Orlando median price gains while inventory drops and sales hold steady
Orlando’s housing market in August saw both its largest increase (+9%) in year-over-year median price and its first inventory decline (-2%) in 2019. Sales were up a tiny fraction (+0.1) compared to August 2018.
“Orlando’s ongoing challenge with the lower-price range categories, which have solid demand and insufficient supply, is consequently pushing up home prices,” says Orlando Regional REALTOR® Association President Jeffrey M. Fagan, Watson Realty Corp. “In addition, while our local economic indicators — particularly very favorable interest rates — point toward a housing strong market, low supply that leaves first-time homebuyers with few options is restraining sales up the ladder.”
The overall median price of Orlando homes (all types combined) sold in August is $250,000, which is 8.7% above the August 2018 median price of $230,000 and up 1.1% compared to the July 2019 median price of $247,250.
The median price for single-family homes that changed hands in August increased 5.9% over August 2018 and is now $270,000. The median price for condos increased 8.8% to $137,000.
The Orlando housing affordability index for August is 134.06%, up from 133.30% last month. (An affordability index of 99% means that buyers earning the state-reported median income are 1% 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.)
The first-time homebuyers affordability index increased a fraction to 95.33% from 94.79% last month.
Sales and Inventory
Members of ORRA participated in 3,385 sales of all home types combined in August, which is a nearly equal (0.1% more) than the 3,381 sales in August 2018 and 6.7% less than the 3,628 sales in July 2019.
Sales of single-family homes (2,657) in August 2019 increased by 2.7% compared to August 2018, while condo sales (419) decreased 5.2% year over year.
Sales of distressed homes (foreclosures and short sales) reached 86 in August and are 29.5% less than the 122 distressed sales in August 2018. Distressed sales made up just 2.4% of all Orlando-area transactions last month.
The overall inventory of homes that were available for purchase in August (7,652) represents a decrease of 2.0% when compared to August 2018, and a 4.3% decrease compared to last month. There were 4.0% fewer single-family homes and 5.8% more condos, year over year.
Current inventory combined with the current pace of sales created a 2.3-month supply of homes in Orlando for August. There was a 2.3-month supply in August 2018 and a 2.2-month supply in July 2019.
The average interest rate paid by Orlando homebuyers in August was 3.72%, down from 3.85% the month prior.
Homes that closed in August took an average of 49 days to move from listing to pending and an average of 37 days between pending and closing, for an average total of 86 days from listing to closing (down from a total of 87 days the month prior).
Pending sales in August are up 6.0% compared to August of last year and are down 7.8% compared to last month.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in August were up by 0.2% when compared to August of 2018. To date, sales are down 4.2%.
Each individual county’s sales comparisons are as follows:
*Lake: 1.7% below August 2018;
*Orange: 1.1% below August 2018;
*Osceola: 6.1% above August 2018; and
*Seminole: 0.5% above August 2018.