Hello everyone! Time once again for a market update for Orlando-Kissimmee-Sanford and the surrounding communities. As you can see from the graphic above… in December which is typically a slower month for selling houses anyway due to the Holidays, it shows that this year was even a slower time for home sales than at this same time last year. The median time to contract was 31 days. Meaning most sellers when they put their home on the market around this time it took 31 days for them to recieve and accept a contract on their home. Active inventory was 6036 homes on the market which is up 128% from a year ago. Homes last year were getting offers at a crazy fast pace so inventory numbers were much lower, because homes were under contract very quickly… a matter of a day or two in a lot of cases. As far as the fear of a market drop, the median percent of list price sellers received for their homes was still a high 96.1%. This is down from 100% just a year ago, but still high. This can be attributed to longer time on market and also interest rate hikes that have cooled bidding wars. The pending sales number of 1827 is down 33% from a year ago this same time. Yo-Yo interest rate moves, and inflation are the main contributors to this factor as people are priced out and those that can still afford to buy in some cases have paused their search to see if rates go back down or continue to go up with inflation. We still only have 2.2 Months of supply of inventory on the market. This number is still very low even though it is up .08 from last year. 3 months or under is still considered a sellers market. A balanced market meaning that it’s neither a buyers market nor a sellers market is 5 to 6 months of inventory, so we still have a long way to go before we have enough inventory. We still have a housing shortage, people are still moving here everyday, and rents are still climbing up and up so this number should stay low until the builders catch up and more people sell to catch the gains from years before. Some people are afraid there is going to huge drop like in 2008 where we saw homes in some cases drop 50% or more, but due to still low inventory compared to amount of buyers, what we have learned from the past, stronger regulations, better qualified buyers, and better lending practices, and inflation has seemed to slow down a bit…the Real Estate market experts are only predicting a modest 5-20% drop at the most. I agree with them… unless we see a huge amount of layoffs and inflation goes back up crazy or other factors like the pandemic coming back or the war in the Ukraine affecting the U.S. more… I dont see a huge drop off of prices at least here in Central Florida.
Market Update For December 2022 In The Orlando-Kissimmee-Sanford Area — Todd Mowry Your Local Orlando Realtor
