Orlando continued to be a hot real estate market during February and showed no signs of slowing down. As reported by the Orlando Regional REALTOR® Association, Orlando’s housing market in February showed an increase in month-over-month and year-over-year sales. Sales improved by almost 19% compared to February 2020 and by nearly 10% when compared to January 2021. This increase in sales is remarkable when you also consider that the median sales price increased 12% from February 2020 and was up 2% from just last month.
As is the case across the nation, inventory is still the biggest hurdle with buyer demand outpacing supply recovery. Per the Orlando Regional REALTOR® Association, the number of homes for sale in the Orlando market plummeted by 50% from February 2020 to February 2021. This marks the lowest inventory since May 2005, putting an even tighter squeeze on the market. The supply of homes stands at 1.14 months, less than half of what it was in February 2020.
Even though interest rates crept up a little last month, we are still seeing a favorable financing environment with interest rates below the same time a year ago. The average interest rate for February was 2.88% which is still lower than the interest rate in February 2020, which was 3.43%.
As Spring is a time of renewal, we are hopeful that we will continue to move beyond this virus. We have recently received good news about the economy, people are getting back to work and the third round of stimulus has been approved and people are already seeing this money in their bank accounts.
ORLANDO AREA RESIDENTIAL REAL ESTATE SNAPSHOT FOR FEBRUARY 2021
New Orlando Regional REALTOR® Association report shows continued squeeze on the number of homes for sale
State of the Market
The number of homes for sale in the Orlando market plummeted by 50% from February 2020 to February 2021. This marks the lowest inventory since May 2005, putting an even tighter squeeze on the market, as demand remains high.
The supply of homes stands at 1.14 months, less than half of what it was in February 2020 (2.71). A healthy market has a six-month supply.
The median home price continues to rise, with February’s median price at $280,000 up 2% over January.
Interest rates continued to rise for a second straight month to an average of 2.88% in February 2021. That number, however, is still lower than the interest rate in February 2020, which was 3.43%.
“The new numbers illustrate just how far the market is tipped in favor of sellers. Sellers are receiving multiple offers, often above their asking price, and buyers are engaging in bidding wars with people looking to move to Orlando from other states,” said Natalie Arrowsmith, 2021 Orlando Regional REALTOR® Association President, NextHome Arrowsmith Realty. “There are not nearly enough homes on the market to meet the demand from people who want to buy homes right now.”
ORRA members sold 2,995 homes in February 2021, an increase of 19% over February 2020.
The median sales price for February 2021 was $280,000 up 12% from February 2020.
Listings spent an average of 52 days on the market until contract in February 2021, a drop of 10% from February 2020.
Sales and Inventory
The Orlando area inventory is down 50% from 6,825 homes in February 2020 to 3,420 homes in February 2021.
The number of new listings decreased 15% from 3,924 homes in February 2020 to 3,322 homes in February 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.