A recent article in the Orlando Business Journal highlights the problems facing home buyers in Central Florida.
Even before the pandemic, Central Florida was a seller’s market (more buyers than sellers). But thanks to record-low interest rates and a strong desire for relocation from more urban areas, the market has seen growth that no one could have predicted.
The current inventory for homes in the area is now less than a 1-month supply based on current trends. In a more balanced market, the supply of homes would be 6 months. According to StellarMLS, the number of active listings in the area is down 33% from August of 2019. There simply aren’t enough homes for willing buyers, and that’s going to continue to drive prices up. Median home prices in August were up 10% over August of 2019 to $275k.
Many people were taking a ‘wait and see’ attitude early in the year, hoping that the pandemic would drive prices down. That clearly hasn’t materialized and as a result, more people are now trying to purchase homes before the prices increase further.
If you’re getting ready to buy a home in Central Florida, there are a few things you need to keep in mind:
- Be prepared to act when you see a home you want. Have proof of funds, or a pre-approval for a mortgage ready to go.
- Unless your Realtor strongly believes a home is over-priced, do not low-ball your offers. Homes are selling at or above listing prices. Many homes are receiving multiple offers. Have your best and final offer ready to go from the start.
- Make sure you’ve done your homework. Know the areas you’re interested in and feel confident that’s where you want to live. With a market this crazy, you run the risk of making an impulsive decision. That’s less likely if you’ve done your research and feel confident about your decisions. Our Facebook group and YouTube channel are great resources to ask all kinds of questions about moving to the area.