Orlando Real Estate Predictions 2017
Orlando Real Estate is definitely not a stagnate industry! There is always something changing, trending, or being improved.
Whether it is neighborhoods, financing, procedures, regulations, disclosures, property features, or home prices.
Bringing in the New Year is a time to commit to new goals, especially financial goals, like investing in Orlando Real Estate.
What can buyers expect in 2017.
What does the future hold for Orlando Real Estate
A supply of good homes at reasonable pricing is at an all time low. The normal balanced supply of homes is 6 months worth. Orlando overall housing inventory is at 3 months worth. Homes priced under $200,000 are 1 months worth. Home buyers will see competition for quality homes under $300,000 receive multiple offers. Buyers can learn to win these bidding wars.
Mortgage Rates Increase
Mortgage rates area expected to rise to 4.5 5% this year. This will propel buyers to get off the fence and consider investing now in real estate. Movement from move up buyers may slow down a bit and they will stay in their existing homes.
Uptick First Time Home Buyers
Positive job growth will help buyers realize owning a home could be a good investment. As a result, more first time home buyers will enter the market place. While others are feeling squeezed by increasing rental prices. Those renters are now realizing they can own a home for same housing payments. Buyers Broker of Florida can help buyers determine what they need to budget for a home.
Everywhere you turn neighborhoods, shopping centers, town centers, and governments are reinventing themselves. New shops, parks, improved trails, and refurbishments are all the in the works through out Central Florida. Its an exciting place to live.
Reduced Home Appreciation
Home have appreciated 76% since 2011. In 2016, Orlando Real Estate appreciation was about 8%. The pressures of rising mortgage rates and rising home prices will slow down appreciation to about 5.69%. However, Orlando is such a popular place to relocate, real estate sales are expected to increase 6.10% due to population growth.
Orlando Top 10 for Population Growth
Our recent study shows that people are moving into Orlando at a rapid rate. Experts have noted that the growing cost of housing has pushed a large number of residents out of major cities across the country, but this analysis shows that this is not the case in Orlando. In Orlando 6.94% of people moved into the area between 2014 and 2015. Sam Radbil, Sr. Communications Manager at ABODO
Affordability & Ease on Mortgages
Even though home prices are increasing, Orlando remains around the 100% affordability index. This means that local salaries are sufficient enough to be able to afford to buy a home. There may be buyers that disagree, but that is what the statistics are telling us.
FHA is undergoing changes to make it a less costly loan option. In addition, FHA is relaxing requirements for condo financing, opening the door for condo purchase.
New construction growth is booming in Orlando. As a result of demand by first time home buyers, new construction will be building smaller homes again. Some also predict new construction cost could go up if Federal immigration laws tighten. The pool of construction workers could shrink and result in higher labor costs.
Major infrastructure improvements are underway on I-4, Orlando Airport, and Sunrail expansion. Highways are being added; Wekiva Parkway, Poinciana Parkway, and 408 Expressway. Brightline All aboard Train opening 2017.
UTSA opening 100 tennis courts in January. The MLS Soccer Stadium, and Phase Two of Dr. Phillips Performing Arts Center will be offering more sports and entertainment options.
Disney, Universal Studios, and Sea World, and International Drive are adding more attractions, hotels, restaurants for all to enjoy.
Orlando is a great place to buy a home. Buyers Broker of Florida is a buyers agency office that represents home buyers. They would be a good resource if you are thinking of buying a home in the Orlando Real Estate market. Call 407-539-1053