The Orlando Housing Frenzy Explained
Where We Started
As a Realtor, I’ve had front row seats to the 2020/2021 housing market frenzy. Like all good shows, we’ve seen dramatic lows and climactic highs. Homes are selling at record speeds, and there is record low inventory across the country. To help my buyers find the right home before it’s sold, I log into the MLS every morning to check recently listed homes, hoping I can find the perfect home for one of our many buyers who are currently in a holding pattern.
My transaction coordinator and I noticed a downturn in the quantity of homes for sale in February. As I logged in to the MLS, I noticed the entire Orlando area only had 1 page of new listings – about 25 homes – that came to market within the last day. Compared with 2019/2020, we usually saw hundreds of homes a day listed for sale.
Why Is This Happening?
Let me be clear: this is not a repeat of the 2007-2010 recession. The Great recession was caused by loose lending restrictions and a general misunderstanding of the consequences of predatory lending. Working remotely has allowed homeowners to work without the hassle of needing to move for work. With fewer and fewer people selling their home, the demand for housing in Orlando, and the entire country has drastically increased. Prices in Orlando have increased over 15% since the beginning of Covid. The low supply of housing hasn’t deterred the most motivated of buyers though.
Let’s take March for example: I worked with two buyers who preferred resale homes. I explained to both families that the market was very tight, and we would need to provide a competitive contract price to even have our offer considered. The first family competed with 8 offers total, while the second family competed with 15 offers. Luckily, we won both offers! I attribute this success to setting clear expectations and a deep knowledge of the Orlando housing market.
The current market is tight, but not impossible. For serious buyers who are ready to purchase, home ownership is still realistic. No matter what Realtor you use, finding one that knows how to compete in this market is the key to a winning offer.
How Does This Affect Buyers?
While I can’t look into my crystal ball and forecast the future of the real estate market, I think repeat home buyers have the most to gain, while first time home buyers have the least to gain in this market. With higher prices nationwide, sellers are cashing in and selling their current home at a higher price, and using the proceeds to make up the cost difference when buying a new Orlando home. First time home buyers don’t have that same luxury – They can’t cash in on rising home prices because they don’t own a home. To stay affordable, many new home buyers are moving further and further from city centers, where home prices are more affordable.
Transparency is important to my team and I, and I hope you found this information helpful. If you’d like to work with me to purchase or sell a home, it would be our pleasure. Email me at Eric@magicalmoves.com for questions, comments, or to just say hey!
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