As 2020 has finally come to an end and we begin to look forward to better things in 2021, it is hard not to reflect on all the challenges that we faced during 2020. However, one bright spot from 2020 has been the real estate market. Not to say it hasn’t had its challenges, but overall the Orlando real estate market has shown its strength and has held up remarkably well during these trying times.
We realize that we sound like a broken record, but the three big storylines for the Orlando market continue to be the low level of homes on the market, strong buyer demand and historically low interest rates. According to the most recent market report from the Orlando Regional REALTOR® Association, a total of 3,672 homes were sold in December, accounting for a 21% increase in sales over December 2019. The continued high buyer demand and low interest rates lead to an increase of 10% in the median price for single-family homes in December 2020, when compared to the prior year. In the midst of all this positive news, inventory remains one of the biggest concerns and actually decreased 31% when compared to last year. When we look deeper into the types of properties on the market, we realize the inventory of single family homes is actually down 43% and condos and townhomes are actually up, 12% and 7% respectively, when compared to last year.
As we close out the last decade, it is interesting to take a look back at how far the real estate market has come in the Orlando area during the past 10 years. Just ten years ago, the average interest rate was over 5%, compared to under 3% today and the average sales price has more than doubled in that same time period. In line with our discussion above, inventory is about a third of what it was in January 2010. With the roll out of the vaccine we are hopeful that the Orlando economy will continue to recover and the housing market will once again show its resilience and 2021 will be another positive year for the Orlando real estate market.
SEARCH FOR HOMES
WHAT IS MY HOME WORTH?
ORLANDO HOUSING MARKET CLOSES OUT 2020 WITH INCREASED MEDIAN HOME PRICES AND LOWEST INVENTORY SEEN IN YEARS
A new report from the Orlando Regional REALTOR® Association details how the housing market fared in 2020 compared to recent years. Despite the pandemic and its impacts, Orlando’s median home price rose as buyers scrambled to find homes in a market with consistently shrinking inventory.
According to the report, Orlando’s annual median home price for 2020 ($265,000) was 9.1% higher than the 2019 annual median price ($243,000), thanks to another 12 months of year-over-year median price increases. While the median home price rose each month, inventory continued to decline and reached a low in December 2020, when it reached the lowest level since July 2005.
Orlando home sales completed during 2020 racked up a final tally of 36,871, which is 0.5% above the cumulative sales total of 36,707 for 2019. For historical comparison, annual sales in 2019 were 1.8% above the cumulative total sales for 2018; yearly sales in 2018 were 3.2% lower than in 2017.
“The Orlando area was red-hot throughout 2020, as demand spiked and the number of houses on the market dropped throughout the year. We expect this pattern to continue in 2021,” said ORRA 2021 President Natalie Arrowsmith, NextHome Arrowsmith Realty. “Looking at the data, inventory has significantly decreased since the beginning of the year. In fact, December 2020 shows the lowest inventory we have seen in more than 15 years, which creates an extremely competitive market for buyers.”
Editor’s Note: Additional 2020 cumulative statistics are included at the end of this release
Median Price
The overall median price of Orlando homes (all types combined) sold in December is $275,000, which is 10.4% above the December 2019 median price of $249,000.
The median price for single-family homes that changed hands in December increased 12.1% over December 2019 and is now $296,950. The median price for condos increased by 5.7% to $148,000.
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.
MSA Numbers
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in December were up by 17.5% when compared to December of 2019. Year to date, sales are down 2.8%.
Each individual county’s sales comparisons are as follows:
*Lake: 26.8% above December 2019;
*Orange: 13.0% above December 2019;
*Osceola: 24.3% above December 2019; and
*Seminole: 16.2% above December 2019.
2020 Annual Market Recap
(cumulative 2020 totals compared to cumulative 2019 totals)
Median Price
The 2020 annual median home price for 2020 ($265,00) is 9.1% higher than the 2019 annual median price ($243,000) and 14.0% higher compared to 2018’s annual median price ($232,500).
The annual median price of single-family homes increased by 9.6% to $285,000 in 2020, while the median price of condos increased by 7.4% to $145,000.
Sales
Sales in 2020 were up by 0.5% over 2019. A total of 36,871 homes were sold in 2020, compared to 36,707 the previous year.
Sales of single-family homes increased by 2.3% over 2019. Condo sales were down 10.2% and townhomes were down 1.2%.
By year’s end in 2020, 40,743 homes were sold in the Orlando MSA whereas 41,922 homes had been sold by year’s end in 2019, for a 2.8% decrease. Each individual county’s year-end sales comparisons are as follows:
*Lake: 0.5% below 2019;
*Orange: 5.6% below 2019;
*Osceola: 0.5% above 2019;
*Seminole: 1.6% below 2019.
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.
