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April 26th, 2019 by Marco Santarelli
Orlando Real Estate Market 2019 Statistics
If you are looking at buying a house in Orlando as a potential investment opportunity, you must read till the end. Home prices in the Orlando real estate market are expected to rise by 4.5% by the end of 2019. Owing to its picturesque beaches and rapidly improving quality of life, Orlando, FL is proving to be a secure real estate investment destination for not only local but also international investors. With an average rental of $1,599, the Orlando rental property market is expanding at a great pace and people from all over the country and even beyond are either choosing to move permanently or invest here.
Compared to other cities with competitive real estate markets, Investing in Orlando housing market makes more sense since it has experienced a 6% increase in property prices in a year. According to Zillow, the first-time buyers in the U.S. looking for an affordable home without much competition may have the best luck in the State of Florida, with Orlando real estate market ranked high in the Top 10 best cities for first-time home buyers in 2018. Let’s take a close look at the Orlando housing market trends and forecasts for 2019 & 2020 and find out why you should invest in this hot market in the state of Florida
Orlando Real Estate Market Forecasts 2019 & 2020
The median home value in Orlando is $241,800 on Zillow.com. Orlando home values have gone up 7.7% over the past year and Zillow’s Orlando real estate market prediction is that the prices will rise 4.5% in 2020. The median list price per square foot in Orlando is $153, which is higher than the Orlando-Kissimmee-Sanford Metro average of $147. The median price of homes currently listed in Orlando is $285,000 while the median price of homes that sold is $250,500. The median rent price in Orlando is $1,595, which is the same as the Orlando-Kissimmee-Sanford Metro median of $1,595.
According to LittleBigHomes.com, the Orlando real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Orlando real estate market trend prediction is 88%. Accordingly, they estimate that the probability for rising home prices in Orlando is 88% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Orlando Housing Market Forecast 2019 – 2021
The Orlando housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Orlando housing market trend prediction is 85%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Orlando is 85% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Orlando Real Estate Market Forecast.
Orlando Real Estate Market Trends
As per Trulia, Orlando real estate market trends indicate an increase of $1,350 (1%) in median home sales and a 0% rise in median rent per month over the past year. The average price per square foot for this same period rose to $150, up from $140. Trulia has 3,117 resale and new homes for sale in Orlando, FL, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Orlando for Jan 11 to Apr 10 was $235,000 based on 2,479 home sales. Average price per square foot for Orlando was $150, an increase of 7% compared to the same period last year. The median rent per month for apartments in Orlando for Mar 16 to Apr 16 was $1,700.
Real estate data by Redfin.com shows that the Orlando housing market is very competitive. Homes in Orlando receive 1 offers on average and sell in around 35 days. The average sale price of a home in Orlando was $230K last month, up 8.5% since last year. The average sale price per square foot in Orlando is $140, up 7.3% since last year. Homes typically receive 1 offer. Homes in the Orlando housing market sell for about 3% below list price and go pending in around 35 days. Hot Homes for sale in Orlando can sell for around list price and go pending in around 10 days.
Orlando Housing Market Statistics
There are 6,217 homes for sale in Orlando, ranging from $8.5K to $11M on Realtor.com. 460 of which were newly listed within the last week. Additionally, there are 1,466 Orlando rental properties, with a range of $100 to $12.5K per month. Orlando has affordable condo/townhomes. In February 2019 the housing market in Orlando, FL was a balanced market, which means there was a healthy balance of buyers and sellers in the market.
In February 2019, the median list price of homes in Orlando, FL was $250K, flat year-over-year. The median listing price per square foot was $149. The median sale price was $235K. On average, homes in Orlando, FL sell after 80 days on the market. The trend for median days on market in Orlando, FL is flat since last month, and flat since last year.
As per the data given on Movoto.com, the median list price in Orlando is $320,000. The median list price in Orlando was less than 1% change from March to April. Orlando’s home resale inventories is 3,014, which decreased 2 percent since March 2019. The median list price per square foot in Orlando is $159. March 2019 was $158. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in April.
