Rapidly rising interest rates are spurring Orlando homebuyers into action and in May contributed to yet another double-digit increase in sales (15.63 percent to be exact), while unbearably tight inventory again sent prices climbing.
"The relative good news about inventory is that there was a 10 percent increase in the number of new listings that came on the market in May, the majority – 65 percent – of which were "normal” sales," says Orlando Regional REALTOR® Association Chairman Steve Merchant, broker-owner of Global Realty International. "We’re seeing more and more homeowners who realize that now is an extremely opportunistic to sell, and sell fast.”
The median price of existing homes sold in Orlando during the month of May rose 23.33 percent, to $148,000, when compared to May 2012 and 2.99 percent compared to April 2013, reports ORRA. Orlando’s median price has risen more than 37.04 percent in the 17 months since January of 2012.
In addition to the overall median increase, each individual sales type experienced a year-to-year median price increase in May, with foreclosures leading the way with an 18.07 percent jump. The median price of short sales increased 14.00 percent; the median price of normal sales increased 12.50 percent.
Members of ORRA participated in the sales of 2,855 homes (all types combined) that closed in May 2013, an increase of 15.63 percent compared to May 2012 and increase of 3.14 percent compared to April 2013.
Single-family home sales increased 16.64 percent in May 2013 compared to May 2012, while condo sales increased 7.85 percent.
Compared to May of 2012, the number of short sales (620) decreased 8.96 percent and the number of foreclosures (539) decreased 12.78 percent. The number of completed traditional sales (1,696), however, is a 44.96 percent increase compared to last year.
In May, short sales and foreclosures made up 40.60 percent of the entire sales pie, while normal sales made up 59.40 percent. Last year in May, those percentages were 52.61 percent and 47.39 percent, respectively.
Homes of all types spent an average of 68 days on the market before coming under contract in May 2013, and the average home sold for 96.70 percent of its listing price. In May 2012 those numbers were 85 days and 95.76 percent, respectively.
The average interest rate paid by Orlando homebuyers in May was 3.64 percent. Last month, homebuyers paid an average interest rate of 3.49 percent; this month last year, homebuyers paid an average interest rate of 3.89.
Pending sales – those under contract and awaiting closing – are currently at 8,631. The number of pending sales in May 2013 is 16.13 percent lower than it was in May 2012 (10,291) and 1.75 percent lower than it was in April 2013 (8,785).
Short sales made up 57.31 percent of pending sales in May 2013. Normal properties accounted for 29.58 percent of pendings, while bank-owned properties accounted for 13.12 percent.
The number of existing homes (all types combined) available for purchase in Orlando is 11.78 percent below that of May 2012 and now rests at 7,272. Inventory increased in number by 70 properties over last month.
The inventory of single-family homes is down by 14.93 percent when compared to May of 2012, while condo inventory has decreased by 1.42 percent.
Current inventory combined with the current pace of sales created a 2.55-month supply of homes in Orlando for May. There was a 3.34-month supply in May 2012 and a 2.60-month supply last month.
The May affordability index is 212.25 percent, a decrease of 10 percentage points from April’s index of 222.36. (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.)
Steady increases in median price have caused the affordability index to drop 40 points since January 2013.
Buyers who earn the reported median income of $55,100 can qualify to purchase one of 3,702 homes in Orange and Seminole counties currently listed in the local multiple listing service for $314,131 or less.
First-time homebuyer affordability in May decreased to 150.93 percent from last month’s 158.12 percent. First-time buyers who earn the reported median income of $37,468 can qualify to purchase one of the 2,541 homes in Orange and Seminole counties currently listed in the local multiple listing service for $189,874 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando were up 7.85 percent in May, with 426 sales recorded in May 2013 compared to 395 in May 2012.
The most (85) condos in a single price category that changed hands in May were yet again in the $1 - $50,000 price range and accounted for 19.95 percent of all condo sales.
Orlando homebuyers purchased 270 duplexes, town homes, and villas in May 2013, which is a 21.08 percent increase compared to May 2012. Most (40) fell within the $120,000 - $140,000 price range category.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in May were up by 8.32 percent when compared to May of 2012. Throughout the MSA, 3,464 homes were sold in May 2013 compared with 3,198 in May 2012. To date, sales throughout the MSA are 9.48 percent above this time last year.
Each individual county’s monthly sales comparisons are as follows:
Lake: 14.37 percent above May 2012 (565 homes sold in May 2013 compared to 494 in May 2012);
Orange: 6.48 percent above May 2012 (1,709 homes sold in May 2013 compared to 1,605 in May 2012);
Osceola: 5.87 percent above May 2012 (541 homes sold in May 2013 compared to 511 in May 2012); and
Seminole: 10.37 percent above May 2012 (649 sold in May 2013 compared to 588 in May 2012).
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.