Low Inventory of Homes for Sale Continues to Drive Up Orlando Area Home Prices
“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. “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.”
Overall year-to-date home sales for 2020 are down only 3% from last year, despite the impacts from COVID-19. A survey from ORRA, conducted earlier this fall, found that low-interest rates are the top reason buyers seek new homes. Mortgage rates continue to decline, with the average rate sitting at 2.72% for October.
Median Price for Orlando Homes in October 2020
The overall median price of Orlando homes (all types combined) sold in October is $269,950, which is 11.9% above the October 2019 median price of $242,000 and only decreasing $50 from the September 2020 median price of $270,000.
The median price for single-family homes that changed hands in October increased 10% over October 2019 and is now $290,000. The median price for condos increased 4.9% to $150,000 and townhomes/villas/duplexes increased 9.2% to $238,000.
The Orlando housing affordability index for October is 137.63, down from 139.71 last month. (An affordability index of 99% means that buyers earning the state-reported median income are 1% short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.)
The first-time homebuyers affordability index decreased to 97.87 from 99.35% last month.
Orlando Homes Available in October 2020
The overall inventory of homes that were available for purchase in October 2020 (5,840) represents a decrease of 25.5% when compared to the same time period last year (October 2019), and a 2.2% decrease compared to last month (September 2020). There were 37% fewer single-family homes available but more condos and duplexes/townhomes/villas available one year ago.
Current inventory combined with the current pace of sales created a 1.61-month supply of homes in Orlando for October. There was a 2.7-month supply in October of last year.
Average Mortgage Rates in October 2020
The average interest rate paid by Orlando homebuyers in October was 2.72%, down from 2.74% the month prior.
Average Time on Market for Orlando Homes Sold in October 2020
Homes sold in October only spent an average of 48 days on the market, remaining unchanged from September.
Tight inventory continues to play a role in the number of pending home sales (4,977). October is the first month to show a decline in homes under contract since April. Compared to a year ago, when there were 4,308 sales pending, there are 16% more homes under contract leading into the holiday season.
New contracts have also stayed steady from last month, with numbers rising from 3,400 to 3,409. That number is even higher when compared to 2019 (3,003).
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.