The Orlando Regional Realtor Association released the latest stats for the Orlando real estate market today and shows a slow but steady march towards market stabilization with slight increases in number of sales and properties under contract and decreases in the average days on market and inventory.
The month of June saw the inventory drop to just shy of 18 months with 25,923 homes on the market and 1,524 closed sales. The average days on market currently stands at 98 days, but I am concerned with the recent increases in interest rates affecting all of the stats in the coming months.
The 2 Year Running Recap graph shows that the number of sales are not too far off from 2006 levels, but the inventory levels today are far above the levels seen a few years ago. It’s a classic case of overbuilding. The good news is that the inventory levels are steadily decreasing although at a snail’s pace.
Prices will continue to slide as long as we have this excess inventory. There’s just not enough people locally to absorb it.
At least we’re seeing improvement and we’re heading in the right direction.