Home prices since COVID in Central Florida
Since the beginning of the pandemic, there have been tons of uncertainties. While people worldwide transitioned from one state of lockdown to another, the economy took a downward fall. One such sector that faced various changes is real estate. In some regions, the demand flattened and died down as a result of fewer investors. On the other hand, in other places, it was the exact opposite.
High Demand for Houses
Central Florida real estate is gradually getting back on track in a good way. The high demand is affecting both the buyers and the sellers. Individuals looking for houses in Orlando, Tampa, and Kissimmee areas have to keep their eyes and ears open for any potential property for sale. The heightened demand and relatively lower supply are pushing the competition. Thus, it is getting hard for first-time buyers to secure a home for their investment.
Another reason for the high demand is that many people outside Central Florida are gradually moving into the area. With newer potential residents, the number of people looking for houses is increasing each day. Meanwhile, the inventory continues to be lesser than the demand. According to a report by the Orlando Business Journal, 240,000+ people move towards Florida amidst the pandemic.
Supply of Houses
The reason for this unexpectedly high demand is that on the other side of the scale, the supply is reduced by significant margins, automatically creating competition. The pandemic, of course, is a major player behind the lack of supply. According to the National Association of Home Builders, the U.S inventory levels decreased to a 3.3 month's supply in August. This has been the lowest for the country since the year 1963.
As a result of the hike in demand, home prices increase, making the entire scenario highly profitable to the sellers. According to the Orlando Business Journal, specific areas such as Lake Nona, Doctor Phillips, and other Central Florida and Orlando neighborhoods are facing a hike in housing prices.
Prices in Orlando
According to realtor.com, the rates for the supply declined, going under 700,000 for the first time on record. Regionally, less than 61,000 houses were available for sale, making the market extremely tough to enter.
According to rates put forth by Zillow, the value of a typical home in the Orlando and Central Florida areas is around $285,129. Upon comparison, it was found that there had been an increase of 9.2% in the value of the homes. While the price does fluctuate a bit, the median sale price is around $277K. Areas such as Kissimmee have experienced a hike in the price of about 6.7%.
Future for the Orlando Market
As mentioned earlier, it is a sellers' market that might pose some difficulty for the buyers. Predicting the future can be a bit tough right now. However, homebuyers should wait out the storm instead of paying hefty amounts to sellers.