Two articles from FloridaRealtors.org have given us insight into the market for Spring. A reduced inventory means a seller’s market is in full swing and projected to last into the Summer. Buyers have taken advantage of lower mortgage rates (right around 4%) which contributes to the contracted supply of homes on the market. The depressed rates have motivated high-end buyers to jump on homes valued between $750,000 – $1 million or second vacation homes. Other advantages for buyers include loosened lending standards, and the FHA’s reduced annual insurance premium.
The projection for this year is that we’ll see a slight hike in mortgage rates, in addition to continued increase in median prices (they’ve climbed 8% in the Orlando area since last year). Throughout the country the bargains of foreclosures or bank-owned homes are going away. Florida has seen a decline in foreclosures but its foreclosure rate remains the highest in the country. Sellers are receiving more offers from conventional buyers and less cash offers from investors. Numerous buyers are making competitive offers on one home. The good news for sellers is that this phenomena has lead to an surge in home sales, an 8% increase is projected for this year, and Orlando has seen a 12% increase since April 2014.
These projections are an encouraging sign of a healthy and strong market. You can read the articles here: