Inventory of homes for sale increased sharply last month in Orlando metro area
The Orlando Regional Realtor Association says an unprecedented 44% increase last month in the inventory of homes for sale is a sign the market is beginning to level out.
The inventory was at 3,851, including 2,998 single-family homes on the market.
Meanwhile, higher interest rates are making it harder for Central Florida families to afford a new home.
The Realtor association's newly released numbers show a continuing increase in home sales in the Orlando metro area.
The median sale price also increased, to about $380,000, in May.
Meanwhile, the average interest rate on a 30-year fix-rate mortgage has climbed to 5.87 percent, according to Bankrate.com.
David Harrison, a professor of real estate at the University of Central Florida, says the recent rate increases add $300 to $400 a month to the mortgage payment for typical home sales in the Orlando area.
"Now with interest rates already up a couple of percentage points," he says, "it's basically about $100,000 less home that the typical family can afford in Orlando right now."
Harrison says the impact on affordability will create "strong headwinds" for the housing market.