Another year, a new home! This may not be the exact saying, but a lot of people in the Orlando area are looking for a new place to call their own in 2022. In the months of winter (November, December, and January), the 2022 spring real estate season is a bit up in the air.
Even with a solid economy, decent trade deals, and a solid recovery after a COVID market, the labor shortages and increased lumber costs can cause a bit of a damper in the upcoming housing market costs. If you plan on buying or selling your home in 2022, here a few factors that you may want to keep in mind:
Nationwide – Rising Home Prices
Home prices and rents will increase faster than most people’s income. The rental market remains strong and has a low vacancy rate. The number of single-family homes continues to remain limited across the country. This is due in part to more demand than supply and the prices of homes and rental rates are predicted to rise, drastically.
Since the onset of the pandemic, median home prices are up 23% nationwide, according to Fortune Magazine.
Millennials and renters are slated to be among those who are going to be the most impacted by the 2022 housing market. Significant rises in interest rates with increased prices in homes means homes will become less affordable.
No Foreseen Housing Bubble
With no housing bubble on the horizon, the risk of declines in housing prices is very low. Various analysis and predictive models are forecasting minimal chances of home prices decreasing over the next two years.
Orlando Housing Market Today
According to the Orlando Regional Realtor Association, starting back in May 2020, the Orlando housing market heated up so much that about 30% of home sales received contracts within less than a week of being listed.
The significant job growth in Central Florida combined with the low amount of listings, increased fast-paced sales that was similar to that of the home sales conditions over a decade ago
According to ORRA (Orlando Regional Realtor’s Association), prospective buyers only had 3,999 properties to choose from in the month of August, and the median home price was a record high $320,000. This is 16% higher than August 2020’s statistics of $275,000.
Orlando Housing Market Trends in 2022
Deciding to buy a home is a big step. If you want to make that next step and move into something more permanent, be sure to keep up with the local housing market trends. When it comes down to it, buying a house is your choice. It is impossible to say that buying a house is a good or bad decision. It strictly depends on your financial situation, as well as the trends of the current market.
To help you understand your options, contact The Realty Medics today! We know the Orlando real estate market better than anyone and are ready to hear about your goals and help you take the next step in your real estate journey.