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August 13th, 2012 2:58 PM by David W. Welch
It seems like homes are selling at a feverish pace these days in Orlando. That's because they are moving pretty quickly. One of the other agents in my office was just in the process of submitting an offer on the Fannie Mae website. As she was uploading the contract, the status of the property changed from active to pending. A lot of people have been comparing the state of our market today with the state it was in back in the craziness of 2005. There are a lot of differences between now and then, but I was just took a look at how quickly properties are selling.
I knew homes were selling pretty quickly, but I not quite like 2005. I took a snapshot of July median days to contract for the last ten years, and plotted it on a graph. To me this really illustrates what I already knew. Our market has gone through some pretty significant changes over the last several years. I am not sure what the benchmark is for the median days to contract, but I suspect somewhere around 60 days may be pretty close to normal for us here in Orlando. So, you can see the market was moving pretty well even in as early as 2003 with 50% of the homes under contract within 38 days. The insanity completely topped out in 2005 with half of the homes sold under contract in 11 days or less. The other thing this shows is where the inflexion points or turns in the market took place. The median days to contract just a year after the big boom, jumped 30 days to 41, then jumped another 32 to 73 a year later. The worst year was 2008 where half of the sales took more than 85 days get go under contract. As inventory has declined and sales grew that number is plummeted to 31 this past July. It is not quite like 2005, but homes are moving pretty quickly.
David Welch Real Estate Optimist, Orlando Real Estate, Search for Homes