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The Orlando Regional Realtor Association reported that the Orlando area’s inventory of homes for sale rose by more than 44% in May. This is the largest monthly increase ever recorded by the Association. The increase is a strong indication that the market is returning to normal. However, it still remains warm.
According to the report, the inventory of properties for sale in April was 2,670 and jumped to 3,851 in May, reflecting a 44.2% increase.
Considering only the segment of single family homes, the increase was similar. Of the total of 2,670 in April, 2070 were Single Family Homes. In May this number went to 2,998, representing a growth of 44.3%.
The Single Family Homes segment was the most affected in the last two years. A perception was created that large, separate (non-detached) houses were safer during the pandemic, in addition to being able to provide more freedom and comfort during quarantine periods, compared to apartments.
Prices remain on an uptrend
According to the ORRA report, the median price for real estate in the Orlando area was calculated at US$379,950, nearly US$10,000 more than the US$370,000 recorded in April 2022. The new value represents a increase of 2.6% compared to April 2022 and 26.7% compared to the same period of the previous year.
The increase shows that the market remains considerably heated, despite showing signs of returning to normality.
Increase in sales
In addition to prices, the number of units sold also increased, by 3.8%. In May, 3,946 units were sold, compared to 3,800 in April 2022.
Interest rates
The FED (American Central Bank) has been adopting an upward bias for the US basic interest rate. Recent increases have had an impact on the real estate sector, helping to “cool off” demand, which also impacts inventory.
Interest rates rose from 4.9% in April this year to 5.3% in May. This is the highest interest rate ever recorded since 2009. It is also worth noting that it is the first time that the rate exceeds the 5% threshold since 2010, when it was at 5.1%.
Increase in the number of listings
With the gradual return to normality, after the critical periods of pandemic and quarantine, it is natural for people to make their properties available on the market again, which resulted in an increase of almost 11% in the number of listings in May, compared to April this year. year.
There were 4,822 new homes entering the market in May, compared to 4,354 in April 2022, an increase of 10.7%. Compared to the same period in 2021, the increase was 11.7%.
About AMG International Realty
AMG International Realty is a global real estate company specialized in Florida. If you want to know more about real estate opportunities in Orlando, Miami and the Tampa area, contact me right now and chat with me on WhatsApp: +1 305 318 6968 (Heloisa Arazi).
