Orlando median price rises 13 percent; sales drop 3 percent
Orlando home sales slipped 3 percent in October and marked the first time since August 2014 that the market has posted a year-over-year decline in the number of residential real estate closings.
On the other hand, the median home price rose 12.50 percent in October compared to October 2014, which is the highest leap in year-over-year increases since May of 2014. This latest jump marks 51 consecutive months of median price increases; as of October the Orlando median price is 55.84 percent higher than it was in July 2011.
The overall median price (all sales types and all home types combined) for the month of October 2015 is $180,000, a 12.50 percent jump compared to the $160,000 median price in October 2014. The median price is down 1.37 percent compared to the September 2015 median of $182,500.
The year-to-year median price of normal sales increased 5.95 percent, while the median price for foreclosure sales increased 7.79 percent and short sales decreased 4.14 percent. The median price of single-family homes increased 11.43 percent when compared to October of last year, and the median price of condos increased 20.67 percent.
Members of the Orlando Regional REALTOR® Association participated in the sale of 2,800 homes (all home types and all sale types combined) that closed in October 2015, a decrease of 3.05 percent compared to October 2014 and a decrease of 7.07 percent compared to September 2015.
According to ORRA President Sharon Voss, Watson Realty Corp, the market was due for a breather following a frenetic and extended summer of sales that peaked in July with a whopping 40 percent increase in transactions. “In addition, single-family inventory has been declining at a fairly significant clip over the past four months,” says Sharon. “The increase in median price shows there is still buyer demand, and simply not quite enough inventory.”
Traditional sales in Orlando increased by 10.71 percent when compared to October 2014. Closings of short sales decreased by 34.39 percent while closings of foreclosures decreased 30.71 percent.
Single-family home sales increased 0.14 percent in October 2015 compared to October 2014, while condo sales decreased 20.35 percent.
Homes of all types spent an average of 71 days on the market before coming under contract in October 2015, and the average home sold for 96.70 percent of its listing price. In October 2014 those numbers were 72 days and 96.34 percent, respectively.
The average interest rate paid by Orlando homebuyers in October was 3.86 percent. Last month, the average interest rate was 3.96 while this month last year homebuyers paid an average interest rate of 4.05.
Pending sales – those under contract and awaiting closing – are currently at 5,284. The number of pending sales in October 2015 is 17.23 percent lower than it was in October 2014 (6,384) and 1.25 percent lower than it was in September 2015 (5,351).
Normal properties made up 57.13 percent of pending sales in October 2015. Short sales accounted for 23.07 percent, while bank-owned properties accounted for 19.80 percent.
The number of existing homes (all types combined) that were available for purchase in October is 8.76 percent below that of October 2014 and now rests at 11,411. Inventory decreased in number by 122 properties over last month.
The inventory of normal homes increased 3.45 percent, while foreclosures decreased 39.53 percent and short sales decreased 45,84 percent.
The inventory of single-family homes is down by 9.60 percent when compared to October of 2014, while condo inventory is down by 6.61 percent. The inventory of duplexes, townhomes, and villas is down by 4.49 percent.
Current inventory combined with the current pace of sales created a 4.08-month supply of homes in Orlando for October. There was a 4.33-month supply in October 2014 and a 3.83-month supply last month.
The October affordability index is 174.95 percent, an increase from September’s index of 170.28. (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 $56,753 can qualify to purchase one of 5,097 homes in Orange and Seminole counties currently listed in the local multiple listing service for $314,910 or less.
First-time homebuyer affordability in October increased to 124.41 percent from last month’s 121.09 percent. First-time buyers who earn the reported median income of $38,592 can qualify to purchase one of the 2,752 homes in Orange and Seminole counties currently listed in the local multiple listing service for $190,346 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were down 20.35 percent in October, with 317 sales recorded in October 2015 compared to 398 in October 2014.
Orlando homebuyers purchased 261 duplexes, town homes, and villas in October 2015, which is 3.69 percent less than in October 2014.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in October were down by 5.57 percent when compared to October of 2014. Year to date, sales are up 15.77 percent in the MSA.
Each individual county’s monthly sales comparisons are as follows:
• Lake: 3.44 percent above October 2014;
• Orange: 6.65 percent below October 2014;
• Osceola: 6.84 percent below October 2014; and
• Seminole: 8.27 percent below October 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.