Happy month of May! The Orlando real estate market is entering its peak season (May-July). It’s a competitive market, for both buyers and sellers. For buyers, quality homes that are priced well can still draw multiple offers and sometimes even go over asking price. For sellers, please see the inventory analysis below.
To understand the housing inventory level (number of houses for sale), here is a quick Orlando market recap. After the market peak in 2006 and subsequent decline in 2007, 2008, and 2009, the market finally reached bottom in 2010. It then spent 2011, 2012, and first half of 2013 in recovery mode. The chart below shows the housing inventory level (supply) during that time. As the supply dipped and demand surged, the prices went up. You can see the consistent inventory decline in 2011 and 2012. But starting in May/June of 2013, due to the price maturation, the market shifted again. The demand dropped and the inventory began to build.
As you can see in the graph above, the housing inventory has been building for the last 11 straight months now. The inventory in March this year (10,343 homes for sale) is 49% higher than March of last year. In fact, we are currently at the inventory level of July, 2011 (trace March 2014 data point across towards left). Wow, we are at almost a 3 year high! This is significant if you are trying to sell your home. Please give us a call to discuss the significance of this in your particular situation. It’s important to realize that different areas, neighborhoods, and types of home behave differently. Generally speaking, the more desirable the area and nicer the home, the more the seller can still be in control, over both the price and terms. Whereas more common homes in neighborhoods with a lot of active listings, the buyers tend to call the shots. What often happens is that sellers are pricing homes above comps, expecting the market to continue climbing. Over time, when the prices are reduced, it feels as though the market is going down, yet it’s really staying consistent with the comps. This is a sign of a stable market.
Hope this information is helpful!
We also wanted to take a moment and thank you for all your support in 2013! Our business largely depends on referrals and word-of-mouth. Our Team was just awarded the 2013 Number One Team Award for Keller Williams Advantage II Realty! We couldn’t have done it without you!