Real Estate in Detail
The Orlando area avoided the typical fall slowdown and instead showed significant increases in home sales and prices in October, according to a new report from the Orlando Regional REALTOR® Association. Data from the monthly housing report reveals that the number of homes sold in October 2020 increased by 25% compared to October 2019, and the average price increased by 11.6% during the same period.
"We're seeing strong home sales offsetting sharp declines earlier this year. Realtors are not seeing the usual slowdown as we enter the vacation season," said ORRA President Reese Stewart, RE/MAX Properties SW." There are more new listings in October than in previous years, and the most since July, indicating that the market is likely to remain hot through the winter."
Overall home sales in 2020 are down just 3% on last year, despite the impacts of COVID-19. An ORRA survey conducted earlier this fall found that low interest rates are the main reason buyers are looking for new homes. Mortgage rates continue to fall, with the average rate remaining at 2.72% in October.
Real estate market indicators
Average Price
In October 2020, the overall average selling price was $269,950.
For a single-family home, the average price was $290,000, 10% higher than in October 2019. However, the price fell slightly (1.9%), by $5,500, compared to September.
The average price of apartments showed smaller gains from October 2019 (4.9%), but rose by 7.1% from September 2020, reaching $150,000.
For semi-detached houses, the average October price rose 9.2% from 2019 to $238,000, an increase of 3.5% compared to September.
Sales and stock
ORRA members sold 3,634 homes in October, a 4% increase on September.
Sales of single-family homes, representing 2,877 homes, were up 28.9% on last year (2,232) and 4.6% on the previous month (2,750).
The 383 apartments sold were up 6% on 2019 (361) and down 4% on September (399).
Semi-detached houses made significant gains, with the number sold (374) 19.5% higher than in 2019. In the comparison between September and October, there was a 13.7% increase in the number of units sold.
The number of single-family homes on the market (3,880) fell 37% from 6,140 in October 2019. There were more apartments and townhouses available a year ago.
Low inventory continues to be a major concern for realtors, as the trend continues in October. There was only a 1.61 month supply of homes for the Orlando area. If all the homes on the market were sold, it would only take a little over six weeks. For homes between $140,000-349,999, it would take a little over a month. The average time on the market is 48 days, the same as September.
Real estate economists generally consider an inventory of 5 to 6 months to indicate a healthy and balanced market between buyers and sellers.
"We see a seller-driven market and there is huge demand. Many sellers are getting multiple offers on their homes. It's not uncommon to see homes selling a day or two after hitting the market. Buyers should come prepared and pre-approved [when financing] and expect to make an offer quickly," said Stewart.
In October, there were 67 homes in distress(foreclosures and short sales), accounting for 1.84% of all transactions in the Orlando area.
Future Indicators
Tight inventory continues to play an important role in the number of home sales (4,977). October was the first month to show a drop in the number of homes under contract since April. Compared to a year ago, when there were 4,308 pending sales, there are 16% more homes under contract ahead of the vacation season.
New contracts have also remained stable since last month, with numbers rising from 3,400 to 3,409. This number is even higher compared to 2019 (3,003).
Figures for the Metropolitan Region
Throughout the Orlando metropolitan area, sales prices in October increased considerably over last year, especially in Osceola and Seminole counties.
The sales comparisons for each county are as follows:
- Lake: 16.5% more than October 2019;
- Orange: 16.7% more than October 2019;
- Osceola: 25.7% more than October 2019; and
- Seminole: 24.1% more than October 2019.