Orlando mortgage borrowers looking to purchase new homes may soon see that theirs is not the only offer on the table for sellers to review.
Florida home sales through September 2009, according to the Florida Association of Realtors®, and the national housing supply fell to a 2-year low last month, according to the National Association of Realtors®.
Existing home sales rose 34 percent last month with a total of 14,419 homes sold statewide compared to 10,778 homes sold in September 2008, according to Florida Realtors. Statewide existing home sales last month increased 4.1 percent over statewide sales activity in August. – Florida Association of Realtors®
Overall, we’re starting to see a regular reduction in housing inventory, which helps to explain why multiple-offer situations for Orlando mortgage borrowers have been so common lately.
If you’re looking for evidence that the long-standing Buyers Market is ending, this month’s Existing Home Sales report might be it.
Even median sales prices — normally pushed lower by distressed and foreclosed properties — declined at its slowest pace in a year. Folks – for those of us living in the Orlando area, the market may have turned a corner.
Orlando home prices are rooted in the basic economics of supply and demand.
- When supply outweighs demand, home prices fall
- When supply lags demand, home price rise
Since March 2009, the market has been moving in the right direction. Low Orlando mortgage rates, ample housing supply, and the first-time home buyer tax credit fueled buyer-side demand for Orlando homes. As such, home prices are now rising.
If home supplies stay on this path into 2010, expect home prices in Orlando to rise even more.