Orlando Real Estate Market News – May 2021

May ‘market numbers’ From The Resort Area…
A Resort area home that changed hands during May 2021 achieved on average 98.25% of the asking price after on average 100 days from offer to closing the latest report details.  The markets median price stood at $257,113 which was 8.2% higher than the $237,600 level of a year ago. Inventory overall across the market continued to fall and was down another 14.1% at 404 homes listed for sale compared to the 461 listings total in April. When compared to the one year ago level of 1,605 homes offered in the market the current inventory total reflects a fall of over 75% from then. During the month 69 homes were withdrawn from the market by owners compared to 76 last month and the 108 withdrawn a year ago.  Total closed sales stood at 520 which was down 7.8% from the 564 closings last month but 62% higher than the 196 total in May 2020 at the height of the pandemic effect last year. The number of homes under/offer contact stands at 870 which is 1.5% lower than the 883 total last month but 41% up on the 512 pending listings in May 2021.  Overall Inventory levels continued to fall during the month with the May pace of sales suggesting a 0.8 month supply of available inventory at the current sales pace which compares to a 1 Month supply last month and the very different 8.2 level recorded twelve months ago. 
The pandemics largest impact on the Orlando housing market was during April 2020, the effect slowing sales considerably. Since then, inventory has continued to decline despite the high demand from buyers to produce an an all time low level twelve months later. There were major gains in sales year on year during April 2021, due to the pandemic effects of last year. Total available listings of 2,655 homes represented a a record low dating back to 1995, as far back as O.R.R.A data goes.  O.R.R.A members sold 4,081 homes during the month which was a 4.4% decrease from the 4,268 sales of March 2021.  Orlando listings spent an average 42 days on the market until contract, a drop of 12.5% from March 2021. The 50 distressed home sales during the month of bank owned and short sale properties accounted for 1% of all closings during April 2021, the same as the previous month. The Orlando housing market in general reported the second consecutive month of falling home sales with total Orlando inventory down 65% from 7,659 homes listed during April 2020 to just 2,655 homes this April. The number of new listings increased 7.6% from 3,959 in March 2021 to 4,258.  If all the available homes were to sell, it would currently take just three weeks at the current sales pace which compares to the six month supply level generally considered to represent a balanced market.  The median home price increased to $295,000 during April which was an increase of 3.5% from March 2021. The median home price stood at 11.9% higher than the $263,750 recorded in April 2020. 
The Florida housing market in general also remained strong during April, with more closed sales, higher median prices, increased new pending sales and a higher pending inventory compared to a year ago, according to Florida Realtors® latest housing data. In the current market, the shortage of homes for sale coupled with intense buyer demand continued to push home prices higher. Closed sales of single family homes statewide during April totaled 33,264, a rise of 55.4% year on year, while existing condo and townhome closings totaled 17,330, up 130.9% from April 2020.  The statewide median sales price of an existing single family homes stood at $336,525, up 22.4% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. The April median price for condo and townhome properties was $250,000, up 19.6% from a year ago.  On the supply side active listings tightened further during April with existing single family at a 1.1 month supply while condo and townhome inventory offered a 2.3 month supply.
The Nations sales of existing homes dropped 2.7% during April from March to a seasonally adjusted annualized rate of 5.85 million units, according to the National Association of Realtors. It was the third straight month of declines, the group noted. Sales were 33.9% higher than April 2020, but that comparison is an anomaly given that the housing market and economy shut down at the start of the pandemic. Housing then rebounded strongly last summer with overall sales still 11% higher than in April 2019.  The supply of homes for sale at the end of April was down 20%. There were 1.16 million homes for sale overall which represents a 2.4 month supply at the current sales pace with high demand and continued low supply pushing prices higher. The median price of an existing home that sold during April stood at $341,600, an increase of 19.1% from April 2020. This represents both the highest median price on record and the largest annual increase on record. Much of that large increase in the median price is due to the mix of homes being sold. There is far more activity on the higher end of the market, where supply is more plentiful, and very little activity on the low end, where the shortage is most acute. As an example, sales of homes priced between $100,000 and $250,000 were unchanged from a year earlier. Sales of homes priced between $750,000 and $1 million were up 146% from a year earlier, and sales of homes over $1 million increased 212%. Competition also continues to be intense, with homes selling in just 17 days, the fastest rate Realtors have ever recorded. Cash buyers represented 25% of market share which was up from 13% a year ago with investors comprising 17% of all the nations transactions. First time buyers comprised 31% of all purchases, a slight decline from the previous month. Sales of newly built homes were up 21% in March from February. Builders are benefitting from the shortage of existing homes for sale, but prices for new homes are also seeing sharp rises it was reported. 
May 28th 2021 
1 G.B.P…Buys 1.414 U.S.D – 1 U.S.D…Buys 0.707 G.B.P
1 EURO…Buys 1.213 U.S.D – 1 U.S.D…Buys 0.823 EURO
1 CAN $…Buys 0.825 U.S.D – 1 U.S.D…Buys 1.211 CAN $
1 BRL $…Buys 1.190 U.S.D – 1 U.S.D…Buys 5.248 BRL $
U.S Prime Interest Rate = 4.25%

Team Donovan publish a monthly report on the 1st of each month for the benefit of Worldwide Florida absentee owners. If you are considering selling your own property now or in the future please do feel free to contact us, as we would be delighted to discuss the marketing of your home in more detail.