The Community Paper’s February Real Estate Market Update – With Our Realtor Becky Dreisbach!
Five questions most often asked of Realtors
Is the current seller’s market going to change?
There’s no expectation from industry professionals that it is going to change anytime soon.
A seller’s market is driven by low supply and high demand, and right now Florida holds three of the top 10 hottest markets in the country, those being Tampa, Jacksonville and Orlando. Conversely, a buyer’s market occurs when inventory exceeds demand. With a thousand people moving to Florida every week, demand is expected to remain high — and therefore a strong seller’s market.
Addit ional ly, many of our residents have found living in Orlando highly desirable. This is particularly true in College Park and our downtown neighborhoods of Thornton Park, Delaney Park, Lake Como and the central business corridor where built-in amenities such as schools, restaurants, shopping, healthcare and easy access to major airports and transportation are established.
What’s driving the market?
The ability to work from any location, coupled with the astounding growth of new residents, is a major driver. We can see why choosing to live and work in Florida, and Orlando in particular, is very attractive to new residents: our year-round temperate climate and natural resources; affordable housing (in comparison to many northern markets) and no state income taxes, plus incentives to bring new business into the state; accessibility to quality healthcare; and a healthy tourism industry.
The historically low interest rates we enjoyed the last several years have also contributed to the lack of inventory by making the borrowed dollar go further. For example, a $300,000 mortgage payment at 4.09% is $1,448 versus a rate of 8.12% being $2,267.
Another factor to consider is how the pandemic changed the way we live in our homes. Time spent commuting to work and at the office is now being spent at home. Competition for homes that accommodate our “new normal” lifestyle are in high demand.
When will the inventory of homes increase?
That’s a harder question to answer, especially since demand for homes remains at a record high. Sellers are often wary of selling their home without having another to move into. With homes on the market for an average of 33 days, there’s not a lot of time to secure another home.
Are interest rates going to change?
Yes, they are going to rise, with the current inf lation rate at a 40-year high playing a large part. Typically, all costs — groceries, cars, furniture — also rise with inflation. In fact, the day this was written, interest rates rose a quarter of a point to the highest rate since March 2020. The days of seeing a loan in the 2% range are likely over.
Is this market going to crash like it did in 2008? Will prices go down?
There is no expectation that the value of homes will decrease. What may change is the rate at which homes have been increasing in value. If the market corrects itself with rising inventory to meet the demand, we most likely will not see a decrease but simply a more stable market.
Becky Dreisbach is a Realtor with Anne Rogers Realty Group in College Park. AnneRogersRealtyGroup. com, 407-649-4141.
-Courtesy of The Community Paper, Feb 1, 2022
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