Real Estate Activity in Detail
The Orlando area avoided the typical fall slowdown and, instead, saw 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 median price rose by 11.6% over the same period.
“We’re seeing strong home sales offsetting sharp declines earlier this year. Real estate agents aren’t seeing the usual slowdown as we head into the holiday season,” said ORRA President Reese Stewart of RE/MAX Properties SW. “In October, there are more new listings than in previous years—the highest number since July—indicating that the market is likely to remain strong through the winter.”
Overall home sales for 2020 to date fell by just 3% compared to last year, despite the impacts of COVID-19. A survey by ORRA, 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 sales 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 increases starting in October 2019 (4.9%), but rose 7.1% starting in September 2020, reaching $150,000.
For townhouses, the average price in October rose 9.2% from 2019 to $238,000, an increase of 3.5% from September.
Sales and Inventory
ORRA members sold 3,634 homes in October, a 4% increase from September.
Sales of single-family homes—totaling 2 , 877 units— increased by 28.9% compared to last year (2,232) and by 4.6% compared to the previous month (2,750).
The 383 apartments sold represented a 6% increase compared with 2019 (361) and a 4% decrease compared with September (399).
Townhouses saw significant gains, with the number sold (374) up 19.5% from 2019. Comparing September to 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 remains a major concern for real estate agents, as the trend continues into October. There was only 1.61 months’ supply of homes in the Orlando area. If all homes on the market were sold, it would take just over six weeks. For homes priced between $140,000 and $349,999, it would take just over a month. The average time on the market is 48 days, the same as in September.
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.
“We’re seeing a seller’s market with huge demand. Many sellers are receiving multiple offers on their homes. It’s not uncommon for homes to sell within a day or two of hitting the market. Buyers should come prepared and pre-approved [if they’re financing] and be ready to make an offer quickly,” said Stewart.
In October, there were 67 distressed properties (foreclosures and short sales), accounting for 1.84% of all transactions in the Orlando area.
Future Indicators
Tight inventory continues to play a significant role in home sales (4,977). October was the first month since April to show a decline in the number of homes under contract. Compared to a year ago, when there were 4,308 pending sales [awaiting closing], there are 16% more homes under contract ahead of the holiday season.
New contracts have also remained stable since last month, with the number rising from 3,400 to 3,409. This figure is even higher when compared to 2019 (3,003).
Metropolitan Area Statistics
Throughout the Orlando metropolitan area, sales prices in October rose significantly compared to last year, especially in Osceola and Seminole counties.
The sales comparisons for each county are as follows:
- Lake: 16.5% higher than October 2019;
- Orange: 16.7% higher than October 2019;
- Osceola: 25.7% higher than October 2019; and
- Seminole: 24.1% higher than October 2019.