December 2013 Housing Market - Expanded Talking Points
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Released January 15, 2014

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Olando Market Overview

Sales

*Orlando home sales (all home types and all sales types combined) in December 2013 were down 5.15 percent when compared to December of 2012 and up 11.55 percent when compared to November 2013.

*Single-family home sales in the Orlando area decreased by 4.21 percent in December when compared to December but increased 13.89 percent compared to November 2013. Condo sales decreased by 13.45 percent year to year; townhomes and villa sales remained exactly the same.

*Of the 2,376 sales in December, 1,600 normal sales accounted for 67.34 percent of all sales, while 454 bank-owned and 322 short sales respectively made up 19.11 percent and 13.55 percent.

*The number of normal sales in December increased by 29.03 percent compared to December 2012, while short-sales decreased 57.74 percent and foreclosures decreased by 9.74 percent.

*The 6,026 pendings in December of this year is a decrease of 23.56 percent compared to the 7,883 pendings in December of last year (and a 7.58 percent decrease compared to the 6,520 pendings last month).

*Short sales made up 55.08 percent of pendings in December. Normal properties accounted for 28.68 percent and bank-owned properties accounted for 16.25 percent.

*Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in December were down by 5.38 percent when compared to December of 2012. Throughout the MSA, 2,900 homes were sold in December 2013 compared with 3,065 in December 2012.

To date, sales throughout the MSA are 4.30 percent above this time last year.Each individual county’s monthly sales comparisons are as follows:

  • Lake: 9.75 percent above December 2012;
  • Orange: 7.40 percent below December 2012;
  • Osceola: 10.41 percent below December 2012; and
  • Seminole: 7.24 percent below December 2012.

Median Price

*The median price of all existing homes combined sold in December 2013 — $160,150 — is a 20.87 percent increase from the $132,500 median price recorded in December 2012.

*The median price for "normal” existing homes sold in December is $184,000, an increase of 11.52 percent from the median price of "normal” existing homes in December 2012.

*The year-to-year median price for short sales increased by 11.11 percent to $120,000 in November, while the median price for bank-owned sales increased by 3.05 percent to $102,532.

Inventory

*There are currently 9,421 homes available for purchase through the MLS. The December 2013 overall inventory level is 27.59 percent higher than it was in December 2012; inventory is down 1.96 percent compared to November 2013.

*Year-to-year single-family home inventory is up 29.52 percent; condo inventory is up 18.77 percent.

*The current pace of sales translates into 3.97 months of inventory supply.

Other

*New contracts are down 5.77 percent compared to December of 2012. New listings are up 24.36 percent.

*The Orlando affordability index decreased to 176.72 percent in December. First-time homebuyer affordability in November decreased to 125.67 percent.

*Homes of all types spent an average of 69 days on the market before coming under contract in December 2013, and the average home sold for 96.49 percent of its listing price.

Florida Market Overview

*Sales, existing single-family: 16.20 percent decrease in November 2013 compared to November 2012.

*Sales, existing condo: 9.80 percent increase in November 2013 compared to November 2012.

*Median price, existing single-family: 16.70 percent increase in November 2013 compared to November 2012.

*Median price, existing condo: 2.50 percent increase in November 2013 compared to November2012.

National Market Overview

*Sales, existing single-family: 3.60 percent decrease in November 2013 compared to November 2012.

*Sales, existing condo: 2.50 percent decrease in November 2013 compared to November 2012.

*Median price, existing single-family: 9.40 percent increase in November 2013 compared to November 2012.

*Median price, existing condo: 10.00 percent increase in November 2013 compared to November 2012.

Persuasive Points Overview

*Homeownership is an investment in your well-being and future.

*Homeownership offers immediate benefits and long-term value.

*Today’s market offers great opportunities for buyers and sellers.

*The supply and choice of homes for sale is plentiful in most markets.

*Mortgage interest rates are low. Home prices are affordable.

*REALTORS® add value to the real estate transaction.

*REALTORS® are the most trusted resource for real estate information.

Economic and Social Benefits of Homeownership

*Homeowners benefit from the power of leverage. Buyers typically use their own money for just a portion of the home price, but the appreciation they realize is based on the property’s total value.

*Given the leverage in purchasing a home, the average return on a 5 percent down payment over 10 years is usually three to five times greater than stock market returns.

*The typical homeowner’s net worth ($205,200) was 49 times that of the typical renter ($4,200) in 2008, according to NAR calculations using the latest statistics from the Federal Reserve Board.

*Homeownership offers "pride of ownership” — giving you control over your surroundings.

*Homeownership strengthens communities. Homeowners are more likely to be involved and engaged in local issues, and they move less frequently than renters. This helps to prevent crime, improve childhood education and support neighborhood upkeep.

*Owning a home is one of the best ways to build long-term wealth, providing both equity accumulation and tax benefits over time.

Use-a-REALTOR® Discussion Topics

*It has never been more important than now to work with a REALTOR®, the local market professional, to properly gauge local neighborhood conditions.

*Distressed sales — foreclosures and short sales — account for more than a third of all transactions nationwide. This varies widely from market to market — sometimes even from neighborhood to neighborhood. Distressed homes typically are selling at a 15 percent discount, but this varies widely by market, as well.

*REALTORS® have access to the most up-to-date and comprehensive property listing and sales information, making them a buyer’s best resource in finding the home that is right for each customer.

*Many markets have two levels of pricing: distressed sales and traditional sales. Foreclosures and short-sales tend to carry prices as much as of 20 percent below traditional homes in the same area. REALTORS® can help both buyers and sellers navigate today’s tricky market conditions.

Source: NAR Surround Sound Campaign

Why Homeownership Matters…

To people

*Homeowners are happier and healthier and enjoy a greater feeling of control over their lives.

*Owning a home is one of the best ways to build long-term wealth. Historically, a homeowner’s net worth has ranged from 31 to 46 times that of a renter.

*Homeowners are free to redecorate, renovate, and modify their homes as they wish.

*Most home owners enjoy stable housing costs — a fixed-rate mortgage payment might not change for 15 to 30 years while rent typically increases 3 percent a year.

*Homeowners can typically deduct mortgage interest and property taxes on their federal individual income tax return.

To communities

*People who own homes vote more, volunteer more and contribute more to their neighborhoods.

*Homeowners do not move as frequently as renters, providing more neighborhood stability. In turn, this stability helps reduce crime and supports neighborhood upkeep.

*Children of homeowners do better in school, stay in school longer, are more likely to participate in organized activities and spend less time in front of the television.

To the United States

*Sixty-seven percent of American households are owner-occupied. America is a nation of homeowners.

*Homeowners pay 80 to 90 percent of federal individual income taxes, contributing to federal programs that benefit all Americans.

*Every home purchased pumps $60,000 into the economy for furniture, home improvements, and related items.

*Housing accounts for more than 15 percent of the national Gross Domestic Product, a key driver of our national economy.

Source: NAR Homeownership Matters Campaign

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