Lack of homes to slow record sales pace in Orlando’s Lake Nona

Jul 23, 2021 | ARMEL NEWS

By Alex Soderstrom – OBJ Staff Writer & Orlando Inno Reporter, Orlando Business Journal

Jul 23, 2021

Orlando’s Lake Nona racked up 405 home sales in the first half of the year, putting the master-planned community on track to blow past 2020’s record 645 sales.

However, Rob Adams, vice president of residential development for Lake Nona developer Tavistock, is doubtful the southeastern Orlando community will be able to double its sales figures after the second half of the year. House hunters across the community are locked into bidding wars, so demand isn’t the problem. The issue in Lake Nona is the lack of inventory.

Lake Nona is not alone. Central Florida boasts only three weeks of existing home inventory, well short of the six months of supply needed for a balanced housing market. However, the constrained supply is especially evident in Lake Nona, which routinely ranks Orlando’s most popular community among homebuyers.

As a result, competition for the limited number of homes on the market is fierce and prices are climbing. This is compounded by out-of-state buyers, especially Californians, coming to Lake Nona with big paychecks and corporate relocation dollars to spend on a house, Deanna Armel, broker and CEO of Kissimmee-based Armel Real Estate Inc. and a Lake Nona resident, told OBJ. “What’s surprising is the amount of cash. I’ve never seen more people buying with cash.”

Lake Nona’s average sales price rocketed 86% between June 2020 and June 2021, according to the Orlando Regional Realtor Association. The submarket already is one of the priciest in Orange County. The average home sales price in Lake Nona’s 32827 ZIP code last month was $686,085, compared to the county average of $429,195.

How could Lake Nona’s housing market pick up any more? Well, The Walt Disney Co. will move 2,000 jobs to the community over the next 18 months. This will only result in higher bids due to the West Coast money coming into the market while supply is dwindling, said Premier Sotheby’s International Realty agent Peter Luu. ”The biggest issue we’re going to see is there’s not enough homes.”

While Adams expects the sales pace to taper this year, he said Lake Nona still is on track to enjoy a record year in 2021. Meanwhile, new construction is planned across Lake Nona, bringing more supply on the market in the coming years. “We believe we’ll be able to meet demand and do it in a smart way.”

The shortage extends beyond the Central Florida region. Federal government-backed mortgage company Freddie Mac estimates the U.S. faces a 3.8 million home shortage. Due to a hot housing market driven by historically low interest rates, buyers across the country gobble up home listings. At the same time, there is a shortage of homes due to U.S. homebuilders between 2010-2019 building nearly half the number of homes they did between 2000-2009, according to the National Association of Home Builders.

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Lack of homes to slow record sales pace in Orlando’s Lake Nona

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