The data from the Orlando Regional REALTOR® Association shows that the Orlando housing market enjoyed a 2% increase in median price for the month of March 2019, while year-over-year inventory rose 5% and experienced its fifth consecutive month of increase. Sales dropped 11% compared to last year.
The overall median price of Orlando homes (all types combined) sold in March 2019 is $235,000, which is 2.2% above the March 2018 median price of $230,000 and steady compared to the February 2019 median price of $235,000 as well. Year-over-year increases in median price have been recorded for the past 93 consecutive months; as of March 2019, the overall median price is 103.5% higher than it was back in July 2011.
The median price for single-family homes that changed hands in March increased 2.0% over March 2018 and is now $255,000. The median price for condos increased 3.7% to $127,500. The Orlando housing affordability index for March is 133.81%, up from 131.64% last month. (An affordability index of 99% means that buyers earning the state-reported median income are 1% short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.)
Sales of single-family homes (2,450) in March 2019 decreased by 10.7% compared to March 2018, while condo sales (395) decreased 6.4% year over year. Sales of distressed homes (foreclosures and short sales) reached 110 in March and are 6.0% less than the 117 distressed sales in March 2018. Distressed sales made up just 3.5% of all Orlando-area transactions last month.
The overall inventory of homes that were available for purchase in March (8,117) represents an increase of 5.3% when compared to March 2018, and a 0.9% decrease compared to last month. There were 4.4% more single-family homes and 22.7% more condos, year over year. Current inventory combined with the current pace of sales created a 2.6-month supply of homes in Orlando for March. There was a 2.2-month supply in March 2018 and a 3.4-month supply in February 2019.
The above data and statistics were taken from Orlando Regional REALTOR® Association. You can visit their website for more information.
Orlando Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Orlando is $219,696, which indicates that home prices in Orlando are well above the national average for all cities and towns. Large apartment complexes or high rise apartments are the single most common housing type in Orlando, accounting for 49.02% of the city’s housing units.
Other types of housing that are prevalent in Orlando include single family detached homes ( 32.58%), row houses and other attached homes ( 9.17%), and a few duplexes, homes converted to apartments or other small apartment buildings ( 9.05%). Cities that are predominantly high-density buildings are relatively uncommon in the US. Because of the density, these types of cities are often walkable and compact, and often have a lively downtown.
Orlando is dominated by renter-occupied one, two, or no bedrooms apartments. 65.29% of Orlando’s dwellings are rentals. Currently, there are 2,483 single family homes for sale in Orlando, FL on Zillow. These include upcoming potential listings. Additionally, there are 514 single family homes for rent in Orlando, FL.
Orlando, FL Foreclosures And Bank Owned Homes
The percent of delinquent mortgages in Orlando is 1.2%, which is higher than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Orlando homeowners underwater on their mortgage is 6.6%, which is higher than Orlando-Kissimmee-Sanford Metro at 6.1%.
There are currently 1,792 properties in Orlando, FL that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,705. In March 2019, the number of properties that received a foreclosure filing in Orlando, FL was 32% higher than the previous month and 47% higher than the same time last year.
Home sales for February 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Orlando was $0. The median sales price of a foreclosure home in Orlando was $0, or 0% higher than non-distressed home sales.
Orlando Home Prices And Real Estate Appreciation
Orlando real estate appreciation rates for homes have been tracking above average for the last ten years. Despite a nationwide downturn in the housing market, Orlando real estate has continued to appreciate in value faster than most communities. The cumulative appreciation rate over the ten years has been 17.96%, which ranks in the top 50% nationwide. This equates to an annual average Orlando house appreciation rate of 1.67%.
In the last twelve months, Orlando real estate appreciation rates continue to be some of the highest in the U.S., at 10.03%, which is higher than appreciation rates in 92.46% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Orlando. Orlando real estate appreciation rates in the latest quarter were at 1.69%, which equates to an annual appreciation rate of 6.92%.
The above statistics on real estate appreciation in Orlando were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Florida, their data shows that Orlando’s latest annual real estate appreciation rate is higher than 70% of the other cities and towns in Florida.
