Orlando home inventory declines 11 percent in April, driving median price upward and stalling sales

Orlando, FL – (RealEstateRama) — The median price of Orlando homes shot up nearly 10 percent in April compared to April 2015, while sales increased about two percent. Both the rise in values and the sluggish movement in sales continue be influenced by the area’s ever-declining inventory.

“The overall supply of available properties dropped by 10.90 percent year over year in April,” says ORRA President John Lazenby, Colony Realty Group, Inc. “Orlando’s inventory has been dwindling for nearly a year now, with more homes being sold than are being added to the market nearly every month.”

“Even though sales are up by comparison, there is just not enough quality choice to meet demand,” continues Lazenby. “At this point REALTORS® are encountering a lot of owners who are tempted by rising values to sell their current home to either upgrade or downsize. But since it’s so difficult to find a replacement they stay put, which further suppresses inventory.”

Median Price

The overall median price (all sales types and all home types combined) for the month of April 2016 is $191,900, a 9.66 percent jump compared to the $175,000 median price in April 2015. The median price is down 1.59 percent compared to the March 2016 median of $195,000.

The Orlando median home price has now experienced year-over-year increases for the past 57 consecutive months; as of April the median price is 66.15 percent higher than it was in July 2011.

The year-to-year median price of normal sales increased 1.55 percent, while the median price for foreclosure sales increased 11.66 percent and short sales increased 11.45 percent.

The median price of single-family homes increased 7.73 percent when compared to April of last year, and the median price of condos increased 13.92 percent.

Completed Sales

Members of the Orlando Regional REALTOR® Association participated in the sale of 3,159 homes (all home types and all sale types combined) that closed in April 2016, an increase of 1.67 percent compared to April 2015 and an increase of 3.30 percent compared to March 2016.

Sales of normal homes increased 22.44 percent in April 2016, while foreclosures decreased 48.53 percent and short sales decreased 34.18 percent. Sales of single-family homes increased 1.68 percent year over year; condo sales decreased 0.81 percent.

Homes of all types spent an average of 70 days on the market before coming under contract in April 2016, and the average home sold for 97.10 percent of its listing price. In April 2015 those numbers were 79 days and 95.05 percent, respectively.

The average interest rate paid by Orlando homebuyers in April was 3.63 percent. Last month, the average interest rate was 3.70 while this month last year homebuyers paid an average interest rate of 3.69.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 6,075. The number of pending sales in April 2016 is 12.90 percent lower than it was in April 2015 and 4.78 percent higher than it was in March 2016.

Normal properties made up 71.62 percent of pending sales in April 2016. Short sales accounted for 15.88 percent, while bank-owned properties accounted for 12.49 percent.

Inventory

The number of existing homes (all types combined) that were available for purchase in April is 10.90 percent below that of April 2015 and now rests at 10,447. Inventory decreased by 1.29 percent (136 homes in number) compared to last month.

The inventory of normal homes increased 1.66 percent, while foreclosures decreased 65.86 percent and short sales decreased 47.42 percent.

The inventory of single-family homes is down by 9.30 percent when compared to April of 2015, while condo inventory is down by 17.80 percent. The inventory of duplexes, townhomes, and villas is down by 11.21 percent.

Current inventory combined with the current pace of sales created a 3.31-month supply of homes in Orlando for April. There was a 3.77-month supply in April 2015 and a 3.46-month supply last month.

Affordability

The April affordability index is 169.87 percent, an increase from March’s index of 165.41. (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 $57,095 can qualify to purchase one of 4,287 homes in Orange and Seminole counties currently listed in the local multiple listing service for $325,986 or less.

First-time homebuyer affordability in April increased to 120.80 percent from last month’s 117.62 percent. First-time buyers who earn the reported median income of $38,825 can qualify to purchase one of the 2,104 homes in Orange and Seminole counties currently listed in the local multiple listing service for $197,041 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were down 0.81 percent, with 369 sales recorded in April 2016 compared to 372 in April 2015.

Orlando homebuyers purchased 309 duplexes, town homes, and villas in April 2016, which is 4.75 percent more than in April 2015.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in April (3,773) were down by 0.55 percent when compared to April of 2015 (3,794). To date, sales in the MSA are down 1.30 percent.

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

• Lake: 6.13 percent below April 2015;
• Orange: 0.92 percent below April 2015;
• Osceola: 5.52 percent above April 2015; and
• Seminole: 0.14 percent above April 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.

Orlando Regional REALTOR Association
The Orlando Regional REALTOR® Association, recognized as one of the most innovative local real estate associations in the country, represents more than 11,500 real estate professionals throughout Central Florida. Its charitable arm, the Florida Real Estate Foundation, addresses Central Florida’s critical need for affordable workforce housing.