Sales of homes in Orlando experienced a year-over-year increase of 7.32 percent for the month of August, reports the Orlando Regional REALTOR® Association. The jump occurred amid yet another double-digit decrease in inventory, which continues to contribute to the area’s sustained rise in median price.
“Despite a 10 percent drop in overall inventory, continued buyer demand drove Orlando home sales up by more than 7 percent and contributed to a 14 percent jump in median price between August 2015 and August 2016,” says Orlando Regional REALTOR® Association President John Lazenby, Colony Realty Group, Inc.
“The rise in median price is being driven, in particular, by massive year-over-year declines in inventory among single-family residences under $300,000, and purchases within this price range accounted for nearly 75 percent of all sales in August, ” explains Lazenby. “There were 21 percent fewer single-family homes listed below $300,000 available for purchase than this month last year. The lack of available options is pushing buyers to take advantage of the current low interest rates and choose more expensive properties they might not otherwise be able to afford with higher rates.”
To further illustrate the impact that so few available homes priced below $300,000 is having on median price, Lazenby points to the months-of-supply statistic. “Factoring in the current pace of sales, there is a 1.98-month supply for single-family homes priced less than $300,000, whereas five to six months’ worth of inventory is considered balanced between buyers and sellers.” says Lazenby. “This more ‘balanced’ inventory of homes isn’t seen until homes reach the $400,000+ price range.