If May real estate statistics is to be the gauge, homeowners who are planning to sell their residences would likely experience smooth sailing when they engage the market a present. Recent figures from the Orlando Regional Realtor Association showed that market activity in Metro Orlando was on a torrid pace, with some 30 percent of homes sold during the month landing a contract approximately a week of their listing.
Local realtors observed that this sales velocity was last seen more than a decade back during the peak 2005 market in the lead up to the housing bubble. The dynamic growth of employment in Central Florida along with diminished home supply appears to be driving the fast sales clip, they added. The area, according to real estate brokers’ recent readings, has just 2.3 months of home inventory as of this May, the lowest level since September 2005. The May record compares with 3.15 months’ supply a year ago and the 2.81 months registered in April.
Positive Market Dynamics
Past reviews from other industry watchers affirm the dynamics driving Orlando’s residential property market to higher levels. Early this year, a study by Forbes magazine ranked Orlando as the second fastest-growing U.S. metropolitan area, with employment and wages helping propel its robust growth.
An annual ranking of the 25 top metros in the country, this Forbes study is based on data from Moody’s Analytics which also include such factors as population, economic output, and home values. The Orlando metro has also notably shown outstanding strength recently in these measures, particularly population growth.
In a March report last year, statistics from the Census Bureau put the Orlando metro on top on the leader board of the fastest-growing U.S. regions. The census data showed that the population of the Orlando metro rose 2.6 percent to nearly 2.4 million residents for the 12 months ending July 1, 2015.
More Sellers Loom as Prices Rise
In another bright note for prospective home sellers in the Orlando metro, prices for single family homes, condos and townhouses remain on an uptrend as of May. Based on local realtors’ figures, the midpoint price of residential properties in the area for the month rose by 7 percent to $218,000 on a year-to-year basis.
An uptick in May sales volume is likewise encouraging for prospective sellers, with Orlando homes reported sold during the month rising 14 percent from a year ago to 3,817 units. Mortgage rates easing to 4.09 percent average in May from 4.11 percent in April contributed to the heightened market activity in the metro, as well as a relatively limited stock of sales listings.
The May count of available Orlando residences for sale was estimated at 8,781 units, 17 percent below from the same month in 2016. Some home sellers, likely encouraged by recent price gains, are starting to get off the fence though with the May active listings up 1.2 percent from April.
Challenges for Sellers
The sales listings that are drawing the most attention or multiple offers, according to industry analysts, are those in the $100s–$300s range which are move-in ready for prospective buyers. We can also add that such sale-listed homes need to appeal to the lifestyle and budget of millennial home buyers. In one recent survey, the Orlando area came out third among the top 10 cities where this younger demographic wants to live in.
Obviously, there remains a lot of homework to be done if you are selling your residence even as current market conditions appear heavily tilted in favor of sellers. Check us out for the easier approaches in selling your home. We buy residences in Orlando and nearby markets at fair prices. Give us a call at 866-886-5345 or complete this form to learn more about the deal we can readily offer to you.
About Arturo Cuevas:
Arturo Cuevas covers real estate news in Florida as a Contributing Writer at Sarasota Bay Real Estate and The Motley Fool.