Buyer selection declines as Orlando inventory slips to post-boom levels
Monday, March 14, 2011
(March 14, 2011 – Orlando, FL) Members of the Orlando Regional REALTOR® Association reported a 5.68 percent year-over-year increase in the number (2,085) of home sales completed in February, helping to whittle Orlando’s inventory of unsold homes down to its lowest point since March 2006. The fast-flying condo market alone has 43.40 percent less inventory than this time last year.
"A downward slip in inventory means a downward slip in the number of choices available to homebuyers,” explains ORRA Chairman of the Board Mike McGraw, McGraw Real Estate Services, PL. "Nevertheless there is still a wide selection of homes on the market, and the weekend of March 26 -27 is a great time to explore the options. Orlando’s REALTORS® will be celebrating the Florida Open House Weekend by opening scores of their listings to visitors.”
Buyers should look for blue balloons with the REALTOR® "R” trademark in white to find participating open homes. Many homes scheduled to be open March 26 – 27 will also be tagged within the "Property Search” function on www.myfloridahomesmls.com, the consumer website of the Orlando area’s multiple listing service.
Potential buyers should also consider the current level of median home prices in Orlando, a level that was last seen in 1997. The $96,000 overall median price of all existing Orlando area homes sold in February increased a fraction (1.16 percent) from last month, but is 8.57 percent below the February 2010 median price of $105,000.
The lower median prices of bank-owned and short sales, which accounted for 73.48 percent of all sales in February, do continue to exert a downward influence on the overall median price (as do the sales of low-priced condos). The median price for bank-owned sales in February is $74,000 and the median price for short sales is $98,000. The median price for "normal” existing homes – i.e., those that are neither a short sale nor a foreclosure – sold in February is $155,000.
The number (9,223) of homes under contract for purchase in February is a decrease of (2.53 percent) compared to those awaiting closing in February 2010. However, there are (5.08) percent more homes currently under contract than were last month (8,777).
The Orlando affordability index decreased to a still-rocking 274.55 percent in February from January 2011. (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 $53,561 can qualify to purchase one of 7,929 homes in Orange and Seminole counties currently listed in the local multiple listing service for $263,567 or less.
First-time homebuyer affordability in February decreased to 195.23 percent from last month’s 197.98 percent, which can be attributed in part to February’s slight rise in median price. First-time buyers who earn the reported median income of $36,421 can qualify to purchase one of 5,643 homes in Orange and Seminole counties currently listed in the local multiple listing service for $159,312 or less.
Homes of all types spent an average of 99 days on the market before coming under contract in February 2011, and the average home sold for 94.47 percent of its listing price. In February 2010 those numbers were 91 days and 94.87 percent, respectively.
The area’s average interest rate increased in February 2011 to 4.88 percent, from the 4.84 percent posted in January 2011.
There are 13,480 homes currently available for purchase through the MLS, which is 2,571 homes (16.02 percent) less than were available in February 2010. The current pace of sales translates into 6.47 months of supply; February 2010 recorded 8.14 months of supply.
There are 10,889 single-family homes currently listed in the MLS, a number that is 8.65 percent less than the 11,920 single-family homes listed in February of last year. Condos make up 1,544 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,047. Orlando’s condo inventory is 43.40 percent lower than it was in February 2010.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area increased by 2.14 percent in February when compared to February of 2010 and decreased by 10.00 percent compared to January of 2011.
The most (263) condos in a single price category that changed hands in February were yet again in the $1 - $50,000 price range and accounts for 55.14 percent of all condo sales. The next greatest range, representing 10.69 percent of the month’s condo sales, is the $50,000 - $60,000 category.
Orlando homebuyers purchased 225 duplexes, town homes, and villas in February 2011, which is a 39.75 percent increase from February 2010, when 161 of these alternative housing types were purchased.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in February were up by 10.50 percent when compared to February of 2010. Throughout the MSA, 2,653 homes were sold in February 2011 compared with 2,401 in February 2010. To date, sales in the MSA are up 14.43 percent.
Each individual county’s sales comparisons are as follows:
*Lake: 9.50 percent below February 2010 (305 homes sold in February 2011 compared to 337 in February 2010);
*Orange: 10.31 percent above February 2010 (1,370 homes sold in February 2011 compared to 1,242 in February 2010);
*Osceola: 20.82 percent above February 2010 (528 homes sold in February 2011 compared to 437 in January 2010); and
*Seminole: 16.88 percent above February 2010 (450 sold in February 2011 compared to 385 in February 2010).
For detailed statistical reports, pleaseclick on "Housing Statistics” on the top menu bar. 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.