Orlando home sales increase 3 percent as median price continues upward march and climbs 12 percent

Orlando, FL – (RealEstateRama) — The median price of Orlando homes rose 12 percent year-over-year in September, while sales increased by 3 percent. The supply of homes available for purchase in the Orlando area slid downward by 10 percent.

“Orlando area inventory currently rests at 10,362 homes, which is both the lowest point this year and the lowest level since March of 2014,” says Orlando Regional REALTOR® Association President John Lazenby, Colony Realty Group, Inc. “Housing inventory in Orlando has declined year-over-year for 15 straight months, which is driving values upward and causing prospective buyers to either waver at the steeper home prices or become disheartened by the competition for the low number of available affordable listings.”

“However, a glimmer of hope lies in the increase of “normal” sales that entered the inventory in September as new listings,” continues Lazenby. “While new listings of foreclosures and short sales are plummeting as these sales types disappear from the market, new listings of “normal” sales are up more than 16 percent. REALTORS® are encouraged to see that more traditional homeowners are realizing it is an opportune time to sell and are putting their properties on the market.”

Median Price

The overall median price (all sales types and all home types combined) for the month of September 2016 is $205,000, a 12.33 percent jump compared to the $182,500 median price in September 2015. The median price is steady compared to the August 2016 median of $205,000 as well.

The Orlando median home price has now experienced year-over-year increases for the past 62 consecutive months; as of September the median price is 77.49 percent higher than it was in July 2011.

The year-to-year median price of normal sales increased 5.39 percent, while the median price for foreclosure sales increased 4.85 percent and short sales increased 15.56 percent.

The median price of single-family homes increased 12.50 percent when compared to September of last year, and the median price of condos increased 6.57 percent.

Completed Sales

Members of ORRA participated in the sale of 3,091 homes (all home types and all sale types combined) that closed in September 2016, an increase of 2.59 percent compared to September 2015. Sales took their traditional August to September fall and decreased by 10.43 percent in September when compared to last month.

Sales of normal homes increased 20.52 percent in September 2016, while foreclosures decreased 60.33 percent and short sales decreased 24.78 percent. Sales of single-family homes increased 1.43 percent year over year; condo sales increased 6.51 percent.

Homes of all types spent an average of 60 days on the market before coming under contract in September 2016, and the average home sold for 97.06 percent of its listing price. In September 2015 those numbers were 67 days and 96.96 percent, respectively.

The average interest rate paid by Orlando homebuyers in September was 3.53 percent. Last month, the average interest rate was 3.49 percent, while in September of last year homebuyers paid an average interest rate of 3.96 percent.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 4,594. The number of pending sales in September 2016 is 14.15 percent lower than it was in September 2015 and 7.29 percent lower than it was in August 2016.

Normal properties made up 73.38 percent of pending sales in September 2016. Short sales accounted for 15.59 percent, while bank-owned properties accounted for 11.04 percent.

Inventory

The number of existing homes (all types combined) that were available for purchase in September is 10.15 percent below that of September 2015 and now rests at 10,362. Inventory decreased by 1.36 percent (143 homes in number) compared to last month.

The inventory of normal homes increased 0.07 percent, while foreclosures decreased 65.66 percent and short sales decreased 46.08 percent.

The inventory of single-family homes is down by 9.16 percent when compared to September of 2015, while condo inventory is down by 18.75 percent. The inventory of duplexes, townhomes, and villas is down by 3.18 percent.

Current inventory combined with the current pace of sales created a 3.35-month supply of homes in Orlando for September. There was a 3.83-month supply in September 2015 and a 3.04-month supply last month.

Affordability

The September affordability index is 161.74, a decrease from August’s 162.41 percent. (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 $57,380 can qualify to purchase one of 4,357 homes in Orange and Seminole counties currently listed in the local multiple listing service for $331,570 or less.

First-time homebuyer affordability in September decreased to 115.02 from last month’s 115.49 percent. First-time buyers who earn the reported median income of 39,018 can qualify to purchase one of the 2,067 homes in Orange and Seminole counties currently listed in the local multiple listing service for $200,416 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were up 6.51 percent, with 360 sales recorded in September 2016 compared to 338 in September 2015.

Orlando homebuyers purchased 319 duplexes, town homes, and villas in September 2016, which is 7.41 percent more than in September 2015.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in September (3,706) were up by 1.17 percent when compared to September of 2015 (3,663). To date, sales in the MSA are down 0.17 percent.

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

• Lake: 2.92 percent above September 2015;
• Orange: 1.11 percent above September 2015;
• Osceola: 4.66 percent below September 2015; and
• Seminole: 4.73 percent above September 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.