Orlando’s housing market is riding its traditional summertime wave of home sales — fueled in part by both low interest rates and more inventory — and posted positive numbers for the month of May. Sales of existing homes increased 10 percent while the median price also increased 10 percent when compared to May of 2014, reports the Orlando Regional REALTOR® Association.
The overall median price (all sales types and all home types combined) for the month of May 2015 is $181,900, a 10.24 percent increase compared to the $165,000 median price in May 2014. The year-to-year median price comparison has increased for 46 consecutive months and is now 57.49 percent higher than the $115,500 recorded in July 2011.
Orlando’s median home price increased compared to last month as well; the May 2015 median price is 3.94 percent higher than the April 2015 median price of $175,000.
In addition to the overall median price increase, each individual sale type and home type all experienced a year-to-year median price increase in May. Foreclosures led the way with an 18.62 percent jump, while the median price of short sales increased 5.97 percent and normal sales increased 2.59 percent.
The median price of single-family homes increased 11.11 percent when compared to May of last year, and the median price of condos increased 7.94 percent.
Members of ORRA participated in the sale of 2,951 homes (all home types and all sale types combined) that closed in May 2015, an increase of 9.99 percent compared to May 2014 and a decrease of 5.02 percent compared to April 2015.
According to ORRA President Sharon Voss, Watson Realty Corp, buyers are enjoying the boost in available properties that traditionally takes place during the spring/summer homebuying season, plus some.
“The number of homes now on the market is up 8 percent over this time last year,” points out Voss. “In addition, there are considerably more non-distressed homes available. These easier-to-close homes now make up 80 percent of our total inventory.”
Traditional sales in Orlando increased by 22.28 percent when compared to May 2014. Closings of short sales decreased by 53.78 percent while closings of foreclosures increased 1.50 percent.
Single-family home sales increased 11.79 percent in May 2015 compared to May 2014, while condo sales decreased 7.41 percent.
Homes of all types spent an average of 72 days on the market before coming under contract in May 2015, and the average home sold for 96.84 percent of its listing price. In May 2014 those numbers were 73 days and 96.40 percent, respectively.
The average interest rate paid by Orlando homebuyers in May increased to 3.92 percent, from the April 2015 rate of 3.69. This month last year, homebuyers paid an average interest rate of 4.16.
Pending sales – those under contract and awaiting closing – are currently at 7,016. The number of pending sales in May 2015 is 5.28 percent lower than it was in May 2014 (7,407) and 0.59 percent higher than it was in April 2015 (6,975).
Normal properties made up 54.65 percent of pending sales in May 2015. Short sales accounted for 22.11 percent of pendings, while bank-owned properties accounted for 23.25 percent.
The number of existing homes (all types combined) that were available for purchase in May is 8.16 percent above that of May 2014 and now rests at 11,798. Inventory increased in number by 73 properties over last month.
The inventory of single-family homes is up by up by 5.29 percent when compared to May of 2014, while condo inventory is up by 16.15 percent. The inventory of duplexes, townhomes, and villas is up by 21.19 percent.
Current inventory combined with the current pace of sales created a 4.00-month supply of homes in Orlando for May. There was a 4.07-month supply in May 2014 and a 3.77-month supply last month.
The May affordability index is 170.94 percent, a decrease from April’s index of 182.67. (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 $56,468 can qualify to purchase one of 5,523 homes in Orange and Seminole counties currently listed in the local multiple listing service for $310,939 or less.
First-time homebuyer affordability in May decreased to 121.56 percent from last month’s 129.90 percent. First-time buyers who earn the reported median income of $38,398 can qualify to purchase one of the 3,001 homes in Orange and Seminole counties currently listed in the local multiple listing service for $187,945 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were down 7.41 percent in May, with 325 sales recorded in May 2015 compared to 351 in May 2014.
Orlando homebuyers purchased 294 duplexes, town homes, and villas in May 2015, which is 19.51 percent more than in May 2014.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in May were up by 8.06 percent when compared to May of 2014. Year to date, sales are up 16.86 percent in the MSA.
Each individual county’s monthly sales comparisons are as follows:
• Lake: 0.34 percent above May 2014;
• Orange: 11.42 percent above May 2014;
• Osceola: 7.69 percent above May 2014; and
• Seminole: 7.02 percent above May 2014.
This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the My Florida Regional Multiple Listing Service. Neither the association nor MFRMLS guarantees or is in any way responsible for its accuracy.
Data maintained by the association or MFRMLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.
ORRA REALTOR® sales, referred to as the core market, represent all sales by members of the Orlando Regional REALTOR® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received. Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA.