What Are the Top Housing Trends to Know in Central Florida?
The lockdown brought back fears of a housing market crash like in 2008. But in Central Florida, the market fared better than many analysts had expected. Low-interest rates, high demand, and low supply should keep home builders busy through 2021. Here are some top trends for Orlando you should know.
Market Will Remain Competitive
According to the Orlando Regional Realtor Association report, home sales in Central Florida went up by 20%. According to the association, most home builders are getting requests mostly for homes between $200,000 and $300,000.
An increase in demand and a low supply has reduced the number of days homes remain on the market. It is now down to 44 days from 57 the previous year. Another reason is the migration of people moving into the state looking for opportunities. Job growth has been at 11%, with a projection of half a million opportunities created in the next 10 years. There has also been a jump in the number of people moving in from bigger cities or even other states as employers embrace work-from-home trends.
High Demand and Low Supply
Central Florida has seen an increase in home prices due to low inventory and high demand. The lower supply is attributed to home builders halting construction projects due to restrictions on movement and physical contact.
As it stands now, Central Florida is a seller’s market. It may take some time before local home builders resume their operations to meet the demand. So it is expected that prices will continue on the upward trend through 2021.
The Location Factor
Florida is one of the destination states for single families looking to relocate. It has been touted as one of the best places for doing business. Its tax structures and government policies are more favorable than most other places around the coast.
People migrating into Central Florida consider the area to have mild weather and vibrant culture. Individuals who work remotely were the first to move out of cities like New York. Many of them are looking for sunshine and affordable homes.
Low Mortgage Rates
The pandemic has forced lenders to place tighter restrictions on lending. The prospect of an unstable economy led to the formulations of new guidelines for financing. In 2020, interest rates were close to 2%, occasionally dropping to lows of 1.75%.
As a result of the low rates, home builders are getting more demands for a property. Most buyers do not want to forego the opportunity, just in case interest rates spring back again. With a short supply of housing, you can expect the demand to rise even higher.
Outlook for 2021
Despite the grim look on the economy in 2020, the market is bound to stay on an upward trend in 2021. A home you purchase today will increase in value over the next 12 months by 7.4%, up from 6.4% last year. So this is the best time to start planning if you’ve been looking to start an Orlando investment home. Remember, with all the stimulus from the government and a rebounding business environment, the value of homes can only go up.
In 2019, homeownership rates were at 6.7% in the United States. Despite taking a blow during the lockdown, the real estate sector is still vibrant. With interest rates dropping and demand rising, the housing sector in Orlando is expected to continue on an upward trend.