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ORRA Housing Report - February 2016

Tuesday, March 15, 2016  
Posted by: Lisa McDuffie
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Orlando median price continues upward trek
as buyer demand for homes outstrips inventory
in February

The inventory of Orlando homes available for purchase took another tumble in February, slowing year-over-year sales by 5 percent and driving a double digit increase in median price.

The overall median price (all sales types and all home types combined) for the month of February 2016 is $185,000, a 12.19 percent jump compared to the $164,900 median price in February 2015. The median price is up 2.78 percent compared to the January 2016 median of $180,000.

The Orlando median home price has now experienced year-over-year increases for the past 55 consecutive months; as of February the median price is 60.17 percent higher than it was in July

2011. In addition, the current median price of $185,000 (also the median price in December 2015) is at its highest value since August 2008, when the median price was $200,000.

The year-to-year median price of normal sales increased 3.21 percent, while the median price for foreclosure sales increased 8.33 percent and short sales increased 10.52 percent.

The median price of single-family homes increased 11.06 percent when compared to February of last year, and the median price of condos increased 3.26 percent.

Completed Sales

Members of the Orlando Regional REALTOR® Association participated in the sale of 2,334 homes (all home types and all sale types combined) that closed in February 2016, a decrease of 5.01 percent compared to February 2015 and an increase of 8.76 percent compared to January 2016.

The month-to-month increase in sales has dropped an important housing market indicator back into seller’s territory.

“After a brief visit to the buyer’s side in January, Orlando’s months-of-supply tally has decreased to 4.58 months, below the six-month threshold that economists consider balanced between buyer and seller,” explains Orlando Regional REALTOR® Association President Lazenby, Colony Realty Group, Inc. “Our hope for easing the inventory shortage is that more sellers will evaluate the favorable conditions and decide to place their homes on the market before the traditional spring/summer homebuying season starts in earnest.”

Interesting, the sales of duplexes, townhomes, and villas in February jumped 9.91 percent compared to February 2015, yet another sign of limited buyer choice within lower-priced, single-family inventory. Single-family home sales decreased 4.71 percent.

Sales of normal homes increased 13.17 percent in February 2016, while foreclosures decreased 39.32 percent and short sales decreased 37.84.

Homes of all types spent an average of 82 days on the market before coming under contract in February 2016, and the average home sold for 96.66 percent of its listing price. In February 2015 those numbers were 88 days and 96.32 percent, respectively.

The average interest rate paid by Orlando homebuyers in February was 3.75 percent. Last month, the average interest rate was 3.93 while this month last year homebuyers paid an average interest rate of 3.80.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 5,424. The number of pending sales in February 2016 is 18.66 percent lower than it was in February 2015 and 9.98 percent higher than it was in January 2016.

Normal properties made up 63.90 percent of pending sales in February 2016. Short sales accounted for 18.81 percent, while bank-owned properties accounted for 17.29 percent.

Inventory

The number of existing homes (all types combined) that were available for purchase in February is 6.55 percent below that of February 2015 and now rests at 10,696. Inventory decreased in number by 81 properties over last month.

The inventory of normal homes increased 6.91 percent, while foreclosures decreased 55.56 percent and short sales decreased 44.69 percent.

The inventory of single-family homes is down by 4.97 percent when compared to February of 2015, while condo inventory is down by 13.78 percent. The inventory of duplexes, townhomes, and villas is down by 6.23 percent.

Affordability

The February affordability index is 173.30 percent, a decrease from January’s index of 173.91. (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 $56,981 can qualify to purchase one of 4,471 homes in Orange and Seminole counties currently listed in the local multiple listing service for $320,609 or less.

First-time homebuyer affordability in February decreased to 123.24 percent from last month’s 123.67 percent. First-time buyers who earn the reported median income of $38,747 can qualify to purchase one of the 2,312 homes in Orange and Seminole counties currently listed in the local multiple listing service for $193,790 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were down 16.98 percent, with 269 sales recorded in February 2016 compared to 324 in February 2015.

Orlando homebuyers purchased 244 duplexes, town homes, and villas in February 2016, which is 9.91 percent more than in February 2015.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in February (2,805) were down by 7.00 percent when compared to February of 2015 (3,016).

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

Lake: 9.88 percent below February 2015;
Orange: 5.88 percent below February 2015;
Osceola: 9.48 percent below February 2015; and
Seminole: 5.05 percent below February 2015.

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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