Park North at Cheney Place Real Estate Market Update
Downtown Orlando Q2 2022 vs Q3 2022 Hi Neighbor, Despite recession talks and a nationwide pull-back in real estate prices, downtown Orlando condominiums continue to outperform single family homes in Orange County, Florida. Median sale prices for Downtown condominiums in Quarter 3, 2022 are up 15.2% to $322,500. Meanwhile, median home sale prices in Orange County are up only 2.3% to $470,000. Why are home sale prices stagnant? The main catalyst is the sudden increase of interest rates. Nearly 75% of sales in central Florida involve financing, representing the majority of potential buyers. If interest rates rise, it limits what buyers can qualify for. For example, a $300,000 property (30-year fixed, 20% down) with a 3% interest rate versus a 6.5% interest rate, is a difference of $500 monthly. With less qualified buyers, Orange County home inventory levels have increased 43% from Quarter 2 to Quarter 3 of 2022. Downtown condominium inventory is also up, but only by 16%. If this trend continues, condo prices may stabilize as we approach 2023. Does this mean we’ve shifted from a seller’s market back to a buyer’s market? Not yet. The good news for sellers is that inventory remains lower than levels back in 2017 through 2020 and prices are still at record levels. With the right strategy and expectations, sellers still have favorable market conditions heading into Quarter 4 of 2022.
Evan Caulfield
Professional Real Estate Advisor
407.432.9767 Evan@stockworth.com
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