rally, and are now higher than before the virus took hold, especially after a brief surge last November:
“In November, home sales in the Orlando area spiked 20.4% over the same time last year” - Orlando Regional REALTOR® Association (ORRA)
The Future Outlook for Orlando:
The future looks bright for Orlando and the state of Florida in general.
With the rise of remote working and the slow death of the traditional office, young professionals are beginning to shift their focus away from cities that offer the best career opportunities, towards parts of the country that promise a better standard of living (and competitive tax rates!).
Excellent news for places like Orlando!
So Property Values Will Continue to Increase?
Orlando homes are rarely on the market for more than 6 weeks, and with some analysts forecasting that the number of properties for sale will continue to shrink by 26.2% per year, supply is rapidly outstripping demand.
That can mean only one thing: A seller's market.
What About Vacation Homes?
When it comes to vacation properties and Airbnb rentals, Orlando home values largely mirror the outlook of the residential sector, albeit at a slightly slower pace.
With that being said, a typical vacation home in Orlando is still seeing year-on-year price increases of at least 7%, and we can expect that figure to rise significantly once the tourist economy begins to stir from hibernation.
A Word on Theme Parks & the Tourist Industry:
With Walt Disney and Universal Studios putting thousands of staff on furlough and laying off sizable numbers of their workforces, some neighborhoods in Orlando faced a bleak outlook back in the spring of 2020.
Whilst we’re still seeing restrictions on the International travel and the parks continue to operate on restricted timetables, the real estate market hasn’t been impacted to any significant degree.
The Numbers: The Adjusted Home Value During COVID in Orlando:
Here’s the current Orlando home value statistics according to Realtor.com:
- Median list price: $275,000 (up 1.9% year-on-year)
- Median list price per square foot: $165
- The median sale price: $277,000
- Sale-to-List Price Ratio:64% of listed price achieved.
- Average time on the market: 57 days, trending downwards.
- Most expensive neighborhood: Lake Nona South (av. $564,000)
- Most affordable neighborhood: South Semoran (av. $120,000)
So in answer to the question, “should I sell my Orlando home during COVID”, all the signs point to a definite “yes!”
The Central Florida real estate sector already looks buoyant, and might well be headed towards a boom as we progress further into 2021, as the demand for real estate begins to rapidly exceed supply.
If you’re considering a sale, we're here every step of the way to help Orlando homeowners and sellers get the best returns on their homes. Get in touch today to find out more!