New high for home prices in Orlando

Fewer houses for sale as interest rates remain low, more people move out of northern states

Median home prices in metro Orlando hit $300,000 in May, besting the previous record for the area set in April, according to the latest report from the Orlando Regional Realtor Association.

The price reflects a 15% jump from the same time last year as the inventory of homes for sale remains near record lows.

ORRA president-elect Tansey Soderstrom points to interest rates remaining below 3% and a continuing migration from northern states as reasons for the continued pressure on the market.

“Interest rates are great,” she said. “And people are moving from California, New Jersey, New York ... and they’re not going back.”

May’s median price is the highest in ORRA’s records, which go back to 1995. However, the average home price fell from $362,400 in April to $361,600 in May.

The median home price is the middle price of all sales, the method most commonly used when calculating home price trends. The average home price is the cost of homes sold divided by the number of homes.

Prices are continuing to rise throughout Florida. The median price in Florida in April was $336,525, up 22.4% from the same month in 2020.

Homes in Orlando spent an average of 36 days on the market before selling, the fastest time frame for houses since before the Great Recession began in 2007.

The inventory of homes rose 6% from its record low in April, and the number of new listings increased for a third straight month, offering some light for struggling home buyers. But May’s inventory of 2,822 homes reflected slightly more than a three-week supply for the market. ORRA estimates a balanced supply to be six months’ worth.

“We are seeing more sellers realizing they can take advantage of the equity they have built up, even those who bought when the market is high,” Soderstrom said. “Sellers are seeing their neighbors’ houses sell at record prices, and they’re realizing they can take their time, look for another home, and when they put theirs on the market, they are likely to get multiple offers.”

But Soderstrom cautions that this might not bring down prices in the near future.

“It could be a while before buyers see relief, since demand remains high,” he said. “People have caught on that Central Florida is a great place to live, and we have yet to see a slowdown for buyers.”