Orlando annual median price climbed 24 percent in 2013
Wednesday, January 15, 2014
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Orlando's annual median price climbed 24 percent
as "normal" sales skyrocketed in 2013
Orlando’s annual median home price ($149,625) finished out the year 23.66 percent higher than the 2012 annual median price ($121,000), thanks to significant median price improvements every single month in 2013. In fact, Orlando’s median price (all sales types combined) has now posted positive year-to-year gains for 29 consecutive months, and has risen 68.76 percent since January 2011.
In addition to median price gains, sales for 2013 finished 6.54 percent greater than in 2012. The closings of "normal” homes skyrocketed 41.90 percent in 2013, while short sales dropped 33 percent and foreclosures dropped 11.56 percent.
"Homeowners who were waiting for seller-favoring conditions to put their "normal” homes on the market found what they were looking for in 2013,” says Orlando Regional REALTOR® Association Chairman Zola Szerencses, RE/MAX 200 Realty. "Buyers spent the year competing fiercely for available properties, and the resulting bidding wars helped reverse underwater mortgage conditions for many owners.”
"Orlando REALTORS® anticipate the coming year to be less stressful for buyers as our painfully thin inventory continues to fill out and the market as a whole moves toward a healthy balance,” continues Szerencses. "We expect more traditional sales to continue contributing to inventory increases as sellers seek to capitalize on the still-strong buyer demand, and a fresh influx of foreclosures to provide additional opportunities for buyers in 2014.”
Note: Additional year-end statistics are located at the end of this release.
December 2013 Report
The overall median price (all sales types and all home types combined) for the month of December is $160,150, a 20.87 percent increase compared to the $132,500 median price in December 2012, reports the Orlando Regional REALTOR® Association. The December median price is 3.32 percent higher than last month’s median price of $155,000.
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. Normal sales led the way with an 11.52 percent jump, while the median price of short sales increased 11.11 percent and foreclosures increased 3.05 percent.
The median price of single-family homes increased 17.45 percent when compared to December of last year, and the median price of condos increased 16.95 percent.
Members of ORRA participated in the sales of 2,376 homes (all home types and all sale types combined) that closed in December 2013, a decrease of 5.15 percent compared to December 2012 but an increase of 11.55 percent compared to November 2013.
Traditional sales increased by 29.03 percent when compared to December 2012. Closings of short sales decreased by 57.74 percent while closings of foreclosures decreased 9.74 percent.
Single-family home sales decreased 4.21 percent in December 2013 compared to December 2012, while condo sales decreased 13.45 percent.
In December, short sales and foreclosures made up 32.66 percent of the entire sales pie, while normal sales made up 67.34 percent. Last year in December, those percentages were 50.50 percent and 49.50 percent, respectively.
Homes of all types spent an average of 69 days on the market before coming under contract in December 2013, and the average home sold for 96.49 percent of its listing price. In December 2012 those numbers were 80 days and 96.25 percent, respectively.
The average interest rate paid by Orlando homebuyers in December increased to 4.57 percent. Last month, homebuyers paid an average interest rate of 4.36 percent; this month last year, homebuyers paid an average interest rate of 3.46.
Pending sales – those under contract and awaiting closing – are currently at 6,026. The number of pending sales in December 2013 is 23.56 percent lower than it was in December 2012 (7,883) and 7.58 percent lower than it was in November 2013 (6,520).
Short sales made up 55.08 percent of pending sales in December 2013. Normal properties accounted for 28.68 percent of pendings, while bank-owned properties accounted for 16.25 percent.
The number of existing homes (all types combined) that were available for purchase in December is 27.59 percent above that of December 2012 and now rests at 9,421. Inventory decreased in number by 188 properties over last month.
The inventory of single-family homes is up by up by 29.52 percent when compared to December of 2012, while condo inventory is up by 18.77 percent. The inventory of duplexes, townhomes, and villas is up by 26.90 percent.
Current inventory combined with the current pace of sales created a 3.97-month supply of homes in Orlando for December. There was a 2.95-month supply in December 2012 and a 4.51-month supply last month.
The December affordability index is 176.72 percent, a decrease from November’s index of 186.96. (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 $55,499 can qualify to purchase one of 4,584 homes in Orange and Seminole counties currently listed in the local multiple listing service for $283,015 or less.
First-time homebuyer affordability in December decreased to 125.67 percent from last month’s 132.95 percent. First-time buyers who earn the reported median income of $37,739 can qualify to purchase one of the 2,750 homes in Orange and Seminole counties currently listed in the local multiple listing service for $171,067 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were down 13.45 percent in December, with 309 sales recorded in December 2013 compared to 357 in December 2012.
Orlando homebuyers purchased 222 duplexes, town homes, and villas in December 2013, which is the exact same number as those purchased in December 2012.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in December were down by 5.38 percent when compared to December of 2012. Throughout the MSA, 2,900 homes were sold in December 2013 compared with 3,065 in December 2012. To date, sales throughout the MSA are 4.30 percent above this time last year.
Each individual county’s monthly sales comparisons are as follows:
- Lake: 9.75 percent above December 2012;
- Orange: 7.40 percent below December 2012;
- Osceola: 10.41 percent below December 2012; and
- Seminole: 7.24 percent below December 2012.
2013 Year-end Recap
- Overall sales in 2013 were up by 6.54 percent over 2012. A total of 30,645 homes were sold in 2013 compared to 28,765 the previous year.
- Sales of normal homes in 2013 increased 41.90 percent over 2012. Short sales decreased by 33.02 percent while bank-owned sales declined by 11.56 percent.
- The 2013 year-end year-to-date median price increased 23.66 percent to $149,625 compared 2012’s $121,000.
- The median price of normal homes in 2013 increased 11.31 percent over 2012. The short sales year-end median price increased by 10.58 percent while the bank-owned year-end median price increased by 16.69 percent.
- Orlando’s overall inventory experienced a 1.99 percent decline in 2013; single-family home inventory declined 4.16 percent, year to date.
- By year’s end in 2013, 36,953 homes were sold in the Orlando MSA while 35,428 homes had been sold by year’s end in 2012 (for a 4.30 percent increase).
Each county’s 2013 year-end sales comparisons are as follows:
- Lake: 15.81 percent above 2012;
- Orange: 1.84 percent above 2012;
- Osceola: 1.40 percent above 2012; and
- Seminole: 4.97 percent above 2012.
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.