10 Best Neighborhoods In Orlando For Real Estate Investment
There are 400 schools in Orlando, FL. There are 144 elementary schools, 77 middle schools, 50 high schools and 129 private & charter schools. There are 161 neighborhoods in Orlando. Some of the best neighborhoods in or around Orlando, Florida are Cape Orl Estates, Metro West and Hunters Creek. Bay Hill has a median listing price of $675K, making it the most expensive neighborhood.
South Semoran is the most affordable neighborhood in Orlando, with a median listing price of $109.9K. Here are the 10 best neighborhoods in Orlando to invest in real estate because they have the highest real estate appreciation rates (List by Neigborhoodscout.com).
Is Orlando a Good Place To Invest in Real Estate?
Investing in real estate is touted as a great way to become wealthy. Is Orlando rental property good for investment? Planning to invest in the Orlando real estate market? Many real estate investors have asked themselves if buying a property in Orlando is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Orlando housing market 2019 forecast for answers on why to put resources into this sizzling market. The home prices in the Orlando housing market will be on an upswing all through 2019. The Orlando home prices are expected to rise by 4.5% in 2020. Orlando, FL has been included in many lists for best cities to invest in for the year 2019. Here are the top 10 reasons to invest in the Orlando real estate in 2019.
1. Increasing Foreign Investment
International investors from all major countries of the world are exhibiting their interest in the Orlando real estate market because of its beautiful scenery, improving quality of life and ambient weather. It is also extremely popular for foreign investments because of its intercultural connectivity with people from various Latin American countries. In addition to this, many Chinese as well as Spanish and Middle Eastern investors are also attracted to Orlando, FL for real estate investment.
2. Dramatic Population Growth
Owing to people from various walks of life and demographic differences choosing to reside in the suburbs of Orlando, this city is going through a major population growth. During the last 3 years, the population in Orlando has been growing at the rate of 7.2% which has never been experienced by this city before.
Orlando is rapidly becoming a central attraction for businessmen, students and small families owing to its growing trend of upward life mobility which makes lures investors to invest in the Orlando real estate market.
3. Increasing Job Opportunities
Orlando is the new hub for many young professionals especially those with various types of technological expertise, including engineers and IT professionals. This city has experienced an annual job growth of around 4.4% and is also one of the fastest growing metro areas in the country. The city is also set to experience its highest job growth rate in the 10 years to come. A market with high job growth is a great market for real estate investment as well.
4. More Rental Income
Since job opportunities in Orlando are growing, people from all over the country and even some other countries are choosing to move here. This directly translates to a boom in rental income as there is a resultant increase in the demand for both residential and commercial property rentals, and this means more steady income for investors in Orlando real estate market.
5. Transport Infrastructure
Another reason for the growing economy and population expansion in Orlando, Florida, is the developed transportation infrastructure which makes travelling between destinations more convenient. Generally, Florida has an efficient transportation network which complements its tourism growth as well.
6. Booming Economy
While improving Orlando real estate market and flourishing tourism are two of the most important reasons behind Orlando’s economic stability, these two industries have a lot to gain from the successful economy. This expansion is related to the growing population and job opportunities in this city, this translates to more rental income and tourism leading to better economy for the city.
7. Flexible Tax Laws
Investing in Orlando real estate market can help investors to lighten their taxes as Florida is one of the few states with no personal income tax. Its flexible tax laws are a blessing for investors especially in this climate of booming economy. Tax laws in Florida are considered to be 4th friendliest laws in the country which is why a significant number of businesses choose to be based here. Florida does impose a 5.5 percent corporate income tax.
8. Orlando is a Top-notch Tourism Center
Orlando has been boasting of economic stability since the beginning of the year 2018, and tourism growth and opportunities are one of the main reasons for its smooth expansion. Considered to be a “Theme-Park Capital of the World,” Orlando attracts most of its tourism due to the presence of Universal Studios as well as SeaWorld and the most popular, Disneyland. In addition to this, Orlando’s beautiful beaches and warm weather also attracts thousands of tourists every year.
