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what a slowing housing market means for Central Florida – WFTV

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Video: Enthusiastic, but no bargains yet: What does a slowdown in the housing market mean for Central Florida? The frenzy has made the house more and more valuable. (WFTV)

Orlando, Florida — Charmaine Chapman is virtually shivering when she’s thinking of moving to Central Florida. In theory, that should have been easy. She chose Palm Bay’s commuter town, which traditionally had cheap and abundant choices.

See: Orange County’s housing crisis is not an emergency, new research shows

Instead, she encountered a feeding frenzy.

“It was the hell of the process,” she said with a laugh, ridiculous of her memory.

Six days a week, Chapman woke up and toured six to seven homes. She made four offers, but she was only overpriced by investors, buyers who offered all the cash, or people who were willing to pay much more than the value of the house.

In her fifth attempt, she won for only $ 1,000.

“It was a glory at that moment,” she said.

The only moment for Chapman lasted 18 months for Central Florida sellers. The condition and location of the house didn’t matter. Low interest rates and stagnant demand from the pandemic have led sellers to get paid.

“Everything I put on the market was multiple offers,” said Ray Lopez, real estate agent at Keller Williams. “There would have been 20 to 30 offers.”

See: Congress looking for ways to maintain an affordable mobile housing supply

The frenzy has made the house more and more valuable. According to the Orlando Regional REALTOR Association, the average listing price in April 2021 was $ 370,000. Twelve months ago, the median was only $ 295,000.

But Lopez said the era of glory was almost over.

Rising interest rates have reduced the number of people trying to buy a home. This includes first-time buyers who are unable to provide all their cash and make monthly payments to investors who have few opportunities.

It gave room to the housing market and significantly reduced the number of bid wars, but Mr Lopez said the situation was still hotter than usual. If it was usually zero and the peak of madness was 10, he estimated that the current market was around 6.

“We’re back just like the normal summer market,” he said. “It’s slowing compared to the unusually crazy COVID market.”

See: “My rent went up $ 500 a month”: Orange County leaders say rent issues are likely out of their control

In other words, it’s still the seller’s market, but he explained that the seller may have to paint the walls with new paint to attract the highest amount.

The competition for housing is still in favor of sellers. As of April, ORRA reported 2,670 homes on the market, in contrast to the usual 10,000 homes to date.

Returning to normal will require coordination among homeowners who are accustomed to monitoring the rise in the value of their investment. Lopez said home prices after Labor Day should fall slightly, rather than rise 25% year-on-year, as markets settle in the normal off-season.

That doesn’t mean prices will hit the planet, he added. The value may be expected to decrease by 5% until December, when the next home buying season begins to overheat and the value rises by 15%.

“People are just getting used to the new normal, not the normal,” he said. “The standards were up, and now we’re going back to the bell-shaped curve.”

Read: US average long-term mortgage rates are declining, but still above 5%

So can home prices return to pre-pandemic levels and buyers try to get out of the spiral rental market and win good deals?

Lopez said people should not raise their hopes.

“As long as more people are moving here than moving, that’s always desirable,” he said.

It is well suited for people like Chapman. After her experience, she said she had no plans to test the water again.

“I never want to do it again right away,” she said before adding. “And it was worth it because we love where we are now.”

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