According to first-quarter data from Metrostudy of the Villages, Fl housing market new-home sales are picking up pace annually and new-home prices are on the rise displaying increased demand in one of Florida’s top 20 master planned communities. The Villages, part of the larger Orlando area, is rare in its new-home closings often topping existing home closings per quarter as the planned community is designed for aging in place and is newly built with an added 4,000 homes per year. In the first-quarter of 2014, new-home closings fell just shy of existing with 720 new-home sales versus 794 existing closings. The opposite is true of the fourth-quarter of 2013 in which new-home closings slightly topped existing at 862 versus 843. Although total closings fell between 4Q13 and 1Q14, year-over-year closings are moving on up with a forecast for home sales from Metrostudy approaching 4,000 for 2014. New-home closings in the Villages increased 13 percent between 1Q13 and 1Q14.
Total median closing price in the first-quarter was $244,400, a 15 percent increase from the first-quarter of 2013. Median closing price for new homes also increased to $276,600 from $240, 200 in 1Q13. Price has steadily appreciated for both new and existing homes in the popular active adult market. Price per square foot median is also on a gradual rise peaking for new homes at $193 in the first-quarter.
Increased demand in the Villages is marked by decreased supply. Vacant Developed Lot (VDL) supply decreased from 2,169 to 1,596 from 1Q13 to 1Q14, nearly a 26 percent decrease. This also means a decrease in the VDL months supply from 7.4 to 4.8 months. Additionally, future inventory in the market fell below 31,000 for the first time in four quarters in 1Q14 ending with 29,933. Finally, months supply of housing overall is tight falling from 8.4 in 1Q13 to 5.0 in 1Q14. The rapid demand increase speaks to a the potential for a very good year in sales for the Villages.
Learn more about markets featured in this article: Orlando, FL.