The inventory of homes for sale in metro Orlando hit a new record low last month. As a result, Orlando home prices jumped by another $10,000. The inventory has been declining for a while. However, it fell by another 7.8% in April to just 2,655 homes. This is the lowest number of homes for sale since 1995. In fact, ORRA estimates that it would only take about three weeks to sell every home on the market. In real estate, six months of inventory is considered a balanced market.
Because of the limited supply, many buyers have been involved in the process of finding a home for a long time. In addition, competition is very stiff. Although inability to sell homes during the pandemic is a factor affecting the inventory, it is not the only cause of this shortage. In fact, the Central Florida inventory crisis stems more from the lack of new homes built since the Great Recession.
Right now, the inventory is down 65% from April 2020. Because of this, Orlando home prices have increased. In fact, median home prices rose 3.5% from $285,000 in March to $295,000 in April as interest rates fell bellow 3%.
Interested in learning about real estate opportunities in Orlando?
AMG International Realty is a global real estate firm specializing in Florida. If you are you looking to buy, rent, or sell in South Florida or Orlando, we are here to guide you through every step of the way. From mortgage applications, to finding your dream home and closing the deal. Contact us today!
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