2016 Orlando Housing Market Predictions
Monday, January 25, 2016
Orlando REALTOR® | JanuaryFebruary 2016
What do you predict for Orlando’s housing market in 2016?
ORRA members share their thoughts and expectations
for our market in the coming year
I think the market is at its peak and there will be a cooling off in 2016 due to the election year. The prices should stabilize and I feel we are going to have an increase in inventory and absorption rate.
BHHS Results Realty
I predict that REOs and short sales will dissipate in 2016 while the new-home market will continue to grow. The resale market will start to rise and the rental market will keep its momentum.
Elite Realty Agency LLC
I'm predicting more growth for 2016. I think more homes are going to sell compared to the past year, and that home prices will not continue to increase as much as they did in 2015. Mortgage rates will rise, but the housing market will stay healthy!!!
La Rosa Realty, LLC
I believe housing will slow down in 2016. The worldwide oil glut is being caused by a recession in Europe, Japan is teetering on the edge, and China is in a big slowdown. All of these factors will affect the U.S., and our economy, jobs, and probably housing. I hope I am wrong, but at least you will soon enjoy $1.50 gas at the pump!
Ramases Properties LLC
I predict that market will continue to rise, and will very likely do so at a faster pace than 2015. The year 2016 will probably be the year when interest rates will actually start going up. This rise will push buyers off the fence and create a higher sense of urgency. Mortgage rates have been artificially low for too long, and buyers have grown tired of hearing that rates will go up and they better buy now.
Top Orlando Realty
I think we will see increased sales all over Orlando with a minimum of 15 percent increase in price. Some areas that are in higher demand will see even more. I think we will continue to see a reduction in foreclosure and short sales while new construction will increase. I think rates will start to increase by the end of February with the trend of increased sales. Higher wages and diversity in job creation will yield the most benefits for Orlando.
Olde Town Brokers Inc
Low interest rates and a steady increase in the median price of single family homes will keep the market stable in 2016; much like 2015, but stronger. By the end of February, I believe we will start seeing prices steadily increasing again, with at least a 5-7 percent increase by September. Buyer demand will remain high and inventory will remain low, making it a strong seller's market. Interest rates will increase a bit, but lenders will offer more products to make home ownership more easily achievable.
Charles Rutenberg Realty
I see an increased demand for new product in the core urban markets as the I-4 project continues to make the commute from the suburbs more difficult. This will make tear downs/lots in these markets more expensive and the prices in these areas will continue to show the highest appreciation The overall market will continue to stabilize and start to show more normal growth rates as foreclosures and short sales become less of a factor in the available inventory. I expect 2016 to be a great year for our business and buyers realize that prices and rates are on a steady upward trend.
Coledev Real Estate LLC
The housing and local economic data and fundamentals are all in place to see a continued improvement and growth in our industry through 2016. While there may be concerns about rising interest rates, I believe those increases will be easily offset by continued improvements in the job market, reduction of distressed sales, and improving inventory levels. Wrap all that together with the huge local investments are seeing in the widening of I-4, airport expansions, improvements in the Citrus Bowl, the new performing arts center, and the city’s entry into the global soccer market… and it is a great time to be in real estate in Central Florida.
Real Estate Closing Solutions
The housing market can be unpredictable and vulnerable because so many outside factors and influences have a direct impact (good or bad) in this industry. It reminds me of a seesaw, because if one side is up then usually the other side will be down. Only for brief periods of time is there a perfect balance. For example, if the unemployment rate is up, then the housing market is customarily down. As mortgage rates rise, home buying activity decreases. However, synchronization can be achieved in 2016 with the imbalance of supply and demand, lower interest rates, and the development of new job opportunities. This perfect blend can really bring about a sweet harmony in the housing market in Orlando in 2016.
Charles Rutenberg Realty
Our luxury market will remain strong as worldwide wealth consolidation accelerates further on reduced regulation at home. Cash buyers will benefit from sellers made nervous about any uptick in interest rates. Depressed oil prices will help offset increases in phantom and private taxation. Election rhetoric will slow commerce and sales in second half of 2016. Buyers and immigrants from Brazil will remain in a holding pattern until the Real (currency) begins to recover against the dollar. Integrated disclosure (TRID) will improve communication and understanding by borrowers, move up our final walkthrough inspections by several days, and lessen problems at closing. The number of middle class renters will increase, pushing up rental rates.
Keller Williams Winter Park
There will continue to be more buyers than sellers. Rents are going up by 3-5 percent per year, and the biggest threat to stability of the housing market is the fact that the first time homebuyer percentage of the marketplace is the lowest in 20 years. Builders are building as fast as they can, but land use plans and roadways getting clogged lead to building farther into the countryside. Winter Garden, Lake Nona, and East Orange County will continue to create thousands of new home starts, but there will continue to be a shortage of existing homes on the market.This leads to ongoing price increases, but we might be nearing the breaking point for most middle class homebuyers. That will temper price increases to the 4-6 percent range, which is more indicative of a stable market. This will be one of the best markets since 2003 for the really good REALTOR®, because instead of being a product of what the market will bear, we will be able to help buyers save a little money, and sellers make a little extra. That means profitability for the best of the best will increase.
Over the course of a year, Orlando has kept on pace with the nation’s appreciation rate. In the last 12 months, both Orlando and the national average have seen houses appreciate at a rate of 4.7 percent."We continue to see a strong and progressive uptick in home prices as we enter 2015. We project home prices will continue to rise throughout the year and into 2016," said Anand Nallathambi, president and CEO of CoreLogic.Homes purchased in the Orlando housing market three years ago have appreciated, on average, by $57,820. The national average was $55,406 over the same period.Orlando outpaced all Florida markets in terms of job growth over the last year.Orlando’s employment growth is better than that of most markets in the country.Lake Nona AKA medical city playing huge role in Orlando economy by creating jobs.I think its domino effects of Medical city in surrounding areas,like Kissimmee.The new projects started to come in Kissimmee,because real estate is too expensive in Lake Nona and people and companies looking real estate in St.Cloud/Kissimmee area,like the new UCF Project:The University of Central Florida will partner with Osceola County and the Florida High Tech Corridor Council to establish a state-of-the-art research and incubation facility focused on the next generation of universal smart sensors. The goal of the Florida Advanced Manufacturing Research Center is to recruit or create the world’s first industry-led smart sensor consortium. Formed to make Florida a global leader in a rapidly growing industry.