Orlando Housing Inventory Decreases; Prices May Rise as a Result
Even as sales havs struggled in other parts of the state, the Orlando housing market has remained relatively healthy. That especially seems to be the case following a recent report.
For the first time in nearly a year and a half, the number of existing homes for sale in the city declined, a shift that could help bolster housing prices. The inventory of available properties dropped 3.3% from August to September, though the total – 20,319 – still remained near record levels, the Orlando Regional Realtor Association said in its monthly report.
The pace of new listings also slowed last month, while the median price of the homes sold in September held steady at $250,000, up 2.5% September 2005.
Inside the Orlando housing market
Year-to-date sales also remained below 2005’s record-setting pace for a second straight month: 21,617 versus 23,666 through nine months. But they remained on track for this to be the second-best year on record, behind 2005 but ahead of 2004, the Realtor group noted. In other words: Florida mortgage demand is VERY strong in the area.
Nevertheless, agents have to work harder in this slowing market, and successful sellers are definitely cutting prices, said Beth Goldstein, a Realtor with Coldwell Banker Residential Real Estate’s Winter Springs office.
“If you really want to sell your house, you’ve got to price below appraisal and probably 10% below the last comparable sale in your neighborhood,” Goldstein said. “A lot of sellers are still not accepting that change.”
Beverly Pindling, president of the Orlando Regional Realtor Association, said that, while soaring home values in the past few years delighted homeowners who were ready to sell, the market’s long-term health is better served by a “slow, steady increase in home values.”
The Orlando Realtor group also reported that sales of existing homes within the larger, metropolitan area – Orange, Seminole, Lake and Osceola counties combined – were down 29.4% in September from a year earlier and off 8.4% through the first nine months of the year.
It may take some time for Florida mortgage loan applicants to return in full swing, as they have over the last few years.
Break down of home sales
Back in the core Orlando market, a breakdown of the numbers showed that, while single-family home sales were down 15% in September, sales of more moderately priced duplexes, town homes and villas were up by 22%.
The inventory of existing homes for sale, while down by 758 compared with August’s total, still represented a 10.3-month supply in September. Anything more than six months’ worth of inventory is generally considered a buyer’s market.
The inventory decline in September, the first since April 2005, could help buffer the market against the type of home price declines that have hit other metro areas. During last year’s record-setting sales streak, the Orlando area never had more than four months’ worth of homes for sale at any time, and for most of the year had less than a two-month supply.
Those interested in a Florida home loan have simply always been attracted to this city.
