ORLANDO, Fla. – The housing market was red-hot earlier this year, though it’s begun to cool down as interest rates skyrocket.
In Orlando, home sales dropped 18.3%, with the Orlando Regional Realtor Association reporting 2,717 homes had been sold in September — 607 fewer than were sold in August.
[TRENDING: DeSantis calls for changes to death penalty | Much cooler air on the way to Florida | Become a News 6 Insider]
“We are starting to feel the impact of these rising interest rates in the Orlando housing market,” Team leader at Keller Williams Classic Realty Shonn McCloud said.
The Federal Reserve greatly increased interest rates in an effort to fix the ongoing inflation crisis, but the high rates have caused some potential home buyers to put the search on pause.
“Buyers are pulling back a little bit more,” McCloud said.
Sitting at 6.3%, McCloud said interest rates have more than doubled over the past 12 months.
A market once saturated by bidding wars is now seeing fewer buyers closing deals.
On Facebook, News 6 reporter Treasure Roberts asked viewers if they planned to purchase a home in Metro-Orlando this year and whether that has since changed.
“We were [definitely] looking to do so, but with interest rates where they’re at combined with the crazy house prices, there is no way,” one person commented. “We’ll just continue to save for a larger down payment when the market fixes itself someday.”
Another person commented, “Even if prices fell dramatically, that would only be good for cash buyers.”
As interest rates go up, the median home price has decreased — but not by much.
According to the Orlando Regional Realtor Association, in August, the median price was $377,750. In September, that price dropped to $365,000.
Even with home prices falling, it’s still not enough for home buyers.
“Sometimes, it might not be that overall cost if you’re able to break it down,” McCloud said.
High interest rates mean homeowners may have to pay more on a house each month.
McCloud said it can have a strong impact on the day-to-day lives of Florida communities.
“It might be the difference between being able to go out to dinner every week.” McCloud said. “It might be the difference in, you know, having to cut back from... extracurricular activities that the kids go to.”
For now, McCloud said the housing market is more balanced.
For home buyers looking to secure a place with low monthly rates, though, that could be a challenge.
Get today’s headlines in minutes with Your Florida Daily: