Central Florida Real Estate Snapshot

Happy April!  This year, spring started on March 20.  I wish you a wonderful spring season.  Whatever personals goals you have for 2017, I hope you are well on your way to accomplish them.

I want to share a Central Florida market snapshot with you.

This is a quick look at the sales and active listings in our MLS.

April 2017

The listing composition of our residential real estate market is:

  • 95% “normal” listings.
  • 4% bank-owned (foreclosure) listings.
  • 5% short sale listings.

So, we have a healthy balance of 95% traditional offerings, and 5% (foreclosure + short sales) distressed listings.  This is a far cry from the years when our market was 75% distressed sales.

You have heard me describe the “tale of three markets” in Orlando.  That is, for homes under $300,000, we are in a seller’s market, where the seller has advantage and leverage over the buyers.  At the price range between $300,000 and $500,000, we are in a balanced market, where neither seller nor buyer has undue advantage over the other.  Above $500,000, we are actually in a buyer’s market, where the buyer has advantage and leverage over the seller.

This table also illustrates this effect.  Please take a look at the highlighted portion at the bottom of the table.  Months-of-inventory means the number of months it would take to sell all the existing active listings.  This indicates the supply-and-demand dynamic.   The long-term average of a balanced market is between 5-6 months of inventory.

  1. As you can see, under $250k, there is only a 2-month supply of housing inventory.  This is where the demand outpaces the supply, hence the resulting “seller’s market”
  2. Between $250k – $300k, we have a 4-month supply.  So we are still in a Seller’s market, but not as heated.
  3. Between $300k – $500k, we have a 5-6 month supply.  This is the balanced segment.
  4. From $500k – $1M, we see a 9-month supply.  This clearly tilts to a buyer’s market.
  5. Over $1M, there is a 21-month supply.  This is a strong buyer’s market.

If you are looking to buy or sell a home in 2017, let us brainstorm with you to come up with the best strategy.

If you are looking to buy a home below $300,000, we will do everything we can to improve your odds in the challenging seller’s market.

If you are upsizing and buying a higher priced home, you may be selling your current home in a seller’s market, but buying the next one in a buyer’s market.  This may turn out to be an ideal situation.

If you are downsizing, you may be selling in a buyer’s market, but will be buying in a more competitive seller’s market.

In all the situations, you can benefit from our experience and expertise.  We are not sales-people.  We are consultants.  We take pride in using our know-how to maximize your outcome.  We appreciate the opportunity and your continuing trust.

Give us a call if you have questions, or know of someone we can help!

Until next month, take care!

Yien and the Yao Team.