If you want to buy a home in metro Orlando, be prepared to spend more, according to a new Zillow report on affordability.
“Home values have soared in recent years, sending the national median as high as it’s ever been and forcing home buyers to pay more – even though their incomes do not always keep up,” Zillow’s Chief Economist Svenja Gudell said. “While low mortgage interest rates have helped keep the typically valued U.S. home affordable by historical standards, the real prices on #homes actually available to buy is hurting affordability in many areas.”
In metro Orlando, the median list price of homes on the market was $259,900 in first-quarter 2017, which means mortgage payments would take up 23 percent of the area’s median income, compared with the 20.4 percent required between 1985-2000.
It’s also more than the 18.2 percent of the area’s median income currently required for mortgage payments for a median valued home (many of which are not for sale). Orlando’s median home value was $203,500 for first-quarter 2017, according to the report.
The median list price for a U.S. home in the first quarter was $246,900 – well above the $197,100 median home value, according to Zillow
Further, mortgage affordability in Orlando is forecast to reach between 20.7 percent to 25.6 percent of the median income, depending on if the mortgage interest rate rises to between 5 percent to 7 percent.
To see the full report, click here. (And see the slideshow for a look inside the mansion once owned by former NBA star Horace Grant, which now is back on the market.)
Kyle Swenson is a general assignment reporter.