Housing Market Activity: March 2021
Lake, Orange, Osceola and Seminole Counties
State Of The Market
The number of homes for sale in the Orlando area plunged 61% from March 2020 to March 2021. This continued decline from the prior month puts an even tighter squeeze on a market with just 2,878 homes for sale.
Inventory is so low, it would take only three weeks to sell all the homes for sale in the Orlando area. A balanced market is considered six months of inventory.
The median home price continues to rise, now $285,000, a 12% increase from March 2020 to March 2021.
Interest rates continued to rise for a third straight month. The average interest rate in March 2021 was 3.07%, a 7% increase from February 2021.
Houses are under contract almost as soon as they are listed. Homes are getting four to five offers once they are on the market. Interest rates are still lower than last year, fueling demand at a time where there are few houses for sale.
ORRA members sold 4,268 homes in March 2021, and increase of 33% over March 2020.
The median sales price for March 2021 was $285,000 up 12% from March 2020.
Listings spent an average of 48 days on the market until contract in March 2021, a drop of 11% from March 2020.
50 distressed homes (bank-owned properties and short sales) accounted for 1% of all home sales in March 2021, a decrease of 38% from 80 sold in March 2020.
The Orlando inventory is down 61% from 7,341 homes in March 2020 to just 2,878 homes in March 2021.
The number of new listings decreased 5% from 4,150 homes in March 2020 to 3,959 homes in March 2021. However, the number of listings increased from February 2021 by 19%.
Inventory continues to decline since April 2020 and currently sits at the lowest point in three years. The combination of still low interest rates and high migration to Florida has created increased demand and record low inventory. Leading to multiple offer scenarios on most homes listed for sale.
The number of new listings increased in March 2021, which is a similar pattern with prior years. As seen in the previous chart, the number of new listings is not out pacing demand, inventory continues to decline.
The number of sales dramatically increased in March 2021 while inventory remains at its lowest point in three years. This further illustrates the demand for housing in central Florida is out pacing the supply. Median sale price continues to increase which is expected when demand is greater than supply.