With Florida as a whole currently experiencing a boom in housing costs, many property owners are thinking now is the time to sell and make a tidy profit on their investment. House prices are rising as many flock to the pristine beaches of the area, and take advantage of the rapidly exploding job market.
Understanding the current market trends is crucial to understanding the purchasing habits of Home buyers in Orlando, Florida. The current market trend is that houses in Florida are extremely attractive to first-time home buyers. In the last year, property prices have increased a staggering 6%, with this trend expected to continue over time. Let’s look at some averages and get a better look at what exactly is happening in Florida, in general, and Orlando specifically. For brevity’s sake, I’ll run through many different statistics and explain them quickly one after one.
In Orlando, the average monthly rental cost is $1559. Zillow.com states that the home values in Orlando have gone up 8.6% over the past year, and are poised to rise another 5.3% in 2019. The median value of homes in Orlando is $230,000 while the median price of homes being listed is somewhere around $280,000. This means houses in Orlando are currently selling for $50,000 more than they are valued – an attractive prospect to any would-be seller. It’s worth noting the difference between median and average. Averages are the sum of all of a data set divided by the number of individual data points, giving you a rough idea of what a single “unit” goes for if they were all the same price. Median, however, means that half of the data is above that number while the other half is below it. So, half of all houses currently on the market in Orlando are being sold for under $280,000, and the other half for over that amount.
Right now, there are a lot of individuals selling their houses for a tidy profit, as well as more risky investors who are seeking to buy large amounts of property to resell before a bubble forms and bursts. Currently, only 5% of homes are worth more now than they were before the recession at their peak, so many think that now is the time to get substantial investments in the market. Holding a property for more time might seem appealing to some, but if you’re risk-averse getting out now, while the getting is good, will prevent you from mistiming your sale, and ending up with a property that’s worth significantly less after the bubble pops. This market works in moderately predictable cycles. Sometimes, it’s better to take 70% of what you can get, instead of waiting too long and losing money.
As a current home seller, taking advantage of this is best done through one of two ways. The first is finding a reputable realtor to help you sell your house for maximum profit based on their knowledge of the current market trends, and people in the area seeking to purchase a property. The next is putting your house up for an offer to a buyer’s agency that deals primarily with large-scale investors who want to close a deal quickly.