Low Housing Inventory Means Now is the Right Time to Buy
The Florida housing market is easy to sum up today: demand is high, supply is low.
As more and more people jump into the housing market, including a growing number of Millennials getting in for the first time, one of the biggest challenges they’re facing is there are not enough homes available to purchase. AV Homes and Royal Oak Homes are both ready to assist these home buyers. Homes are still available at two highly appealing, up-and-coming developments. Royal Oaks Homes’ community Ardmore Reserve is in Lake County, while The Grove at Bannon Lakes by AV Homes is in North Florida. These are two communities that have it all: great locations, beautiful floor plans in new model homes, and close proximity to shopping, theme parks, or Florida’s spectacular beaches.
It’s important for prospective buyers to move fast and contact us today. Low inventory means prices are going to keep rising because competition is fierce for what is available.
Real estate website Trulia reports that the number of starter homes on the market nationally has dropped 8.7 percent over the past five years. Across the nation, there are 3 percent fewer homes on the market than a year ago.
The Orlando area has followed that trend. In February, the Orlando housing market experienced solid increases in median price and sales – but inventory dropped. Florida Realtors, a trade association, reports that in February, the Sunshine State’s housing market had a tight supply of homes for sale.
Why are there so few houses for sale?
Real estate experts cite several factors. One is that during the recession, investors purchased a lot of properties facing foreclosure, and converted them into rental properties. Now with the income they’re getting from those rentals, they’re not eager to sell.
They also note that rising prices have spooked some prospective sellers, who are reluctant to put their home on the market because they think it will be too expensive to buy their next home.
It’s a nationwide trend: Home values across the country are up 7 percent since last February, and the nationwide median home value is $195,700, according to Zillow. That marks the highest value since June 2007.
Toasty in Florida
The statewide median sales price for a single-family existing home is higher than the national average. Florida Realtors reports the median is now $225,000 in the state. That’s up 12.5 percent from the previous year. February marked the 63rd month in a row that Florida’s median prices have gone up. Several Florida cities are leading the way when it comes to the highest year-over-year home value appreciation, including Tampa and Orlando. Of the 35 largest metros across the country, Tampa’s home values went up by nearly 12 percent to a median price of $182,100. Orlando’s median is even higher at $205,000, up 10.8 percent over the February 2016 median price of $185,000, according to figures provided by the Orlando Regional Realtors Association. At the same time, the average interest rate paid by Orlando homebuyers in February was 4.29 percent. That was down from 4.30 percent in January, a good sign for buyers.
However, ORRA reported the overall inventory of homes available to purchase in February was down 20.9 percent compared to February 2016. That amounted to 21.1 percent fewer single family homes and 23.5 percent fewer condos on the market
AV Homes and Royal Oak Homes
There are still very good options for buyers– assuming they act quickly.
AV Homes has an options for families, one located in the picturesque rolling hills of Lake County, in a laid-back setting that’s still close to urban areas. Ardmore Reserve is ideally situated, close to the lakes and rural beauty that attracts so many people to Lake County, but at the same time a short drive to the cities of Clermont and Winter Garden, and to the major job centers like Disney, Universal, and downtown Orlando.
Ardmore Reserve is in a quiet area, offering attractive pricing and some spectacular floor plans fully designed to meet your family’s needs.
For those families looking at settling into North Florida, a great option is AV Homes’ community The Grove at Bannon Lakes, located in historic St. Augustine. This is an attractive master-planned community featuring single-family homes in an area surrounded by majestic oak trees and a 63-acre lake. This newly constructed community will also offer a six-acre amenity center that will have a pool, playground, and dog park.
Prospective buyers are flooding the housing market right now – but unfortunately for them, the inventory of homes on the market has reached historic lows. That means prices are sure to keep rising, and quickly. Now is the time for buyers to act. A good place to start would be to check out the great homes available today at two of Florida’s up-and-coming communities, Ardmore Reserve and The Grove at Bannon Lakes.