The median home price in metro Orlando dropped from August to September, the first decrease since a run-up that began in October 2020.
The price of $318,000 represents a 17.8% increase over the previous year, a reflection of the rapid rise in the real estate market that started months into the COVID-19 pandemic.
But it is $2,000 below where it had been for July and August, according to a report released Friday from the Orlando Regional Realtor Association.
The average price, which is calculated differently than the median, fell by nearly $6,000 month-to-month, but that number has been less consistent over the past year than the steadily climbing median.
Inventory rose for a fifth straight month, coming off its record low in April, another sign that the extremely hot Orlando housing market may be cooling.
Sales dropped in September by 5.25% compared with August, and homes spent 8% longer on the market on average before selling after 27 days. The longer a home stays on the market, the more likely the seller will drop the price.
“With the median price slightly dropping and inventory continuing to trend upward, we’re seeing signs of things leveling off after months of this market being on fire,” said Natalie Arrowsmith, president of the Realtors’ group. “The market is still heavily in favor of sellers, but is showing some signs of returning to become more balanced.”
Home sales often start to dip at the beginning of a new school year as families settle in. Average interest rates rose in September to 2.86% after four months of decline, which also may have contributed to the drop in the median.
Real estate agents, however, have said that although the median price is no longer going up, it is still a strong seller’s market, in part because of a backlog of new construction in the region.
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