Right now, Orlando homes are being sold at prices that are higher than ever. In May, Central Florida home prices continued to rise despite a small slowdown in sales. In fact, 3,872 existing homes sold last month, which was a 5% drop from April. However, it was still one of the busiest months of the past year with an 82% increase from May 2020.
The market in Orlando is a strong seller’s market right now. There is high competition for homes, which explains the rising prices. From April to May, the median home sales price rose by 1.6%. Compared to May of last year, the median rose 15.4%.
One of the biggest reasons why Orlando homes are hitting record high prices is the lack of supply. A balanced market usually contains six months of inventory. However, in Central Florida supply has been bellow six months since 2011. In April, inventory numbers hit a 20-year record low with 0.65 months of inventory.
In May, inventory improved to 0.73 months supply as some new listings appeared on the market. However, there is still a shortage. Demand, however, still remains very high, which is why there has been such an increase in prices. New listings get sold pretty much as soon as they hit the market.
Although this is affecting Central Florida tremendously, high demand and low supply is a trend that has hit many markets across the United States. Home sales are bound to remain strong this year nationwide.
Read more: Orlando Business Journal