It’s an interesting market around the Orlando area right now. As of the publishing of this post, we are in a neutral to cool market in many places and individual communities but, we are seeing a big difference from one micro market to another. Places like Clermont Florida might be great where other places such as Mineola or downtown Orlando might be a cooler market.
Right now the average home price in Orlando is about $165,000 but that varies greatly depending on the neighborhood or community we are talking about. We are leaning toward a seller’s market but it is by no means a hot market. A cooler market leans more towards buyers, meaning that there are more homes on the market and prices have come down. A hotter market leans towards the sellers, meaning there are fewer homes on the market and with a combination of more buyers, prices will naturally increase. The home value index for Clermont is about $232,000 and we are leaning toward a seller’s market. But, in many places around Orlando, we are seeing a cool off in a lot of the market areas.
So, what does this mean for buyers and sellers?
It’s hard to give you a hard and fast rule or advice when it comes to buying or selling because the market is so volatile in so many different communities. We don’t really have a blanket market across the Orlando area so depends on where you live or where you plan on buying.
If it’s a hotter market in your area you can tend to price on the higher side. However, it also depends on how quickly you want to sell. If you’re planning on selling and moving within a short amount of time, it’s important to price just lower than your closest competition. Take a look at how much you really need in the form of profit, your closest competition, what’s currently on the market and what has sold in the last three months. Because the market fluctuates so dramatically from month-to-month, getting research from the past six months is just not going to be as accurate. If you have time to sit on the market you may price it at market value and depending on how hot that market is, you may actually get escalation clauses or multiple offers but, I urge you not to overprice your home as this can backfire, making the homes sit on the market far longer than ever expected.
If you are buying, it’s important to look at the area in which you’re buying. Every community, neighborhood or small town around Orlando has a different market. If the market is leaning toward the buyers, find out why. Ask your real estate agent (or myself) about the general trend in that community. If homes sit on the market a long time or there something wrong with either the construction if it’s a new development, prices have dropped grammatically or there some external factor that’s causing prices to drop, this might be your chance to either get in at a lower price or stay far away depending on the factors involved. Some developments may be looking at new construction close by, which could be harming existing resale homes while other communities are increasing in value because of construction either due to modern commerce being put in or more conveniences such as Starbucks, Trader Joe’s or Whole Foods.
So, it’s hard for me to give you inexact answer to this question because the market is so different from place to place. If you’re looking to sell give me a call today. Feel free to contact me and give me your address and what you’re looking to get out of your home and I can give you some rough estimates as to what your home might be worth and how quickly it could sell.
If you’re planning on buying but are new to the area or just don’t have any idea where to start, give me your criteria and price range and what’s important to you in a home. I’d be happy to send you a list of plausible homes and properties that meet your price point and your needs.