Condo Inventory Extremely Low, Prices Stabilize
Even as National real estate values decline, the downtown Orlando condo market remains strong. Unlike other markets such as San Francisco, Las Vegas, and Austin, which have seen median home prices drop as high as 13%, Orlando continues to benefit from mass relocation. Over 1,000 people are moving to the area weekly, mainly from the western/northeastern United States and overseas. As a result, the sold price per square foot for downtown Orlando condominiums remained consistent from $328 in Quarter 4, 2022, to $325 in Quarter 1, 2023.
Inventory within the central Florida real estate market, including the condominium market, is historically low. When comparing Q1 2021 active listings to Q1 2023, inventory has dropped 61%, the lowest in the last decade. With interest rates above 6%, primary/ secondary owners and investors are more cost-sensitive in today’s market. They are less willing to sell and incur excess market risk when considering potential buyer costs.
Despite fears of a nationwide recession, the Central Florida market has held up well. Considering supply and overall demand, provided inventory remains low and inbound migration continues to our region, we should continue to see a relatively stable market in Downtown Orlando.
Sources: Stellar-MLS, SmartAsset, RentCafe, US Census Bureau, Orlando Economic Partnership, Fannie Mae, Freddie MAC, Orlando Regional Realtor Association, Redfin, Census Bureau.
Demolition at Church Street for New 32-Story Skyscraper
The Ballroom at Church Street, a popular venue for weddings and other events, has been demolished. The land will make way for a new building: ‘The Edge’, the latest skyscraper to rise as part of the mixed-use Church Street Phase 2 Project by Lincoln Property Company. The future high-rise will include seven stories of office space, 240 apartments and a club level with an amenity deck on the 18th floor. The tower will neighbor the 28-story Truist Plaza, a hotel/office building that opened in November of 2019.
Orlando Magic Sports & Entertainment Complex Breaking
After years of delays, the Orlando Magic’s long-awaited mixed-use Sports & Entertainment complex may finally break ground in 2023, according to Esu Ma’at and Joel Glass of the Orlando Magic. The complex would be built on 8.4 acres in downtown Orlando. It will include a hotel tower, 420,000 square feet of office space, shops, restaurants and other amenities. This complex, along with the partially complete Creative Village have completely transformed the western corridor of Downtown Orlando, with several new apartments, offices and buildings rising across the area.
