Real Estate Activity in Detail
A new report from the Orlando Regional Realtor® Association details how the real estate market performed in 2020 compared to recent years. Despite the pandemic and its impacts, the median home price in Orlando rose as buyers struggled to find homes in a market with dwindling inventory.
According to the report, the average annual price of a home in Orlando for 2020 ($265,000) was 9.1% higher than the average annual price in 2019 ($243,000), thanks to 12 consecutive months of year-over-year increases in average prices. Although the average home price rose each month, inventory continued to decline and hit a low in December 2020, when it reached its lowest level since July 2005.
Home sales in Orlando completed in 2020 totaled 36,871, which is 0.5% higher than the total sales for 2019 (36,707). As a historical comparison, annual sales in 2019 were 1.8% higher than the total sales recorded in 2018; annual sales in 2018 were 3.2% lower than in 2017.
“The Orlando area was on the rise throughout 2020, as demand increased and the number of homes on the market fell over the course of the year. We expect this trend to continue in 2021,” said ORRA 2021 President Natalie Arrowsmith of NextHome Arrowsmith Realty. “Looking at the data, inventory has dropped significantly since the beginning of the year. In fact, December 2020 shows the lowest inventory we’ve seen in more than 15 years, creating an extremely competitive market for buyers.”
Real Estate Market Indicators
Average Price
The overall average price of homes in Orlando (all types combined) sold in December was $275,000, which is 10.4% higher than the December 2019 average price of $249,000.
The median price of single-family homes sold in December rose 12.1% compared with December 2019 and now stands at $296,950. The median price of condos rose 5.7%, to $148,000.
Sales and Inventory
ORRA members were involved in 3,672 sales of all types of homes combined in December, which is 21.1% more than the 3,033 sales in December 2019 and 51.6% more than the 2,422 sales in December 2018.
Sales of single-family homes (2,890) in December 2020 increased by 20.1% compared to December 2019, while sales of condos (401) rose 35.9% year over year.
The total inventory of homes available for sale in December (4,875) represents a 30.6% decrease compared to December 2019 and a 12.7% decrease compared to the previous month. There were 42.6% fewer single-family homes and 12.1% more condos year over year.
Current inventory, combined with the current sales pace, resulted in a 1.3-month supply of homes in Orlando for December. There was a 2.3-month supply in December 2019 and a 3.3-month supply in December 2018, showing that inventory has decreased significantly.
The average interest rate paid by homebuyers in Orlando in December 2020 was 2.70%, the same as the previous month.
Homes that closed (had the deed signed) in December took an average of 45 days to go from "listed" to "pending" status (when an offer is received).
Pending sales in December 2020 rose 20.9% compared with December 2019 and fell 11.4% compared with the previous month.
Metropolitan Area Statistics
Sales of existing homes throughout the Orlando metropolitan area (Lake, Orange, Osceola, and Seminole counties) in December increased by 17.5% compared to December 2019. For the year, sales fell by 2.8%.
The sales comparisons for each county are as follows:
- Lake: 26.8% higher than December 2019;
- Orange: 13.0% higher than December 2019;
- Osceola: 24.3% higher than December 2019; and
- Seminole: 16.2% higher than December 2019.
2020 Market Summary
Average Price
The average annual price of a home in 2020 ($265,000) is 9.1% higher than the average annual price in 2019 ($243,000) and 14.0% higher than the average annual price in 2018 ($232,500).
The average annual price of single-family homes rose 9.6% to $285,000 in 2020, while the average price of condominiums rose 7.4% to $145,000.
Sales
Sales in 2020 increased by 0.5% compared to 2019. A total of 36,871 homes were sold in 2020, compared to 36,707 the previous year.
Sales of single-family homes rose 2.3% compared with 2019. Condominium sales fell 10.2%, and sales of townhouses fell 1.2%.
At the end of 2020, 40,743 homes were sold in the Orlando metropolitan area, compared to 41,922 homes sold at the end of 2019—a 2.8% decrease. The year-end sales comparisons for each individual county are as follows:
- Lake: 0.5% less than in 2019;
- Orange: 5.6% less than in 2019;
- Osceola: 0.5% higher than in 2019;
- Seminole: 1.6% less than in 2019.
This representation is based in whole or in part on data provided by the Orlando Regional Realtor® Association and the Stellar Multiple Listing Service. Neither the association nor StellarMLS guarantees or is in any way responsible for its accuracy. The data maintained by the association or StellarMLS does not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to account for closings published after the report date.
ORRA Realtor® sales refer to sales involving members of the Orlando Regional Realtor® Association, who are primarily—but not exclusively—located in Orange and Seminole counties. Please note that the statistics released each month may be revised in the future as new data is received.
The Orlando MSA figures reflect home sales in Orange, Seminole, Osceola, and Lake counties by members of any Realtor® association, not just ORRA members.