It’s been 2 years since the post-Covid pandemic market frenzy of multiple offers and waiving all contingencies came to a screeching halt. Mortgage interest rates were in the low 3’s in January 2022… By June 1st, the average rate was up to 5.27%. By November 2022, they were over 7% and have remained in the 6’s, 7’s, and even as high as 8% since then.
While this dramatic spike in rates may have moved many buyers to the sidelines, resulting in fewer homes sold and longer days on market, home values in the premier residential neighborhoods around Disney World have not come down. And with available inventory still below 4 months' worth, it’s hard to imagine if and when they may begin to decline. Below, we analyze the first 6 months of 2022, the final days of record low interest rates, compared to the first 6 months of 2023 and 2024 for Celebration, Windermere, Dr. Phillips, and Winter Garden.
CELEBRATION
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Active listings: 96
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Inventory: 3.5 months
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Price Growth: Celebration has seen a significant increase in home prices over the past two years, with the average sold price rising by 28.3% from 2022 to 2024.
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Market Slowing: Days on market have increased substantially, indicating a slower market pace compared to the peak in 2022.
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Luxury Market: There has been an increase in the number of homes sold over $1M, reflecting growing demand in the luxury segment.
WINDERMERE
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Active listings: 194
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Inventory: 3.65 months
- Price Fluctuations: Windermere’s average sold price peaked in 2023 but saw a slight decrease in 2024.
- Market Stabilization: The number of days on market has increased, and the sold-to-list price ratio has decreased, indicating a more stabilized market.
- Luxury Market Stability: Despite overall market changes, the number of homes sold over $1M has remained relatively consistent.
DR. PHILLIPS
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Active listings: 216
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Inventory: 3.75 months
- Significant Price Increase: Dr. Phillips has experienced notable price growth, with the average sold price rising by 22.5% from 2022 to 2024.
- Market Adjustment: The number of days on market has more than doubled, showing a slower selling pace.
- Luxury Market: The luxury market remains strong, with a steady number of homes sold over $1M.
WINTER GARDEN
- Active listings: 612
- Inventory: 3.90 months
- Steady Price Increase: Winter Garden has seen a consistent increase in home prices, with the average sold price rising by 7.1% from 2022 to 2024.
- Market Pace: The market pace has slowed, with an increase in the number of days on market.
- Luxury Market Growth: The luxury market has shown steady growth, with a slight increase in homes sold over $1M.
Looking Ahead
The real estate market around Disney World has demonstrated resilience despite rising interest rates over the past two years. While the market pace has slowed and the number of days on market has increased, home values have continued to appreciate in Celebration, Windermere, Dr. Phillips, and Winter Garden. As interest rates are expected to remain above 6% in the near future, buyers and sellers should adapt their strategies accordingly.
For Buyers
Higher interest rates may limit borrowing power, but the slower market pace can provide more opportunities to negotiate and avoid the frenzied competition seen in previous years. Buyers should be prepared for a more measured purchasing process and consider locking in rates sooner rather than later to avoid potential future increases.
For Sellers
Sellers may need to adjust expectations and be prepared for homes to spend more time on the market. Pricing strategies will be crucial, as overpricing can lead to extended listing periods. However, the steady demand in luxury segments offers opportunities for those selling high-end properties. Emphasizing the unique features and benefits of the home and being flexible with negotiations can help
CONTACT US if you would like to review data for specific neighborhoods within these Disney towns or other segments of the Orlando market.
