Realtor.com, a popular house listing and housing market statistics website, predicts that Orlando’s booming property market will continue to increase in the coming year.
According to a Realtor.com analysis released on Dec. 1, home sales in Metro Orlando are predicted to grow 8.8% year over year in 2022. In the meantime, prices in and surrounding Orlando are expected to rise 5.4 percent year over year in 2022.
Home sales and prices are likely to rise across Central Florida next year, not just in Orlando. Sales are expected to rise 0.6 percent in the Daytona Beach metro area, while prices are expected to jump 6.1 percent. With sales forecast to rise 7.4 percent and prices expected to rise 7.9 percent next year, the Space Coast is expected to have the most growth of any metro in the region.
If Realtor.com’s estimates hold true, Central Florida will continue to experience a historic seller’s market. According to the Orlando Regional Realtor Association, this year will see more house sales than any other year in at least a decade. Furthermore, the $325,000 median home price in the area is an all-time high.
Since summer 2020, the increase of remote work and a desire to live in less dense and less expensive areas has attracted tens of thousands, if not millions, of new inhabitants to Central Florida. According to the research, these trends, which resulted in more sales and higher pricing, are anticipated to continue next year.
“In addition to cost, improved job flexibility is one of the reasons suburbs are projected to remain popular,” Realtor.com’s economics team noted in the report.
The tumultuous housing market in the region has far-reaching consequences. According to the National Association of Realtors, the housing business is critical to the local economy, with the sale of a single home in Florida generating $90,300 in economic impact. Furthermore, rising home prices may translate into higher earnings for some local home sellers.
However, Central Florida’s affordable housing scarcity is exacerbated by high demand for homes and accompanying price increases. Additionally, because of the scarcity of single-family homes, there is a higher demand for rentals. One of the reasons why rents are rising is because of this. According to commercial real estate firm Franklin Street, multifamily rents in Orange County were up 18.7% year over year last quarter.
An examination of the situation at the national level
In 2022, the national housing market is projected to witness a lot more of the same dynamics as in 2021, although at a considerably slower rate.
Home prices are likely to rise again next year, but not at the same fast pace as in 2021. Home price growth will decelerate to 3% by the end of 2022, according to Seattle-based Redfin Corp. According to Realtor.com, property prices are expected to rise by 2.9 percent nationwide. According to Zillow, this year will likely end with an almost 20% year-over-year increase in home prices throughout the country.
However, Zillow’s most recent prediction, for the 12-month period ending Oct. 31, 2022, predicts large home-price increases. Home values are expected to rise 13.6 percent between October 2021 and October 2022, according to the report.
“Inventory is still very, very low,” according to Jeff Tucker, senior economist at Zillow in Seattle. “Buyers don’t have a lot of choices, so they’re still vying for a narrow pool of active listings.”
Despite the fact that home prices are unlikely to climb as substantially as they did in 2021, demand will continue to grow. Home sales are expected to increase 6.6 percent year over year in 2022, reaching their highest level in 16 years, according to Realtor.com. With only 0.3 percent growth predicted by Realtor.com in 2022, inventory will certainly remain a concern. In 2022, Redfin predicts a 1% increase in home sales over this year.