Orlando Home prices up more than 6% again in January
US, including Orlando home prices increased in January, rising more than 6% year-over-year for the sixth straight month.
Prices were also up 0.5% from December as competition increased in ever-tightening markets and the data from CoreLogic suggests there is little chance of much moderation over the next year.
The firm’s forecast through January 2019 is for a 4.8% rise year-over-year with the hottest markets continuing to outpace the average. California, Florida, Nevada and Oregon are forecast to see a 7% rise.
First-time buyers facing larger barriers
Further exacerbating the rising prices is the shortage in supply among entry-level homes, barring many first-time buyers and stalling the market.
“Homes with a purchase price less than 75% of the local area median had price growth of 9.0% during the year ending January 2018,” said Dr Frank Nothaft, CoreLogic chief economist. “Homes that sold for more than 125% of median appreciated 5.3% over the same 12-month period. Thus, first-time buyers are facing acute affordability challenges in some high-cost areas.”
Almost half of top 50 metros overvalued
CoreLogic’s Market Conditions Indicators show 48% of the 50 largest metros were overvalued as of January 2018, 14% were undervalued, and 38% were at value.
“Millennials who are looking to become first-time homeowners find it particularly challenging to find an affordable home in these areas,” said Frank Martell, president and CEO of CoreLogic. “Our projections continue to show tightness in the entry-level market for the foreseeable future, which could further prevent millennials from purchasing homes in 2018 and 2019, even as much of that generation reaches its prime home-buying years.”
With home prices rising along with the mortgage rates, now is the time to start looking at your Orlando Home Purchase and making your dream a reality! If you are a potential seller looking to put your home on the market, the time could not be better to place your home on the market and let the fish begin to bite! Contact your local Bardell Realtor® today to get your questions answered!
Is Homeownership a Part of Your American Dream?
Are You Ready for Homeownership?
According to the latest Aspiring Home Buyers Profile by the National Association of Realtors (NAR), 82% of surveyed renters desire to own a home in the future, with 80% believing homeownership is a big part of achieving their American Dream.
The profile went on to state that 50% of millennials believe that their rent will increase, with 20% believing that an increase in rent will be the catalyst that pushes them to consider buying a home vs. renewing their lease.
So, what is holding renters back?
What would make renters take the plunge?
NAR’s Chief Economist, Lawrence Yun believes that,
“Housing demand in 2018 will be fueled by more millennials finally deciding to marry and have kids and the expectations that solid job growth and the strengthening economy will push incomes higher.”
Yun goes on to warn that,
“However, with prices and mortgage rates also expected to increase, affordability pressures will persist. That is why it is critical for much of the country to start seeing a significant hike in new and existing housing supply. Otherwise, many would-be first-time buyers will be forced to continue renting and not reach their dream of being a homeowner.”
So What’s The Bottom Line?
If you are one of the many homeowners whose houses no longer fit their needs and are looking to move up to your dream home, now is a great time to list your starter home! First-time buyers are out in force looking to achieve their American Dream.
Are you a currently a tenant looking to achieve your goal in 2018? Don’t wait! As home prices are on the rise along with the changing mortgage rates, now is the time to get the ball rolling. Contact your Local Bardell Realtor® today to get some more information about your home purchase!