While it isn’t the end of the real estate problems for south and central Florida, news out of Orlando indicates that things may be starting to turn around. Individuals and families are moving into new homes in the metro Orlando area faster than the homes are being constructed, causing the inventory of available new homes to shrink, according to a just-released report by Metrostudy, a housing and real estate industry research group.
The housing and credit crisis has hit this area hard over the past two years, causing new home starts to decline considerably and helping to decrease the inventory of available units. The report found 3,646 finished-but-vacant single-family homes in the four-county metro area of Orange, Seminole, Osceola and Lake Counties, down from 5,560 last year at the same time.
The total inventory for the area, which includes houses currently under construction and those available for move-in, was down 39% from the same time in 2007. The 7,033 homes available is, at the current sales pace, a supply of 7.1 months. The market is generally considered to be in balance when the current supply is approximately 6 months.
While new home starts for the metro Orlando area is down 46.3% from last year, it is still an increase of 12% over the first quarter of this year. That is a sign that builders are starting to anticipate an increased demand for housing and things may well be starting to look up for the market.
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