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May 2021

Published 1st May 2021  

April ‘arithmetic’ From The Resort Area… Total sales across the resort market of 564 represented a 234% increase on the 241 closings in April 2020 and were also 4.6% up on the 539 sales recorded last month. The number of homes under contract awaiting closure was 28 lower than last months total of 883 but 229% higher than the 386 total in April last year.  A home that sold in our market during April 2021 achieved on average 98.1% of its listed price and closed in an average 99 days from being listed. These numbers compare to 97.6%  and 98 days respectively in April 2020. The markets median price was 7% higher than twelve months ago moving from $238,438 to $255,306. The median price was also 0.7% higher than the $253,420 recorded last month. During April 76 homes were withdrawn from sale having failed to attract a buyer which compared to the 144 withdrawn listings during the corresponding month last year. Inventory levels overall have continued to fall with the current pace of sales indicating a 1 month supply of overall available inventory which was the same as last month but significantly below the 6.7 month level recorded during April 2020.

The number of homes listed for sale in the Orlando market was down  61% from March 2020. This continued decline from the prior month increases a tighter squeeze on a market with just 255,306 homes listed for sale.  Inventory is now at such low levels, it would currently take only three weeks to sell all the homes for sale in the market at the current sales pace. The median home price continued to rise during March at $285,000, a 12% increase from a year ago whilst interest rates continued to rise for a third consecutive month. The average interest rate in March 2021 stood at 3.07%, a 7%increase from February 2021.  O.R.R.A members sold 4,268 homes during March, an increase of 33% over March 2020.  Listings spent an average of 48 days on the market until contract during the month, a fall of 11% from March 2020. The 50 distressed sales sold during the month (bank-owned properties and short sales) accounted for 1% of all closings in March, a decrease of 38% from the 80 sold during March 2020.  The total Orlando area inventory was down 61% from 7,341 homes in March 2020 to just 2,878 homes a year later. The number of new listings was down 5% from 4,150 homes in March 2020 to 3,959 homes in March 2021. Converseley, the number of listings was up 19% from February.
The Florida housing market continued its momentum during March, with more closed sales, higher median prices, increased pending sales and higher pending inventory compared to a year ago, according to Florida Realtors® latest housing data. The coronavirus was first detected in Florida on March 1, 2020.  Closed sales of single family homes statewide during March totaled32,819, up 23.3% year on year, while existing condo and townhome sales totaled 16,518, up 52.6% from March 2020.  The statewide median sales price for an existing single family home was $327,000 up 18.9% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last months statewide median price for condo and townhome units stood at $242,000, up 15.2% year on year. The March number of new pending sales was 48.2% higher for single family homes and 126.4%  up for condos and townhouses. On the supply side the Florida inventory of active listings remained constrained during the month with existing single family homes at a very low 1.2 month supply level while condo and townhomes inventory across the state offered a 2.8 month supply.
Sales of previously occupied U.S. homes fell for the second consecutive month in March with so few on the market, and the fierce competition for those that do exist pushing prices to new highs.  Existing home sales fell 3.7% from February to a seasonally adjusted rate of 6.01 million annualized units, the National Association of Realtors reported. Sales were up 12.3% from March last year.  Homes typically sold in 18 days during the month, a record low and much faster than the average of 29 days recorded last March.  Sales are slowing despite the speed at which buyers are contracting on homes that enter the market, revealing surging demand in an ultra low inventory enviroment.   The inventory of unsold homes stood at 1.07 million at the end of March, only a slight improvement over the record low 1.03 million homes in February which was 28.2% down from levels a year ago. At the current sales pace, the March inventory of homes available for purchase suggests a 2.1 month supply which is well short of the six month supply economists suggest is needed for a balanced market. In February, the supply level was slightly lower at 2 months while the level in March last year stood at 3.3 months.  The U.S. median home price climbed 17.2% from a year ago to $329,100, an all time high.  Low mortgage rates remain a lure, providing stretched buyers with a measure of financial flexibility. Mortgage rates fell for a third straight week, with the benchmark 30 year home loan rate slipping below 3% to 2.97%, according to mortgage buyer Freddie Mac. At this time last year, the long term rates were at 3.3%.  Every region in the country suffered sales declines last month, representing a complete reversal of sales in March 2020.
April 30th 2021 
1 G.B.P…Buys 1.391 U.S.D – 1 U.S.D…Buys 0.718 G.B.P
1 EURO…Buys 1.208 U.S.D – 1 U.S.D…Buys 0.827 EURO
1 CAN $…Buys 0.814 U.S.D – 1 U.S.D…Buys 1.227 CAN $
1 BRL $…Buys 1.187 U.S.D – 1 U.S.D…Buys 5.344 BRL $
U.S Prime Interest Rate = 4.25%
Team Donovan publish a monthly report on the 1st of each month for the benefit of Worldwide Florida absentee owners. If you are considering selling your own property now or in the future please do feel free to contact us, as we would be delighted to discuss the marketing of your home in more detail.