The Orlando real estate market has been impressive so far in 2016. Home prices are up, appreciation rates are climbing, and affordability remains below the national average. For The Happiest City on Earth, the median home price was $223,000 during the second quarter, compared to the national average of $239,167. Gains in the last three years for Orlando real estate have extended the trend of positive price growth after the recession, which is great news for Orlando real estate investors and homeowners. Along with home prices and equity gains progressing in a positive direction, home affordability for the Orlando housing market is below the national average and should remain that way for the rest of the year. Together, the Orlando real estate market is poised to enjoy a vibrant second-half of 2016.
Orlando, FL Real Estate Market Statistics:
Home appreciation for the Orlando real estate market has been on fire in 2016. The one-year appreciation rate for Orlando real estate nearly tripled the national average during the second quarter, with homes appreciating at a rate of 12.6 percent, compared to the rest of the country at 4.9 percent. Taking it a step further, the three-year appreciation rate skyrocketed to 38.4 percent, compared to the national average of 17.8 percent. For Orlando real estate investors and homeowners, price appreciation and principle payments in the last three years have boosted total equity growth since the recession. For those considering Orlando real estate investments, the following provides a breakdown of appreciation rates in previous years:
- Homes purchased in the Orlando, FL housing market one year ago have appreciated, on average, by $28,269. The national average was $14,963 over the same period.
- Homes purchased in the Orlando, FL housing market three years ago have appreciated, on average, by $70,375. The national average was $46,878 over the same period.
- Homes purchased in the Orlando, FL housing market five years ago have appreciated, on average, by $107,292. The national average was $82,353 over the same period.
- Homes purchased in the Orlando, FL housing market seven years ago have appreciated, on average, by $90,186. The national average was $77,054 over the same period.
- Homes purchased in the Orlando, FL housing market nine years ago have appreciated, on average, by $9,099. The national average was $31,126 over the same period.
Not unlike many markets in the country, appreciation rates were captivating for the Orlando real estate market in 2016. For investors and homeowners, the biggest gains were found in year one; total equity reached $28,269, compared to the national average of $14,963. In the fifth year, equity reached $107,292. That said, Orlando real estate investing continues to be enticing to beginner and seasoned residential developers.
As of July 2016, there are currently 5,328 properties in the Orlando, Florida area in some stage of foreclosure. According to RealtyTrac, the number of Orlando foreclosures in the month of July was 14 percent higher than the previous month and 43 percent lower than the same period in 2015. The number of REO properties in Orlando decreased 24.8 percent from the previous month and 67.1 percent from the same time last year.
Orlando, FL: Real Estate Market Summary:
- Current Median Home Price: $223,000
- 1-Year Appreciation Rate: 12.6%
- 3-Year Appreciation Rate: 38.4%
- Unemployment Rate: 4.5%
- 1-Year Job Growth Rate: 4.6%
- Population: 255,483
- Median Household Income: $42,418
Orlando, FL: Real Estate Market (2016) — Q2 Updates:
Home to the world-famous Walt Disney Resort and Universal Studios, Orlando has also become a popular destination for real estate investments. As the Orlando real estate market continues to see gains in both home prices and total equity in 2016, the backbone to its success has been a flourishing economy. The unemployment rate for Orlando fell from 5.2 percent in 2015 to 4.5 percent during the second quarter, compared to the national average of 4.9 percent. On the other hand, the employment rate in Orlando has held up and is on an upward trend, as the one-year job growth rate was 4.6 percent in Q2, compared to the rest of the country at 1.9 percent. Local employment growth is strong in Orlando compared to other markets, and should continue to improve in the second-half.
Another component on the rise for the Orlando real estate market is new housing construction. During the second quarter, the level of construction reached 84.3 percent above the long-term average, while single-family housing permits soared to 20.1 percent, compared to the national average of 10.6 percent. Construction for Orlando real estate is on the rise relative to last year, suggesting the local inventory has stabilized. Home affordability is reaping the rewards. Homeowners paid 12.2 percent of their income to mortgage payments during the second quarter, as opposed to the national average which paid 15.8 percent. While historically strong at 13.4 percent, home affordability for the Orlando housing market continues to improve and is now one of the more affordable markets in the nation.
Moving forward, the Orlando real estate market is expected to grow consistent with the national average in the second-half of 2016. The National Association of Realtors (NAR) has forecasted higher price growth in Orlando than in the U.S. in the next 12 months, with price expectations for Orlando real estate anticipated to grow by 4.3 percent in the second-half, as opposed to the national average of 3.6 percent. The Orlando real estate market is trending in a positive direction and it should remain that way in the second-half of 2016.
