Despite the ongoing housing shortage, Florida and the Greater Orlando Area is still seeing an increase in the median price of homes and an increase in sales. Why is this?
What do January’s Numbers Say About the Median Home Price?
As we are all well aware by now, the market in Orlando Florida is experiencing a shortage in housing inventory. In fact, available homes for sale are down 15% compared to January of 2019. However, this hasn’t stopped the median home price or the number of sales from being on the rise.
The New Year Brought with it an Increase in Sales
Compared to January of 2019, January of 2020 saw a 16% increase in home sales, with Osceola County seeing the largest percentage increase of the four metropolitan counties. Sales in Osceola increased an astounding 25%.
These numbers may make you think, “What housing shortage?” However, the issue of low inventory for single-family homes priced below $300,000 is seen in the sales for duplexes, townhomes, and villas. The sale of these types of housing combined increased by 37% compared to January 2019.
How Does the Median Home Price Stack Up?
Due to the shortage of housing inventory, there is an increase in demand. This naturally drives the price of property up. January 2020 saw a 7.9% median price increase across all types of housing compared to January 2019. The average median price is $245,000. The median price for single-family homes rose 6.9% and is $265,000. Condos saw the largest increase of all, with an increase of 11.2%, which brings the median price to $139,000.
An Increase in Affordability
Statistics show an overall increase in the ability of home buyers to afford median-priced homes. The Orlando housing affordability index is 140.36% as of January 2020. This means that those employed earn more than what is necessary to purchase a median-priced home. The first-time homebuyers affordability index increased from 96.52% to 99.81%. This means that those employed are only 1% short of earning enough income to afford a median-priced home.
If you are looking to sell your home, now is a great time to do so. My team and I are here to help you navigate through the process and make sure you get top dollar for your home. Contact us today at firstname.lastname@example.org or 407-330-2181. This is Gitta with Gitta Sells! Until next week, happy home selling!