Posted in Central Florida Market | Posted on 11-12-2013 | Written by Metrostudy News
(Orlando, FL – November 12, 2013) The new home market is growing throughout the Orlando MSA, with strongest absorption and pricing growth in the Orange County “A” submarkets. This is according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.
In the Orlando MSA (Lake, Orange, Osceola, and Seminole counties), 2,743 single-family housing units were started in 3Q13. This represents an increase of 51.9% compared to last year’s quarterly starts rate of 1,806 units. The annual starts rate of 8,764 units is up by 49.7% year-over-year.
Single-family quarterly closings totaled 2,295 units, 50.2% more than the 1,528 closings that occurred in the same quarter last year. The annual closings rate (past 4 quarters) of 7,502 units is 41.3% above the rate of 5,308 units per year recorded a year ago. “The third quarter of 2013 continued the trend of strong starts and closings in Orlando. Both quarterly rates are well above last quarter and last year. We expect the starts rate to moderate this quarter, as most builders will be focusing on closing sold units before year end,” said Anthony Crocco, Regional Director of Metrostudy’s Orlando Market.
Total single-family inventory, which is comprised of units under construction, finished vacant units, and models, equaled 4,843 units at the end of 3Q13, for 7.7 months-of-supply. Overall, total inventory increased by 35.2% year-over-year. Under construction housing inventory rose by 1,113 units to 3,113 units over the past year. Finished vacant inventory increased from 1,265 units to 1,407 year-over-year. Model home inventory is up 7 units year-over-year, to 323 models.
In the third quarter, 1,273 lots were delivered to the Orlando MSA, versus 683 lots a year ago. Vacant developed lot inventory stands at 26,870 lots, a decrease of 13.0% from 30,901 lots a year ago. Based upon the annual starts rate, this lot inventory represents 36.8 months-of-supply, a decrease from the 63.3 months-of-supply one year ago. The number of units of total housing inventory has increased recently, primarily due to the large increase in units under construction. “Completed houses are being occupied as quickly as they are finished. Most of the under construction inventory is likely sold and we do not expect the finished supply to increase significantly over the next few quarters, as closings should remain strong,” said Crocco.
“We expect growth in construction activity to slow in the some of the best locations as pricing and interest rate increases will slow demand. This should help builders work thru sales backlogs while trying to contain costs,” said Crocco.
Metrostudy, a Hanley Wood company, is the leading provider of primary and secondary market information to the housing and related industries nationwide. Established in 1975 in Houston, Metrostudy provides research, data, analytics and consulting services that help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day. www.metrostudy.com
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