2016 Housing Market Review

Happy December!  It’s that time of the year again. We want to wish you a very happy holiday season.  May it be filled with joy, warmth, and goodwill.

We want to thank you for your trust and support this year.  We helped over 75 families with their home purchases and sales this year.  In 2016, many of our clients have upsized, downsized, bought a first home, relocated, bought an investment property, or sold an investment property.  Whatever the purpose and reason, we are honored to have been a part of the journey.  Each and every journey we took with clients was special and memorable in some way.  We believe in home ownership and real estate investment. We are grateful to have been entrusted to be the guides in achieving your real estate goals.

Looking back in 2016, Orlando continued to enjoy a healthy, stable, and mature real estate market.  As I have said throughout the year, the market behavior depends on the price segment, and of course, the location.  The October median price of a home in Orlando is $205,000.  The average price is $247,200.  Homes doubling this price move slower but homes below this mid-200’s average price are in short supply.  New constructions do not alleviate this shortage because it’s difficult for today’s builders to bring the cost down low enough to be in that market segment.  So the pressure and challenge continue for first time home buyers and entry-level home buyers.

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Those that bought a home in 2016 will probably enjoy the lowest mortgage interest rates that we will see in some time.  After the November election, the average mortgage interest rate jumped and reached above 4% for a 30-year loan.  This will be one of the most important factors to shape the 2017 market.  Some first-timers may be priced out of an already challenging market segment.  Stay tuned for my market outlook in January 2017.

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On the positive side, 4-5% is still an incredibly low interest rate.  Those of us that have been around a while can certainly remember much higher rates.  We are used to this prolonged low interest rate environment but we will no doubt “survive” as rates rise higher.

Be ready for a slower market.

On the positive side (again), Orlando is #7 on the Realtor.com’s 2017 projected top 10 housing market.  It’s never a dull moment in the Orlando real estate market.

If you have been thinking about buying a home, don’t wait any longer.  Get in touch with us to formulate an action plan.  We plan to hold a first-time home buyer’s workshop in January to help.  Let us know if you are interested so we can get a headcount. 

I’ll stop here.  We sincerely wish you a truly wondrous holiday season.  May you enjoy the fruits of your labor and the warmth of loved ones in the remainder of this year.

Yien and The Yao Team.