The Orlando housing market continues to show signs of resilience. While double-digit home appreciation isn’t forecast until April 2022, mortgage rates remain low and the economy is experiencing growth. The real estate market will look very different in 2024, however. Let’s see why. Let’s look at the statistics. In January of 2022 orlandorealtyconsultants.com/ states Orlando’s inventory fell by 2.77%, from 2,379 homes to 2,313. That’s a 32% decrease from February 2021. In February 2022, the number of homes on the market was at nearly one month. Six months is a balanced market. During the same period, the number of new listings jumped 3.13% to 3,686 homes.
The recent mortgage rate decision may have accelerated the housing market in the short term, but it will moderate growth in the long run. Increased supply will lower prices and lead to more bidding wars, but this will take some time. As a result, more sellers will list their properties in 2022. As a result, median prices will likely remain flat or decrease. However, this isn’t good news for buyers, but it is a warning sign that a slowdown is on the way.
As a buyer, you’ll have to weigh the risks of short-selling your current home in order to buy a new one. A lack of inventory in a competitive market will slow the home search in 2022. While this is a risky proposition, the cash from the sale of your home can be useful in the future home search. Moreover, a low inventory situation means that the seller holds all the cards. However, if you’re selling a home, consider re-renting it once it sells. Another option is to include a contingency to remain in the home after the sale is complete.
The housing market will continue to be driven by the large number of people moving to the region with money to spend. Lopez expects home values to rise by 8 to 10% this year, though she left some wiggle room for surprises. She also predicted a return of the bidding wars that frustrated local buyers and priced them out of their desired choices. Interest rates are expected to rise several times by 2022, but Lopez dismissed fears that higher rates will hurt the housing market. A housing bubble will eventually burst, and the housing market will not remain in the same state for long. However, there are some signs that suggest the housing market will start to flatten out in 2022. A number of factors include rising unemployment and inflation, increasing home prices, and a likely rise in mortgage rates this year. However, these factors are not conclusive enough to predict
whether prices will rise or fall.
Despite the economic outlook, home prices rose last year. However, the housing market is still experiencing a lack of supply. Rising home prices are forcing builders to ramp up their production. As a result, many homes will be gutted and renovated, adding even more demand to the market. If the housing market remains strong in 2022, home prices could rise by double digits. Moreover, multiple offers will be common.
While the housing market continues to climb, there will be many renters and home prices will continue to remain high. The rising housing prices will continue to push home prices well above
income levels in 2022. Rising prices are causing higher rents, and renting will continue to be a more affordable option for many. This will continue for a few years, if not a full decade. If mortgage rates remain low, you may have to wait until 2022 to buy.
In 2022, the number of homes for sale will rebound from low levels, but the inventory will remain low. This will make home buying a challenging task for future home buyers. The market will continue to be a competitive one, which is great news for Americans. However, it should be noted that a significant increase in mortgage rates could restore seasonality. A bump in listings is expected later this summer and early fall.
In 2023, Fannie Mae is forecasting a slowdown in home prices. However, this increase could help avoid a real estate market collapse in 2023. Rising home prices have priced many potential
homebuyers out of the market. As a result, many families have had to move to larger homes. Low mortgage rates have encouraged many to make the move. In 2022, however, inventory levels willremain low and new construction will fall short of the demand.