Orlando Housing Market Closes out 2020 with Increased Median Home Prices and Lowest Inventory Seen in Years
A new report from the Orlando Regional REALTOR® Association details how the housing market fared in 2020 compared to recent years. Despite the pandemic and its impacts, Orlando’s median home price rose as buyers scrambled to find homes in a market with consistently shrinking inventory.
According to the report, Orlando’s annual median home price for 2020 ($265,000) was 9.1% higher than the 2019 annual median price ($243,000), thanks to another 12 months of year-over-year median price increases. While the median home price rose each month, inventory continued to decline and reached a low in December 2020, when it reached the lowest level since July 2005.
Orlando home sales completed during 2020 racked up a final tally of 36,871, which is 0.5% above the cumulative sales total of 36,707 for 2019. For historical comparison, annual sales in 2019 were 1.8% above the cumulative total sales for 2018; yearly sales in 2018 were 3.2% lower than in 2017.
“The Orlando area was red-hot throughout 2020, as demand spiked and the number of houses on the market dropped throughout the year. We expect this pattern to continue in 2021,” said ORRA 2021 President Natalie Arrowsmith. “Looking at the data, inventory has significantly decreased since the beginning of the year. In fact, December 2020 shows the lowest inventory we have seen in more than 15 years, which creates an extremely competitive market for buyers.”
Median Price for Orlando Homes in December 2020
The overall median price of Orlando homes (all types combined) sold in December is $275,000, which is 10.4% above the December 2019 median price of $243,000 but holding steady from the November 2020 median price.
The median price for single-family homes that changed hands in December increased 12.1% over December 2019 and is now $296,950. The median price for condos increased 5.7% to $148,000.
2020 Annual Market Recap on Price
The 2020 annual median home price for 2020 ($265,00) is 9.1% higher than the 2019 annual median price ($243,000) and 14.0% higher compared to 2018’s annual median price ($232,500).
The annual median price of single-family homes increased by 9.6% to $285,000 in 2020, while the median price of condos increased by 7.4% to $145,000.
Orlando Home Sales in December 2020
Orlando REALTORS® sold 3,672 homes in December 2020, which is 21.0% higher than sales during the same time period last year (December 2019) and 51.6% more than the sales during December 2018.
2020 Annual Market Recap on Sales
Sales in 2020 were up by 0.5% over 2019. A total of 36,871 homes were sold in 2020, compared to 36,707 the previous year.
Sales of single-family homes increased by 2.3% over 2019. Condo sales were down 10.2% and townhomes were down 1.2%.
By year’s end in 2020, 40,743 homes were sold in the Orlando MSA whereas 41,922 homes had been sold by year’s end in 2019, for a 2.8% decrease. Each individual county’s year-end sales comparisons are as follows:
- Lake: 0.5% below 2019;
- Orange: 5.6% below 2019;
- Osceola: 0.5% above 2019;
- Seminole: 1.6% below 2019.
Orlando Homes Available in December 2020
The overall inventory of homes that were available for purchase in December 2020 (4,875) represents a decrease of 30.6% when compared to the same time period last year (December 2019), and a 12.7% decrease compared to last month (November 2020). There were 42.6% fewer single-family homes and 12.1% fewer condos, year over year.
Current inventory, combined with the current pace of sales, created a 1.3-month supply of homes in Orlando for December. There was a 2.3-month supply in December 2019 and a 3.3-month supply in December 2018, showing that inventory has significantly decreased.
Average Mortgage Rates in December 2020
The average interest rate paid by Orlando homebuyers in December was 2.7%, remaining the same as November 2020.
Average Time on Market for Orlando Homes Sold in December 2020
Homes that closed in December took an average of 45 days to move from listing to pending status.
Orlando Housing Market Recap
This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the Stellar Multiple Listing Service. Neither the association nor StellarMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or by StellarMLS does not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.
ORRA REALTOR® sales represent sales involving Orlando Regional REALTOR® Association members, who are primarily – but not exclusively – located in Orange and Seminole counties. Note that statistics released each month March be revised in the future as new data is received.