Here are our Orlando area market’s stats comparing 2020 to 2021.
In the last year, the real estate market has done some very dynamic things. You’ll especially appreciate today’s topic if you’re a current homeowner.
In 2020, the average price in the Orlando area was $330,000. We’ve seen about a 15% increase year over year, and the average price right now is $389,000. The average days on market for homes that sold in 2020 was 61. We’ve had an almost 46% drop, so the average days on market is presently 28 days, so homes are selling much quicker.
Last year, we had twice the amount of inventory that we do now, 8,891 units versus 4,420. What’s most interesting is that we’re seeing about the same number of sales: 4,247 last year compared to 4,263 this year. Since we’re selling the same amount of homes with 50% less inventory, prices continue to rise.
Many people call and ask what I think the market will do. While I don’t have a crystal ball, if we look at the numbers, I believe our market will continue to be stable, at least for a while. One factor that could change this is affordability. Even though we’ve seen a 15% to 20% escalation in prices in the last year, wages haven’t improved by that much, so at some point, we’ll hit that ceiling.
Another factor that could change the market is interest rates. Keep a close eye on them because for every point interest rates move, they affect a buyer’s purchasing power by 10%. That means that on a $300,000 home, when interest rates slip one point, that buyer can qualify for $330,000. If rates climb one point, then they could only qualify for $270,000.
If you have any questions about our market or real estate in general, call or email me. I look forward to helping you and hope you reach out to me if you need anything.