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Orlando's Home Inventory Shrinking

Posted by Michael Kara on Wednesday, May 18th, 2011 at 10:08am.

I recently read some excellent news regarding the Orlando real estate market, so I thought I'd pass it along.

According to the Orlando Regional Realtors Association, the housing inventory hit a recent LOW of only 11,480 homes for sale on the market, which is a number that hasn't been seen since the incredible booming housing market of 2005.

The downside is that April closings were mostly foreclosures and short sales, over 65% of them in fact.  But, that's a lower percentage than it was in March, which is evidence that our local market is trending positively.

Real estate follows supply and demand, just like any other facet of economics.  When there are tons of homes for sale and nobody is buying them (high supply, low demand) the prices go down.  When there are not as many homes on the market and people are buying them like hotcakes (low supply, high demand) the prices go up.  The goal here is that the supply goes back to a normal level and that buyers continue to buy homes.  This will cause our property values to begin a slow rise again, which is promising for the economy of our area as a whole.

If you purchased your home in 2005, 2006, or 2007, please don't assume that this news means your home will be worth what you paid for it anytime soon.  The sad truth is that it will take many years for the real estate market to reach those high points again.  If you have been considering a short sale, it's still a great time to get out from under your upside down mortgage.

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