Home builders have been busy in Central Florida during the second quarter, constructing about 4,000 new houses – many of them vacation homes. The data comes courtesy of housing analysis firm, MetroStudy. Their survey found that the Orlando area had 14 percent year-over-year growth in homes being built, and 28 percent growth in closings.
The home construction recovery is due in part to Orlando’s tourism industry. Many holiday visitors decide to buy new homes after they’ve spent a lot of time here. These properties are often used as a second home and as an investment property allowing owners to generate rental income from other holiday visitors.
Osceola County, which is home to Disney World, saw a significant increase in housing starts, thanks to construction activity at ChampionsGate, Storey Lake, Tapestry and Reunion Resort and Club. These communities all market to vacation home buyers, and other buyers from out of the area.
The Orlando Sentinel reported that the majority of new homes being built last quarter were priced from $250,000 to $299,999. That price point is attractive to vacation home buyers, according to studies of international buyers.
Florida Realtors chief economist Brad O’Connor said a shortage of existing homes for sale in Central Florida and elsewhere should benefit the new home market.
O’Connor told the Orlando Sentinel that Central Florida’s home construction is nowhere near its peak more than a decade ago when mortgages were easier to obtain. He’s also not concerned about rising prices creating another bubble because so few homes are on the market.
Team Donovan specializes in the purchase and sale of vacation homes in the resort area near Disney, Universal Studios and Sea World. During the past six months, we sold 49 homes in ChampionsGate alone, and of those homes, 97 percent closed at the asking price.
ChampionsGate is almost a city unto itself, because it is comprised of residential, vacation home and resort communities. Their properties are in high demand for holiday travelers, making it an attractive option for those wanting to invest in a vacation home.
If you’re interested in buying or selling a second home in Orlando, contact Team Donovan today at 407-705-2616 for a free consultation.