© Stephen M. Dowell/Orlando Sentinel/TNS
Orlando real estate ended 2021 with record high prices and record low invetory.
High prices, low inventory, prosperous sellers and frustrated buyers made up the record year in real estate for the Orlando metro area.
December closed with a median home price of $340,000, beating the record set the previous month by $10,000, according to a report from the Orlando Regional Association of Realtors released Tuesday.
The overall median home price for the year was $310,000, a record and $45,000 more than in 2020 for an annual appreciation rate of nearly 17%. In total, 45,572 homes were sold in Orange, Seminole, Lake and Osceola counties, an increase of 23.6% from the previous year.
“We witnessed an unprecedented real estate market in 2021, with demand and price rising dramatically,” association president Tansey Soderstrom said in a statement. “On the other hand, we saw buyers struggle in a market marked by low inventory month after month.”
The year ended with 2,586 homes for sale, down from the record low set in April, followed by several months of rising inventory before falling again in November. Inventory fell 15% in December from the previous month.
Ending inventory represents a 47% drop from the beginning of the year.
Interest rates ended the year at an average of 3.07%, more than a quarter of a percentage point from January. Federal Reserve officials have indicated they could raise interest rates up to three times this year.
While this could slow price increases, experts say high demand in Central Florida will keep prices high for the foreseeable future.
“We expect demand to remain strong in 2022,” Soderstrom said. “If sellers decide to take advantage of this market, we could have another fierce year.”
This story was published in the Orlando Sentinel by journalist Trevor Fraser.