The Orlando real estate market is shifting. Higher interest rates are having a significant impact on purchasing power. Buyers that were qualified to purchase a $500,000 home, may only qualify for $400,000 now. This drop in purchasing power has fueled a sharp decrease in sales, leading to a dramatic increase in inventory. In fact, sales were off 21% compared to a year ago. The inventory of homes available for sale climbed 85% compared to a year ago in July.
I do expect to see lower median and average sales prices, but I do not expect to see a collapse in the real estate market. There are only 25 'distressed sales' currently listed for sale in Orange and Seminole Counties. Cash sales currently represent about 1/3 of all sales, properties are still selling in just 28 days on average, and are selling at 99% of the last list price. The sky is not falling, but everything depends on how long and how deep our current recession goes.
Check out this brief video with the latest breakdown of July's results for the #OrlandoRealEstate market.