The Orlando Regional Realtor Association released the latest statistics for the real estate market in Orlando yesterday and the numbers reveal a bit of decline from the previous month. Fewer closed sales, new contracts, and properties under contract paired with more expired properties alongside a growing inventory contributed to the decline in the market.
At the very least, we experienced a pick up in activity during the summer months which is typical for this market. For me, it symbolizes returning to a normal market where the peak real estate season takes place between Spring and Summer. Needless to say, 2008 has not been a great year for real estate but many of the indicators including the Case Shiller Index show that we’re at or near the bottom.
Keep in mind many of the sales that are showing up in these stats are foreclosures. No one keeps a track of how much of the data is foreclosure driven, but my guess is that it’s a significant percentage. Foreclosures will eventually go away, but I’ve seen numerous cases where they are driving down prices for everyone.
We also need to watch for the excessive inventory that’s still littering our market. Orlando still has 20 months of inventory that needs to dwindled down to about 6 months one way or another before we see stabilization.
Perhaps the government bailout of Fannie and Freddie will speed things up on our road to a stability.
Here’s some of key stats for Orlando in September 2008:
- inventory: 24,834
- new listings: 4,064
- new contracts: 1,669
- under contract: 3,220
- sales closed: 1,225
- average days on market: 113