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Orlando's Real Estate Market 7 Key Trends Shaping Home Sales in 2024
Orlando's Real Estate Market 7 Key Trends Shaping Home Sales in 2024 - 11% of Homes Take Over 90 Days to Sell
Within Orlando's evolving real estate landscape, a significant portion of homes—11%—are taking more than 90 days to sell, highlighting a notable shift in the market. This extended sales timeframe suggests a change in buyer behavior, with many adopting a more deliberate and cautious approach to purchasing. This presents a challenge for sellers who may need to adjust their approach. Techniques like virtual staging or focusing on high-quality marketing images to enhance property presentation could prove beneficial in attracting buyers in this environment. While a substantial portion of homes (59%) are still selling quickly, this suggests a split within the market: those that are well-positioned and marketed are selling fast, but the others are requiring a longer sales cycle. It's an interesting dynamic where sellers are needing to understand how the growth in the short-term rental sector might be altering buyer interest and overall sales trends. Adapting to this change and developing effective strategies to reach the right buyers will become increasingly important for success in Orlando's property market.
In Orlando's housing market, a notable 11% of homes took over 90 days to sell during July 2024. This segment of the market reveals a slower pace of transactions compared to the 59% of homes that sold within 30 days. This prolonged time on the market is likely impacting sales outcomes, potentially leading to price concessions. We see this play out when examining the divergence between sale prices of homes that sell quickly versus those that languish on the market for extended periods, where a considerable price difference is observed. It seems that sellers who are not adapting to the shift in buyer behavior may face challenges in achieving desired sale prices.
While virtual staging has shown promise in enhancing perceived value and potentially accelerating sales, the rise of short-term rentals through platforms like Airbnb has had a countervailing impact on the traditional real estate market. As a sizable portion of the housing stock is repurposed for short-term rentals, it's contributing to a decrease in the traditional inventory available for long-term buyers. This is particularly relevant when we see that short-term rental properties, due to their appeal to investors seeking quick returns, often sell quicker compared to traditionally listed homes. This interplay between long-term buyers and those seeking short-term rental opportunities could be influencing the market in ways we are only beginning to understand.
Further, the shift in buyer behavior is compelling. Buyers are demonstrating a greater willingness to negotiate prices, evidenced by a significant number of homes selling under the asking price. This increased negotiating power is perhaps due to several factors—perhaps changing economic indicators, or simply the availability of more options. Buyers are taking longer and becoming more discerning, and this is potentially impacting the market's overall pace. A longer time on market not only leads to potential price reduction but can also affect buyer perception negatively, as it can subconsciously associate a property with challenges, reducing the overall likelihood of a sale. The 37% reduction in mortgage applications in the spring also points towards buyer hesitation and a potential cooling in demand. It appears that buyer confidence is being impacted by rising interest rates, which could contribute to this overall slower sales pace.
While the Orlando market continues to thrive, with some neighborhoods achieving quick sales, the emergence of these extended time frames suggests the dynamics of the market are transitioning. The market might be heading into a more balanced state, where sellers need to be more strategic in their marketing and pricing. It will be intriguing to observe how this shift in buyer behavior evolves and how the real estate landscape adjusts to the growing popularity of short-term rentals and changing financial circumstances. The interplay between these different forces may ultimately determine the future of the Orlando real estate market.
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