The Orlando Florida Regional Housing Report Update September 2021

THE ORLANDO FLORIDA

REGIONAL HOUSING

MARKET UPDATE

September 2021

The latest housing market data are in for Central Florida, including Lake Mary Florida, Heathrow Florida, Longwood Florida, Sanford Florida, Winter Springs Florida, Oviedo Florida, Debary Florida, New Smyrna Beach Florida, Apopka Florida, Orlando Florida, Geneva Florida, Belle Isle Florida, Maitland Florida, Sorrento Florida, Winter Park Florida, Wedgefield Florida, Avalon Park Florida, and Altamonte Springs Florida. Here are the highlights taken from the Orlando Realtor Regional Board report ending August 2021 (the latest now available):

The US Supreme Court affirmed for the second time that the Center for Disease Control (CDC) over stepped its authority in issuing its directives preventing landlords and lenders from evicting and foreclosing on tenants and borrowers who are in arrears – some having been such for more than a year. This ruling also put a stop to the current presidential administration’s bid to circumvent the US Supreme Court’s first ruling stating the same.  Thus, the stay on evictions and foreclosures has now officially been terminated.  

However, regardless of whether or not lenders go through with foreclosures or execute modifications, and landlords evict or do work outs on back rent, an instant swelling of inventory or abandoned properties – in both rentals and foreclosures, is not expected to happen. 

First, market pricing advances have pushed nearly all homes into having a positive equity position.  Second, the near constant demand has kept most homes marketable, and thus these homes are likely to sell if the owner chooses that route.  These two factors will enable lenders to remain whole, and potentially provide those having to leave with some equity dollars as they exit.

In lockstep with this is the renter market.  As rental inventories remain at historic lows, supply chain issues have kept new home builders from back filling the demand and high prices have kept would-be sellers from selling, having no place to go.  Thus, with no home to purchase, many remain in rentals – thus keeping that demand high.  

However, the unfortunate losers in this long awaited lifting of the stay are the mom-and-pop landlords, many of which had everything they had in a few rental properties with aspirations of a steady retirement income in mind.  While they were not allowed to evict non-paying tenants, despite the lack of income, they still had to pay for property taxes, insurance and repairs.  As such, many could not weather the storm.

With larger corporations now firmly in the rental property business as a result of the meltdown in 2008, these firms are likely to quickly snap up any mom-and-pop properties that are forced to sell making those expense losses permanent for them.

Inventory

There are currently only 3,638 housing units on the market – just a bit more than half of what was available at the bottom from the 2008 meltdown.  However, this is actually an increase of 3.23% from last month and a 26% increase since our last report in April.  However, it is still 39% less than a year ago.   

Single Family Home Inventory is up 3.9% from last month but is 31.4% less than a year ago.  Condos are virtually unchanged from last month, but down 53.6% from this time last year. Townhomes are up slightly 4.2%, but also down 53.8% from last year. 

Supply-chain issues created by labor shortages have continued to hobble  the new home construction industry by increasing the time for construction delivery and reportedly many builders have added price escalation clauses as the cost of materials continue to rise.

Homes spent an average of 25 days on the market, one day less than last month and less than half of the 51 days it was at this time last year.   At the current pace of sales, there is is now an overall average supply of less than ONE month.   

IF YOU ARE LOOKING TO BUY OR SELL

YOUR HOME OR PROPERTY –

PLEASE CONTACT US AND FIND OUT HOW WE CAN HELP!
 

Sales and Prices

There were 3,999 sales (actual closed sales from MLS listings) in August, down 4.4% from the previous month, and up 13% from a year ago.   

The median price of all homes sales was unchanged from last month at $320,000.  However, this was a 16% increase from a year ago and a 12.2% increase since our last report this spring. 

The difference between the median and average most times is very small – especially as the sample size increases. The technical difference is that the median is the sales price number in the exact middle of the number of sales – that is exactly where half of the sale prices are lower and half are higher. The average price is the total sales prices divided by the total number of sales. The median is less influenced by fringe numbers – ones very large or very small as compared to the usual numbers.  For example, a million dollar sale in a $200,000 neighborhood or a $50,000 sale in the same neighborhood.  Just for completeness – the mode is the sales price number that is repeated most often.

IF YOU ARE LOOKING TO BUY OR SELL

YOUR HOME OR PROPERTY –

PLEASE CONTACT US AND FIND OUT HOW WE CAN HELP!
 

Orlando Unemployment

The latest numbers for the Orlando Florida MSA – for July - was 5.3%. The national unemployment rate is 5.25%, a slight drop from 5.4% the previous month.  

Average Orlando MSA Interest Rates*

The average interest rate paid in the Orlando MSA last month was 2.84% virtually unchanged from the previous month and a year ago.  Home loan rates tend to generally trend along with the ten-year US Treasury bond markets. However the rates for specialty loans are influenced directly by the secondary investor market – those who purchase loan packages after closing.  

Market Summaries

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*The interest rate statistic is over all types of loans with varying terms, conditions, circumstances and credit scores, and should be used as trend reference number only.  Consult your lending representative for rates that would apply to you.

The statistics cited are provided by the Orlando Regional Realtors Association, of which we are a member.

This report is intended to be for reference and informational purposes only.  The opinions expressed herein are solely those of New Southern Properties Inc. and are opinions. No purchases or investments should be made based solely on this report, this data, or the opinions expressed herein.  Real Estate purchases and investments are complex transactions. You are strongly urged to consult with your financial, legal and real estate consultants before making any real estate purchase or investment.