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Orlando home sales leap 19 percent; median price rises 4 percent

Monday, March 16, 2015  
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Sales of existing homes in the Orlando area took a big jump last month, with nearly 20 percent more homes closing in February 2015 than in February 2014. In addition, the area’s overall median price (all sales types and all home types combined) increased nearly 5 percent in that same February-to-February comparison.

The overall median price (all sales types and all home types combined) for the month of February 2015 is $165,000, a healthy 4.43 percent increase compared to the $158,000 median price in February 2014. The year-to-year median price comparison has increased for 43 consecutive months and is now 42.86 percent higher than the $115,500 recorded in July 2011.

Orlando’s median home price also experienced a nice increase compared to last month; the February 2015 median price is 6.45 percent higher than the January 2015 median price of $155,000.

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 February. Foreclosures led the way with an 18.81 percent jump, while the median price of normal sales increased 5.88 percent and short sales increased 0.91 percent.

The median price of single-family homes increased 4.59 percent when compared to February of last year, and the median price of condos increased 1.04 percent.

Completed Sales

Members of ORRA participated in the sale of 2,377 homes (all home types and all sale types combined) that closed in February 2015, an increase of 19.03 percent compared to February 2014 and an increase of 12.12 percent compared to January 2015.

According to ORRA President Sharon Voss, Watson Realty Corp, the nice jump in sales can be attributed in part to both the additional available inventory and the current super-low interest rates. “And, I believe we are seeing a reaction to the ultra-competitive sellers’ market of recent years. Those would-be buyers who were previously shut out of the market by bidding wars and all-cash scenarios may be determined to land a house this year and are getting a jump on the spring selling season.”

Traditional sales in Orlando increased by 20.60 percent when compared to February 2014. Closings of short sales decreased by 32.84 percent while closings of foreclosures increased 36.22 percent.

Single-family home sales increased 21.45 percent in February 2015 compared to February 2014, while condo sales increased 6.85 percent.

Homes of all types spent an average of 88 days on the market before coming under contract in February 2015, and the average home sold for 96.27 percent of its listing price. In February 2014 those numbers were 76 days and 96.65 percent, respectively.
The average interest rate paid by Orlando homebuyers in February increased to 3.80 percent. This month last year, homebuyers paid an average interest rate of 4.37.
Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 6,669. The number of pending sales in February 2015 is 5.87 percent lower than it was in February 2014 (7,085) and 10.52 percent higher than it was in January 2015 (6,034).

Normal properties made up 47.16 percent of pending sales in February 2015. Short sales accounted for 24.26 percent of pendings, while bank-owned properties accounted for 28.58 percent.

Inventory

The number of existing homes (all types combined) that were available for purchase in February is 12.39 percent above that of February 2014 and now rests at 11,446. Inventory decreased in number by 185 properties over last month.

The inventory of single-family homes is up by up by 8.37 percent when compared to February of 2014, while condo inventory is up by 24.50 percent. The inventory of duplexes, townhomes, and villas is up by 29.39 percent.

Current inventory combined with the current pace of sales created a 4.82-month supply of homes in Orlando for February. There was a 5.10-month supply in February 2014 and a 5.49-month supply last month.

Affordability

The February affordability index is 190.71 percent, a decrease from January’s index of 206.07. (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 $56,297 can qualify to purchase one of 5,676 homes in Orange and Seminole counties currently listed in the local multiple listing service for $314,674 or less.

First-time homebuyer affordability in February decreased to 135.62 percent from last month’s 146.54 percent. First-time buyers who earn the reported median income of $38,282 can qualify to purchase one of the 3,431 homes in Orange and Seminole counties currently listed in the local multiple listing service for $190,203 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were up 6.85 percent in February, with 312 sales recorded in February 2015 compared to 292 in February 2014.

Orlando homebuyers purchased 219 duplexes, town homes, and villas in February 2015, which is 18.38 percent more than in February 2014.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in February were up by 19.51 percent when compared to February of 2014.

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

Lake: 18.38 percent above February 2014;
Orange: 25.33 percent above February 2014;
Osceola: 10.70 percent above February 2014; and
Seminole: 14.22 percent above February 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.


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