Market Update for July 2024

July 2024 Orlando Real Estate Market Update

The Orlando housing market continues to demonstrate resilience and growth, with notable shifts in inventory, sales, and pricing dynamics. July 2024 saw key trends and changes as families rushed to finalize their moves before the new school year, contributing to a relatively strong performance for the month.

Inventory and Sales Trends

• Inventory: A significant highlight of the market is the continued rise in inventory. July 2024 recorded 11,158 active listings, marking a 3.4% increase from June's 10,796 listings. This upward trend in inventory has been consistent for seven consecutive months, with the last time inventory was this high being November 2015. Year-over-year, inventory has surged by an impressive 95.1% compared to July 2023's 5,720 listings​.

• Sales: The Orlando market also experienced a rise in overall sales, with 2,652 homes sold in July 2024, representing a 2.0% increase from the 2,601 sales in June. However, compared to July 2023, sales were down by 7.0%, indicating some challenges in the market due to high interest rates.

Pricing and Affordability

• Median Home Price: July 2024's median home price stood at $390,000, reflecting a slight decrease from June's $395,000 but still up 2.6% from July 2023. This slight decline from the record-high price in June indicates some stabilization in home prices​.

• Average Home Price: The average home price for July 2024 was $469,630, down 4.1% from June's $489,845 but up 5.6% year-over-year. This shows that while prices are stabilizing, home values in Orlando continue to appreciate overall​.

Interest Rates and Buyer Behavior

Interest rates remained a challenge, with July's rates averaging 6.6%, down from 6.7% in June. A survey conducted by the Orlando Regional REALTOR® Association (ORRA) revealed that 52% of realtors identified interest rates as the top challenge for buyers. High rates are pushing some potential buyers to either wait or opt for lower-priced homes.

Key Market Insights

1. New Listings: The market saw a slight dip in new listings, with 4,067 new homes hitting the market in July, down 1.8% from June. This decrease could be indicative of sellers holding back due to rising mortgage rates​.

2. Distressed Sales: Distressed home sales (bank-owned properties and short sales) accounted for 0.9% of all sales, a stable figure compared to previous monthsNegotiation Opportunities: The combination of rising inventory and slightly cooling prices offers more negotiation opportunities for buyers, especially those ready to act despite the higher interest rates​.

Looking Ahead

As the Orlando real estate market moves forward, the rise in inventory is expected to provide more options for buyers, while sellers may face stiffer competition. Interest rates will continue to play a crucial role in shaping buyer behavior. Realtors will be key players in navigating these changes, helping both buyers and sellers optimize their transactions..