Various economic events and factors have caused inventory levels to rise and fall through the years.
But when "large changes" occur, it is usually a year or two until the full impact of the market imbalance is felt.
For example, when our local housing inventory was very low in the early 2000s, prices/values started rising soon after. When inventory bottomed out in 2004, we had our sharpest rise in prices/values in 2005.
When inventory levels TRIPLED between 2006/2008 (banking crisis, bad loans going to unqualified buyers, investors trying to dump housing), the following years saw huge declines in prices/values, bottoming out in 2010. As inventory levels started going down again
(driven by investors buying again!), prices stabilized and started growing slowly and steadily again.
Once again between 2019-2020, inventory levels hit another low, driving prices/values up 15%! Now, at the start of 2021, our inventory is at it's lowest level since November 2004, and we know what happened in 2005; a 37% increase in prices/values!
History tells us that we will see a HUGE gain in prices/values in 2021, which I predict will be in the 15-25% range. It's just a matter of time until inventory levels rise again
(which is needed), so prices will stabilize, and more housing choices available for buyers.
Article written by Frank Plesko, Watson Realty, compiled from Orlando Regional Realtor Association's Monthly Sales & Inventory Reports, and Frank's market observations.
Month/Year |
Median Price |
% Increase/Decrease |
Available Inventory |
Nov 2001 |
125,846 |
-- |
-- |
Nov 2002 |
138,663 |
11% increase |
7,880 |
Nov 2003 |
153,567 |
11% increase |
6,712 |
Nov 2004 |
182,300 |
19% increase |
3,681 |
Nov 2005 |
249,900 |
37% increase |
9,685 |
Nov 2006 |
250,000 |
0% - FLAT |
21,324 |
Nov 2007 |
234,900 |
04% DECREASE |
26,172 |
Nov 2008 |
166,000 |
29% DECREASE |
24,408 |
Nov 2009 |
123,000 |
26% DECREASE |
16,002 |
Nov 2010 |
105,000 |
15% DECREASE |
15,192 |
Nov 2011 |
115,000 |
10% increase |
10,126 |
Nov 2012 |
129,000 |
12% increase |
7,847 |
Nov 2013 |
155,000 |
20% increase |
9,609 |
Nov 2014 |
165,000 |
7% increase |
12,121 |
Nov 2015 |
182,000 |
10% increase |
11,300 |
Nov 2016 |
200,000 |
10% increase |
9,270 |
Nov 2017 |
224,000 |
12% increase |
8,294 |
Nov 2018 |
233,100 |
04% increase |
8,432 |
Nov 2019 |
240,000 |
03% increase |
7,562 |
Nov 2020 |
275,000 |
15% increase |
5,583 |