Central Florida real estate has continued its recovery in 2014, and 2015 is projected to have similarly positive results.
Central Florida real estate has continued its recovery in 2014, and 2015 is projected to have similarly positive results. We are still in what is considered overall to be a sellers’ market, however 2014 saw an upswing in the amount of available inventory. Interest rates are still hovering in the 4-percent range, a very affordable rate for most homebuyers. In fact, buyers had 35 percent more housing inventory to choose from when shopping for homes in the greater Orlando area in 2014 according to the Orlando Regional Realtor Association. So good news abounds for both buyers and sellers in the center of the sunshine state.
Another positive statistic is the rising median sales price of Orlando area homes. The median price rose 7.5 percent from September 2013 to September 2014. Not only are homeowners experiencing year to year value gains, the Orlando housing market has posted gains in the median sales price for 39 consecutive months. That’s no fluke! It’s a solid trend of local home values increasing slowly but steadily with no signs of stopping anytime soon.
According to many economists, new homes will continue to make gains too. In an article for the Wall Street Journal, Realtor.com chief economist Jonathon Smoke positions himself as a conservative optimist, predicting recovery in the first time buyers market and a 25 percent rate of increase in the area of new home production. Trulia conducted a survey amongst approximately 2,000 visitors and 36 percent said they anticipated 2015 being a better year than 2014 to sell a home, indicating a more favorable public opinion of the housing sector in general.
Things are still positive even for investors with opportunities still available to purchase single family homes and income producing properties with flaws or needed work, repair them and turn a profit. Although we are not seeing the distressed fire-sale type homes flooding our market, bargains are out there for the savvy investor. And it’s definitely a healthy sign that the market isn’t flooded with distressed homes the way it was in years past.
Overall 2015 is projected to see stable and consistent gains in home values, more first-time buyers entering the market, and increased new home demand. I’d personally expect to also see continued growth in the areas of foreign investors and buyers and luxury home sales, as well as the use of mobile and video based technology to market existing homes.
Cheers to a healthy and profitable 2015!