Low Inventory of Homes for Sale Continues to Drive Up Orlando Area Home Prices
Orlando-area homes continue to fly off the market this fall, as inventory remains tight, according to a new report from the Orlando Regional REALTOR® Association. Monthly housing report data from September 2020 reveals fewer homes and higher prices than last year (September 2019), with a 23.3% drop in inventory and a 10.2% increase in the overall median home price to $270,000.
“While spring is usually the busiest time for home sales, fall seems to show no signs of a slow-down. COVID-19 has changed the dynamic for 2020. We have seen mortgage rates continue to decline to an average of 2.74%, giving buyers additional incentives this fall. However, the majority of the Orlando market, priced $500K and below, is still tipped in favor of sellers, with so few homes on the market,” says ORRA President Reese Stewart. “If we were to sell all the single-family homes, priced between $90K and $500K, in the Orlando area right now, it’s likely it would take less than two months.”
Median Price for Orlando Homes in September 2020
The overall median price of Orlando homes (all types combined) sold in September is $270,000, which is 11.5% above the September 2019 median price of $265,000 and 1.8% below the August 2020 median price of $275,000.
In September, the median price for single-family homes remained flat, only increasing $500 from August to $295,500. However, that number is up 11.5% from September 2019, when the median price was $265,000.
The median price for condos showed less of a gain, hovering around $140,000, an increase of 5.8% over September 2019. For duplexes, townhomes, and villas, the September median price rose 6.9% year-over-year to $229,999.
Orlando Home Sales in September 2020
Orlando REALTORS® sold 3,478 homes in September 2020, which is 16.36% more than sales during the same time period last year and down slightly (1.7%) from August.
This fall marked a large increase (19.4%) in the number of sales for single-family homes but a severe drop in inventory over last year. A total of 2,750 single-family homes changed hands, and the supply of homes dropped 34.6% to 3,986 homes on the market compared to 6,102 during the same time last year.
For condos, inventory was up 18.2% between September 2019 and September 2020, when 1,240 hit the market. However, the number of sales remained flat from 400 last year to 399 this year.
More duplexes, townhomes, and villas hit the market and were sold in September 2020, versus 2019. The number of sales showed a 15% gain from 2019. Inventory increased 17.8% from 633 last year to 746 this year. The median price, sales, and inventory all saw boosts from August 2020 to September 2020.
In September, there were 43 sales of distressed homes (foreclosures and short sales), accounting for 1.24% of all home sales.
Average Mortgage Rates in September 2020
The average interest rate paid by Orlando homebuyers in September was 2.75%, down from 2.85% the month prior.
Average Time on Market for Orlando Homes Sold in September 2020
Homes sold in September only spent an average of 48 days on the market, a decrease from 51 days in August.
The Orlando area’s housing market shows no signs of slowing, as pending sales remain flat from August (5,467) to September (5,429). When compared to last year, there were 23.3% more homes pending this year.
New contracts have also risen year-over-year from 2,757 to 3,400. However, they have declined since last month by 4.5%.
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.