Market Update February 2016: Bloom in Buyers Squeezes Inventory

2016 is promising to be the year of the homebuyer, according to a recent report by the Wall Street Journal. This means that average prices will go up, as inventory declines. “The nationwide median price for an existing single-family home was $213,800 in January, up 8.2% from this time a year ago…” In Central Florida the median price climbed to $185,000, up 12% from last year, and over 2% from last month.

Half of the total inventory in Orlando was under contract in February, specifically 5,424 out of 10,696 homes on the market. The mid-Florida inventory has seen a 7% decrease since February 2015. The lack of inventory has affected the number of sales as well. Only 2,334 homes sold, which was an 8% decrease compared to January 2016, and a 5% decrease compared to this time last year.

April 1 marks the beginning of home buying season for much of Florida, and as buyer’s demand increases we will see a squeeze in inventory. One thing is for sure this year, if you are thinking of buying, sooner is better than later. Prices are going up and there will be more buyers than sellers for the foreseeable future. Click here to read the statistics on ORRA’s website.