Market Analysis: Selling Your Orlando Home During COVID-19

Sandy Sills
Monday, January 25, 2021
Market Analysis: Selling Your Orlando Home During COVID-19

Market Analysis: Selling Your Orlando Home
During COVID-19


The global COVID-19 pandemic has shaken up the world economy to an extent not
seen since the Great Depression, with 2020’s second quarter in particular showing
unparalleled losses across every industry imaginable.

It’s not all doom and gloom though: As societies come to terms with what’s being
billed as “The New Normal”, and we begin to see the rollout of mass vaccination
programs, experts are tentatively suggesting that a recovery might be around the
corner.


So where does that leave the real estate sector in 2021? And is now the right time for
Orlando homeowners and sellers to enter into the market?
Right now, we’d say with some confidence that the short answer is a firm “Yes”!
To that end, we’ve put together a brief overview of where we feel the real estate market
sits at present, and how things could progress through 2021:


The Real Estate Landscape in 2021:

First up, it’s important to understand that the US real estate sector as a whole didn’t
fare anywhere near as badly as many members of the public would imagine: Yes, at the
beginning of the pandemic house sales virtually ground to a halt, with many states
seeing a drop in sales of over 33%.

However…

It’s important to understand that whilst the amount of houses on the market dropped
significantly during the early period of quarantines and closures, values themselves
remained largely unaffected.
As the year progressed, the housing market saw a resurgence of growth that hadn’t
been witnessed since the boom of 2005.
 
 

How COVID-19 Affected Home Values in Central
Florida:

Before COVID-19 struck, the Orlando (and Central Florida) housing market was in
great health. Despite a brief slump at the beginning of the pandemic, sales have
continued to rally, and are now higher than before the virus took hold, especially after
a brief surge last November:
“In November, home sales in the Orlando area spiked 20.4% over the
same time last year” - Orlando Regional REALTOR®
Association (ORRA)

The Future Outlook for Orlando:

The future looks bright for Orlando and the state of Florida in general.
With the rise of remote working and the slow death of the traditional office, young
professionals are beginning to shift their focus away from cities that offer the best
career opportunities, towards parts of the country that promise a better standard of
living (and competitive tax rates!).



Excellent news for places like Orlando!

So Property Values Will Continue to Increase?

Almost certainly!

Orlando homes are rarely on the market for more than 6 weeks and with some
analysts forecasting that the number of properties for sale will continue to shrink by
26.2% per year, supply is rapidly outstripping demand.
That can mean only one thing: A seller's market.

What About Vacation Homes?


When it comes to vacation properties and Airbnb rentals, Orlando home values largely
mirror the outlook of the residential sector, albeit at a slightly slower pace.
With that being said, a typical vacation home in Orlando is still seeing year-on-year
price increases of at least 7% and we can expect that figure to rise significantly once
the tourist economy begins to stir from hibernation.
 
 

A Word on Theme Parks & the Tourist Industry:

With Walt Disney and Universal Studios putting thousands of staff on furlough and
laying off sizable numbers of their workforces, some neighborhoods in Orlando faced a
bleak outlook back in the spring of 2020.
Whilst we’re still seeing restrictions on the International travel and the parks continue to
operate on restricted timetables, the real estate market hasn’t been impacted to any
significant degree.

The Numbers: The Adjusted Home Value During

COVID in Orlando:

Here’s the current Orlando home value statistics according to Realtor.com:
Median list price: $275,000 (up 1.9% year-on-year)
The median list price per square foot: $165
The median sale price: $277,000
Sale-to-List Price Ratio: 98.64% of listed price achieved.
Average time on the market: 57 days, trending downwards.
Most expensive neighborhood: Lake Nona South (av. $564,000)
Most affordable neighborhood: South Semoran (av. $120,000) 

Summing up:


So in answer to the question, “should I sell my Orlando home during COVID”, all the
signs point to a definite “yes!”
The Central Florida real estate sector already looks buoyant, and might well be headed
towards a boom as we progress further into 2021, as the demand for real estate begins
to rapidly exceed supply.
If you’re considering a sale, we're here every step of the way to help Orlando
homeowners and sellers
get the best returns on their homes. Get in touch today to find
out more!

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