Foreclosures, short sales, and normal sales play tug-of-war with Orlando's overall median price
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Posted by
at 12:43 PM on Wednesday, August 10, 2011
Foreclosures, short sales, and normal sales play tug-of-war with Orlando's overall median price
(July 13, 2011 – Orlando, FL) The median price of Orlando area “normal” sales ($158,000) is now more than 40 percent higher than it was in June 2010 ($112,700), which is helping the area’s overall median price remain steady at $110,000. The median price is 4.35 percent lower than the $115,000 recorded in June 2010.
The lower median price of foreclosures and short sales does continue to negatively influence the overall median price. The median price for bank-owned sales in June is $80,310 and the median price for short sales is $99,000.
An increase in the percentage of “normal” sales — those that are neither bank-owned nor short sales — is also contributing to the stable overall median price. In June, the percentage of normal sales increased for the fifth consecutive month and made up 39.83 percent of all transactions involving members of the Orlando Regional REALTOR® Association.
The 2,418 sales transactions that were completed in June 2011 is 20.95 percent less than were completed in June 2010. Bank-owned sales dropped 39.58 percent compared to June 2010, while short sales decreased 14.21 percent and “normal” sales decreased only 0.52 percent.
At the current pace of sales, there is a 4.37-month supply of homes (lowest since December 2005) in Orlando’s inventory. The number of homes available for purchase in the Orlando area declined in June by 410 homes and now rests at 10,559. (Inventory is down 35.24 percent from June of last year; single family home inventory is down 29.99 percent; and condo inventory is down 54.56 percent.)
“Absorption of inventory is a key to price improvement, and this solid gain implies that home values in many neighborhoods are or will soon be stabilizing as inventories get absorbed at a faster pace,” explains ORRA Chairman of the Board of Directors Mike McGraw, McGraw Realty Services, PL.”
Pending sales – those under contract and awaiting closing – are currently at 10,087. Last month’s pending tally of 10,210 was the greatest since May of 2010 (10,351). Homes of all types spent an average of 103 days on the market before coming under contract in June 2011, and the average home sold for 95.15 percent of its listing price. In June 2010 those numbers were 85 days and 95.43 percent, respectively.
The area’s average interest rate decreased in June 2011 to 4.56 percent, from the 4.66 percent posted in May 2011.
Affordability
The Orlando affordability index increased to 249.51 percent in June. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.) Buyers who earn the reported median income of $53,789 can qualify to purchase one of 7,714 homes in Orange and Seminole counties currently listed in the local multiple listing service for $274,456 or less.
First-time homebuyer affordability in June increased to 177.43 percent from last month’s 175.27 percent. First-time buyers who earn the reported median income of $36,577 can qualify to purchase one of the 5,438 homes in Orange and Seminole counties currently listed in the local multiple listing service for $165,893 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area (422) decreased by 35.47 percent in June when compared to June of 2010 (654).
The most (205) condos in a single price category that changed hands in June were yet again in the $1 - $50,000 price range and account for 48.58 percent of all condo sales. Low-priced units have overwhelmingly dominated condo sales since March of 2009.
Orlando homebuyers purchased 219 duplexes, town homes, and villas in June 2011, which is a 30.48 percent decrease from June 2010, when 315 of these alternative housing types were purchased. Most sales (40) were between $100,000 and $120,000, which is a departure from the previous five months when most sales were for $50,000 or below.
MSA Numbers
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in June were down by 20.18 percent when compared to June of 2010. Throughout the MSA, 2,990 homes were sold in June 2011 compared with 3,746 in June 2010. To date, sales in the MSA are down 1.46 percent.
Each individual county’s monthly sales comparisons are as follows:
Lake County: 2.10 percent above June 2010 (389 homes sold in June 2011 compared to 381 in June 2010); Orange County: 23.24 percent below June 2010 (1,559 homes sold in June 2011 compared to 2,031 in June 2010); Osceola County: 16.29 percent below June 2010 (550 homes sold in June 2011 compared to 657 in June 2010); and Seminole County: 27.33 percent below June 2010 (492 sold in June 2011 compared to 677 in June 2010).
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