Let's Compare: Home Sale Stats

We'll start with one of the biggest drivers of home sale prices, supply. Take a look at the decline in available homes for sale since 2008. The super low interest rates during 2020-2021 encouraged even more buyers to purchase, further squeezing supply - I wonder if not for that, would inventory have remained around 10,000 like 2014-2020?

Next, demand... Over the last 10 years, Orange County saw the largest growth in population for any county in the state of Florida, and it is projected to continue increasing. Florida also ranked #1 for largest increase in immigrant population (Jan 2020-2022), and with Covid travel restrictions lessening, these numbers are expected to increase, too.

Compared to the historically high increases in home values over the past couple years, we expect it to return to pre-pandemic levels, increasing 2-4% each year, and with the recent interest rate hike to curb inflation many home buyers are questioning if it's still a good time buy. Of course this answer is unique to each situation, but for most buyers who plan on staying in their home for several years, it's almost always better to buy than to rent.

For current homeowners needing (or wanting) to make a move, they might be feeling that they've missed the perfect window to sell, but we all know that there is never a 'perfect' time for anything! Sellers can rest assured that homes are still selling quickly (check out the history below)! It's still true, too, that the home that is priced fairly, well maintained, clean and staged nicely for showings will have no problem selling here in central Florida.

Last but not least, the 30-year fixed rate mortgage. There's no denying that if you were able to secure a home last year when rates were half what they are today you did well, but many Buyers forget that in order to buy that beautiful home last year, the offer likely included a good bit of cash over asking price or an agreement to pay an appraisal gap. Today's buyer faces a higher interest rate, a more reasonable sales price, less competition and the opportunity to negotiate credits from the Seller. When rates come back down in the future, buyer demand will increase again and prices will, too.

Are you thinking about Buying or Selling? I'll be happy to run scenarios with you to help figure out the best plan for your goals.

As always, thanks for being here!

- Lindsey