Orlando Real Estate Update

The number of homes sold in the core market of Orlando dropped 34% compared to August 2005. August 2005 noted to be the single busiest month in history of Orlando Regional Realtor Association. The median price of a home increased by 2% over August 2005 which is at $249,900. Buyers are holding back due to increasing insurance rates and taxes, leaving the number of inventory homes over 20,000. This represents a 10 month back log supply. In addition, the number of new construction homes being sold through the realtors are rising which has not been seen in the past. As a result of the slow down, sellers are having to slash prices, to get any activity. Surrounding Orlando counties are feeling the same slow down, but Brevard county and coastal communities have builder cutting back on construction and buyers walking away from their deposits. Mortgage rates have been steadily rising, but recently the average rate went from 6.53% to 6.20%. Courtesy of Orlando Sentinel 9/15/06.