The one question our Zen customers are always asking is "How's the market?” For the last few years, the answer has been, Great! Orlando and Central Florida — as well as many other areas in the nation — have experienced a steady increase in home values. This increase has been driven by low unemployment and a low home inventory, creating a very positive scenario mainly for sellers with homes selling relatively fast at a very good market price and in some cases, under multiple offers.
But, what about the buyers? This doesn’t always paint a great picture because low inventory creates many challenges when it comes to finding a dream home. Negotiating repairs or even trying to get any seller concessions toward closing costs can become difficult. On the bright side for buyers, interest rates have reached record lows. For those whose goals have been to buy and hold on to long term investment properties, the panorama has been even better with higher market rents allowing for more return on their investments, in some cases.
The question has been shifted now to: “How's the market been affected by COVID-19?” — and even more frequently asked—What's going to happen to the market after COVID-19?
The honest answer to both questions, is that nobody really knows for sure. However, as experts in the Real Estate Market, we analyze the data and study the consumer behavior of our own relatives, friends, and past customers to come to our own conclusions.
So here's what you need to know about the Orlando real estate market:
- According to the Orlando Realtors Association (ORRA), the median price is $253,600, which represents an 8% increase from last year.
- Inventory is down by 10% and sales are up by 2%.
- ORRA President Reese Stewart, points out that we will have to wait another month to see solid evidence of the influence of the COVID-19 pandemic in Orlando's home sales statistics. "Because of the amount of time it traditionally takes a home to move through the transaction process (an average of 37 days, as of March 2020), the properties that closed in March most likely went under contract sometime in February, before the stock market declines and stay-at-home orders".
We agree with Mr. Stewart's statement. However, when talking to experts in the stock market we have a more positive outlook and believe that the market may be softening a bit within the next few months, but this would potentially create a better scenario for buyers as long as interest rates remain low.
If we start seeing more tenants defaulting on their rents due income loss, we may see some sellers entering the market and increasing the home inventory, much needed for a balanced market. Also, some of the renters that have steady income may be more eager to buy their first home rather than keep paying higher rents towards someone else's mortgage.
To sum it up, we believe there will be opportunities for both sides and that people — perhaps now more than ever — appreciate and value having a home! Staying at home these days, is literally a life saver. I don't know you, but I rather be home in a place I love and appreciate than being stuck in a space that does not bring me joy. If that is the case, please call your Team ZEN and as your local trusted real estate experts we can discuss your best options and mindfully execute a smart plan for you that will include a ZEN experience when working with us!
Stay home. Stay safe.
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