2017 Market Update
As 2017 comes to a close, we look back at how the market conditions compare to the previous year. This year had its ups and downs, but overall the state of the Central Florida real estate market is healthy. The 2017 market has been active, and while single family home prices have continued to increase at a steady rate, inventory (active listings) has been on the decline across the region. Central Florida continues to be a desirable location, and earlier this year U.S. News and World Report named Orlando as one of the top 25 most desirable places to live in the country.
Orange County’s inventory of single family homes has continued to decline, which has begun to lead to a decrease in total closings. These factors, combined with homes selling faster, contribute to a market which is very appealing to those selling. Condos and townhomes have seen an inventory decline at an even more rapid pace; dropping 19.7% when compared to the end of the 3rd quarter last year. Closed unit sales of condos and townhomes rose slightly, which, when coupled with the decrease in new listings, will put more pressure on already low inventory numbers, potentially creating an even more favorable sellers’ market down the road.
Similarly, Seminole County’s single family home prices continue to rise, increasing 7.6% from last year, while closed sales fell. Homes are staying on the market for an average of a mere 42 days. All these factors combined are quite agreeable for sellers.
In Winter Park’s zip code of 32789, home prices increased 7.3%, with inventory and closed sales declining at a similar pace compared to this time last year. Furthermore, time on the market decreased slightly, while overall supply numbers remain healthy, indicating a fairly balanced market. Condos and townhomes actually saw an uptick in both new inventory and closed sales. Units are continuing to sell relatively quickly, while overall inventory remains consistent. If these trends continue we could see market conditions begin to tip in favor of the buyers in the condo and townhome space.
One would be remiss not to address the impacts that Hurricane Irma had on the real estate market in Central Florida. Hurricane Irma caused damage and flooding in many areas which created a slowdown in the market towards the end of the 3rd quarter. The hurricane took some people’s thoughts from listing and buying to recovery and repair. The good news is the beginning of the 4th quarter is showing signs that there will be a return to an active real estate market in Central Florida. We do wish for all those that were negatively affected by the hurricane that they are doing better and are on the road to recovery.
Overall, the Central Florida real estate market is solid. Home prices are on the rise, inventory continues to decline and homes are closing quickly, and while Hurricane Irma caused a pause in the market, it appears people have begun to catch their breath. We anticipate a strong finish to 2017 and look forward to the New Year ahead.