A leap in “normal” transactions has boosted Orlando area home sales more than 21 percent over June 2014 and to its highest number (3,435) since the Orlando Regional REALTOR® Association began recording sales. In addition to skyrocketing sales, the median price for existing homes sold in June increased 7.73 percent.
The overall median price (all sales types and all home types combined) for the month of June 2015 is $181,500, a 7.73 percent increase compared to the $168,483 median price in June 2014. The year-to-year median price comparison has increased for 47 consecutive months and is now 57.14 percent higher than the $115,500 recorded in July 2011.
Orlando’s median home price increased a bit when compared to last month as well; the June 2015 median price is 0.28 percent higher than the May 2015 median price of $181,000.
The year-to-year median price of foreclosures increased 16.13 percent, while the median price for normal sales increased 6.90 percent and short sales decreased 2.96. The median price of single-family homes increased 8.11 percent when compared to June of last year, and the median price of condos increased 8.77 percent.
Members of ORRA participated in the sale of 3,435 homes (all home types and all sale types combined) that closed in June 2015, an increase of 21.21 percent compared to June 2014 and an increase of 10.20 percent compared to May 2015.
According to ORRA President Sharon Voss, Watson Realty Corp, the summer months are traditionally amongst Orlando’s greatest in terms of closings. “This summer, in addition to the usual push to get things settled before the start of the school year, homebuyers are taking advantage of low interest rates and greater inventory.”
“From a long-term perspective, the buyers I talk to are also convinced that our sensible, steady rate of median price increases indicates a healthy market,” continues Voss. “They see a market that is safe from a rapiddrop in home values, which makes their summertime home purchase a sound investment.”
Traditional sales in Orlando increased by 31.40 percent when compared to June 2014. Closings of short sales decreased by 42.24 percent while closings of foreclosures increased 13.75 percent.
Single-family home sales increased 22.70 percent in June 2015 compared to June 2014, while condo sales increased 12.92 percent.
Homes of all types spent an average of 67 days on the market before coming under contract in June 2015, and the average home sold for 97.02 percent of its listing price. In June 2014 those numbers were 71 days and 96.95 percent, respectively.
The average interest rate paid by Orlando homebuyers in June increased to 4.08 percent, from the June 2015 rate of 3.92. This month last year, homebuyers paid an average interest rate of 4.17.
Pending sales – those under contract and awaiting closing – are currently at 6,901. The number of pending sales in June 2015 is 3.28 percent lower than it was in June 2014 (7,135) and 1.64 percent lower than it was in May 2015 (7,016).
Normal properties made up 55.43 percent of pending sales in June 2015. Short sales accounted for 21.30 percent of pendings, while bank-owned properties accounted for 23.27 percent.
The number of existing homes (all types combined) that were available for purchase in June is 4.69 percent above that of June 2014 and now rests at 12,058. Inventory increased in number by 260 properties over last month.
The inventory of single-family homes is up by up by 1.51 percent when compared to June of 2014, while condo inventory is up by 18.38 percent. The inventory of duplexes, townhomes, and villas is up by 11.22 percent.
Current inventory combined with the current pace of sales created a 3.51-month supply of homes in Orlando for June. There was a 4.06-month supply in June 2014 and a 3.71-month supply last month.
The June affordability index is 168.23 percent, a decrease from Mays’s index of 171.79. (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 $56,525 can qualify to purchase one of 5,515 homes in Orange and Seminole counties currently listed in the local multiple listing service for $305,334 or less.
First-time homebuyer affordability in June decreased to 119.63 percent from last month’s 122.16 percent. First-time buyers who earn the reported median income of $38,437 can qualify to purchase one of the 2,919 homes in Orange and Seminole counties currently listed in the local multiple listing service for $184,557 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were up 12.92 percent in June, with 402 sales recorded in June 2015 compared to 356 in June 2014.
Orlando homebuyers purchased 314 duplexes, town homes, and villas in June 2015, which is 19.85 percent more than in June 2014.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in June were up by 19.78 percent when compared to June of 2014. Year to date, sales are up 18.61 percent in the MSA.
Each individual county’s monthly sales comparisons are as follows:
• Lake: 10.22 percent above June 2014;
• Orange: 20.55 percent above June 2014;
• Osceola: 16.43 percent above June 2014; and
• Seminole: 28.42 percent above June 2014.