Housing Market Activity: February 2021
Lake, Orange, Osceola, and Seminole Counties
State Of The Market
The number of homes for sale in the Orlando market plummeted by 50% from February 2020 to February 2021. This marks the lowest inventory since May 2005, putting an even tighter squeeze on the market, as demand remains high.
The supply of homes stands at 1.14 months, less than half of what it was in February 2020 (2.71). A healthy market has a six month supply.
The median home price continues to rise, with February's median price at $280,000 up 2% over January.
Interest rates continue to rise for a second straight month to an average of 2.88% in February 2021. That number, however, is still lower than the interest rate in February 2020, which was 3.43%.
Sellers are receiving multiple offers, often above asking price, and buyers are engaging in bidding wars with people looking to move to Orlando from other states. There are not nearly enough homes on the market right now to meet the demand from people who want to buy.
ORRA members sold 2,995 homes in February 2021, an increase of 19% over February 2020.
The median sales price for February 2021 was $280,000 up 12% from February 2020.
Listings spent am average of 52 days on the market until contract in February 2021, a drop of 10% from February 2020.
The Orlando area inventory is down 50% from 6,825 homes in February 2020 to 3,420 homes in February 2021.
The number of new listings decreased 15% from 3,924 homes in February 2020 to 3,322 homes in February 2021.
Looking at the prior 12 months, inventory dipped in February 2020, probably due to COVID-19. It then increased for March 2020 and peaked in April 2020. It then steadily declined to November 2020. Beginning with December, inventory has rapidly declined as the migration to Florida increased.
Historically, December is the low month for new listings followed by a sharp increase in January. For 2021, the increase in new listings from December to January was smaller than prior years. In 2020, new listings increased from January to February but decreased in 2021.
Median sale price increased from Feb 2020 through August 2020 and hovered between $270,000 and $275,000 through January 2021. Median sale price for February 2021 increased to $280,000.