Orlando is a sunny city located in the middle of Florida. With its proximity to Disney World, year-round warm weather, and great beaches nearby, Orlando is both a tourism hotspot and somewhere extremely desirable for buyers looking for a new home. According to Forbes, the top cities for real estate investments in 2019 were all Fort Lauderdale, Jacksonville, and Orlando.
All three of these cities are in Florida, where the weather and lack of state income tax make for comfortable investing. But Orlando has many qualities that set it apart from the rest of Florida and make it one of the more compelling real estate bets in America.
Over the past year, according to realestateagent.com, Florida has seen the median prices for a home increase by 4%. Forecasts predict another 3.5% growth over the next 12 months. In Orlando, the median price for a home is $275,000 and increasing. One of the big reasons for this is the city’s strong economy.
Orlando is the leader for job growth in the United States.
According to the same report by realestateagent.com, Orlando is the leader for job growth in the United States. This is due to their massive tourism industry, which has over 75 million tourists per year, and their growing business sectors. This creates a strong economy where there are tons of jobs for residents.
This booming economy makes Orlando a hotspot for people looking to move somewhere with a lot of opportunities. This is great for demand, as there is a massive demand for real estate in Orlando. But the supply of real estate in the city might not be able to match this demand.
According to the Orlando Business Journal, in August, Orlando’s available homes reached their lowest point since 2005. There’s around a 1.7-month supply home supply available in Orlando. A balanced market is considered a 6.5-month supply.
Part of this lack of supply is attributable to the construction freeze once COVID began. This contributed to a stark rise in the price of a home in Orlando. In August of 2019, the median price of a home in Orlando was $250,000.
In August of 2020, the median was $275,000. This is a 10% rise year over year. Still, even at an increased price, more homes were sold in August of 2020 than in August of 2019. In August 2020, 3,539 homes were sold in the region. That’s an increase of 4.2% from the 3,397 homes sold in August 2019.
A lack of supply, climbing prices, and increasing demand contribute to a solid seller’s market in Orlando. With a large amount of buyer activity, sellers who put their house up are likely to receive multiple bids. This doesn’t mean that buyers are in precarious situations.
According to Business Insider, the median listing price of a home in Florida is $299,000, which is above the median cost of a home in Orlando. Orlando’s growing economy, strong tourism industry, and the trend of real estate price growth mean that buyers are still likely to have their homes grow in value.
Orlando is a city that many experts have named one of the hottest markets for single-family homes. With tons of job opportunities, beautiful weather, and many famous attractions, it makes sense that there is so much demand for real estate in Orlando. The only question is if the supply will be able to match the demand and balance out the seller’s market.