Rising prices, interest rates drive Orlando sales up 15 percent
Thursday, August 15, 2013
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The median price of existing homes sold in the Orlando area during July jumped 25 percent over July of 2012, the greatest year-to-year increase since the tail end of the red-hot market in January 2006, reports the Orlando Regional REALTOR® Association.
ORRA Chairman Steve Merchant, owner-broker of Global Realty International, explains that climbing prices are spurring buyers into action. "Between rising prices and rising interest rates, many buyers are taking the opportunity to get while the getting is good. The result is that sales went up 15 percent in July.”
The July 2013 median price of $157,000 is precisely 24.60 percent higher when compared to July 2012 and 4.49 percent higher when compared to June 2013. Orlando’s median price has risen 23.62 percent since January of 2013 and 45.37 percent since January 2012.
In addition to the overall median increase, each individual sales type experienced a year-to-year median price increase in July, with foreclosures leading the way with a 16.99 percent jump. The median price of short sales increased 13.64 percent; the median price of normal sales increased 10.45 percent.
Members of ORRA participated in the sales of 2,836 homes (all types combined) that closed in July 2013, an increase of 15.28 percent compared to July 2012. Single-family home sales increased 17.89 percent in July 2013 compared to July 2012, while condo sales decreased 1.14 percent.
Compared to July of 2012, the number of short sales (490) decreased 29.39 percent and the number of foreclosures (491) decreased 14.76 percent. The number of completed traditional sales (1,855), however, is a 55.88 percent increase compared to last year.
In July, short sales and foreclosures made up 34.59 percent of the entire sales pie, while normal sales made up 65.41 percent. Last year in July, those percentages were 51.63 percent and 48.37 percent, respectively.
Homes of all types spent an average of 62 days on the market before coming under contract in July 2013, and the average home sold for 96.69 percent of its listing price. In July 2012 those numbers were 82 days and 96.25 percent, respectively.
The average interest rate paid by Orlando homebuyers in July was 4.51 percent. Last month, homebuyers paid an average interest rate of 4.25 percent; this month last year, homebuyers paid an average interest rate of 3.78.
Pending sales – those under contract and awaiting closing – are currently at 7,990. The number of pending sales in July 2013 is 17.66 percent lower than it was in July 2012 (9,704) and 5.34 percent lower than it was in June 2013 (8,441).
Short sales made up 55.16 percent of pending sales in July 2013. Normal properties accounted for 31.40 percent of pendings, while bank-owned properties accounted for 13.44 percent.
Thanks to an 18 percent increase in the influx of new listings, the number of existing homes (all types combined) available for purchase in Orlando is 0.09 percent below that of July 2012 and now rests at 8,099. Inventory increased in number by 483 properties over last month.
The inventory of single-family homes is down by 2.15 percent when compared to July of 2012, while condo inventory is up by 2.53 percent. The inventory of duplexes, townhomes, and villas is up by 17.41 percent.
Current inventory combined with the current pace of sales created a 2.86-month supply of homes in Orlando for July. There was a 3.30-month supply in July 2012 and a 2.86-month supply last month.
The July affordability index is 180.54 percent, a decrease of 13.79 percentage points from June’s index of 294.33. (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 nearly 72 points since January 2013.
Buyers who earn the reported median income of $55,214 can qualify to purchase one of 3,879 homes in Orange and Seminole counties currently listed in the local multiple listing service for $283,446 or less.
First-time homebuyer affordability in June decreased to 128.38 percent from last month’s 138.19 percent. First-time buyers who earn the reported median income of $37,546 can qualify to purchase one of the 2,397 homes in Orange and Seminole counties currently listed in the local multiple listing service for $171,327 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were down 1.14 percent in July, with 348 sales recorded in July 2013 compared to 352 in July 2012.
The most (60) condos in a single price category that changed hands in June were yet again in the $1 - $50,000 price range and accounted for 17.24 percent of all condo sales.
Orlando homebuyers purchased 261 duplexes, town homes, and villas in July 2013, which is a 19.18 percent increase compared to July 2012. Most (35) fell within the $140,000 - $160,000 price range category.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July were up by 11.90 percent when compared to July of 2012. Throughout the MSA, 3,377 homes were sold in July 2013 compared with 3,018 in July 2012. To date, sales throughout the MSA are 9.09 percent above this time last year.
Each individual county’s monthly sales comparisons are as follows:
- Lake: 25.54 percent above July 2012;
- Orange: 10.30 percent above July 2012;
- Osceola: 4.02 percent above July 2012; and
- Seminole: 13.08 percent above July 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.