Warning: Undefined variable $custom_content in /home4/comcompare/public_html/mortgagenews/wp-content/plugins/code-snippets/php/snippet-ops.php(582) : eval()'d code on line 7
Last updated on February 3rd, 2021 at 12:10 pm
It’s definitely tough waters to navigate when you’re trying to buy. Homes are getting snatched up really fast.
According to the latest report from the Orlando Regional Realtor Association released, in October, home sales in the Orlando area spiked 25% over the same time last year.
Tight inventory and buyers returning to the market who were hesitant after the start of the pandemic led to the hike. This means home prices in Central Florida are expected to remain strong.
ORRA president Reese Stewart said, “We’re seeing what we’ve been seeing. Inventory’s tight, but that’s been a broken record for how many months now.”
The median home price for single-family homes in the region is $290,000, 10% higher than October last year, but down $5,500 from September. Stewart said it’s unlikely that the slight drop is the start of a trend.
In the coming months, factors point to Orlando real estate remaining a seller’s market. Total inventory is down 20% year-over-year.
ORRA estimates it would take under a month to sell all homes below $300,000 in the area. Housing economists consider a six-month supply to be a more balanced ratio between homebuyers and sellers.
Jeff Tucker, senior economist at Zillow.com said, “They’re benefiting from the lack of listings. That gives buyers fewer options and it means sellers face less competition from each other.”
According to Tucker, several factors are driving down the inventory. “The pandemic had a noticeable effect,” he said.
For example, people who would have sold their homes to move into nursing homes have been hesitant to make those transitions while COVID-19 numbers remain high.
With some homeowners going into forbearance and unable to qualify for new mortgages unemployment also played a role.
Central Florida’s unemployment rate remains around 10% with steep cuts to jobs in the tourism industry.
Tucker said, “One thing that is motivating buyers, especially first-time home buyers, are these record-low lending rates.”
But much of this started before the pandemic. He points to a lack of home building in the years since the 2008 recession, keeping supply low.
Orlando ranks 35th out of the top 50 metro areas for home appreciation. In September, more than one in five homes sold for above their list price across the country.
But Stewart still sees plenty of signs that people are flocking here. “We’re a destination city, people like Central Florida.”
Stewart said prospective homebuyers, need to make sure they have their finances in order when they go out to buy in order to avoid getting scooped.
“Prepare,” he said. “When they’re out looking at homes, they need to be ready to put an offer right in.”
A prospective buyer says she doesn’t believe the homes she’s looking at are overvalued, but competing with all the other buyers is the real challenge.
“I think the prices are fair, but as a buyer, you need to go in with your A-game,” she said.
Reference Source: Yahoo News
