Is the Orlando Housing Market Going to Crash in 2023?

You may have heard many predictions about what 2023 has in store for the housing market. Particularly, a lot of people have been saying that the housing market is bound to experience a crash this year, and this has a lot of Orlando residents understandably worried. But the truth is, there may be a lot less to worry about than people think. Let’s take a look at why a housing market crash might not be as likely as people think.

  • A Bubble About to Pop?
  • About the Decline…
  • The Possibility of a Market Crash
  • What You Can Expect for Orlando

A Bubble About to Pop?

The rapid rise in the market value of an asset—like real estate—is often described by economists as a bubble. This idea of a bubble when referring to the current market conditions is a bit misleading since it implies that there will eventually be a “pop.” In this situation, this would mean a massive, dramatic, downward crash in the housing market. Orlando residents have been gearing up for this pop over the course of the past year, and understandably so. After all, current prices in the Orlando real estate market are significantly higher than they normally should be.

However, this doesn’t mean for certain that a crash is inevitable. Based on past trends and the way things are currently headed, we should be expecting a slow, gradual decline in real estate prices in 2023, rather than the devastating market crash people have been worried about.

About the Decline…

Lower housing market prices may be great for buyers, but they aren’t ideal for real estate agents and sellers. Currently in Orlando, competition and prices are high because there are so few homes on the market in the first place, and lower-priced houses will usually get offers very quickly. Your main takeaway should be this: If you’re planning to sell your home this year, there is no better time than now to get your home on the market while demand is high and prices are higher.

The Possibility of a Market Crash

Even though most of the signs don’t point to a possible market crash in 2023, no one can say for certain where the market is heading. With the right conditions occurring at the right time, an unexpected crash could happen, and it might be a good idea to prepare for the worst, even when it isn’t statistically likely. To make sure you know what to look out for, here are a few factors which could lead to a crash:

Buyer Demand and Motivation

These are arguably the two most important aspects of the housing market in Orlando. After all, if no one is buying houses, the market wouldn’t exist at all. It would be a very bad sign if the public’s demand and motivation to buy houses started to drop suddenly.

Sudden High Unemployment

Unemployment rates don’t affect much when they go up by a small amount, but a big upward shift in unemployment rates could drag the housing market down. If a lot of people are without jobs, they may end up frantically trying to sell their houses, and foreclosure numbers could rise.

Homebuilding

When it is thriving, homebuilding leaves more desirable houses on the market. However, during the pandemic, many builders struggled with rising material prices and increasing difficulty in obtaining building permits. This can lead to a shortage of homes for sale, which causes prices to rise as they have recently. We are already expecting a continuation of this slow progress in the new-home market in 2023.

What You Can Expect for Orlando

In the coming year, we think you should expect to see housing prices gradually fall to lower levels. While this might sound bad, remember it is nothing to worry about! Prices have skyrocketed in Orlando recently, and they will simply be sinking back to normal market value.

And if you’re thinking of selling your home or buying a new one, there is no one better to help you than our team, EmpowerHome Team. We’ve helped thousands of families through dramatic market shifts, and we have decades of experience navigating the changing markets, so you can rest assured that we can get your home sold regardless of whatever the 2023 markets have in store. Most sellers last year had to call a second or third agent to get the job done, or even worse, not sell at all. The agent you hire the first time matters! Our team sells 98% of our listings the first time, so when you hire us, your home is more likely to sell fast & for top dollar! 

Call or Text us now at 407-890-1977 to start working with a team that will help and support you every step of the way!

Your Home SOLD for 100% of the Asking Price or We Will Pay You the Difference.* No Gimmicks! Visit us HERE for more information.