Orlando home prices are on the rise — and fast.
In fact, home prices in the Orlando metro were up 7.3% year over year in the fourth quarter, according to the Federal Housing Finance Agency. While Orlando only ranked 96th out of 100 metros for fastest price growth, that ranking is because of a pandemic housing boom across the U.S. and not attributable to problems in Orlando's housing market. “Absent Covid, if you had asked me a year ago what’s a fairly strong house price appreciation on a yearly basis, 6-7% would be pretty good," Federal Housing Finance Agency Supervisory Economist Will Doerner previously told Orlando Business Journal.
As a result, homes in Orange County's most desirable neighborhoods are fetching higher prices. Those include Winter Park, Windermere, Lake Nona and other communities. While strong home demand is expected to remain in 2021, home prices across the U.S. are likely to grow at a slower pace than last year, PNC Bank Economist Abbey Omodunbi said. "It's very unlikely that we'll see mortgage rates that we saw last year, and this is going to likely cause there to be weaker house price growth than what we saw last year."
Trends in the residential real estate market are important, as every home sale in the state has an estimated local economic impact of $77,858, per a 2018 study by the National Association of Realtors. In addition, the housing market often is considered a reflection of the local economy's overall health.