If so, is now the right time to move forward on building a new custom home?
Although the COVID-19 pandemic turned the stock market into a roller coaster, and shuttered countless businesses, when it roared into the United States in early 2020, surprisingly a massive real estate boom followed…and has continued for nearly the next two years.
According to data from the Orlando Regional Realtors Association, the City Beautiful’s real estate market broke records in 2021, with the median price of a home up $65,000 between December 2020 and just one year later.
Like most booming businesses, the prices that can be charged are driven in large part by supply and demand – and according to some experts in the Central Florida locale, Orlando is currently “out of balance,” as there aren’t enough homes for sale to meet the wants and needs of potential buyers.
So, could this be a good time to move forward with building a new custom home, rather than competing with multiple other potential purchasers for an existing residence?
The answer to that can depend on several factors. First, given the still highly volatile stock market, some consumers are leery about accessing too much of their portfolio liquidity – which is oftentimes where some or all of a home’s down payment comes from.
On the other hand, while interest rates are still sitting at historical lows – and have even temporarily dipped even lower during the Russia / Ukraine unrest – it could make it worth your while to consider the potential difference in payments (both monthly and overall purchase price) between now and later, when rates could be more than double what they are presently.
So, if you’re considering building a new custom home in Orlando or the surrounding Central Florida area and you would like more details on designs, time frame, and cost, give us a call and we will be happy to provide you with all of the information that you need.
Sources:
‘We are out of balance:’ Orlando housing market soared in 2021 amid low inventory, high demand. Updated January 19, 2022. https://www.clickorlando.com/news/local/2022/01/18/we-are-out-of-balance-orlando-housing-market-soared-in-2021-amid-low-inventory-high-demand/