The big story lately in the real estate market here in Orlando is the downward trend for inventory levels. For the 10th straight month, the number of homes for sale has dropped yet again.
The number of homes for sale stood at 15,963 in May 2010 and now stands at 10,969 which represents at 31% drop in a 12 month period.
It’s now at its lowest level since December 2005.
At the same time sales have remained healthy and we saw 2,367 sales in May 2011. We had 2,783 sales in May 2010 but there’s a lot less for sale right now.
The supply of homes for sale based on closed sales stands at 4.6 months. Historically, a stable market in Orlando typically has 6 to 7 months of supply.
I can definitely notice a difference when I show properties. There’s a lot fewer homes to see these days.
The ever present caveat for the real estate market these days is the distressed home market which still accounts for nearly 65% of the market. Hopefully we’ll begin to shed this inventory as well.