Orlando's sales trend positively as summer home-buying season kicks in
Encouraged by persistently low interest rates and a very favorable economy that is drawing a record number of new residents to Metropolitan Orlando, regional homebuyers - led by Seminole County - pushed sales into positive territory for the month of May. Home sales increased by nearly 11% compared to May 2018, which is the first year-over-year increase in 2019. However, statistically, sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in May were down by 4.2% when compared to May of 2018. To date, sales are down 8.0%. The market trend line improvement can be somewhat attributed to factors such as a slower rate of dollar-value price increases and interesting mortgage market trends in rates that are not only holding steady but even showing signs of dropping.
The largest membership trade organization for real estate in Florida is the 16,000+ member Orlando Regional REALTOR® Association whose members were directly involved in approximately 3,800 property transactions during May. Those sales drove metrics for single-family homes upwards by 12% over last year, while condos rose by an astonishing 6%. On the topic of condos, this particular dwelling type is leading Orlando’s seven-month string of month-over-month inventory increases. The number of condos available for purchase in May expanded by 27%, to 1,154 units. Single-family homes had 6% more availability than in May 2018, bringing the region’s overall inventory up by 8%. More inventory will ultimately to cooling prices. For the month, however, reports show that the overall median price did move up. After a brief dip down last month … the median price rose 4% in May to $243,000.
Despite solid inventory gains, the Orlando-proper market is still a seller’s market by pure economic definition. If no new inventory hit the market, a little bit over two months of supply exists (six months is considered by economists to indicate a market that is balanced between buyers and sellers). However, the balance shifts significantly when you consider price ranges, with the lower price categories firmly favoring sellers and the higher price categories favoring buyers. Those in the market for a home priced between $2 million and $5 million currently have over 28 months of supply to shop from.
Each individual county’s sales comparisons are as follows:
Lake: 15.3% below May 2018
Orange: 3.0% below May 2018
Osceola: 4.4% below May 2018
Seminole: 3.0% above May 2018