May 2023

Central Florida Real Estate Market – May 2023

According to Lisa Hill, the President of Orlando Regional REALTOR® Association, as we near the midpoint of the year, home prices are continuing to reach record highs, and properties are spending less time on the market. While the real estate market experienced a downturn towards the end of last year, it has since rebounded significantly. As summer approaches, families are expressing a preference to move while their children are out of school. This trend is expected to contribute significantly towards an active selling season in the upcoming months. Median home prices rose from $370,000 in April to $378,000 in May and have increased by an impressive $28,000 since January. Sales soared by 13.9% from April with 3,150 sales closing in May compared to just 2,766 sales in April.

The numbers for May 2023 are in, and overall sales were down by 20.2% compared to May of the previous year, with only 3,157 homes sold. However, inventory remained stable across both months, with only a marginal increase from 5,148 homes in April to 5,149 in May. One major difference was the significant uptick in inventory during May of this year; it was over 33% higher than the same period last year when only 3,851 homes were recorded.

Interest rates also rose from April to May by a total of two-tenths of a percentage point from 6.4% to 6.6%. This movement represents a sizable increase compared to May of the previous year when interest rates stood at only 5.3%. Distressed property sales accounted for just .7%, or twenty-one transactions in total during May – an upturn of nearly seventeen percent compared to the preceding month's eighteen such transactions. Meanwhile, new listings went up significantly by over seven percent from April to result in an impressive number of over 3,459 new homes on the market in May from 3,220 the previous month.