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2014 Orlando housing market ends with price up, sales steady

Thursday, January 15, 2015  
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Orlando’s 2014 annual median home price ($164,000) finished a healthy 9.61 percent higher than the 2013 annual median price ($149,627), thanks to a full 12 months of price increases. Sales for 2014 (30,281) finished 1.40 percent below the cumulative total sales for 2013 (30,712), the result of monthly sales comparisons that see-sawed dramatically between positive and negative.

“We saw several significant trends in 2014, most notably relief from the razor thin inventory of previous years with the addition of more “normal” homes and significantly more foreclosures onto the market,” says Orlando Regional REALTOR® Association President Sharon Voss, Watson Realty Corp. “Those same foreclosures also changed up the sales landscape: For example the number of transactions on foreclosed properties increased by 26 percent in 2014 and nudged the number of short sales closings down 59 percent.”

Note: Additional year-end statistics are included at the end of this release.

December 2014 Market Recap

Median Price

The overall median price (all sales types and all home types combined) for the month of December 2014 is $170,000, a 6.25 percent increase compared to the $160,000 median price in December 2013. The December median price is 3.03 percent higher than last month’s median price of $165,000.

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 December. Short sales led the way with a 16.72 percent jump, while the median price of foreclosures increased 15.34 percent and normal sales increased 5.35 percent.

The median price of single-family homes increased 0.57 percent when compared to December of last year, and the median price of condos increased 10.67 percent.

Completed Sales

Members of ORRA participated in the sales of 2,715 homes (all home types and all sale types combined) that closed in December 2014, an increase of 11.13 percent compared to December 2013 and an increase of 18.56 percent compared to November 2014.

Traditional sales increased by 14.04 percent when compared to December 2013.

Closings of short sales decreased by 60.74 percent while closings of foreclosures increased 55.08 percent.

Single-family home sales increased 14.71 percent in December 2014 compared to December 2013, while condo sales decreased 6.03 percent.

Homes of all types spent an average of 78 days on the market before coming under contract in December 2014, and the average home sold for 96.50 percent of its listing price. In December 2013 those numbers were 70 days and 96.59 percent, respectively.

The average interest rate paid by Orlando homebuyers in December decreased to 3.86 percent. Last month, homebuyers paid an average interest rate of 4.01 percent; this month last year, homebuyers paid an average interest rate of 4.57.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 5,310. The number of pending sales in December 2014 is 11.88 percent lower than it was in December 2013 (6,026) and 13.81 percent lower than it was in November 2014 (6,161).

Normal properties made up 37.14 percent of pending sales in December 2014. Short sales accounted for 32.88 percent of pendings, while bank-owned properties accounted for 29.98 percent.

Inventory

The number of existing homes (all types combined) that were available for purchase in December is 22.67 percent above that of December 2013 and now rests at 11,557. Inventory decreased in number by 564 properties over last month.

The inventory of single-family homes is up by up by 20.98 percent when compared to December of 2013, while condo inventory is up by 25.58 percent. The inventory of duplexes, townhomes, and villas is up by 34.17 percent.

Current inventory combined with the current pace of sales created a 4.26-month supply of homes in Orlando for December. There was a 3.86-month supply in December 2013 and a 5.29-month supply last month.

Affordability

The December affordability index is 183.40 percent, a decrease from November’s index of 185.34. (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 $56,183 can qualify to purchase one of 5,914 homes in Orange and Seminole counties currently listed in the local multiple listing service for $311,785 or less.

First-time homebuyer affordability in December decreased to 130.42 percent from last month’s 131.80 percent. First-time buyers who earn the reported median income of $38,204 can qualify to purchase one of the 3,563 homes in Orange and Seminole counties currently listed in the local multiple listing service for $188,457 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were down 6.03 percent in December, with 296 sales recorded in December 2014 compared to 315 in December 2013.

Orlando homebuyers purchased 243 duplexes, town homes, and villas in December 2014, which 5.19 percent more than in December 2013.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and

Seminole counties) in December were up by 14.46 percent when compared to December of 2013. Throughout the MSA, 3,412 homes were sold in December 2014 compared with 2,981 in December 2013. To date, sales throughout the MSA are 2.03 percent above this time last year.

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

Lake: 18.86 percent above December 2013;
Orange: 17.61 percent above December 2013;
Osceola: 24.67 percent above December 2013; and
Seminole: 4.51 percent below December 2013.

2014 Year-end Market Recap

• Overall sales in 2014 were down by 1.40 percent over 2013. A total of 30,281 homes were sold in 2014 compared to 30,712 the previous year.

• Sales of normal homes in 2014 increased 7.51 percent over 2013. Short sales decreased by 58.64 percent while bank-owned sales increased by 25.66 percent.

• The 2014 year-end year-to-date median price increased 9.61 percent to $164,000 compared 2013’s $149,627.

• The median price of normal homes in 2014 increased 7.34 percent over 2013. The short sales year-end median price increased by 13.58 percent while the bank-owned year-end median price increased by 10.66 percent.

• Orlando’s overall inventory experienced a 40.22 percent increase in 2014; single-family home inventory increased by 41.76 percent, year to date.

• By year’s end in 2014, 37,785 homes were sold in the Orlando MSA while 37.034 homes had been sold by year’s end in 2013 (for a 2.03 percent increase).

• Each county’s 2013 year-end sales comparisons are as follows:

Lake: 6.77 percent above 2013;
Orange: 0.29 percent below 2013;
Osceola: 4.37 percent above 2013; and
Seminole: 2.26 percent above 2013.

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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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