Orlando housing market ends 2015 with a 15 percent increase in annual sales; 9 percent increase in median price

Orlando – January 15, 2015 – (RealEstateRama) — Orlando’s 2015 median price ($178,788) finished a healthy 9.02 percent higher than the 2014 annual median price ($164,000), thanks to a full 12 months of year-over-year price increases.

Sales for 2015 finished 15.46 percent above the cumulative total sales for 2014.
“We saw several significant trends in 2015,” says Orlando Regional REALTOR® Association President John Lazenby, Colony Realty Group, Inc., “most notably a very active and extended spring-summer homebuying season that saw year-over-year increases leap as high as 40 percent in July. Toward the end of the year, five consecutive months of decreases in inventory — peaking in August with a 13 percent drop and culminating in December with an 8 percent decrease — reduced options for buyers and dampened sales.”

Editor’s Note: Additional year-end statistics are included at the end of this release.

December 2015 Market Recap
The overall median price (all sales types and all home types combined) for the month of December 2015 is $185,000, a 9.47 percent jump compared to the $169,000 median price in December 2014. The median price is up 0.54 percent compared to the November 2015 median of $184,000.

The Orlando median home price has now experienced year-over-year increases for the past 53 consecutive months; as of December the median price is 60.17 percent higher than it was in July 2011.

The year-to-year median price of normal sales increased 2.62 percent, while the median price for foreclosure sales increased 10.09 percent and short sales decreased 6.04 percent.

The median price of single-family homes increased 11.45 percent when compared to December of last year, and the median price of condos increased 6.25 percent.

Completed Sales
Members of the Orlando Regional REALTOR® Association participated in the sale of 2,552 homes (all home types and all sale types combined) that closed in December 2015, a decrease of 8.95 percent compared to December 2014 and an increase of 9.76 percent compared to November 2015.

Single-family home sales decreased 11.64 percent in December 2015 compared to December 2014, while condo sales increased 8.31 percent.

Homes of all types spent an average of 72 days on the market before coming under contract in December 2015, and the average home sold for 96.92 percent of its listing price. In December 2014 those numbers were 79 days and 96.52 percent, respectively.

The average interest rate paid by Orlando homebuyers in December was 4.02 percent. Last month, the average interest rate was 4.01 while this month last year homebuyers paid an average interest rate of 3.86.

Pending Sales
Pending sales – those under contract and awaiting closing – are currently at 4,472. The number of pending sales in December 2015 is 15.78 percent lower than it was in December 2014 and 13.70 percent lower than it was in November 2015.

Normal properties made up 54.92 percent of pending sales in December 2015. Short sales accounted for 24.15 percent, while bank-owned properties accounted for 20.93 percent.

Inventory
The number of existing homes (all types combined) that were available for purchase in December is 7.99 percent below that of December 2014 and now rests at 10,634. Inventory decreased in number by 666 properties over last month.

The inventory of normal homes increased 6.92 percent, while foreclosures decreased 49.59 percent and short sales decreased 43.74 percent.

The inventory of single-family homes is down by 7.68 percent when compared to December of 2014, while condo inventory is down by 9.42 percent. The inventory of duplexes, townhomes, and villas is down by 8.11 percent.

Current inventory combined with the current pace of sales created a 4.17-month supply of homes in Orlando for December. There was a 4.12-month supply in December 2014 and a 4.86-month supply last month.

Affordability
The December affordability index is 167.23 percent, a decrease from November’s index of 168.27. (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 $56,867 can qualify to purchase one of 4,530 homes in Orange and Seminole counties currently listed in the local multiple listing service for $309,371 or less.

First-time homebuyer affordability in December decreased to 118.92 percent from last month’s 119.66 percent.

First-time buyers who earn the reported median income of $38,670 can qualify to purchase one of the 2,378 homes in Orange and Seminole counties currently listed in the local multiple listing service for $186,998 or less.

Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were up 8.31 percent in December, with 326 sales recorded in December 2015 compared to 301 in December 2014.

Orlando homebuyers purchased 238 duplexes, town homes, and villas in December 2015, which is 5.56 percent less than in December 2014.

MSA Numbers
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in December were down by 1.08 percent when compared to December of 2014. Year to date, sales are up 13.46 percent in the MSA.

Each individual county’s monthly sales comparisons are as follows:
• Lake: 5.54 percent below December 2014;
• Orange: 1.61 percent below December 2014;
• Osceola: 11.91 percent below December 2014; and
• Seminole: 15.69 percent above December 2014.

2015 Year-end Market Recap
• Overall sales in 2015 were up by 15.46 percent over 2014. A total of 35,064 homes were sold in 2015
compared to 30,369 the previous year.
• Sales of normal homes in 2015 increased 25.97 percent over 2014. Short sales decreased by 37.63 percent while bank-owned sales increased by 4.64 percent.
• Sales of single-family homes increased 16.66 percent over 2014, while condo sales increased 6.31 percent. Sales of duplexes, town homes, and villas increased 18.17.
• The 2015 year-end median price increased 9.02 percent to $178,788, compared to 2014’s year-end median price of $164,000.
• The median price of normal homes in 2015 increased 5.26 percent over 2014. The short sales year-end median price increased by 4.73 percent while the bank-owned year-end median price increased by 13.64 percent.
• Orlando’s overall inventory experienced a 7.99 percent decrease in 2015; single-family home inventory declined by 7.68 percent and condo inventory decreased 9.42 percent, year to date.
• By year’s end in 2015, 43,006 homes were sold in the Orlando MSA while 37,904 homes had been sold by year’s end in 2014 (for a 13.46 percent increase).

Each county’s 2015 year-end sales comparisons are as follows:
• Lake: 8.93 percent above 2014;
• Orange: 15.58 percent above 2014;
• Osceola: 10.19 percent above 2014; and
• Seminole: 14.69 percent above 2014.

For detailed statistical reports, please visit www.orlandorealtors.org and click on “Market Info” 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.

About The Orlando Regional REALTOR® Association
The Orlando Regional REALTOR® Association is one of the largest trade associations in the state of Florida and represents more than 11,500 real estate professionals throughout Central Florida. In 2005, ORRA created the Florida Real Estate Foundation, Inc. (FREF). The foundation’s core mission is to address Central Florida’s critical need for affordable, workforce housing. The foundation is governed by a 13-member board of trustees who are selected from both ORRA members and housing community leaders.