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Signs of a stabilizing real estate market through out Central Florida are continuing to strengthen. Home buyers are steadily leaving the sideline and entering the home search process. Out of state and foreign home buyers are realizing that the Florida market has bottomed out and they are jumping in to purchase second homes, vacation homes and investment properties.

I am pleased to provide you with our Central Florida Market Trends for the first quarter of 2011.

 . First quarter 2011 single family homes sales were up 3.8% over the same time period in 2010.

· Central Florida condominium sales were up only slightly at 1.28% over the same time period in 2010.

· Overall, Central Florida sales were up 4.58% for the first quarter of 2011 over the same time period in 2010.

· New contracts written have steadily increased since December 2010 with just over 4,500 new contracts written in March 2011.

· In March, the median price of Orlando area existing home sales increased for the second consecutive month to $103,000. However, the March 2011 median price is 6.36% less than the median recorded in March 2010.

· The increase in the overall median price is attributed in part to an increase in the number of "normal" homes sales which have higher selling prices than foreclosures and short sales.

· In the first quarter of 2011, 72% of all homes sold were in some form of distress. It is anticipated that this number will decline as distress inventories re sold off and more "normal" home sales continue to rise.

· The number of homes listed for sale was down to 12,533 in March of 2011, which is 22.75% below the inventory reported in March 2010.

· There are currently 10,115 single family homes listed in MLS, which is 16.25% below March of 2010.

· The current pace of sales translates into an average of just over 5 months supply, the lowest since December 2005.

· Declining home inventories may have a positive effect on some home prices due to the supply and demand.

· All cash sales have continued to stay above the 50% mark for the last year.

· The sale of $1 million plus properties remains strong, although at a somewhat lower pace then what we say in the first quarter of 2010.

As we enter the Spring and Summer selling months we are forecasting that sales will continue to climb and home inventories will continue their decline, which will make the selling process more interesting with multiple purchasers pursuing the best properties that are well priced.

I hope you find this information helpful and it is our commitment to continue to update you on a quartley basis.

Regards,

Roger W. Soderstrom | Stirling Sotheby’s International Realty

Founder / Owner

121 South Orange Avenue Suite 1600 | Orlando FL 32801