Demand: Part Two
When you look at the before captioned figures, supply seems to be diminishing while demand is increasing. This market scenario, while not in near proximity to a housing scarcity factor, which did occur at the height of the housing bubble in early 2006, means homes are being sold. The effects of the bubble appear to have subsided and the market has absorbed the changes.
When demand exceeds available supply prices rise. To gauge demand in a market, data like the median days on market (47 days 2013) listings that are on the market (7183 as of February 2013 a 22.4% drop from February 2012), the percentage of asking price received by sellers was 93%.
Inventory in Orlando continues its decline. There were over 2000 less homes for sale at the end of February 2013. While this is not scarcity it does signal less and less homes on the market, it has gotten more difficult for people needing FHA or low down payment financing to find a property to buy.
Cash Buyers (Boomers there are almost 40 million of us!) are looking to relocate to friendlier climates and lower taxes after they retire. The Boomers will create a new paradigm in the market as they will use proceeds from more expensive homes to buy for cash in Florida.