The graphs below clearly show a deterioration of the real estate market in SW Orlando throughout 2007. The zip codes included in these statistics are as follows: 32819, 32836, 32837, 32824, 32811, 32821, 32830, 32835, 34786, 34787. These zip codes include areas commonly known as Dr. Phillips, Hunters Creek, Williamsburg, Cypress Creek, Metrowest, Windermere, and Winter Garden.
Leave it to me to point out the obvious but the real estate market here totally stunk in 2007. There was a deterioration in every category imaginable and hopefully the recent Fed rate cuts along with the new property tax law if it passes will make 2008 a better year.
The number of sales in SW Orlando went on a steady decline with the inventory going in the opposite direction in 2007. The number of homes sold dropped 53% in December of 2007 compared to December 2006 while the number of pending homes decreased 38% in the same period. The number of homes on the market increased from 3,892 in December of 2006 to 5,224 in December of 2007 which is a 34% increase. Based on the number of sales, the supply of homes increased from 11.1 months of inventory in December 2006 to 31.5 months by December 2007. The price per square foot declined 11.4% and the average days on market has nearly doubled to 113 days. Sellers are coming off their asking price much more as well and have been coming off an average of 8% from the asking price. One surprising statistic is that the average price of a home sold in SW Orlando actually increased from $399,000 in December 2006 to $417,000 in December of 2007. Go figure.
The only bright statistic I can find here is that the number of homes for sale has been decreasing for the past three months. Unfortunately, the decrease is from fewer homes coming on the market and not from an increasing number of sales. Perhaps this is a signal that we’ve hit the bottom. At the very least, it is a step in the right direction though and I’ll take whatever I can get at this point.
It does seem that things have picked up in 2008 at least for myself. I’ve seen the number of showings on my listings pick up and getting more buyer calls than the past few months. We’ll have to wait and see how things unfold but 2007 stunk.
click on any of these graphs to enlarge
related post: Forecasts for Orlando Real Estate in 2008