Central Florida has been booming in real estate, and the market has yet to cease in its uprising. Although 2020 may not have been the year for everyone or every industry – this has not been the case for this particular market. Aside from the expected lull during the beginning of the Covid-19 Pandemic – the Year started high and is ending in that same path.
Year 2020 Recap
2020 started with December’s Closing Sales in the Orange County Region at a +17.6% increase over the same period last year. This astounding number shook the market but also started to coincide with the demand increase being seen. (Data compiled by SmartCharts)
In November, we have seen an additional +23.4% increase in closed sales – with a recent article in the Orlando Business Journal citing no expectations of this stopping at the beginning of 2021. It is too early to view the numbers for December, but they will give us a fairly certain idea of the year-end review. (baring any Holiday season slow down which may or may not affect this)
Prices Overall
We have also seen the median sale prices follow lead with the market’s comparative change from last year. In December of 2019, we saw an increase in Median Price of +9%, compared to the previous year. This November alone, we watched as the Median Prices went up +16.2% as compared to the previous year. That equates to a Median Sale Price of nearly $315,000 in the current market.
This increase is generally equated to the demand and inventory changes that have vice-gripped Orange County. But – this has also shown that there is more interest than ever in moving to Central Florida. Sean and Pete (REALTOR’s® and Owners of Moving to Orlando) recently went live over on our YouTube channel to answer a few questions posed by current residents and prospective residents. One of them included the Housing Costs as compared to the wages and cost of living in Florida. They explained how they think the prices are relative compared to other cities and states – but that these active price increases are due to the demand increase.
Inventory
Continuing on this thought – Sean and Pete mentioned a very-real (and probably enticing) ideal that has come out of this Pandemic: The ability to work remotely in more cases than have been seen in the past. With this new forward-thinking that many companies have turned to, families are now moving to Central Florida, keeping their jobs, and enjoying the Sunshine State in their new primary residences! Here is a snapshot of the demand change over the year 2020.
In December of 2019, we saw the supply of homes drop an astounding 19.2% in Orange County, with an expected supply of only 2.01 Months. This November we saw a drop of 17.1% as compared to the same time last year in supply. This equates to approximately 1.91 Months of Supply compared to demand. A good portion of this is most likely due to this newly accepted ability to work from home – which could very well become a more permanent option for employment.
Predictions…and whos to say?!
Experts all over are sharing various opinions about what is to come in 2021. At the beginning of the year, CNBC covered the Federal Reserves’ recent Purchase of Mortgages to be inadvertently initiating a crash in the near future. Others like CNN are saying nay – and looking to the continuance in the uprising of the market and how it has propped up the US economy. But the reality is – we have to wait and see what 2021 will bring. If it is what we would all like to see, then this market should continue to grow and bloom for months or years to come. Hopefully here in Central Florida as well – with the increased interest of the Central Florida Region not showing signs of stopping. We shall see what January brings in the new year, and the subsequent months to follow.
We are always here to help you find and live your Disney dream here in Orlando. If you’re interested in learning more about moving to the Orlando and Central Florida area, please reach out! One of our Realtors can help answer any questions you have about the process.