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January 11th, 2012 1:08 PM by David W. Welch
There have been some recent articles about the turn around in Orlando real estate, and it all comes down to supply and demand. That is what you have to love about the free market. Our inventory at the beginning of 2011 stood at 15,000 today it is just over 9,000. That is about a 40% drop in the supply of homes available for sale in Orlando over the past year. Typically, December is not the biggest month of the year for sales, but I don't know that anything is typical any more. I used the sales statistics for December 2011 to calculate the months supply of inventory for our market.
Overall the supply of homes on the market based upon last months sales is just 3.95 months. In other words, if no new listings came on the market, we would theoretically run out of homes to sell in four months. Normally, we consider a six month supply to strike a balance between supply and demand. When the supply is greater than six months you would expect prices to decline, so with only a four month supply expectations are that we could see price increases again in 2012. I broke the inventory down further: homes priced at $100,000 or less have only a 2.90 month supply; homes priced between $100,000 and $200,000 have a 3.45 month supply; homes priced between $200,000 and $300,000 have a 5.43 month supply; and homes priced above $300,000 have an 8.56 month supply of inventory.
<$100,000 there are 2,819 homes available and 970 sold last month.$100,000 - $200,000 there are 2,969 available and 861 sold last month.$200,000 - $300,000 there are 1,326 available and 244 sold last month.>$300,000 there are 2,019 available and 236 sold last month.