Orlando Housing Spurs as Consumer Confidence Pick Up Speed
2014 was a significantly sluggish year for the Orlando real estate market. Consumer activity as well as confidence in the industry proved to be rather low. But things are changing nation-wide and the top Orlando realtors say “The City Beautiful” will see more consumer activity in the months that lie ahead.
Momentum expected to increase in housing
A report by the Commerce Department showed that the number of new housing projects in the nation jumped by 13.2 percent, far exceeding the forecasts made by the analysts previously. Further, permits filed for buildings nationwide rose eight percent and stood at a figure of 0.7 million more than what was previously expected.
Locally, real estate agents in Orlando explain that demands for new construction work rose because of banks easing up on borrowing costs and their strict credit conditions. Increasing job growth across the nation and the aid of federal stock markets has resulted in improving consumer confidence. All factors together, realtors say, have spurred up the housing market.
In Orlando alone, realtors say they have seen more prospective buyers enter the market in April, than in the months before, further increasing the demand for builders. So, the next few months are going to be marked by increased housing momentum.
Factors responsible for the effect
Increase in housing inventory may just be one of the biggest reasons why more buyers are venturing into the market. With the U.S. housing inventory reaching a near two-month high, affordability conditions have improved for many buyers.
Listing agents in Orlando reveal that April witnessed a 16.8 percent increase in the number of previously-owned houses, up for sale. Further, improving jobs and the overall economy as well as lower costs of borrowing has enabled more people to become buyers. The rates of standard 30-year fixed mortgage averaged at 4.14 percent – the lowest in close to nine months.
In April, sellers received 5.2 percent more for their existing homes, in comparison with figures from 2013. Median price of such houses was recorded as $210,700 in April 2014. Of the total number of sales closed, 17.5 percent were from properties valued under $100,000. 44 percent of the properties sold ranged from $100,000 to $250,000.
Retailers like Lowe’s Cos. and Home Depot Inc. are in fact forecasting in favor of improved sales after more consumers began making use of the spring buying season. It’s a great time for buyers as well as sellers, realtors add.