Orlando Housing Market 2022 Forecast

Orlando Housing Market 2022 Forecast

Central Florida home prices to climb, inventory shortages to improve in 2022, experts say Experts predict the new year will bring a housing market that’s robust but more restrained. Home production will increase, price escalations will slow and bidding wars will cool next year, per economist forecasts. Don't expect too much of this year's rising home prices and sales to change much in 2022. In November, local home sales were up 12.7% versus November 2020, while the median home price was up 20% year-over-year, per the Orlando Regional Realtor Association (ORRA).

Orlando Home Inventory Falling Again

Orlando Home Inventory Falling Again, Driving Prices To A Record High

Central Florida's home supply in November shrunk again as prices hit an all-time-high, new data from the Orlando Regional Realtor Association shows. 

There were 3,664 home sales recorded in November, according to the Realtor association. 

Even as the number of local home sales dwindled month-to-month every month from June-November, each month in 2021 boasts higher sales numbers than 2020. 

The median home sales price last month hit a new all-time-high: $330,000. 28: The average days on market for a Central Florida home, practically the same as October's average of 27 days 4,762: Pending sales, down 7.4% from October.

Fewer Bidding Wars

The Housing Market Is Seeing Fewer Bidding Wars

The housing market is seeing fewer bidding wars

The heated bidding wars among would-be homeowners are cooling — but the housing market is still hot, according to new data from real estate firm Redfin.

"It’s typical for competition to ease in the winter months as more families take time off for the holidays," said Fairweather. "

The market with the lowest amount of competition was Jacksonville, Florida, where just 33.3% of Redfin offers faced competition, down from 46.9% in October.

That has helped push the median sale price of homes to $360,375, up 14% over the same time last year and up 31% over November in 2019, according to Redfin.

Homeowner Equity Q3 2021

Homeowner Equity Q3 2021

CoreLogic analysis shows U.S. homeowners with mortgages (roughly 63% of all properties*) have seen their equity increase by a total of over $3.2 trillion since the third quarter of 2020, an increase of 31.1% year over year.

Negative Equity Falls.

This summer, home price growth reached the highest level in more than 45 years, pushing equity gains to another record high and allowing 70,000 properties to regain equity in the third quarter of 2021.

In the third quarter of 2021, the average homeowner gained approximately $56,700 in equity during the past year.

Will Orlando Home Sales Climb Even More In 2022?

Will Orlando home sales climb even more in 2022?

Realtor.com says to expect more growth in Orlando’s on-fire housing market next year.

Metro Orlando home sales are expected to increase 8.8% year-over-year in 2022

Prices will continue to climb in and around Orlando, rising a predicted 5.4% year-over-year in 2022.

However, the high demand for homes and subsequent price escalation worsens Central Florida’s affordable housing shortage.

FHA 2022 Loan Limits Increase

FHA 2022 Loan Limits Increase

FHA Announces New Single Family Title II Forward and Home Equity Conversion Mortgage 

Loan Limits for 2022 FHA ANNOUNCES NEW SINGLE FAMILY TITLE II FORWARD AND HOME EQUITY CONVERSION MORTGAGE LOAN LIMITS FOR 2022. "The increase in loan limits, commensurate with the increase in home prices, will allow qualified individuals and families to continue to access FHA-insured mortgages to achieve affordable home financing FHA’s 2022 minimum national loan limit "floor", of $420,680 is set at 65 percent of the national conforming loan limit. Any area where the loan limit exceeds this "floor" is considered a high-cost area, and the NHA requires FHA to set its maximum loan limit "ceiling" for high-cost areas at $970,800, which is 150 percent of the national conforming loan limit.

2022 Conforming Limits Rise 18 Percent To $647,200

2022 Conforming Limits Rise 18 Percent to $647,200

The new conforming loans limits for mortgages that can be acquired by Fannie Mae and Freddie Mac were announced this morning by the Federal Housing Finance Agency (FHFA). As expected, the changes reflect the nearly unprecedented price gains over the last year. Between the third quarter of 2020 and 2021 the expanded-data index  had grown by an average of 18.05 percent. The limit for single-family residential units in most U.S. counties, effective January 1, 2022, will be $647,200. This is an increase of $98,950 from the $548,250 limit this year. FHFA says that due to rising home values, conforming limits will increase in all but four U.S. counties or county equivalents.

Higher Home Values Mean Higher Property Taxes

Higher Home Values Mean Higher Property Taxes

 Homebuyers who think property taxes will match the amount the seller had paid often find out rising home values might make them very wrong. Paying your property taxes: Whoever pays early can see some savings.  There’s a discount for paying in November and that starts to peter out as you get closer to the deadline: You’ll see a 4% savings if you file by November, 3% in December, 2% in January and 1% in February. Marty Kiar, Broward County’s property appraiser, regularly gets tearful calls from new homeowners who mistakenly thought they’d be paying the same amount in taxes as the person who owned a house before them. "Save our Homes" is a Florida law that caps the annual increase that a homesteaded property can rise in value to either 3% or the change in the National Consumer Price Index, whichever is less.  You can check online tax estimator to make sure you can afford the taxes for your new home before you buy.

The Pain of Panes: New Windows in Short Supply

The Pain of Panes: New Windows in Short Supply

Two-thirds of builders cited a glass shortage for windows, shower doors, etc. Why the current supply problem? A lot of it is manufactured in China, Mexico and India. Nearly two-thirds of home builders cited windows as their biggest material shortage, according to a recent survey from John Burns Real Estate Consulting. Rounding out the top four in additional shortages are lumber, engineered wood products and concrete. Window delays could range from four to 15 weeks, though some are stretching up to 45 weeks. Why the shortage of glass? An international logistics backlog led to shortages of glass and other materials, experts say.

Investors scooped up $64B in homes nationally in Q3

Investors scooped up record $64B in homes nationally in Q3

The third quarter was investors' most prolific one on record, accounting for a full 18.2% of homes that sold across the U.S.

That's according to Seattle-based Redfin Corp. (NASDAQ: RDFN), which found real estate investors snapped up 90,215 homes worth a combined $63.6 billion in Q3.

Daryl Fairweather, chief economist at Redfin, said the data doesn't discern how much of investor purchases are by institutionally backed groups or mom-and-pop investors, although she noted second-home purchases remain elevated.

Lower-middle priced units (75% to 100% of the regional median): Grew 9.3% year over year, up from 2.3% in September 2020.