I have some news for you that may be alarming. Compared to the year 2022, the median sales price of homes in Orlando, FL has dropped 0.5%, or about half of a percent.
If you’re a homeowner, this could be cause for concern. I know what you’re thinking: Have we finally reached the start of the housing market crash in Orlando, FL?
In this blog, I will share with you very important data that helps uncover the impact of this price drop.
Are you ready to dive into it? Let’s go!
The Big Picture
The median sales price of homes in Orlando has dropped by 0.5% year over year (median sales price in May 2022 compared to May 2023), which is the most recent data I had at the time of this writing.
But if you take a closer look at what’s happening here, the median sales price in May 2022 was $379,950, while the median sales price for May 2023 was $378,000. This means that the 0.5 percent drop is hardly a difference in price. It’s fair to say that prices in Orlando Florida are actually holding very well.
In fact, the median sales price has been rising every month since the beginning of this year. The median home price for May 2023 was recorded at $378K, up from $370K in April 2023, and this is a $28,000 increase since January. With this, we can plainly see that median home prices are on an upward trend in Orlando, Florida.
The Median Sales Prices VS. The Average Sales Prices
Why am I talking about the median sales price and not the average?
The reason is that the median represents the price in the middle of the range. And that has the advantage of not being heavily skewed by prices that are very, very low and very, very high.
But say for instance, you do want to look at the average sales prices instead. The numbers tell us that home prices have risen by 2.8% between May 2022 and May 2023. The average sales price in May 2022 was $445,544, while in May 2023, it was $458,116. It is nearly a $13,000 difference.
This illustrates why it’s so important to take into consideration how data is being used when you see or hear news about the housing market. One type of statistics shows an increase in home prices, while the other shows just a slight decrease or really just a flattening. Either way, we are not experiencing a significant fall in prices, thankfully! It’s quite the opposite.
Would you like to stay updated on the latest trends of the real estate market in Orlando? I also talk about the 2024 predictions for mortgage rates on our YouTube channel. You don’t want to miss this episode!
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