Monday, November 24, 2014

Real Estate Trends in Orlando and Central Florida



Just three to four years ago, Central Florida’s housing market was deeply rundown, however, now, the home sales volume is experiencing a rise, which is an indication of market recovery. The current situation is ideal for people investing in real estate in Orlando, since the inventory is ample and available in all price ranges. This availability of homes for purchase is helping to meet the unexpressed demand and has driven sales up by 18 percent in October, as reported by the Orlando Regional REALTOR® Association. Additionally, the median price of Orlando homes sold in October has risen by nearly 4 percent since October 2013. This rise can be contributed to the near one-year low mortgage rates. Since June 2013, interest rates have fallen from 4.25 percent to 4.05 percent.

For years, rent prices have surpassed the income growth; as a result, families and individuals had started to combine their incomes in order to share affordable homes. But, now as the economy is improving, the hidden households are releasing and entering the household market. According to recent statistics uncoupling of hidden household in Orlando could increase the number of household by 10.5%.In addition, the young adults moving out of their parents’ house or splitting with roommates to live separately, is also contributing to increased households.

However, there are other reasons that play a role in driving demand nationally. There have been improvements in the consumer attitude and also the labor market has strengthened in recent years. Since the job outlook in the state is steady and the economy is growing, stability and consistency have been noticed in Florida’s housing market.

The growth is seen not just in the household market, but also in the office market. The infrastructure and logistics are improving in Orlando, and office market is bouncing back, resulting in increased real estate development.

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