Team Donovan Blog

 

Total inventory fell again during June but at a much reduced pace from recent months as the total number of homes listed for sale across the resort market place declined from 404 to 385 which compares to a very different picture to the 1480 listings available for purchase in June 2020 at the height of Pandemic uncertainty. During the month 525 homes changed hands which compared to 520 last month and the 300 sales recorded twelve months ago. A home that sold during June achieved on average 98.7% of the asking price compared to 98.2% last month and closed after an average 99 days from offer which was a fall of 1 day from the 100 days recorded last month. The markets median price stood at $260,738 which was 9.3% up on the $238,500 price of a year ago and 1.4% up from last months $257,113. The pipeline number of homes under offer/contract was down 9.8% from last month at 792 homes from the 870 pipeline in May. During the month 54 homes were withdrawn from the market having failed to attract a sale whilst listed.  With overall market inventory down again during June, albeit at a reduced rate, the total rate of sales indicates a 0.7 month supply of inventory at the June sales pace which compares to a 0.8 month supply in May and the very different 4.9 month level recorded back in June 2020. 

 

 

Orlando Regional Realtors Association members sold 3,872 homes during May, a 5% decrease on the 4,081 sales of April 2021. Average interest rates remained flat at 2.97%  only showing a .01% drop from April 2021. However, they were down from the May 2020 average of 3.2%. Listed homes spent 36 days on the market during May which was a reduction in period on the market of 25% from May 2020 and 14% less time listed than in April 2021. The 45 distressed homes (bank-owned properties and short sales) accounted for 1% of total sales during the month which has been holding steady across the market over the past few months.  Median home prices in the Orlando area are now at their highest in O.R.R.A’s recorded history. In May 2021, the median home price stood at $300,000 representing a rise of 15% from May 2020. Listed homes in May spent an average 36 days on the market being the fastest time frame since the Great Recession of 2007-2009. A fall in sales from April 2021 to May 2021 were attributed to inventory shortages and were in line with national trends, reported by the National Association of REALTORS®. Both nationally and in the Orlando area, housing demand continues to dramatically outpace supply.  The Orlando area inventory is now down 61% from the 7,260 homes listed during May 2020 to just 2,822 homes in May 2021 although it has shown a 6% increase from April 2021.  There was a little more than a three week supply of homes for sale during May, an increase of 12% from April 2021 with a balanced market generally regarded as offering a six month supply. The number of new listings increased for a third straight month to 4,315 homes which was an increase of 16% year on year and a 1% increase from April 2021.

  

 

The Florida housing market continued to report an increase in sales, higher median prices, more new listings and increased pending inventory compared to a year ago, according to Florida Realtors® latest housing data. It should be noted that this months May 2020 comparison data reflects the state lockdown and economic uncertainty that occurred last spring during the coronavirus pandemic.  Closed sales of single family homes statewide totaled 30,985, up 57.9% year on year, while existing condo and townhouse sales totaled 15,491, up 155.2% from May 2020.  The statewide median sales price for an existing single family home was $344,900, up 27.7% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last months statewide median price for condo and townhome units stood at $250,000, up 24.1% year on year. Floridas inventory of existing single family homes listed for resale increased slightly over the course of the month, rising from 31,618 as of the end of April to 32,021 by May 31, reflecting a little over a 1% increase. This is significant because it is the first time that Floridas single family home inventory has increased during any month since March 2020. It comes on the heels of a very slight month on month statewide decline of just 40 single family active listings from March to April. and is the second consecutive month where the state’s single family inventory has proved to be relatively stable. On the supply side of the market, total active listings remained constrained during May with existing single family homes at a 1.1 months supply while condo and townhome inventory recorded a 2 month supply.

  

 

Sales of existing homes across the nation fell for the fourth straight month in May due to a very low supply of homes on the market. Existing home sales fell 0.9%  from April to a seasonally adjusted annualized rate of 5.8 million units, according to the National Association of Realtors with the 5.8 million rate modestly above pre pandemic levels. Sales were 44.6% higher than a year ago, but that comparison is slanted somewhat given that the housing market was shut down for about two months at the start of the pandemic. The market then rebounded dramatically last summer and has remained very strong for the last year with 1.23 million homes listed for sale at the end of May, a 20.6% drop from a year ago. At the current sales pace, total inventory reflects a 2.5 month supply with low inventory amid high demand continuing to fuel some extraordinary price increases. The median price of an existing home during May stood at $350,300, a 23.6% increase compared to May 2020. That is not only the highest median price ever recorded but also the strongest annual appreciation recorded ever. The market is now tilted toward the upper end, where there is far more supply of homes available for sale. For example, sales of homes priced at $100,000 to $250,00 dropped 2% from a year ago, while sales of homes priced $750,000 to $1 million were up 178%. Sales declined in every geographical area except the Midwest, where home prices remain the lowest. During May, 34,298 single family homes came onto the market, which was 179 fewer new listings than in May of 2018 but 112 more than in May of 2019.  Sales numbers for newly built homes which are based on signed contracts as opposed to closings dropped 6% in during April compared to March, according to the U.S. Census but prices for these homes were up 20% year over year.