Market Analysis
Dec 28, 2020

Real Estate Activity in Orlando - November 2020

Home sales in the Orlando area are good for Christmas, while low inventory persists.

Real Estate Activity in Orlando - November 2020

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Real Estate Activity in Details

Many people have bought a new home in the Orlando area for the holiday, despite low inventory and the number of new homes falling to the lowest levels this year, according to a new report from the Orlando Regional REALTOR® Association. A total of 3,251 homes were sold in November, representing a 20.4% increase in sales over November 2019. However, inventory fell 26.2% over the same period.

"There are fewer houses on the market, but they're selling fast. The biggest demand is for homes between $200,000 and $350,000," said the president of ORRA in 2020, Reese Stewart, RE / MAX Properties SW. "Sellers in this price range are getting several offers, sometimes in just a few hours. Buyers in this price range should check with their REALTOR® to make sure they have everything they need, so they are ready to strike when they see the dream house. ”

The number of days on the market (DOM) fell to an average of only 44 days, the lowest in three years. Low interest rates play a key role in driving the house buying frenzy, according to a survey of ORRA members this fall. Average rates fell to 2.7%, a dramatic difference from the last two years: 3.6% in 2019 and 4.9% in 2018.

Property market indicators

Average Price

Low inventory, along with high demand, continues to drive up house prices. The average price for all types of houses increased 14.6% from November 2019 to November 2020 and now stands at US$275,000.

The average price for single-family homes rose 15.1% from $259,000 in November 2019 to $298,000 in November 2020. There was also a 2.8% increase over October.

For the apartments, there was also a significant price variation from year to year (11.1%). The average price was US$135,000 in 2019 and increased to US$150,000 in 2020. Prices have remained unchanged since October.

For duplexes, sobrados and villas, the average November price increased 4.2%, from US$217,000 in 2019 to US$226,000 in 2020, but fell 5.0% over the previous month.

Sales and Inventory

A total of 2,592 single-family homes were sold in November, representing a 25% increase over November 2019, when 2,073 single-family homes were sold.

The apartments were the only housing category to show a year-on-year decline (4.1%), with 326 sales in November 2020 and 340 in November 2019.

Robust sales continue for sobrados, duplexes and villas, with a jump of 15.6% over 2019. There were 333 units sold in November 2020, compared to 288 during November last year.

The 37 problem home sales[foreclosures and short sales] in November accounted for only 1.14% of sales, less than in the same period last year (4.3%) and the previous month (1.8%).

While the total number of homes sold in November increased dramatically from 2019 to 2020, sales of all types showed significant declines compared to October. There were 10% fewer single-family homes, 14.9% communities and 10.9% duplexes and villas sold.

It would take an average of 1.72 months to sell all available stock in the greater Orlando area now. There is less than one month's supply of homes in the $180,000 to $350,000 price range.

Real estate economists generally consider a 5 to 6 month stock to indicate a healthy and balanced market between buyers and sellers.

Future Indicators

Stock shortages are putting pressure on home sales at the beginning of the year. For the second month in a row, the number of pending home sales has declined and now stands at 4,688, a 5.8% drop. The number of new homes listed for sale in November fell 3.8% year on year. However, new contracts increased 14% compared to November 2019, during what is usually a slow time of year.

"We're closing the year the way it started - with falling stocks and rising prices," Stewart said. "We know that people are coming from other parts of Florida and the country to take advantage of the more affordable cost of living and desirable lifestyle in Central Florida.

Orlando MSA Numbers

Sales of homes in recent months have made up for the land lost during the COVID-19 shutdown in March. Accumulated sales for the year fell 4.6% overall. Throughout Metro Orlando, home sales grew in November.

Each individual county’s sales comparisons are as follows:

  • Lake: 5.7% more than November 2019;
  • Orange: 19.6% more than November 2019;
  • Osceola: 26.1% more than November 2019; and
  • Seminole: 18.8% more than November 2019.
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Andrea Pointon

Andrea Pointon

CEO - Broker

Entrepreneur from an early age, Andrea conquered her space as an immigrant and today leads one of the most recognized real estate agencies in Orlando. She has received numerous awards and never tires of learning and improving professionally, serving entrepreneurs, investors, and families who trust in her professionalism and success for these very important decisions.