STATE OF THE ORLANDO REAL ESTATE MARKET

 STATE OF THE ORLANDO REAL ESTATE MARKET

If the idea of investing in Orlando real estate has even crossed your mind, it's worth taking a closer look at this Florida city to identify key trends that can help you make your decision. Investir US provides advice and information on the state of the Orlando real estate market.

Orlando: 73rd largest US city

As of 2021, Orlando ranks 73rd in population in the United States. Located in Florida's famous Sun Belt, it is known for its warm climate, beautiful beaches, numerous theme parks, and world-renowned entertainment.

Orlando is home to approximately 2.6 million residents. The real estate market is primarily driven by job seekers, retiring baby boomers, and students seeking a good quality of life at a reasonable cost. These are all excellent signs for anyone looking to invest in Orlando real estate.

This Florida city attracts 68 million visitors each year, making Orlando the most popular tourist destination in the United States. Rent growth is 4.46% per year, higher than both the national and Florida growth rates.

In terms of infrastructure, Orlando is the fourth largest metropolis in the United States. It's also the fastest-growing. Since 2010, the population has increased by 22%. Growth of an additional 2.87% is expected in 2021. These figures suggest that housing demand will continue to rise in the coming years.

For its part, the very serious Forbes magazine has designated Orlando as the number one place to buy a second home in the United States.

When it comes to employment, the outlook is also good. For example, Amazon Fulfillment has created 4,000 jobs in Central Florida, making Orlando the current leader in job growth in the United States. Forbes estimates that over the next 10 years, Orlando's job growth will likely be the highest in the country (based on a measure of 200 metro areas). Ranked first in the nation due to limited supply, Orlando is also seeing rising home values, as are the number of jobs in the leisure and hospitality sector.

The Orlando Real Estate Market in 2021

Based on Orlando real estate sales in 2020, we see a sharp decline in April, May, and June, followed by a recovery in home sales in July.

Tightening inventory of homes for sale and the return of buyers who had previously been hesitant due to the coronavirus pandemic suggest that Orlando home prices are expected to remain in the upper-mid-range. Based on current market trends, Orlando is expected to remain a seller's market for the next 12 months. In November 2020, home sales in the Orlando area increased 20.4% compared to the same period last year (source: Orlando Regional Realtor® Association).

In total, 3,251 homes were sold in November alone, reducing the number of properties for sale by 26.2% compared to 2019. In addition, the number of days properties remain on the market has also decreased, to an average of just 44 days; the lowest in three years. According to ORRA, the highest demand is for homes priced between $200 and $300,000.

Focus on Orlando real estate sales prices

Redfin , the American real estate brokerage company, reports that sellers of properties in Orlando receive, on average, 3 offers from potential buyers. Homes are sold in about 17 days. The average sale price of a home in Orlando was $284,000 in December 2020, up 7.1% from the previous year. The average sale price per square meter is $163, up 7.9% from 2019. The most expensive properties, on the other hand, sell for very close to their listed price and disappear from inventory in just 5 days.

In its November 2020 market report, Realtor.com confirmed Orlando's status as a seller's market. This means there are more potential buyers than homes available for sale.

The median home price in Orlando, Florida is $275,000, up 1.9% from 2019.

Looking at the hottest neighborhoods in Orlando, taking into account the region's real estate market, Lake Nona South is among the most sought-after areas, with a median sales price of $564,500. The more affordable South Semoran neighborhood has a median price of $120,000. Figures published by ORRA clearly indicate that Orlando's real estate market is indeed a seller's market. Current figures seem to confirm this trend.

Should you be interested in real estate investment in Orlando?

Many real estate investors wonder if buying real estate in Orlando is a good investment. To answer this question, it's worth delving into local trends to find out what the Orlando real estate market has in store for the coming year.

The Orlando housing market is growing at a rapid pace, with many Americans choosing to settle there permanently or invest. This year, Orlando once again ranks as one of the best places to invest in Florida real estate.

With its beautiful beaches, consistently improving quality of life, booming population, and thriving economy, Orlando is a safe destination for real estate investment. This applies not only to local investors, but also to foreign investors. Compared to other cities with significantly more competitive real estate markets, an investor would be wise to consider Orlando real estate. The simple fact that the median residential home price has increased by 14.6% since November 2019 reinforces this belief.

Orlando is booming in terms of employment and population. Between 2016 and 2019, Orlando achieved a growth rate of 11% (source: Orlando Business Journal). The Orlando Weekly reports that Central Florida will soon have a population of 5.2 million.

In the AdvisorSmiths report, which looks at the best cities for job growth, Orlando is ranked third . Demand for rental housing is high, due to a large proportion of renters (65.29%). Furthermore, real estate prices in Orlando are very affordable, with a median price of $275,000 (November 2020). This is also true for the entire Florida real estate market.

Finally, according to Zillow, first-time American buyers looking for an affordable home have a better chance of finding their dream home in Florida. Orlando's real estate market is ranked among the "10 Best Cities for First-Time Buyers." Compared to the saturation of similar markets in other cities like New York, many indicators are positive in Orlando, which is shaping up to be a particularly attractive American city for real estate, both now and likely for years to come.