With Adriana Montes
It’s always a good time to talk about real estate, especially now with the mortgage rates so low and housing market activity booming everywhere. In the general housing market, inventory remains low, prices are skyrocketing, while the demand is insatiable.
The most recent The Power Is Now Market Update show on our online TV featured Adriana Montes, MBA, a VIP Agent and broker/owner of Florida Dreams Real Estate Group in Central Florida. Adriana talked about what going on in her housing market area.
Orlando, or the Sunshine City, is a city full of life and fun activities. The city is home to a population of 3.5 million Americans. The city also has over a dozen theme parks, including Universal Studios, Disney World, and SeaWorld. Orlando is also a centre for conventions, including training centres for football, basketball, and baseball. Orlando also boasts of its widespread diversity with 40% whites, 25% African-Americans, 35% Latino, and a large LGBT community. The median age in Orlando is about 35, while the median income is about $50,000. However, the cost of living in Orlando is 4% lower than the average cost of living countrywide.
For employment in Orlando, among the leading employers are the theme parks led by Disneyland and Universal Studios and the convention industry. The unemployment rate in Orlando was 3.9% during the pre-pandemic period. With the pandemic, the unemployment rate shot up to 17%, but right now it’s at 10%. The unemployment rate shot high during the pandemic period as theme parks, which are the leading employers, closed down due to the imposed social distancing measures.
Pandemic impacts on Orlando housing market.
The Orlando housing market hasn’t been hit so hard by the pandemic. According to Adriana, housing activity in the market is “still pretty high because of the fact that interest rates are super low.” “Spring is our busy season but now fall we’re still busy,” Adriana says.
Moreover, the current moratoriums imposed by the federal government are impacting all real estate players countrywide, Orlando included. However, the good thing is that the moratoriums are going to be lifted. Adriana believes that when the moratoriums are lifted, it will be good for inventory as it will lead to an increase in inventory. Homes protected by the moratoriums from eviction and foreclosures will now be available for listing when the moratoriums are lifted.
Despite the low inventory and the rising home values, the market will still remain as a seller’s market, according to Adriana. “Because we still have a long line of people trying to buy and invest in real estate,” Adriana says.
What’s happening in Orlando market?
Orlando housing market currently is a beehive of activities as homes continue to fly off the market with speed. “It’s usually super-busy here in spring, but now it’s fall, and because the pandemic has changed our market, it’s still busy,” Adriana says. Also, interest rates are super-low, while inventory is super-tight.
According to Adriana, if it’s taking less than six months to sell a property, you’re in a seller’s market, while if taken longer than six months, you’re in a buyer’s market. “If you take all the properties in Central Florida valued between $100,000 and $500,000, it would only take two months to sell them,” Adriana says. This implies that the Central Florida housing market is clearly a seller’s market as of now.
However, the current seller’s market is different in that it has been around for too long. If I’m not wrong, we have been on a seller’s market since the times of the Great Depression, that is 2008, 2009. It’s not clear for how long it will remain a seller’s market, but one clear thing is that it will be that way for a while. Some argue that a seller’s market comes with many benefits to all the real estate market players; which indeed is true. But when you think about a first-time homebuyer who has to compete with other experienced buyers in a low inventory market, it becomes very unfair.
Since last year, the appreciation rate in Orlando is 10%, while the median home price is around $270,000. Also, a listed home is taking only 46 days before sale in the Orlando market. Moreover, if your house is valued at less than $500,000, it’s going to take less than two months to sell.
I encourage everyone to buy real estate right now. Real estate investment has already proven to be one of the best investments one can make in the US. You can watch the whole shoe here.
The Power Is Now continues to keep you updated with the latest news in the real estate market, as we strive for advocacy of homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. In this regard, we have a team of professional realtors— VIP Agents stationed nationwide to help you with anything you need in attaining your homeownership dreams. You can get in touch with the VIP Agents at https://thepowerisnow.com/vipagent/. If you can’t find an agent from your area, you can contact me directly for a referral. Also, ensure you stay updated with any developing real estate market news by regularly checking our blog page at https://thepowerisnow.com/blog/. You can also set up an appointment to speak directly to me at https://calendly.com/ericfrazier.
Disclaimer: The views and opinions of Eric Lawrence Frazier are his own and do not necessarily represent First Bank or any organization affiliated with Eric Lawrence Frazier, or the Power Is Now Media Inc. First Bank is an Equal Credit Opportunity Lender. Eric Lawrence Frazier, MBA, is also a Vice President and Mortgage Advisor with First Bank. NMLS#461807 and a California Licensed Real Estate Broker DRE# 01143482. Email: Eric.email@example.com. Ph: 714- 475-8629.
Eric Lawrence Frazier MBA
President and CEO The Power Is Now Media Inc