August housing-market harvest yields an increase in sales, median price
Monday, September 17, 2012
Orlando’s housing market enjoyed year-to-year increases in both sales and median price in August, as the traditional summertime homebuying rush came to its fruition.
Members of the Orlando Regional REALTOR® Association participated in 2,634 home sales that closed in August 2012, an increase of 5.36 percent compared to August 2011.
"Normal” sales continue to eat up a greater percent of the sales pie. This transaction type increased by 23.29 percent when compared to August 2011 and accounted for more than 48.03 percent of all sales. In August 2011, normal sales accounted for 41.04 percent of all sales.
Short sales made up 28.82 percent and foreclosure sales made up 23.16 percent of all sales in August 2012. By comparison, in August 2011 short sales accounted for 32.92 percent and foreclosures accounted for 26.04 percent.
The August 2012 median price of $120,550 is 5.10 percent higher than it was in August 2011. Steady monthly increases have driven Orlando’s median price up 11.62 percent since the beginning of the year, when it was $108,000. In addition, the median price has now posted positive year-to-year gains for 13 consecutive months.
The August 2012 median price is 4.33 percent less than last month, when it was $126,000. The month-to-month decrease is an autumn housing market tradition that follows the seasonal wave of determined homebuyers who are intent on being settled in their new homes before the start of school.
"This year the decrease can also be attributed in part to a large surge in the number of sales of both condos and single-family homes in the lower price categories,” explains ORRA Chairman of the Board Stephen Baker, RE/MAX Central Realty."For example, the sales of condos priced $50,000 - $60,000 and $80,000 - $90,000 both more than doubled from last month.”
All sales types experienced increases in median price in August. The median price of short sales increased 19.05 percent, while the median price of foreclosures increased 4.71 percent and normal sales increased 2.08 percent.
Homes of all types spent an average of 80 days on the market before coming under contract in August 2012, and the average home sold for 96.26 percent of its listing price. In August 2011 those numbers were 101 days and 95.08 percent, respectively.
The average interest rate paid by Orlando homebuyers in August remained the same as in July, but at 3.78 percent remains the lowest average interest rate since ORRA began tracking the statistic in 1989. A year ago, homebuyers paid an average interest rate of 4.26 percent.
Pending sales – those under contract and awaiting closing – are currently at 9,362. The number of pending sales in August 2012 is 1.47 percent lower than it was in August 2011 (9,502) and 2.08 percent lower than it was in July 2012 (9,704).
Short sales, which take much longer to process from contract to close, made up 69.66 percent of pending sales in August 2012. Normal properties accounted for 19.39 percent of pendings, while bank-owned properties accounted for 10.95 percent.
The number of existing homes (all types combined) available for purchase in Orlando is continuing a steady decline that began back in July 2010 at 16,563 and now rests at 8,128. In August 2012, inventory was 19.16 percent less than it was in August 2011.
The inventory of single-family homes is down by 23.96 percent when compared to August of 2011, while condo inventory has increased by 11.52 percent.
The month-of-supply decreased in August: Current inventory combined with the current pace of sales equates to a 3.09-month supply of homes in Orlando.
This month’s decrease in median price has led to an increase in Orlando’s affordability index: the August index of 253.57 percent is 10 points higher than July 2012’s index of 242.47 percent. (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 $54,587 can qualify to purchase one of 4,669 homes in Orange and Seminole counties currently listed in the local multiple listing service for $305,676 or less.
First-time homebuyer affordability in August increased to 180.31 percent from last month’s 172.42 percent. First-time buyers who earn the reported median income of $37,119 can qualify to purchase one of the 3,289 homes in Orange and Seminole counties currently listed in the local multiple listing service for $184,764 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area increased by 4.72 percent in August when compared to August of 2011 (444 to 424).
The most (134) condos in a single price category that changed hands in August were yet again in the $1 - $50,000 price range and accounted for 35.29 percent of all condo sales.
Orlando homebuyers purchased 256 duplexes, town homes, and villas in August 2012, which is a 1.59 percent increase compared to August 2011. Most (44) fell within the $100,000 - $120,000 price range.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in August were up by 7.84 percent when compared to August of 2011. Throughout the MSA, 3,220 homes were sold in August 2012 compared with 2,986 in August 2011. To date, sales are down 2.37 percent for all counties combined.
Each individual county’s monthly sales comparisons are as follows:
- Lake: 9.41 percent above August 2011 (442 homes sold in August 2012 compared to 404 in August 2011);
- Orange: 8.03 percent above August 2011 (1,668 homes sold in August 2012 compared to 1,544 in August 2011);
- Osceola: 4.88 percent above August 2011 (494 homes sold in August 2012 compared to 471 in August 2011); and
View detailed statistical reports
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.