(Released December 15, 2020)
Plenty of 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, accounting for a 20.4% increase in sales over November 2019. However, inventory plummeted 26.2% during that same time period."We're seeing strong home sales making up for steep declines earlier this year. REALTORS® are not seeing the usual slowdown as we head into the holiday season," said ORRA President Reese Stewart, RE/MAX Properties SW. "This October has more new listings than in previous years, and the most since July, indicating this market is likely to stay hot through the winter."
“There are fewer homes on the market, but they are selling quickly. The highest demand is for homes between $200,000 to $350,000 Sellers in this price range are getting multiple offers, sometimes within just a few hours. Buyers in this price range should check with their REALTOR® to ensure they have everything they need, so they’re ready to pounce when they see that dream home.”
The number of days on market (DOM) has fallen to an average of just 44 days, the lowest in three years. Low mortgage rates play a key role in driving the home buying frenzy, according to a survey of ORRA members this fall. Average rates have fallen to 2.7%, a dramatic difference from the past two years: 3.6% in 2019 and 4.9% in 2018.
Low inventory coupled with high demand continues drive up home prices. The median price for all types of homes increased 14.6% from November 2019 to November 2020 and is now sitting at $275,000.
The median 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 from October.
For condos, there was also a significant change in price from year-to-year (11.1%). The median price was $135,000 in 2019 and increased to $150,000 in 2020. Prices were unchanged from October.
For duplexes, townhomes, and villas, the November median price rose 4.2% from $217,000 in 2019 to $226,000 in 2020 but dipped 5.0% from the prior month.
Sales and Inventory
A total of 2,592 single-family home sold in November, accounting for a 25% increase over November 2019, when 2,073 single-family homes sold.
Condos 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.
Robust sales continue for townhomes, duplexes, and villas with a 15.6% jump over 2019. There were 333 units sold in November 2020, compared to 288 during November of last year.
November’s 37 distressed home sales accounted for just 1.14% of sales, fewer than the same time last year (4.3%) and the prior month (1.8%).
While the overall number of homes sold in November increased dramatically from 2019 to 2020, sales of all types showed significant declines compared to October. There were 10% fewer single-family homes, 14.9% condos and 10.9% duplexes townhomes and villas sold.
It would take on average 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 price range of $180,000-350,000. Housing economists generally consider a five to six-month supply to indicate a healthy market that is balanced between buyers and sellers.
Inventory shortages are putting the squeeze on home sales heading into the new year. For a second straight month, the number of pending home sales has decreased, and now stands at 4,688, a drop of 5.8%. The number of new homes listed for sale in November fell 3.8% year-over-year. However, new contracts rose from November 2019 by 14%, during what is typically a slow time of year.
“We are closing out the year the same way it began -- with inventory dropping and prices rising,” Stewart said. “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.”
Home sales over the last few months have made up for lost ground during the COVID-19 shutdown in March. Year-to-date sales are down 4.6% overall. Across the entire Orlando MSA, home sales grew in November.
Each individual county's sales comparisons are as follows: