The Central Florida real estate market is always evolving, and vacation home owners are facing a unique moment in time. With rising interest rates, shifts in buyer demand, and fluctuating tourism trends, the question arises: Is now a good time to sell? Let’s take a look at the data and market forces shaping the decision.
Central Florida Housing Market Trends
The real estate market in the greater Orlando area, including Davenport, Kissimmee, South Clermont, and Haines City, has seen notable changes over the past year. According to the Orlando Regional Realtor Association (ORRA):
- Home prices have experienced a correction over the past 12 months, with a median home price of approximately $375,000 as of early 2024.
- Inventory levels have risen—Central Florida now has about a three-month supply of homes, meaning buyers have more options than they did during the peak seller’s market of 2021-2022.
- Interest rates are hovering between 6.5% and 7%, which has slowed demand but kept the market from crashing due to the region’s consistent influx of relocators and investors.
The Impact on Vacation Homeowners
For owners of short-term rental properties, the market shift brings both challenges and opportunities:
- Higher Inventory Means More Competition – With more properties available, standing out in the market requires strategic pricing and strong marketing.
- Rental Demand Is Shifting – The resurgence of international travel and new hotel developments near Disney have introduced more lodging choices, slightly softening demand for vacation rentals.
- Investor Interest Remains Strong – Despite higher interest rates, investors continue to buy in Central Florida due to the area’s long-term tourism appeal and no state income tax.
Economic Factors That Could Influence Your Decision
- Disney and Universal Expansion Plans: Disney is investing $17 billion in new attractions over the next decade, and Universal’s Epic Universe is set to open in 2025. These expansions are expected to drive future rental demand, though short-term effects may vary.
- Legislative Changes: Local governments have been considering new regulations on short-term rentals, which could impact profitability for some owners.
- Seasonal Price Trends: Historically, spring and early summer are peak seasons for sellers. Listing in the next few months may help maximize your sale price before more inventory hits the market.
What Should Vacation Homeowners Do?
If you’re considering selling, timing and strategy are key. Pricing competitively, staging effectively, and working with an experienced real estate professional can make a significant difference.
Curious about your vacation home’s current market value? 📩 Contact Michelle at Vacay & Co Real Estate or click here to request a FREE Professional Evaluation and expert insights. 📧 Email: [email protected] 📞 Call/Text: 321-333-1338 🌍 Visit: www.vacayreflorida.com