Highlights from the Orlando Regional Realtor Association’s most recent Market Pulse.
Orlando median price jumps 12 percent amid declines in both inventory and sales
The inventory of homes available for purchase in the Orlando area dropped by 9.91 percent in July 2016, contributing to a 6.28 percent decrease in sales and a 12.04 percent increase in median price when compared to July 2015. Inventory has experienced 13 consecutive months of year-over-year declines.
“We saw a slowdown of home sales in July, and we’re still seeing prices rise and fewer available homes on the market,” says Orlando Regional REALTOR® Association President John Lazenby, Colony Realty Group, Inc. “Competition for homes in the entry-level and mid-price range (under $300,000) continues to remain high, especially among first-time homebuyers and investors. Additionally, would-be sellers are staying put and hesitant to put their homes on the market because they will face high prices and few choices as they look for a new home. As expected, high demand and low supply is continuing to drive prices up.”
The overall median price (all sales types and all home types combined) for the month of July 2016 is $205,383, a 12.04 percent jump compared to the $183,310 median price in July 2015. The median price is down 0.78 percent compared to the June 2016 median of $207,000.
The Orlando median home price has now experienced year-over-year increases for the past 60 consecutive months; as of July the median price is 77.82 percent higher than it was in July 2011.
The year-to-year median price of normal sales increased 6.90 percent, while the median price for foreclosure sales increased 4.92 percent and short sales decreased 3.20 percent.
The median price of single-family homes increased 14.50 percent when compared to July of last year, and the median price of condos increased 9.20 percent.
Members of ORRA participated in the sale of 3,342 homes (all home types and all sale types combined) that closed in July 2016, a decrease of 6.28 percent compared to July 2015 and a decrease of 6.02 percent compared to June 2016.
Sales of normal homes increased 10.45 percent in July 2016, while foreclosures decreased 62.91 percent and short sales decreased 29.58 percent. Sales of single-family homes decreased 6.83 percent year over year; condo sales decreased 7.65 percent.
Homes of all types spent an average of 60 days on the market before coming under contract in July 2016, and the average home sold for 97.28 percent of its listing price. In July 2015 those numbers were 69 days and 96.90 percent, respectively.
The average interest rate paid by Orlando homebuyers in July was 3.45 percent. Last month, the average interest rate was also 3.45 percent, while in July of last year homebuyers paid an average interest rate of 3.98 percent.
Pending sales – those under contract and awaiting closing – are currently at 5,178. The number of pending sales in July 2016 is 17.20 percent lower than it was in July 2015 and 6.06 percent lower than it was in June 2016.
Normal properties made up 72.44 percent of pending sales in July 2016. Short sales accounted for 15.30 percent, while bank-owned properties accounted for 12.26 percent.
The number of existing homes (all types combined) that were available for purchase in July is 9.91 percent below that of July 2015 and now rests at 10,648. Inventory increased by 0.18 percent (19 homes in number) compared to last month.
The inventory of normal homes increased 1.01 percent, while foreclosures decreased 66.79 percent and short sales decreased 47.83 percent.
The inventory of single-family homes is down by 8.66 percent when compared to July of 2015, while condo inventory is down by 15.16 percent. The inventory of duplexes, townhomes, and villas is down by 11.72 percent.
Current inventory combined with the current pace of sales created a 3.19-month supply of homes in Orlando for July. There was a 3.31-month supply in July 2015 and a 2.99-month supply last month.
The July affordability index is 162.77, a slight increase from June’s 161.30 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 $57,266 can qualify to purchase one of 4,657 homes in Orange and Seminole counties currently listed in the local multiple listing service for $334,304 or less.
First-time homebuyer affordability in July increased a percentage point to 115.75 from last month’s 114.70 percent. First-time buyers who earn the reported median income of $38,941 can qualify to purchase one of the 2,198 homes in Orange and Seminole counties currently listed in the local multiple listing service for $202,068 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were down 7.65 percent, with 362 sales recorded in July 2016 compared to 392 in July 2015.
Orlando homebuyers purchased 334 duplexes, town homes, and villas in July 2016, which is exactly the same as in July 2015.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July (3,975) were down by 6.58 percent when compared to July of 2015 (4,255). To date, sales in the MSA are down 1.15 percent.
Each individual county’s monthly sales comparisons are as follows:
• Lake: 8.40 percent below July 2015;
• Orange: 5.53 percent below July 2015;
• Osceola: 7.03 percent below July 2015; and
• Seminole: 7.31 percent below July 2015.