The Orlando real estate market continued to show its resilience and started 2021 exactly where it left off in 2020. According to the Orlando Regional Realtors Association, Orlando’s annual median price for a single family home in January 2021 was $297,500, which is a 12% increase over 2020. The median price for condos and townhomes are also higher with a 3% and 4% increase, respectively.
The number of closed sales continued to impress in January, with an overall increase of 20% over last year. The increase in sales continues to be driven by strong buyer demand and low interest rates. In fact, interest rates remained low during January, with just a slight increase over December 2020 and continued to be significantly lower than just a year ago. In other positive news, the average days on the market for January was 18% lower than January 2020, even with the number of new homes hitting the market being approximately the same as the previous year.
Most experts are expecting the real estate market to return to its normal sales cycle during 2021, which means increased demand and new listings hitting the market in the spring. Hopefully, new listings will continue to increase this spring and ease some of the challenges we are facing with the low inventory levels. Overall, the Orlando real estate market remains positive and continues to demonstrate strength as we move forward.
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ORLANDO AREA RESIDENTIAL REAL ESTATE SNAPSHOT FOR JANUARY 2021
New Orlando Regional REALTOR® Association report shows continued squeeze on the number of homes for sale
State of the Market
There are fewer homes on the market to start off in 2021. More people are moving to Central Florida, furthering the gap between supply and demand. The Orlando metropolitan area gained 60,977 new residents in 2020, the most in the last five years.
Buyers are quickly snatching up available homes. In January, homes spent an average of just 40 days on the market versus 60 days in January 2020.
“Sellers definitely have the upper hand right now. Inventory is down significantly from a year ago, and we’re seeing this continued influx of people moving to Central Florida. Buyers need to be pre-approved and ready to make an offer on a home they like, as the competition for homes is fierce,” said Natalie Arrowsmith, 2021 Orlando Regional REALTOR® Association President, NextHome Arrowsmith Realty.
ORRA members sold 2,727 homes in January 2021, an increase of 20% over January 2020.
The median sales price for January 2021 was $275,000, up 12% from January 2020.
Listings spent an average of 40 days on the market until contract in January 2021, a drop of 33% from January 2020.
Sales and Inventory
Members of ORRA participated in 3,672 sales of all home types combined in December, which is 21.1% more than the 3,033 sales in December 2019 and 51.6% more than the 2,422 sales in December 2018.
Sales of single-family homes (2,890) in December 2020 increased by 20.1% compared to December 2019, while condo sales (401) increased 35.9% year over year.
The overall inventory of homes that were available for purchase in December (4,875) represents a decrease of 30.6% when compared to December 2019 and a 12.7% decrease compared to last month. There were 42.6% fewer single-family homes and 12.1% more condos, year over year.
Current inventory, combined with the current pace of sales, created a 1.3-month supply of homes in Orlando for December. There was a 2.3-month supply in December 2019 and a 3.3-month supply in December 2018, showing that inventory has significantly decreased.
The average interest rate paid by Orlando homebuyers in December 2020 was 2.70%, which remains the same as the month prior.
Homes that closed in December took an average of 45 days to move from listing to pending status.
Pending sales in December 2020 are up 20.9% compared to December 2019 and are down 11.4% compared to last month.
The Orlando area inventory is down 40% from 7,030 homes in January 2020 to 4,233 homes in January 2021.
The number of new listings decreased 5% from 3,579 homes in January 2020 to 3,394 homes in January 2021.
ORRA’s full Market Pulse Report for January can be found here.
This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the Stellar Multiple Listing Service. Neither the association nor Stellar MLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or by Stellar MLS does not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.
ORRA REALTOR® sales represent sales involving Orlando Regional REALTOR® Association members, who are primarily – but not exclusively – located in Orange and Seminole counties. Note that statistics released each month March be revised in the future as new data is received.
Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA.