The Central Florida housing market is presenting us with a mixture of statistics and opportunities. Caution! You can find pundits who are casting gloomy prophecies. Likewise, you can find real estate agents who are looking at Central Florida housing market through rose-colored glasses.
Palm State Mortgage helps you find your equilibrium in this market with some basic facts. We’re going to give you some terms and homework data so you get a deeper understanding of the 2019 Central Florida Housing Market. With your data lined up, we think you can find the right house. And Palm State Mortgage will help you find the right mortgage in this mixed up home-buying season.
Central Florida Housing Market: Chameleon Spring and Summer
The latest housing market data for Central Florida show colorful facts and statistics that change pattern almost day to day. First of all, let us clarify that by Central Florida, we are including the following communities:
- Lake Mary, Heathrow, Longwood, Sanford,
- Winter Springs, Oviedo, Debary,
- New Smyrna Beach, Apopka, Orlando,
- Geneva, Belle Isle, Maitland, Sorrento, Winter Park, Wedgefield, Avalon Park, and Altamonte Springs Florida in this blog.
Knowing All about the Elements of the 2019 Central Florida Home Market
In the first place, and at least locally the Central Florida Housing Market, we note that an astonishing number of housing industry experts only focus on the interest rates. True, that nice low-interest rate is very important. Yet it does not encompass the whole story of this season’s home market—far from it.
- They leave out a few crucial points: Those low-interest rates won’t help you much if you have a less than perfect fiscal record.
- And few reporters or bankers explain the advantages you have as house hunters when a broker like Palm State can help negotiate the best mortgage deal from numerous lenders.
The Power of Knowing Inventory: Homework for Central Florida Home Market House Hunters
The Secret Word in Central Florida Home Market hunting is “inventory.” When you house-hunt, and when you are considering Central Florida, Palm State Mortgage is giving you other numbers that help you analyze the health of the home market in your area of choice.
Do not shop until you understand the current, critical and available inventory of houses in this market area.
First, let’s view those facts…..
- Be aware that the inventory of houses available has decreased over the past month to 7,888 units. As you are house hunting, you might feel a little limited.
- So when a brow-beaten real estate agent says there’s just nothing “out there” right now, do not panic. It’s there although you might have fewer choices than you did in March
And Now let’s take a look at a little recent history behind this inventory…
- You see in March, you had 8,117 total units. Now back in February when the weather was not as nice, there were 8,194 units available. And if you were a post-Christmas Season January home buyer you could have looked at 8,243 houses in January.
- In summary, these figures show you a decrease in available houses, real estate inventory, of 2.8% from last month. Alternatively, you have 1.9% more houses available now than if you had shopped last year. Let’s put a number on that, below:
Basic Data on Housing Market Inventory
You see, a year ago there were 7,740 homes on the market at this point. And if conditions had been right for your house hunting safari two years ago, there were 8,675 houses available for purchase. According to the “Orlando Regional Realtors Association,”
“These inventory numbers include all homes:”
- single family homes,
- and townhomes.
Part of your house hunting homework is to be aware of the past. In 2008 there were a lot more houses for you to view, 24,834 of them to be exact. But that fact did not make it a healthier climate for house hunters. On the other hand, in March 2013, house hunters saw the inventory bottom out with only 6,937 available in the entire area listed above. So now you can see more of the story and the history behind the number of houses available on the changing landscape of the Central Florida Home Market.
The Power of Inventory Knowledge, not Just Facts for Fact’s Sake
Of course, we know that you don’t care about learning all the trivial details about the powers that make the market mercurial here in 2019. However, when you wrap your head around the available inventory of homes situated in the Central Florida housing market, you can understand how inventory is a powerful shaper of the market. This is why a lot of experts are urging you to make your commitment and perhaps prepare to negotiate before you lose the chance.
The Time a Home Spends on a Market in 2019: If You Find the House, How Long Should You Ponder?
At the basic level, knowing the facts behind the current inventory might shape the way you write your list of “must have” qualities in a house.
- Perhaps your list will shrink for 6 or 8 “must-have, non-negotiable” features to 3 or 4 features you absolutely require from the very beginning of ownership. That way you don’t waste time on homes that do not meet your top requirements.
- With this knowledge, you won’t lose shopping time by looking for features in homes that are just not out there in the Central Florida Housing Market this year. We’re not asking you to abandon your dreams or modify your house wishes intensely. 7,888 units still represent quite a few homes for your shopping pleasure.
- Our Gold Star Advice: But be aware, those nagging interest rates are good right now, especially for a conventional loan. We don’t want to lose that advantage. So if you find the right house, your knowledge of inventory can speak to the urgency with which you buy it. The answer to that urgency lies in our next concept for your house shopping homework: How long has the house you want been on the market?
That Chameleon Sense of Urgency in Today’s Market
Another little influential fact for your house hunting homework is how long the inventory of houses is staying on the market. That’s right, pushing you to get your shopping done is not only the current backlog of houses we have but how long they will be available.
Last month we noted that homes stayed on the market an average of 57 days. Two years ago, there was a little less urgency in the market because they hung around for 63 days.
- A year ago it was 54 days and two years ago it was 63. So how can you use this data? Here’s an Example:
- At the current pace of sales, there is now a 2.38 month supply of houses available to buyers.
- Family home inventory represents the vast bulk of the inventory at 6,193 units. This is down 3.28% from last month. Comparatively, Condo inventory actually increased 20.0% over last year.
- Aha! Now, that’s a tidbit of information that might use to shape your desired living arrangement and your house hunting plans. Taking a look at Condo life and all the choices in floorplans and style might lead you to your completely unexpected option, best deal, and best mortgage. That’s the power of data.
The Terrific Take-Aways from the Housing Market Homework Inventory Lesson
Housing Market Pundits always like to judge a market as a buyers’ or seller’s simply by how many homes in the inventory and the pace of how fast they sell.
You can guess that experts judge a “buyers” and a “Seller’s” market by inventory and pace of sales. A very credible financial resource, Investopedia clarifies this point. “A buyer’s market is a situation in which supply exceeds demand, giving purchasers an advantage over sellers in price negotiations.
…The opposite of a buyer’s market is a seller’s market. This is a situation in which demand exceeds supply and owners have an advantage over buyers in price negotiations…” Currently, our market has a 2.39 month supply of houses to sell, which looks like a definite advantage to sellers. But, read on about today’s chameleon market.
Here’s the Palm State Mortgage Lesson in Buyer’s Vs Seller’s Market
On the one hand, a typical balanced market that belongs neither to buyers or sellers requires 6 months of houses in inventory. Now, think about that 2.39-month supply, as shown above. So now you know why you might pause and wonder if the house you are choosing is a little over-priced. You are thinking that this is a seller’s market, but that term is a little haphazard and inhuman.
Let’s add the human factor: On the other hand, According to the experts, and “Regardless of what you tend to hear – there is no true Seller’s market. – Buyers ultimately set the market price no matter what the inventory numbers are at any particular moment. Thus, buyers decide if they are willing to, or can, pay more, and by how much, in response to demand and inventory.” Feel the power of being the buyer in this situation, no matter what the data or the housing market pundits tell you. It’s all part of doing your homework as a buyer.
Happy House Hunting! And do not forget to shop for Dad.
Remember, Father’s Day is next Sunday! Did you know Father’s Day was assigned as an official holiday by Nixon in 1972? From a financial side alone, the holiday is big business: It ranks the fifth highest card sending day. Each year, we estimate the public spends 1000 million dollars on cards alone. But its a small down payment on recognizing the heroism of the Dad in the family.