The Orlando housing market enjoyed healthy January-to-January comparison increases in both sales and median price as we head into the annual homebuying season, reports the Orlando Regional REALTOR® Association.
The overall median price (all sales types and all home types combined) for the month of January 2015 is $155,000, a 3.68 percent increase compared to the $149,500 median price in January 2014. The year-to-year median price comparison has increased each month since July 2011, and is now 34.20 percent higher than the $115,500 recorded for that month.
Orlando’s median home price experienced its typical January-to December comparison decline; the January 2015 median price is 8.28 percent lower than the December 2014 median price of $169,000.
In addition to the overall median price increase, each individual sale type and home type all experienced a year-to-year median price increase in January. Short sales led the way with a 16.60 percent jump, while the median price of foreclosures increased 8.40 percent and normal sales increased 7.56 percent.
The median price of single-family homes increased 5.38 percent when compared to January of last year, and the median price of condos decreased 3.72 percent.
Members of ORRA participated in the sales of 2,074 homes (all home types and all sale types combined) that closed in January 2015, an increase of 9.79 percent compared to January 2014 and a decrease of 26.01 percent compared to December 2014.
According to ORRA President Sharon Voss, the traditional December-to-January sales decline is due in large part to an annual rush in December to close prior to the end of the year. “The homestead tax exemption is a primary financial benefit of homeownership,” explains Voss. “Owners have to be in possession of their new home before January 1 of the New Year in order to claim the exemption on the coming year’s taxes.”
Voss says that a steady decrease in interest rates is prompting REALTORS® to expect a steady rise in sales over the coming months. This prediction is also supported by a 14 percent increase in the number of pending sales between January 2015 and December 2014.
The average interest rate paid by Orlando homebuyers in January decreased to 3.67 percent, the lowest since May of 2013. This month last year, homebuyers paid an average interest rate of 4.47.
Traditional sales increased by 6.66 percent when compared to January 2014. Closings of short sales decreased by 50.22 percent while closings of foreclosures increased 45.01 percent.
Single-family home sales increased 13.96 percent in January 2015 compared to January 2014, while condo sales increased 2.55 percent.
Homes of all types spent an average of 82 days on the market before coming under contract in January 2015, and the average home sold for 96.41 percent of its listing price. In January 2014 those numbers were 73 days and 96.31 percent, respectively.
Pending sales – those under contract and awaiting closing – are currently at 6,037. The number of pending sales in January 2015 is 6.55 percent lower than it was in January 2014 (6,460) and 13.69 percent higher than it was in December 2014 (5,310).
Normal properties made up 42.09 percent of pending sales in January 2014. Short sales accounted for 27.36 percent of pendings, while bank-owned properties accounted for 30.54 percent.
The number of existing homes (all types combined) that were available for purchase in January is 17.17 percent above that of January 2014 and now rests at 11,631. Inventory increased in number by 74 properties over last month.
The inventory of single-family homes is up by up by 14.08 percent when compared to January of 2014, while condo inventory is up by 26.37 percent. The inventory of duplexes, townhomes, and villas is up by 30.67 percent.
Current inventory combined with the current pace of sales created a 5.61-month supply of homes in Orlando for January. There was a 5.26-month supply in January 2014 and a 4.12-month supply last month.
The January affordability index is 206.07 percent, an increase from December’s index of 184.49. (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 $56,240 can qualify to purchase one of 5,927 homes in Orange and Seminole counties currently listed in the local multiple listing service for $319,407 or less.
First-time homebuyer affordability in December increased to 131.19 percent from last month’s 130.42 percent. First-time buyers who earn the reported median income of $38,243 can qualify to purchase one of the 3,568 homes in Orange and Seminole counties currently listed in the local multiple listing service for $193,064 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were up 2.55 percent in January, with 281 sales recorded in January 2015 compared to 274 in January 2014.
Orlando homebuyers purchased 169 duplexes, town homes, and villas in January 2015, which is 11.05 percent less than in January 2014.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in January were up by 6.38 percent when compared to January of 2014.
Each individual county’s monthly sales comparisons are as follows:
• Lake: 5.33 percent below January 2014; • Orange: 14.25 percent above January 2014; • Osceola: 6.31 percent below January 2014; and • Seminole: 8.41 percent above January 2014.
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.