Market Update – Sales Increase But So Does Inventory

In March 2008 there were 70,578 people who called Poinciana home and 18,918 homes. The least expensive of these sells today for $48 per square foot, an increase of $6/SF from February 2008. While price per square foot increased, list prices fell again from a minimum of over $87,000 to a new low of $69,900, which represents the least expensive single family home in Poinciana. A total of 77 homes have been sold in Poinciana through March 31st.

While for most of 2007, homes sold at about one per day, in January and February, the daily average had dropped to about one sale every two days. March showed improvement with an average once again of one home per day. (Normal is about four homes sold per day.)

Previous reports on absorption rates reflected rates throughout Osceola County, a method that has been improved to focus on the Poinciana area only. Absorption rate for Poinciana as of April 9 was 3.24%.

During the first two months of 2008, inventory numbers appeared to have stabilized at slightly above the 1,000-home mark for Poinciana-proper; however March-April numbers are showing a renewed increase in inventory of existing family homes for sale. On April 9, the inventory for all of Poinciana was 1,636.

Between excessive inventory and low sales, the market value for homes in Poinciana continues to decline. Sales continue to lag behind the now-increasing inventory.

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Numbers referred to as Poinciana-proper do not include the communities of Poinciana, such as Solivita, Crescent Lakes, Cypress Woods, Bellalago, etc. ©Apr.2008, Darhlene E. Zeanwick. All rights reserved. Graph may not be duplicated or copied without permission.