Central Florida Real Estate Market Stabilizing – Rising Prices and Falling Inventory

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It has definitely been a challenging few years for us in the Florida real estate market but things seem to be looking better.  For quite some time now we, like the rest of the nation, have been talking about the incredible opportunity it is for buyers out there.  Whether buying a new home for the first time, upgrading to something bigger or investing in property for the future – buyers have controlled the market for several years in many areas across our region.  The buyer-centric market has been not only from the perspective of mortgage affordability but also in terms of the actual price of the homes.

But things are starting to change.  In fact, we are largely seeing a shift to a sellers market.  In some areas there has been a significant drop in inventory levels, so much so, that buyers are finding it difficult to find the home of their dreams because there is too much competition.  Other locales are looking at respectable rises in home prices.  Here’s a rundown of the stats from each county in our region:

Orange County

We are reporting price increases across the board in Orange County year over year, month over month and when comparing the difference from the previous 13 months.  The 10% increase in prices in the last 12 months is a very positive shift toward market recovery.

In terms of inventory, right now in Orange County we have about 4,300 homes on the market as opposed to 16,000 four years ago.  With 1,200 sales just in the last month there is only 3.5 months of inventory.  A balanced real estate market has 6 months of inventory so it is clearly a sellers market in Orange County.

Seminole County

Like Orange County, we are seeing a sizable price increase in Seminole County as well.  In the last 12 months prices have increased 7% -- a strong sign of hopeful path of recovery.  Inventory levels also declined, to 1,400 homes available on the market today compared to 3,400 listings just four years ago.  With just over 5 months of inventory on hand, the Seminole County marketplace is also seller-controlled.

Lake County

We are still seeing some of the same trends apparent for a while now in Lake County but we are moving toward fewer homes on the market.  Prices have not decreased, meaning the area is still a great place for buyers to find good deals but inventory has gone from over 6,000 homes in 2008 to about 2,800 today.  Still buyer-controlled, 7.5 months of inventory indicates plenty of options for buyers remain.

How Does This Impact You?

Buyers will be faced will fewer homes to choose from and more buying competition in both Orange and Seminole Counties.  But interest rates are still at their record-setting lows and mortgages remain more affordable than ever before.  Lake County continues to offer many choices for buyers.

People looking to sell their homes in this marketplace will finally enjoy some healthy competition in Orange and Seminole Counties.  Multiple offers will likely come in on the properties, fewer seller concessions needed and in many cases the sellers will be able to get at or above asking price.
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It is important to keep in mind that the recent robo-signing settlement made between banks and state and federal regulators will impact inventory as soon as we begin to see bank-owned properties hit the market.  For quite some time now, banks have been holding on to these properties but will likely begin liquidating them in the coming month.

So if you’re a buyer looking for a great home or a seller wanting to seize the opportunities we’re seeing right now, contact Eddy at eddyworkinger@gmail.com or Jon at jonwanberg@gmail.com and we’ll be glad to help!