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Orlando's median home price continues its upward march

Friday, November 15, 2013  
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The median price of existing homes sold in the Orlando area has now experienced consecutive double-digit increases for an entire year, reports the Orlando Regional REALTOR® Association.

The October median price increase 26.12 percent is the year’s second highest; only August’s increase of nearly 29 percent is higher. Orlando’s median price has risen 21.65 percent since January of 2013 and 43.06 percent since January 2012.

Compared to last month’s median price of $156,000, the October median price of $154,500 is 0.96 percent lower.

In addition to the overall median price increase, each individual sales type experienced a year-to-year median price increase in October. Short sales led the way with a 19.40 percent jump, while the median price of normal sales increased 12.50 percent and foreclosures increased 10.08 percent.

The median price of single-family homes increased 26.86 percent, and the median price of condos increased 19.47 percent.

Completed Sales

Members of ORRA participated in the sales of 2,312 homes (all types combined) that closed in October 2013, a decrease of 10.46 percent compared to October 2012 and a decrease of 5.40 percent compared to September 2013.

According to ORRA Chairman Steve Merchant, owner-broker of Global Realty International, the decline in sales can be contributed in part to the government shutdown. "Consumer anxiety during the weeks leading up to the shutdown created hesitation on folks’ willingness to commit to a home purchase,” says Merchant. "The impact has now come into view, as it generally takes about four weeks to move from contract to closing. Similarly, we will not be surprised to see a decline in sales during November, correlating to the actual shutdown in October.”

Single-family home sales decreased 11.17 percent in October 2013 compared to October 2012, while condo sales decreased 10.54 percent.

Compared to October of 2012, the number of short sales (349) decreased 54.62 percent and the number of foreclosures (479) decreased 19.90 percent. The number of completed traditional sales (1,484), however, is a 22.14 percent increase compared to last year.

In October, short sales and foreclosures made up 35.81 percent of the entire sales pie, while normal sales made up 64.19 percent. Last year in October, those percentages were 52.94 percent and 47.06 percent, respectively.

Homes of all types spent an average of 64 days on the market before coming under contract in October 2013, and the average home sold for 96.18 percent of its listing price. In October 2012 those numbers were 79 days and 96.37 percent, respectively.

The average interest rate paid by Orlando homebuyers in October dipped to 4.28 percent. Last month, homebuyers paid an average interest rate of 4.49 percent; this month last year, homebuyers paid an average interest rate of 3.49.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 7,099. The number of pending sales in October 2013 is 23.27 percent lower than it was in October 2012 (9,252) and 1.73 percent lower than it was in September 2013 (7,224).

Short sales made up 52.54 percent of pending sales in October 2013. Normal properties accounted for 32.36 percent of pendings, while bank-owned properties accounted for 15.10 percent.

Inventory

The number of existing homes (all types combined) available for purchase in Orlando is 17.00 percent above that of October 2012 and now rests at 9,470. Inventory increased in number by 343 properties over last month.

The inventory of single-family homes is up by up by 15.99 percent when compared to October of 2012, while condo inventory is up by 15.56 percent. The inventory of duplexes, townhomes, and villas is up by 31.02 percent.

Current inventory combined with the current pace of sales created a 4.10-month supply of homes in Orlando for October. There was a 3.13-month supply in October 2012 and a 3.73-month supply last month.

Affordability

The October affordability index is 189.20 percent, an increase from September’s index of 182.58. (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 $55,385 can qualify to purchase one of 4,659 homes in Orange and Seminole counties currently listed in the local multiple listing service for $292,319 or less.

First-time homebuyer affordability in October increased to 134.54 percent from last month’s 129.84 percent. First-time buyers who earn the reported median income of $37,662 can qualify to purchase one of the 2,880 homes in Orange and Seminole counties currently listed in the local multiple listing service for $176,691 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were down 10.54 percent in October, with 331 sales recorded in October 2013 compared to 370 in October 2012.

Orlando homebuyers purchased 208 duplexes, town homes, and villas in October 2013, which is a 3.70 percent decrease compared to October 2012.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in October were down by 8.88 percent when compared to October of 2012. Throughout the MSA, 2,811 homes were sold in October 2013 compared with 3,085 in October 2012. To date, sales throughout the MSA are 6.90 percent above this time last year.

Each individual county’s monthly sales comparisons are as follows:

  • Lake: 1.66 percent above October 2012;
  • Orange: 11.47 percent below October 2012;
  • Osceola: 4.61 percent below October 2012; and
  • Seminole: 12.78 percent below October 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.


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