I have been seeing quite a few more Canadian and out of state license plates around town these past couple of weeks. Snowbirds are returning to the area to escape the cold, unyielding weather of the North.
A lot has happened in our Orlando area real estate world since our neighbors from the North were in town last. The supply of homes for sale has dropped, prices have been holding steady (and increasing in many areas) and multiple offers have become commonplace.
According to the statistics provided from data interpreted from sales recorded in My Florida Regional Multiple Listing Service (MFRMLS), the Orlando Regional Realtors Association (ORRA) reports that as of September 2012 we have a 3.5 month supply of homes for sale. A “normal market” supply is 6 months; which happens to be the supply of inventory ORRA statistics showed we had last year at the same time.
Another change we have seen in the Orlando area market is an increase in sale prices….finally. In September 2011, the average sale price was $148,045. The average sale price in September 2012 was up to $166,455. That is a nearly 12% increase in sale prices!
The Realtor Association of Lake and Sumter Counties (RALSC) hasn’t faired as well as the Orlando area market. However, there have been gains. In September 2011, RALSC reported a 13 month supply of homes actively listed for sale. Fortunately, as of September 2012, those numbers are edging more towards “normal” with an 8.5 month supply of homes for sale. Modest gains in sales prices have also been recognized. The average sale price in September 2011 was at $132,466. September 2012 brought gains just shy of 4%, reflecting an average sale price of $137,168.
What does all this mean to you, our seasonal visitors? Well, if you have a second home you have been considering letting go of, now may be the time. Buyers are out there, and with interest rates still unbelievably low at around 3.3% and the dramatic drop in home prices, chances are you will be able to fetch the most money the market will allow in today’s market.
Snowbirds that have been renting seasonally may want to consider purchasing a seasonal or second home rather than paying a landlord each time you visit. Again, for those that would need to finance a purchase, interest rates are unbelievably low , and the cost of owning may very well be worth the initial outlay. Owning also provides the security and peace of mind in knowing the house is there when you need or want it – especially now considering foreclosures are still moving forward and many vacation home owners/landlords will stop paying on investment properties before forfeiting other assets.
In short, our Orlando area real estate market has made some positive strides while you have been away.
Feel free to get in touch with me if you would like more information or data on your real estate market. Whether you are buying, selling or feeling out the market, I will be here when you need me.