Welcome to this months Florida Market in a minute. We continue to hear there are two few homes on the market but inventory of single-family homes in the Orlando area actually *increased* in May, the first time since September 2020. It was a small increase, but seen as significant by many as a sign that we might finally be at the start of a long march back toward balanced market.

The number of new listings increased for a third straight month but with just over a three week supply of homes we remain well below what is considered a balanced market.

Average interest rates are staying level at just below 3% – lower than they were in May 2020 and that continues to keep buyer demand high which in turn maintains upward pressure on home prices.

Florida Realtors reported that over half of all single-family home sales were sold above their original listing prices. Not surprisingly the median home price in the Orlando area was up again in May, rising to $300,000O – that’s 15% up from May 2020.

Sales in May were slightly down compared with April but that was due simply to a lack of inventory as housing demand continues to dramatically outpace supply.

Well that’s all for now but remember every market and every community is different so for the latest information make sure you speak with your Realtor here at Bardell Real Estate and I look forward to seeing you next month.

Around the United States:

• Pending home sales rose 8% in May from the prior month and 13.1% from one year ago.

Pending home sales rebounded strongly in May, reaching the highest reading ever for the month of May since 2005, according to the National Association of Realtors®. All four U.S. regions registered both month-over-month increases and year-over-year gains for pending home sales contract transactions for the month of May.

• The May 2021 Pending Home Sales Index of 114.7 is the highest reading for May since 2005.

Although there has been a series of obstacles over the last year, including an unprecedented pandemic, record-high prices and all-time low inventory, buyers are still lining up at a feverish pace,

• Contract signings rose in all regions in May compared to the prior month and one year ago.

Pending contracts are good early indicators of upcoming sales closings. However, the amount of time between pending contracts and completed sales are not identical for all home sales. Variations in the length of the process from pending contract to closed sale can be caused by issues such as buyer difficulties with obtaining mortgage financing, home inspection problems, or appraisal issues.

NOTE: This report was produced for May existing home sales,  Existing-Home Sales for June will be reported July 22. The next Pending Home Sales Index will be July 29; all release times are 10:00 a.m. ET.