Orlando median home price increases 25 percent
Tuesday, October 15, 2013
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The median price of existing homes sold in the Orlando area during September rose nearly 25 percent over the median price in September of 2012, marking the 11th consecutive month of double-digit increases.
The September 2013 median price of $155,475 is 24.48 percent higher when compared to September 2012 and 0.31 percent higher when compared to August 2013. Orlando’s median price has risen 22.42 percent since January of 2013 and 43.96 percent since January 2012.
In addition to the overall median increase, each individual sales type experienced a year-to-year median price increase in September, with short sales leading the way with a 30.00 percent jump. The median price of foreclosures increased 19.40 percent; the median price of normal sales increased 12.40 percent.
Members of ORRA participated in the sales of 2,404 homes (all types combined) that closed in September 2013, an increase of 4.70 percent compared to September 2012 and a decrease of 17.10 percent compared to August 2013.
According to ORRA Chairman Steve Merchant, owner-broker of Global Realty International, the traditional August-to-September drop in sales is the natural conclusion of the annual summertime buying rush.
"We almost always see more transaction activity in August than in September," says Merchant. "August sales are driven in large part by the multitudes of families who put contracts on homes in June and July with intentions of being settled by the start of school."
Single-family home sales increased 7.59 percent in September 2013 compared to September 2012, while condo sales decreased 15.60 percent.
Compared to September of 2012, the number of short sales (424) decreased 34.87 percent and the number of foreclosures (437) decreased 19.82 percent. The number of completed traditional sales (1,543), however, is a 40.27 percent increase compared to last year.
In September, short sales and foreclosures made up 35.82 percent of the entire sales pie, while normal sales made up 64.18 percent. Last year in September, those percentages were 52.09 percent and 47.91 percent, respectively.
Homes of all types spent an average of 67 days on the market before coming under contract in September 2013, and the average home sold for 96.82 percent of its listing price. In September 2012 those numbers were 84 days and 95.86 percent, respectively.
The average interest rate paid by Orlando homebuyers in September was 4.49 percent. Last month, homebuyers paid an average interest rate of 4.64 percent; this month last year, homebuyers paid an average interest rate of 3.58.
Pending sales – those under contract and awaiting closing – are currently at 7,224. The number of pending sales in September 2013 is 22.05 percent lower than it was in September 2012 (9,268) and 3.92 percent lower than it was in August 2013 (7,519).
Short sales made up 54.18 percent of pending sales in September 2013. Normal properties accounted for 30.70 percent of pendings, while bank-owned properties accounted for 15.12 percent.
The number of existing homes (all types combined) available for purchase in Orlando is 13.06 percent above that of September 2012 and now rests at 9,127. Inventory increased in number by 551 properties over last month.
The inventory of single-family homes is up by up by 12.65 percent when compared to September of 2012, while condo inventory is up by 9.93 percent. The inventory of duplexes, townhomes, and villas is up by 23.85 percent.
Current inventory combined with the current pace of sales created a 3.80-month supply of homes in Orlando for September. There was a 3.52-month supply in September 2012 and a 2.96-month supply last month.
The September affordability index is 183.20 percent, an increase from August’s index of 180.30. (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 $55,328 can qualify to purchase one of 4,432 homes in Orange and Seminole counties currently listed in the local multiple listing service for $284,832 or less.
First-time homebuyer affordability in September increased to 130.28 percent from last month’s 128.21 percent. First-time buyers who earn the reported median income of $37,623 can qualify to purchase one of the 2,703 homes in Orange and Seminole counties currently listed in the local multiple listing service for $172,165 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were down 15.60 percent in September, with 359 sales recorded in September 2013 compared to 303 in September 2012.
Orlando homebuyers purchased 229 duplexes, town homes, and villas in September 2013, which is a 16.24 percent increase compared to September 2012.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in September were up by 4.27 percent when compared to September of 2012. Throughout the MSA, 2,832 homes were sold in September 2013 compared with 2,716 in September 2012. To date, sales throughout the MSA are 8.56 percent above this time last year.
Each individual county’s monthly sales comparisons are as follows:
- Lake: 17.58 percent above September 2012;
- Orange: 0.07 percent below September 2012;
- Osceola: 3.40 percent above September 2012; and
- Seminole: 7.32 percent above September 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.