9. Orlando Adds Value to Real Estate
Compared to saturation in similar markets in other cities like New York, Orlando real estate market has all the indicators of a flourishing growth in the current year. Emerging Trends in Real-Estate 2018 has listed Orlando as the 16th growing real estate market in USA with potential to grow rapidly. This list also includes other cities from Florida like Miami, Ft. Lauderdale, and St. Petersburg.
10. Entrepreneurship in Orlando
Orlando, owing to its friendly tax environment and affordable real estate can prove to be a vital opportunity for up and coming start-ups. Entrepreneurs and small business owners can rent showrooms and shops on better terms than most other cities and states.
Orlando Real Estate Investment
Maybe you have done a bit of real estate investing in Orlando, FL but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you invest wisely, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Orlando, FL. Orlando real estate market has a high potential for growth considering the current state of its economic expansion and population influx. This market currently has an ideal environment for US investors in housing properties especially for turnkey real estate investments.
Buying an investment property is different from buying an owner-occupied home. Investment properties are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business.
Whether you are a beginner or a seasoned pro you prob
ably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
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Hot Markets In Florida To Invest In Real Estate
We also recommend Tampa FL real estate market for turnkey rental property investing. The real estate in Tampa Florida has been estimated to grow rapidly during 2019. Investors are recommended to buy properties now and hold on to them until good price appreciation for maximum return on investment. The Tampa real estate market has been seeing constant development for the last two years, a trend that does not seem to be stopping any time soon.
Tampa has the headquarters of four Fortune 500 companies which makes it a moderately attractive city for work and economic growth. In addition to this, many entrepreneurs and small businesses are also making way to Tampa for search of better prospects and lesser expenses for running their start-ups.
Acquiring residential spaces is one of earliest priorities for such professionals when they move here. Tampa, FL has a very diverse economy with financial services, STEM, health care, research, education, tourism, beaches, and military bases all making significant contributions to jobs and growth. These all factors make Tampa housing market a hot destination for real estate investors in 2019.
You can also invest in another hot market in Ocala, Florida. Ocala is an affordable real estate market for investors who can still reap a decent return on investment. The area has recovered from the Great Recession, and a number of factors will insulate it from a future downturn. The Ocala housing market is buoyed by several nearly recession proof industries.
It is quite affordable for investors compared to the rest of Florida markets like Tampa where the median home value is $221,500. The median home price in Ocala in 2018 was around $150,000. You can buy several homes in the Ocala FL real estate market for the price you would of one mid-market condo in Miami real estate market.
Another market that we suggest is the housing market in Lakeland, Florida. The Lakeland housing market presents the perfect balance of currently affordable real estate for buyers and future growth. We can expect the population of the area to grow rapidly, and the renting population will grow even faster. The time to buy real estate in Lakeland is now.
While the Lakeland FL real estate market is cheaper than Orlando and Tampa, it is not a good overall value given the lower average wages of its residents. That explains why U.S. News and World Report gave the city an index score of 5.5 out of ten. This is due to the average resident earning around $23,000 a year, several thousand less than the U.S. average. Median household incomes are no better.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
https://www.thebalance.com/the-best-places-to-invest-in-real-estate-4163978 http://www.noradarealestate.com/blog/best-cities-to-invest-in-real-estate-in-2018 https://www.mashvisor.com/blog/orlando-real-estate-market-new-investors
Reasons to Invest in Orlando Florida https://www.lee-associates.com/centralflorida/2018/01/15/5-reasons-to-invest-in-central-florida
Market Data, Trends And Forecast
https://www.movoto.com/orlando-fl/market-trends https://www.zillow.com/orlando-fl/home-values https://www.realtytrac.com/statsandtrends/fl/orange-county/orlando https://www.trulia.com/real_estate/Orlando-Florida https://www.redfin.com/city/13655/FL/Orlando/housing-market https://www.realtytrac.com/statsandtrends/fl/orange-county/orlando https://www.orlandorealtors.org/news/422237/ORRA-Housing-Market-Report—September-2018.htm http://www.worldpropertyjournal.com/real-estate-news/united-states/orlando-real-estate-news/orlando-home-sales-report-2018-orra-reports-orlando-regional-realtor-association-orlando-rising-home-prices-in-2018-orlando-real-estate-news-10995.php
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