Real Estate in Detail
Many people bought a new home in the Orlando area for the holidays, despite low inventory and the number of new listings falling to their lowest levels this year, according to a new report from the Orlando Regional REALTOR® Association. A total of 3,251 homes were sold in November, representing a 20.4% increase in sales compared to November 2019. However, inventory fell by 26.2% during the same period.
"There are fewer homes on the market, but they are selling quickly. The biggest demand is for homes between $200,000 and $350,000," said ORRA's 2020 president, Reese Stewart, RE / MAX Properties SW. "Sellers in this price range are receiving multiple offers, sometimes in just a few hours. Buyers in this price range should check with their REALTOR® to make sure they have everything they need, so they're ready to pounce when they see their dream home. "
The number of days on the market (DOM) fell to an average of just 44 days, the lowest in three years. Low interest rates play a key role in driving the home-buying frenzy, according to a survey of ORRA members this fall. Average rates fell to 2.7%, a dramatic difference from the last two years: 3.6% in 2019 and 4.9% in 2018.
Real estate market indicators
Average Price
Low inventory, coupled with high demand, continues to drive up house prices. The average price for all types of homes increased by 14.6% from November 2019 to November 2020 and now stands at US$275,000.
The average price for single-family homes increased by 15.1%, from US$259,000 in November 2019 to US$298,000 in November 2020. There was also an increase of 2.8% compared to October.
For apartments, there was also a significant change in price from year to year (11.1%). The average price was US$135,000 in 2019 and increased to US$150,000 in 2020. Prices have remained unchanged since October.
For duplexes, townhouses and villas, the average price in November increased by 4.2%, from US$217,000 in 2019 to US$226,000 in 2020, but fell by 5.0% compared to the previous month.
Sales and stock
A total of 2,592 single-family homes sold in November, representing an increase of 25% compared to November 2019, when 2,073 single-family homes were sold.
Apartments were the only housing category to show a year-on-year drop (4.1%), with 326 sales in November 2020 and 340 in November 2019.
Robust sales continue for sobrados, duplexes and villas, with a 15.6% jump compared to 2019. There were 333 units sold in November 2020, compared to 288 during November last year.
The 37 sales of problem homes[foreclosures and short sales] in November represented only 1.14% of sales, less than in the same period last year (4.3%) and the month before (1.8%).
Although the total number of homes sold in November increased dramatically from 2019 to 2020, sales of all types showed significant drops compared to October. There were 10% fewer single-family homes, 14.9% fewer condominiums and 10.9% fewer semi-detached duplexes and villas sold.
It would take an average of 1.72 months to sell all available inventory in the greater Orlando area right now. There is less than a one-month supply of homes in the $180,000 to $350,000 price range.
Real estate economists generally consider an inventory of 5 to 6 months to indicate a healthy and balanced market between buyers and sellers.
Future Indicators
A shortage of stock is putting pressure on home sales at the start of the year. For the second month in a row, the number of pending home sales decreased and now stands at 4,688, a drop of 5.8%. The number of new homes listed for sale in November fell by 3.8% year-on-year. However, new contracts were up 14% compared to November 2019, during what is normally a slow time of year.
"We're closing out the year the same way it started - with falling inventory and rising prices," said Stewart. "We know that people are coming from other parts of Florida and the country to take advantage of Central Florida's more affordable cost of living and desirable lifestyle."
Figures for the Metropolitan Region
Home sales in recent months have made up for the ground lost during the COVID-19 shutdown in March. Year-to-date sales are down 4.6% overall. Across the Orlando metropolitan area, home sales rose in November.
The sales comparisons for each county are as follows:
- Lake: 5.7% more than November 2019;
- Orange: 19.6% more than November 2019;
- Osceola: 26.1% more than November 2019; and
- Seminole: 18.8% more than November 2019.