Buyer activity increased significantly in March as it pushed the housing inventory in Orlando to the lowest level since May 2013, according to a monthly report from the Orlando Regional Realtor Association.
The supply of homes for sale dipped to just 2.48 months’ supply in March, a decrease of 19.3% from last year. For comparison, housing economist consider six months of supply to demonstrate a market that is balanced between buyers and sellers.
“Buyers have turned out in force for the start of Orlando’s traditional spring/summer buying season, enough to drive sales up by nearly 40% compared to last month,” ORRA President Bruce Elliott said. “The health of Orlando’s economy and job market are significant factors in the jump in sales, as a sense of urgency among buyers trying to beat an anticipated increase in mortgage rates.”
Interest rates have fallen for the past four weeks, according to a weekly survey from Freddie Mac. This could be pushing some buyers to purchase a home before rates begin to rise again. However, buyers have to compete for a limited number of homes for sale.
“Inventory remains a challenge for buyers, especially in the under-$300,000 range where choices are minimal and prices are being bid higher by multiple offers,” Elliott said.
The median home prices of all home types in Orlando increased 11.3% from March 2016 to $217,000. This is up from last year’s $195,000, and marks the 68th consecutive month of year-over-year increases in the median home price.
Single-family homes that sold in March increased 10.6% from last year to $234,900 while the median price for condos increased 6.3% to $102,000.
Homes sold through ORRA jumped 12.4% in March to 3,437 sales. This is a shocking 40% above February’s 2,482 sales.