SEMINOLE COUNTY, Fla. — Home sales typically surge in the summer as families try to settle in before the school year begins, but rising prices are forcing some would-be buyers to rent and deal with those soaring rates.
What You Need To Know
- Some families say they are having to move out of their school districts because of rising rent and housing costs
- Median home prices surged to $387,000 in June, compared to $315,000 in June 2021, Orlando Realtor group reports
- Meanwhile, mortgage rates have surged from 2.95% in June 2021 to 5.5% in June 2022
- Some say the increases make it difficult for them to save enough for down payments or pay higher rents
Jessica Napoli chose an Oviedo apartment so her children could enroll in Seminole County schools, but says she can’t afford the 30% increase in rent she is facing. As much as she wants to stay in that district, she said she has to look elsewhere because she is getting priced out of an area that was within her budget less than a year ago.
“I think it will affect my children because they think they are going to one school and now, last minute, we are not going to be able to stay in the area and are trying to figure out where to go," she said.
She said the rent in her current apartment would increase from $2,142 to $2,791, and the family cannot afford that.
Napoli said she is spending so much in rent she can’t save up for closing costs or a down payment, and feels trapped in a cycle of escalating, unaffordable rent.
“We can’t put anything aside,” she added. “My partner donates plasma like two times a week so we can have that extra money, essentially.”
She has researched private schools, but cost comes into play there, too. She has considered charter schools as well.
The Orlando Regional Realtor Association considers a 6-month supply of homes a balanced market, but the organization recently reported more than a 1-month supply for sale for the first time since February 2021.
Its report shows a surge in inventory, but it also reveals a jump in home prices and rising interest rates. In June, the median home price was recorded at $387,000, up from $315,000 in June 2021. The average interest rate for June was recorded at 5.5%, an 87.5% increase from 2.95% in June 2021.
The organization’s June data shows the following top five ZIP codes in Central Florida by the number of sales:
- 34747 – Kissimmee – 200 sales
- 34787 – Winter Garden – 164 sales
- 34746 – Kissimmee – 150 sales
- 34711 – Clermont – 94 sales
- 34758 – Kissimmee – 91 sales