The Florida real estate market remains hot. The Orlando area has set a new record, posting an average price for residential homes of $345,000 in February 2022, according to the Orlando Regional Realtors Association. The increase, of almost 3% compared to last month, shows that the uptrend remains. The main reason that supports this trend is the strong imbalance between supply (home inventory) and the expressive demand for this profile of property in Florida.
The year-on-year comparison further highlights the escalation in prices. In February 2021, the average price of residential homes in the so-called “Greater Orlando” region was $280,000. That is, an increase of more than 23% in one year.
The last record, before February, was reached in December 2021, when the average price of homes in Orlando hit $340,000.
The median price of a home in the Orlando area rose 2.99% from January to $345,000 in February, the Orlando Regional Realtor® Association said Tuesday.
The Orlando area residential home inventory, particularly single-family homes, remains very low.
The strong demand for residential homes in central Florida, compounded by new residents coming from other states, maintains the significant imbalance between supply and demand.
Construction companies are running out of time to launch new projects, but they are unable to cope with the strong demand.
Rising interest rates did not dampen demand
High prices and rising interest rates in the US have not dampened demand for real estate in the Orlando area. Even the Vacation Homes segment, that is, homes aimed at investors who want to earn income from rentals, are also experiencing an imbalance in the market. Occupancy Rate for this segment in Orlando is very high, what motivates international investors to buy Vacation Homes near Disney aiming for high expected returns.
On average, homes in Orlando spend just 30 days after being announced on the market for sale. In a normal market this period would be 6 months.
A total of 2,313 homes were on the market in February, down 2.77% from the previous month.
About AMG International Realty
AMG International Realty is a global real estate company specialized in Florida. If you want to know more about the opportunities in the real estate market in Orlando and Miami, contact me right now and chat with me by WhatsApp: +1 (305) 318 6968 (Heloisa Arazi).