April 2021 Housing Market Update For Osceola County Florida
Dated: May 11 2021
- Hi everyone, Chris Loschiavo with Home Team Epic and I Think Realty, I've been doing market updates for Polk County for almost a year now. And in the last month had some requests to take a look at Osceola County as well. So this is a market update for April, 2021 for Osceola County single family homes, this is for.... The stats will be through the end of March, the stats always come out a month later. So let's get into the numbers. Osceola is in a lot of ways similar to Polk. Crazy busy housing market, low inventory, higher prices but let's get into the numbers. So, close sales for Osceola County, March 2020. 553 closed sales, that's compared to 855 this year. Now, again, it's important to note that last March, we were just starting shutdowns for COVID. So, the numbers are gonna reflect probably about a month worth of inactivity in the housing market from about mid-March to about mid April or so before the housing market started to pick back up again. So that's 55%, 54.6% increase in closed sales from last March to this March. The median sales price in Osceola County, 310,216. This year, it was 265,000 last year. So home prices have increased on average 17.1% in Osceola County from last March to this March. And then dollar volume, 295.6 million sold in inventory this March compared to 163.9 million last March that's an increase of 80%, but again that number really reflects a half a March where there was pretty much no real estate activity, and then the other part of that in fact in that number is the increase in prices. The median percent original list price, last March Osceola County homeowners were getting 97.8% of their original list price. This March, they are receiving 100% of list price. And you know what I had mentioned the Polk County video and it holds true for Osceola County as well, is you know what that means is there are, yes there are some houses selling for below list price. Typically those that need some work fixer-uppers that kind of thing. But that also means there are home prices or home selling for more than list price. And that's your move in ready homes, and you know, my partner and I here in Polk County put two homes on the market last week and both sold over asking cash offers within 48 hours. So, and I'm hearing the same and we've had the same happen in Osceola County as well. So, how long was it taking homes to go under contract? It is taking on average 18 days this March compared to 32 days last March, so it's almost cut in half 43.8% decrease in the amount of time it's taking for homes to go under contract and then to sale to closing 60 days compared to 74 days. So, homes are selling faster, going under contract faster and they are closing faster. And remember that for closing, especially if the home is being purchased via a mortgage, you minimally need 30 to 45 days to close with a FHA, VA. And then some loans really is 60 days such as USDA. So that's why it takes so much longer to actually close what only take in 18 days to go on our contractor? New pending sales for this March 850 compared to 492, and again, I think the biggest reflection there is half a March last year was lost due to COVID and the shut down. This year, new listings 772, last year 736. So not a really big difference between last year and this year which is where that inventory drought really comes from is that last March people stopped putting the houses on the market and they really haven't started putting them back on the market yet. We're just starting to see some indications of sellers being willing to put their homes back on the market. But one of the challenges for a home seller right now is that it put yourself home on the market, where are you moving to? 'Cause it's hard to find a home to move to. So that's a challenge right now with our low inventory. Pending inventory, 1,173,73 homes went pending this March compared to 715 last March. That's an increase of 64%. And again, I think that's just the two weeks lost last March due to the COVID shutdown. Active inventory, we only have 584 homes available in Osceola County right now, that's compared to 1,687 last year. So that's a decrease of 65.4%. That is probably our biggest challenge right now is with only 584 homes available, there's a lot of demand for those homes. So the homes that are out there go quickly and that's reflected in our month's supply of inventory. And I've said this in the Polk County videos but if you're new to hearing us here on YouTube, a balanced market has six months of inventory so that doesn't favor buyers or sellers. Anything more than six months of inventory favors buyers, and so we call that a buyer's market. Anything less than six months of inventory is a seller's market. We've been around three months of inventory for the better part of two years now, in fact, last year, last March we were at 3.2 months of inventory. This March, we are down to one month of inventory. And so, that again is your low of supply demand. As long as our demand remains high, which it will partially because of the pandemic and home becoming more important, but also because mortgage rates are still very, very low, they're below 3%, again this past week, so demand is very, very high, and at the same time our supply is very, very low. And we've talked a little bit about some of the reasons for that. And so that combination is creating this is lack of inventory which is driving up home prices to the tune of 17% here in Osceola County for this last year. So, the best advice I can give you is if you are looking for a home to purchase, you have to have some patience in this market, you have to be willing to offer over asking if it's a really nice home that just came on the market and expect to be in a bidding war. One alternative is that you can remove some contingencies, inspection contingency, the appraisal contingency, although those have ramifications for you as a buyer that you should be aware of. Talk to your real estate professional about those and whether that makes sense for you and your unique situation. The other thing you can do is not shop at your max budget. So for example, if you're approved at 300,000, maybe you wanna look at homes 250 to 275, so you have some wiggle room to bid higher than asking price and maybe still have a good chance of getting the home. The 300 is the max you can afford, and you're looking at $300,000 homes, then the most you can offer is the listing price and that just may not be good enough in this current market. My partner and I listed two homes last week, one of them close to a $400,000 home in a very nice community, and within the first day we had an over asking cash offer. And so there were a lot of buyers who would not have been able to compete with that. In fact, we actually ended up with two over asking cash offers, and that's just the way the market is right now. So you really need to have a real estate professional help you if you're looking to buy. If you're looking to sell you may think, "Oh, well I don't need to market. Everything is flying off the shelf so quickly." The challenge is knowing what's a good offer and what isn't. It may be great that someone's offering you $50,000 over your asking price, but if they can't close or they don't actually have the funds to do that, then it does you no good. The best deal is the highest deal that's going to close. And so a real estate professional can help you navigate through what's the best deal, why is that the best deal, and then work through any issues that come up. Additionally, the more people that see your house, the better your offers are going to be. So, using a real estate professional that has the skills and the training to market your home to the most people possible, is gonna get you the better offers. And then you wanna have that choice and you can talk with your real estate professional about what is the best offer in the end. It may not be the highest dollar amount, it may be other factors that make another offer stronger. Anyway, if there's anything that we can do to help you with your home or buying or selling, please reach out to us, our contact information is in this video, we do work Osceola County as well as Polk County, do a lot of sales there as well, please reach out to us, remember we want to make your home buying and selling experience an epic one. Have a great day.
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