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Is Orlando The Hottest Real Estate Market For Investors In 2019?

Orlando Real Estate Market Overview

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 real estate 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.

Reasons to invest in Orlando real estate market

Orlando Real Estate Market Forecast 2019

On Zillow.com, the median home value in Orlando is $230,300. Orlando home values have gone up 8.6% over the past year and Zillow predicts they will rise 5.3% within the next year. The median list price per square foot in Orlando is $148, which is higher than the Orlando-Kissimmee-Sanford Metro average of $144. The median price of homes currently listed in Orlando is $282,425 while the median price of homes that sold is $232,300. The median rent price in Orlando is $1,591, which is higher than the Orlando-Kissimmee-Sanford Metro median of $1,575.

Orlando Real Estate Market Forecast 2019

Graph Courtesy – Zillow.com

Orlando Real Estate Market Trend 2018

As per Trulia, Orlando real estate market trends indicate an increase of $15,000 (7%) 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 $146, up from $134. Trulia has 2,893 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 Jun 27 to Sep 26 was $240,000 based on 3,437 home sales. Average price per square foot for Orlando was $146, an increase of 9% compared to the same period last year. The median rent per month for apartments in Orlando for Sep 1 to Oct 1 was $1,695.

Orlando Real Estate Market Trend 2018

Graph Courtesy – Trulia.com

Orlando Housing Market Summary

  • Median Sales Price: $240,000
  • Price Per Sqft: $146
  • Homes For Sale on Trulia: 2,893
  • Median Rent Per Month: $1,695
  • Median Household Income: $42,409
  • Home Owners: 56%
  • Single Residents: 38%
  • Median Age: 35
  • College Educated: 35%

As per Redfin.com, the Orlando housing market is very competitive. Homes in Orlando receive 1 offers on average and sell in around 19 days. Hot homes for sale in Orlando can sell for about list price and go pending in around 6 days. The average sale price of a home in Orlando was $240K last month, up 15.7% since last year. The average sale price per square foot in Orlando is $141, up 10.2% since last year.

As per the data given on Movoto.com, the median list price in Orlando is $299,500. The median list price in Orlando went down 2% from September to October. Orlando’s home resale inventories is 3,183, which increased 3 percent since September 2018. The median list price per square foot in Orlando is $154. September 2018 was $154.
Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in October.

Orlando Housing Market Trend 2018

Graph Courtesy – Movoto.com

The data from the Orlando Regional REALTOR® Association shows positive September-to-September comparisons for both sales and median price. Inventory, however, stayed on its year-over-year downward slide. The overall median price of Orlando homes (all types combined) sold in September is $233,000, which is 3.6 percent above the September 2017 median price of $225,000 and 1.3 percent above the August 2018 median price of $230,000. Year-over-year increases in median price have been recorded for the past 87 consecutive months; as of September 2018, the overall median price is 101.7 percent higher than it was back in July 2011.

The median price for single-family homes in Orlando, FL that changed hands in September increased 3.8 percent over September 2017 and is now $254,250. The median price for condos in Orlando increased 6.4 percent to $125,500. Sales of single-family homes (2,096) in September 2018 increased by 7.6 percent compared to September 2017, while condo sales (390) increased 23.4 percent year over year. Sales of distressed homes (foreclosures and short sales) reached 124 in September and are 3.1 percent less than the 128 distressed sales in September 2017. Distressed sales made up just 4.5 percent of all Orlando-area transactions last month.

The overall median price of Orlando homes (all types combined) sold in August is $231,000, which is 2.7 percent above the August 2017 median price of $225,000 and 1.7 percent below the July 2018 median price of $235,000. The median price for single-family homes that changed hands in August increased 4.9 percent over August 2017 and is now $255,000. The median price for condos increased 12.0 percent to $125,975.

The overall median price of Orlando homes (all types combined) sold June is $239,180, which is 6.8 percent above the June 2017 median price of $223,950 and 2.7 percent above the May 2018 median price of $233,000. The median price for single-family homes that changed hands in June increased 6.6 percent over June 2017 and is now $260,000. The median price for condos increased 13.6 percent to $125,000.

The overall median price of Orlando homes (all types combined) sold May is $234,000, which is 7.3 percent above the May 2017 median price of $218,000 and 1.7 percent below the April 2018 median price of $238,000. The median price for single-family homes that changed hands in May increased 8.5 percent over May 2017 and is now $255,000. The median price for condos increased 6.1 percent to $125,250.

The above data and statistics were taken from Orlando Regional REALTOR® Association. You can visit their website for more information.

Orlando FL Foreclosures Statistics

The percent of delinquent mortgages in Orlando is 1.7%, which is higher than the national value of 1.6%. 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 11.3%, which is higher than Orlando-Kissimmee-Sanford Metro at 10.0%.

On RealtyTrac, there are currently 1,833 properties in Orlando, FL that are in some stage of foreclosure (default, auction or bank owned) while the number of homes for sale in Orlando, FL on RealtyTrac is 1,907. In September, the number of properties that received a foreclosure filing in Orlando, FL was 27% lower than the previous month and 7% lower than the same time last year. Home sales in Orlando, FL for August 2018 were down 100% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home was $225,900. The median sales price of a foreclosure home was $0, or 0% higher than non-distressed home sales.

Top 10 Reasons To Invest In The Orlando Real Estate Market

Orlando, FL has been included in many lists for best cities to invest in for the year 2018. Here are the top 10 reasons to invest in the Orlando real estate market.

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.

Investing In The Orlando Housing Market: The Conclusion

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.

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 2018. Investors are recommended to buy properties now and hold on to them until good price appreciation for maximum return on investment. The Tampa FL 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.


References:

https://www.mashvisor.com/blog/orlando-real-estate-market-new-investors
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.lee-associates.com/centralflorida/2018/01/15/5-reasons-to-invest-in-central-florida

Market 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.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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