HOUSING MARKET NARRATIVE

Orlando Housing Market Activity

Orlando Area Residential Real Estate Snapshot for June 2022

On the rise: New Orlando Regional REALTOR® Association data shows inventory and home prices make big jumps for the second consecutive month

State of the Market

• Inventory increased by 41.2% from May 2022 to June 2022, with 1,586 more homes on the market in June compared to May. This is the second month in a row with a surge in inventory, following May’s increase of 44.2%.
• Inventory increased by 75.5% from June 2021 to June 2022, jumping from 3,098 homes in June 2021 to 5,437 in June 2022.
• June’s median home price was recorded at $387,000, an increase of 1.9% compared to May 2022; this sets a record high for the fifth month in a row. This is a 22.9% increase from June 2021 to June 2022, when the median home price was recorded at $315,000 in June 2021.
• Interest rates increased from 5.3% in May 2022 to 5.5% in June 2022. This is the highest interest rates in the Orlando area have been since November 2008.
• Overall sales in June 2022 decreased by 3.9%, with a total of 3,793 sales compared to 3,946 sales in May 2022. This is a 14.1% decrease compared to June 2021 when overall sales were recorded at 4,414.
• Homes spent an average of 20 days on the market in June, down slightly from May 2022 when the average was 21 days.
• New listings increased by 11.3% from May 2022 to June 2022, with a total of 5,367 new homes on the market in June.
• “A balanced housing market has a six-month supply of homes,” said Wendy Morris , Orlando Regional REALTOR®

   

  Association President. “In June, with rising interest rates and surging inventory, we had over a one-month supply of homes for sale for the first time since February 2021. While it’s still a sellers’ market, we’re continuing to see signs that the market is starting to level out, which is good news for buyers.”

Market Snapshot

• Interest rates continue to increase as the average interest rate for June 2022 was recorded at 5.5%. This is an 87.5% increase from June 2021 when interest rates were at 2.9%.
• Pending sales decreased by 8.9% from May 2022 to June 2022 for a total of 4,231 pending sales.
• 23 distressed homes (bank-owned properties and short sales) accounted for 0.6% of all home sales in June 2022. That represents a 4.2% decrease from May 2022, when 24 distressed homes sold. 

Inventory

• Orlando area inventory increased by 41.2% from May 2022 to June 2022 from 3,851 homes to 5,437 homes. Inventory in June 2022 was 75.5% higher than in June 2021.
• The supply of homes increased to 1.43 months in June 2022. This is the first time the supply has been over one month since February 2021. A balanced market is six months of supply. 

• The number of new listings increased in June 2022 from May 2022 by 11.3% to 5,367 homes.