Orlando Home Sales Decline as Interest Rates Reach New Heights
Orlando’s housing market experienced a decline in sales for the fifth consecutive month in October, as interest rates soared to their highest levels in over two decades. This report looks at the impact of rising interest rates on the local real estate market and how homebuyers are navigating these challenges.
Orlando Home Sales in October
Home sales in the Orlando area dropped by 5% from 2,558 in September to 2,429 in October, according to the Orlando Regional Realtor Association. The association examines sales data from Orange, Osceola, Seminole, and Lake counties. In October, the interest rate increased from 7.3% in September to 7.8%, the highest rate in the region since April 2001.
Rising Median Home Prices
Despite the decline in sales, median home prices in the area increased from $370,000 in September to $377,000 in October, ending a three-month trend of falling prices. Lisa Hill, Orlando Regional Realtor Association President, noted in a news release that demand continues to keep home prices high, making it challenging for buyers this fall. She added that early reports from November indicate that rates may be falling, offering potential relief for buyers.
Real Estate Agents Observe Lower Rates in November
Jeremy Wood, a real estate agent with Keller Williams Heritage Realty in Altamonte Springs, mentioned that he has already seen interest rates dip in November. He is currently working with a family searching for a three-bedroom, two-bathroom home who is benefiting from the lower interest rates.
Previously, the family was pre-approved for around $250,000 to $260,000 but decided to hold off on their purchase. However, the recent drop in interest rates, along with assistance from Florida’s Hometown Heroes program for closing costs, has increased their purchasing power to approximately $300,000 to $310,000.
Florida’s Hometown Heroes Program
The Hometown Heroes program is a state initiative designed to help veterans, active-duty military, nurses, teachers, and law enforcement officers buy their first homes by providing assistance with down payment and closing costs.
Low Inventory Drives Demand in Florida’s Housing Market
Wood explained that there is always demand for homes in Florida due to the influx of people moving to the state. The most significant factor driving the market is the low inventory of available homes. “People want to buy homes. They need to buy homes,” Wood said.
In conclusion, Orlando’s housing market has experienced a decline in sales, while median home prices have increased due to the rising interest rates. However, there may be hope for buyers, as rates appear to be falling in November, potentially providing some relief in the coming months.
Orginal article: Link To Article – provided by Kansas City Realtors
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