Hojin's SW Orlando Real Estate Scoop

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Has Orlando Real Estate Hit Bottom?

February 18th, 2011 · 3 Comments

The Orlando Regional Realtor Association released their latest statistics for the housing market in Orlando this past week which shows a slight decline in market for the first month of 2011.

Orlando saw 1,950 sales in January 2011 which is a marked improvement from January 2010 which saw 1,820 sales, but month to month saw a significant decline from the 2,467 sales in December 2010.

As far as the number of homes for sale, Orlando currently has 14,298. We had 15,911 homes for sale in January 2010 so there’s a lower supply than last year. It’s definitely a good thing.

But, there’s always a but…. the supply of homes when factored in with closed sales is on the rise and currently stands at just above 7 months. It’s not healthy for the market to see rising supply but it’s only 7 months. Historically, a stable market in Orlando typically has 6 to 7 months of supply, so it’s not too far from the norm.

The average days on market currently stands at 96 days and mortgage rates remain at historic lows although far fewer consumers can actually qualify.

I expect rates to rise some time in the next five years because of all the money that was printed during the bank bailouts a few years back so it appears we’re pretty close to bottom if not already there.

Tags: Market Statistics

3 responses so far ↓

  • 1 Adam Parish // Feb 19, 2011 at 5:40 pm

    Thanks for the analysis. It seems that the high-speed rail would’ve been the catalyst we need to really drive growth for SW Orlando. What do you think the impact of that project would’ve been? I’m still hoping it happens.

  • 2 Hojin Chang // Feb 21, 2011 at 10:48 am

    To be honest I’m not sure. I believe the biggest factors for the market is here is simply supply and demand. Banks are flooding the market with foreclosures albeit at a slower rate and lending less money thereby shrinking the pool of buyers able to buy a home.

  • 3 Jill Kipnis // Feb 24, 2011 at 8:12 pm

    Data from Realtor.com that was released yesterday adds some additional commentary for the Orlando market. Orlando, FL was the No. 9 most searched market in the country last month. The median list price was $170,000 (single family homes), which is a -4.61% decrease compared to January 2010.

    Also, Realtor.com’s data shows that there were 25,634 active listings last month, which is a slight decrease (-1.34%) compared to January 2010.

    –Jill Kipnis, Community Builder @Realtor.com