Although limited inventory has continued to drive Orlando area home prices up in recent months, some economists and mortgage analysts say a slowdown in price gains could be on the way in 2018.
Since the last half of 2011, home price growth has been strong in Orlando, and the area’s equally strong job market has also contributed to substantial increases in home prices over the last five to six years.
But according to a new report from the National Association of Realtors, Orlando is only projected to see around a 3 percent increase in home prices in 2018 after double-digit gains in each of the last several years.
One reason for this year's outlook is that investors could start selling off distressed sales they purchased and transformed into rentals, even despite Orlando’s rental market being red hot right now and among the strongest in the country according to recently released data from RealPage. Such action could result in a short burst of inventory in entry-level homes, which aims to be one of the hottest segments of the housing market in 2018.