The latest statistics for the Orlando real estate market show signs of improvement and perhaps some sign that we’ve returned to a normal market. Granted many of these sales involve distressed properties, but heck sales are increasing and supply decreasing. You don’t have to be an economist to figure out that higher demand and lower supply means higher prices at some point.
There’s a lot of factors to consider like interest rates, the effect of all the money they printed back in the bank bailout days, shadow inventory of distressed properties, and gas prices (it’s getting out of hand), but for now it’s looking better than it has been.
The inventory of homes on the market stands at 12,533 which is lot lower than the 16,223 in March 2010 and 20,194 in March 2009. That’s nearly a 40% reduction in supply in 2 years.
Sales have increased to 4,526 for March 2011 which is a dramatic increase from the 2,956 we saw in March 2009.
We’ll have to wait and see what the future holds but for now I’m cautiously optimistic about the market here in Orlando.