Orlando median price jumps 20 percent in November
Monday, December 16, 2013
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Orlando's median price increases create
win-win market conditions for both buyers and sellers
Continued improvements in Orlando’s median price are helping more owners surface from underwater conditions and take the opportunity to list their homes, which in turn is boosting inventory and providing relief for buyers exhausted by competition.
The overall median price (all sales types and all home types combined) for November is $155,000, a 21.14 percent increase compared to the $127,950 median price in November 2012, reports the Orlando Regional REALTOR® Association. The November median price is 0.65 percent higher than last month’s median price of $154,000.
In addition to the overall median price increase, each individual sales type and home type all experienced a year-to-year median price increase in November. Normal sales led the way with a 14.19 percent jump, while the median price of short sales increased 12.05 percent and foreclosures increased 2.81 percent. The median price of condos increased 23.08 percent, and the median price of single-family homes increased 17.39 percent.
Members of ORRA participated in the sales of 2,068 homes (all home types and all sale types combined) that closed in November 2013, a decrease of 19.22 percent compared to November 2012 and a decrease of 13.26 percent compared to October 2013.
Traditional sales increased by 7.89 percent when compared to November 2012, but closings of both short sales and foreclosure sales decreased dramatically: short sales nosedived 62.88 percent while foreclosures dropped 22.28 percent.
According to ORRA Chairman Steve Merchant, owner-broker of Global Realty International, there are multiple factors contributing to the traditional November sales decline this year.
"We’re seeing fewer investor and institutional buyers in the Orlando market due to the dramatic gains in median prices we’ve experienced,” Merchant says. "In addition, we’re experiencing another effect of the governmental shutdown, which understandably dampened buyers’ willingness to commit to a home purchase in October. Since it takes about four weeks to move from contract to closing, the expected result is a drop in completed sales in November.”
Single-family home sales decreased 18.73 percent in November 2013 compared to November 2012, while condo sales decreased 28.21 percent.
In November, short sales and foreclosures made up 33.85 percent of the entire sales pie, while normal sales made up 66.15 percent. Last year in November, those percentages were 50.47 percent and 49.53 percent, respectively.
Homes of all types spent an average of 66 days on the market before coming under contract in November 2013, and the average home sold for 96.69 percent of its listing price. In November 2012 those numbers were 82 days and 96.33 percent, respectively.
The average interest rate paid by Orlando homebuyers in November increased to 4.36 percent. Last month, homebuyers paid an average interest rate of 4.28 percent; this month last year, homebuyers paid an average interest rate of 3.47.
Pending sales – those under contract and awaiting closing – are currently at 6,520. The number of pending sales in November 2013 is 26.30 percent lower than it was in November 2012 (8,847) and 8.16 percent lower than it was in October 2013 (7,099).
Short sales made up 52.15 percent of pending sales in November 2013. Normal properties accounted for 33.13 percent of pendings, while bank-owned properties accounted for 14.72 percent.
The number of existing homes (all types combined) that were available for purchase in November is 22.45 percent above that of November 2012 and now rests at 9,609. Inventory increased in number by 139 properties over last month.
The inventory of single-family homes is up by up by 21.77 percent when compared to November of 2012, while condo inventory is up by 19.67 percent. The inventory of duplexes, townhomes, and villas is up by 35.75 percent.
Current inventory combined with the current pace of sales created a 4.65-month supply of homes in Orlando for November. There was a 3.07-month supply in November 2012 and a 3.97-month supply last month.
The November affordability index is 186.96 percent, a decrease from October’s index of 189.82. (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 $55,422 can qualify to purchase one of 4,763 homes in Orange and Seminole counties currently listed in the local multiple listing service for $289,790 or less.
First-time homebuyer affordability in November decreased to 132.95 percent from last month’s 134.98 percent. First-time buyers who earn the reported median income of $37,701 can qualify to purchase one of the 2,924 homes in Orange and Seminole counties currently listed in the local multiple listing service for $175,162 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were down 28.21 percent in November, with 285 sales recorded in November 2013 compared to 397 in November 2012.
Orlando homebuyers purchased 208 duplexes, town homes, and villas in November 2013, which is a 7.56 percent decrease compared to November 2012.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in November were down by 17.04 percent when compared to November of 2012. Throughout the MSA, 2,502 homes were sold in November 2013 compared with 3,016 in November 2012. To date, sales throughout the MSA are 4.95 percent above this time last year.
Each individual county’s monthly sales comparisons are as follows:
• Lake: 3.02 percent above November 2012;
• Orange: 20.25 percent below November 2012;
• Osceola: 15.10 percent below November 2012; and
• Seminole: 23.71 percent below November 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.