The availability of homes for sale is measured in "months of inventory". In other words, at the current level of sales in an area, it would take that many months to sell each and every home that is available for sale (most homes sell in an average of 2-3 months).
Currently the inventory of available homes in Orlando is slightly under 5 months. The last time inventory was at this level was in 2005. In 2009, it was 17 months and has been decreasing ever since.
How does this affect the prospective buyer? Competition for well-priced homes in good condition is high right now. Many homes are selling in less than one week on the market. Prices are likely to increase.
Will this historic market come to an end soon? Hard to tell, since reports are that banks still have a large inventory of homes going into foreclosure. But all good things come to an end.....
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