Real Estate Activity 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’re selling quickly. The highest demand is for homes priced between $200,000 and $350,000,” said ORRA President Reese Stewart of RE/MAX Properties SW in 2020. “Sellers in this price range are receiving multiple offers, sometimes within 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 jump on it when they see their dream home.”
The days on market (DOM) fell to an average of just 44 days, the lowest in three years. Low interest rates are playing 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 past two years: 3.6% in 2019 and 4.9% in 2018.
Real Estate Market Indicators
Average Price
Low inventory, combined with high demand, continues to drive up home prices. The median price for all types of homes rose 14.6% from November 2019 to November 2020 and now stands at $275,000.
The average price for single-family homes rose 15.1%, from $259,000 in November 2019 to $298,000 in November 2020. There was also a 2.8% increase compared with October.
For apartments, there was also a significant year-over-year price change (11.1%). The average price was $135,000 in 2019 and rose to $150,000 in 2020. Prices have remained unchanged since October.
For duplexes, townhouses, and single-family homes, the average price in November rose 4.2 percent, from $217,000 in 2019 to $226,000 in 2020, but fell 5.0 percent from the previous month.
Sales and Inventory
A total of 2,592 single-family homes were sold in November, representing a 25% increase compared to November 2019, when 2,073 single-family homes were sold.
Apartments were the only housing category to show a year-over-year decline (4.1%), with 326 sales in November 2020 and 340 in November 2019.
Sales of townhouses, duplexes, and villas remain strong, with a 15.6% increase compared to 2019. A total of 333 units were sold in November 2020, compared to 288 in November of last year.
The 37 sales of distressed properties [foreclosures and short sales] in November accounted for just 1.14% of total sales, less than in the same period last year (4.3%) and the previous month (1.8%).
Although the total number of homes sold in November rose sharply from 2019 to 2020, sales of all property types showed significant declines compared to October. Sales of single-family homes fell by 10%, condominiums by 14.9%, and duplexes, townhouses, and villas by 10.9%.
It would take an average of 1.72 months to sell all the available inventory in the Greater Orlando area right now. There is less than a month’s supply of homes in the $180,000 to $350,000 price range.
Real estate economists generally consider a 5- to 6-month supply to be indicative of a healthy market with a balance between buyers and sellers.
Future Indicators
The shortage of inventory is putting pressure on home sales early in the year. For the second consecutive month, the number of pending home sales has declined and now stands at 4,688, a 5.8% drop. The number of new homes listed for sale in November fell 3.8% year-over-year. However, new contracts increased by 14% compared to November 2019, during what is typically a slow time of year.
“We’re ending the year the same way it began—with falling inventory and rising prices,” Stewart said. “We know that people are coming from other parts of Florida and across the country to take advantage of the more affordable cost of living and the desirable lifestyle in Central Florida.”
Metropolitan Area Statistics
Home sales in recent months have made up for the ground lost during the COVID-19 shutdown in March. Year-to-date sales have fallen 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% higher than November 2019;
- Orange: 19.6% higher than November 2019;
- Osceola: 26.1% higher than November 2019; and
- Seminole: 18.8% higher than November 2019.