The median price of Orlando homes sold in September jumped 11.11 percent to $125,000, spurred by a significant increase in the number of traditional transactions and the higher prices generated by that sales type. Orlando's median price has now posted positive year-to-year gains for 14 consecutive months.
In addition, the median price increased 3.91 percent over the August 2012 median price of $120,300.
All sales types experienced year-to-year increases in median price in September. The median price of normal sales increased 6.67 percent, while the median price of foreclosures increased 4.32 percent and short sales increased 1.01 percent.
Members of the Orlando Regional REALTOR® Association participated in 2,258 home sales that closed in September 2012, a slight increase of 0.67 percent compared to September 2011 and a 16.43 percent decrease compared to August 2012.
"There is no doubt that our dip in sales is caused of a lack of inventory and not by a lack of buyers,” explains ORRA Chairman Stephen Baker, RE/MAX Central Realty. "The demand is there.”
Compared to September of 2011, the number of short sales decreased 21.07 percent and foreclosures decreased 6.63 percent. The number of completed traditional sales, however, jumped a whopping 25.84 percent compared to last year.
Homes of all types spent an average of 84 days on the market before coming under contract in September 2012, and the average home sold for 95.80 percent of its listing price. In September 2011 those numbers were 102 days and 93.88 percent, respectively.
The average interest rate paid by Orlando homebuyers in September, 3.58 percent, set yet another record as lowest average interest rate since ORRA began tracking the statistic in 1989. A year ago, homebuyers paid an average interest rate of 4.19 percent.
Pending sales – those under contract and awaiting closing – are currently at 9,268. The number of pending sales in September 2012 is 1.08 percent lower than it was in September 2011 (9,369) and 1.00 percent lower than it was in August 2012 (9,362).
Short sales, which take much longer to process from contract to close, made up 69.49 percent of pending sales in September 2012. Normal properties accounted for 19.80 percent of pendings, while bank-owned properties accounted for 10.71 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 8,073. In September 2012, inventory was 18.71 percent less than it was in September 2011.
The inventory of single-family homes is down by 22.86 percent when compared to September of 2011, while condo inventory has increased by 9.82 percent.
The month-of-supply increased in September when compared to last month: Current inventory combined with the current pace of sales equates to a 3.58-month supply of homes in Orlando (there was a 3.01-month supply in August 2012).
This month's increase in median price has led to a decrease in Orlando's affordability index: The September index of 251.05 percent is three points higher than August 2012's index of 254.09 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 $54,644 can qualify to purchase one of 4,719 homes in Orange and Seminole counties currently listed in the local multiple listing service for $313,810 or less.
First-time homebuyer affordability in September decreased to 178.52 percent from last month's 180.69 percent. First-time buyers who earn the reported median income of $37,158 can qualify to purchase one of the 3,393 homes in Orange and Seminole counties currently listed in the local multiple listing service for $189,681 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area increased by 4.78 percent in September when compared to September of 2011 (351 to 335).
The most (109) condos in a single price category that changed hands in September were yet again in the $1 - $50,000 price range and accounted for 31.05 percent of all condo sales.
Orlando homebuyers purchased 196 duplexes, town homes, and villas in September 2012, which is an 18.67 percent decrease compared to September 2011. Most (27) fell within the $120,000 - $140,000 price range.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in September were down by 3.58 percent when compared to September of 2011. Throughout the MSA, 2,670 homes were sold in September 2012 compared with 2,769 in September 2011. To date, sales are down 2.14 percent for all counties combined.
Each individual county's monthly sales comparisons are as follows:
Lake: 3.72 percent above September 2011 (362 homes sold in September 2012 compared to 349 in September 2011);
Orange: 4.37 percent below September 2011 (1,378 homes sold in September 2012 compared to 1,441 in September 2011);
Osceola: 16.01 percent below September 2011 (404 homes sold in September 2012 compared to 481 in September 2011); and
Seminole: 5.62 percent above September 2011 (526 sold in September 2012 compared to 498 in September 2011).
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.