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2016: “The Year Of Growth” in Orlando Real Estate

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By Eric A. Hassen, LCAM, RE Broker

 

This year is starting-out strong. It is expected to be “The Year Of Growth” in Orlando Real Estate.  Even though, the aggregate rents tapered-off in December,  the future looks promising according to Zillow.com. The rents on properties continue to rise, as well as the property values continue to creep up.

Real Estate Outlook
The real estate industry in Orlando FL continues to benefit from changing demographic trends and long-term economic growth. The other contributing factors include increased propensity for job growth in the private sector. In 2014, the price of houses in the city appreciated by 4.7 percent in line with the national appreciation rate. Between 2012 and 2014, the appreciation rate in the city area was actually 40%, compared to the national figure of 28%. Following the appreciation, a home purchased in Florida around 2009 would on average appreciate in value by $33,641 five years later. Recent statistics indicate that in 2015, the annual Orlando housing market prices appreciated by 15.46 percent, with a median price increase of 9 percent. The Median price stood at $178,000, against the 2014 value of $164,000.Some of the most attractive neighborhoods in Orlando for real estate investors include; Pine Hills, Meadow Woods, Lake Nona, Vista East and Metro West. The average listing price for homes for sale in Lake Nona and Meadow Woods in 2015 was $675,026 and $238,159 respectively. Despite the growth in the housing sector, the city continues to experience problems with delinquent mortgages and foreclosures. However, analysts expect the housing market in the city to continue posting growth, thanks to low unemployment rate, continued job growth, low mortgage rates, high affordability and the entry of millennial home buyers. The properties available for sale and rent in Florida include; single family homes, duplexes, villas, condos, townhouses, studios, community housing, apartments and lots.
 
Other Orlando Developments 
The amazing growth in Orlando as a whole is on an incline.  Some of the biggest physical developments to Orlando in the past 24 months have been; the Orlando Eye added to International Drive, the new Dr Phillips Performing Arts Center added to Downtown Orlando, and the train system connecting several central florida cities. Other developments like the high-tec Lake Nona Hospital & Medical SchoolUCFs expansion, and the mouses newly remodeled Downtown Disney now called Disney Springs.

 

Looking Toward the Future
So much exciting growth in the past 24 months, can only forecast a base for future growth in the next 24 months. So, in my opinion, this is “The Year of Growth” after a grueling 7 years of real estate suppression and correction. We are now starting to see the real estate market grow again. So what does the future hold? Well that is anybody’s guess, but mine would be; ‘its a good time to buy and hold real estate long term’.

 

Posted by: estatebrokers on January 24, 2016
Posted in: Uncategorized