Wednesday, October 26, 2016 / by Tom Nickley
As of the end of September, the Orlando real estate market is healthier than ever. How can we tell? There are several key indicators that we look at.
First of all, the median sales price is up 12% from $182,500 in September of 2015 to $205,000 in September of 2016. That also marks 62 consecutive months of increases in our median home prices. Not only that, but the median price is actually up 77.5% since July 2011, which clearly indicates that our market has improved.
Another indicator is the amount of inventory that we have. Inventory is a major factor contributing to sales in the area. Right now, there are 10,362 homes on the market, which is actually the lowest that inventory has been all year. This is also the lowest inventory we have seen since March of 2014. Finally, September marks 15 consecutive months of decline in inventory for our area.
Of that inventory, most homes stay on the market for 60 days before going under contract. Sellers are getting 97% to 100% of their asking price. We have also seen a 16% increase in normal or traditional sales. A traditional sale is when the property is not in any kind of physical or financial distress. That increase just goes to show that sellers in the area know that now is a great time to put their homes on the market and get top dollar.
Finally, interest rates are historically low at 3.5%. Those low rates are a huge driver of the market. Buyers should take advantage of this great opportunity now and lock in a low rate on a new home. However, if you are buying a home, just keep in mind that homes are selling very, very fast since inventory is so low.
Ultimately, now is a great time for buyers and sellers to jump into the Orlando real estate market. If you have any further questions about navigating the current market, just give us a call or send us an email. We would be happy to help you!