While the pace of re-sale homes is hitting record pace due to the flood of foreclosures, the supply of new homes in the surrounding Orlando area has hit an 11.7 month supply. The average for most major markets is 1 ½ to 3 months supply. The high supply of homes is creating greater downward pressure not only on the amount of home starts but also the prices of new homes.
Orlando is not the only major market that has high inventory; Southern California, San Diego, and Las Vegas are also having severe problems. While the Orlando market is trying to correct the inventory problem, with 18,423 ready to move in properties and 12,000 starts within the last 12 month, other markets are making faster progress. Atlanta for example has more than 20,000 move in ready properties with fewer than 9000 new construction starts for the same period.