Orlando home sales rebound in time for the first day of school
Orlando home sales saw a healthy rebound in July, just in time for families to be settled into their new homes for the start of the school year. The number of transactions improved by 7% compared to July of 2018 and by 6% compared to last month.
“The jump in sales shows that homebuyers are eager to take advantage of Orlando’s favorable market conditions such as falling interest rates and stable increases in median price,” says Orlando Regional REALTOR® Association President Jeffrey M. Fagan, Watson Realty Corp. “The additional inventory that’s become available over the past months has benefitted sales as well, although those seeking homes in the affordable price ranges are still challenged by scarcity and competition.”
According to the latest monthly report from ORRA, Orlando area homebuyers secured an average interest rate of 3.85% in July. That’s down from 3.93% in June down from 4.59% in July of 2018.
ORRA members were involved in 3,620 property transactions during July. Sales of single-family homes led the pack with an increase of 7%, followed by improvements of 5% for townhomes and 4% for condos.
Speaking of condos, this home type is yet again leading Orlando’s nine-month string of inventory increases. The number of condos available for purchase in July expanded by 16% to 1,115. Single-family homes had a slight 3% more availability than in July 2018, bringing our overall inventory up by 6%.
Despite inventory gains, Orlando is still clearly a seller’s market overall as it has only 2.21 months of supply (six months is considered by economists to indicate a market that is balanced between buyers and sellers). However, the balance shifts when you consider price categories for single-family homes. There is less than a two-month supply of homes priced below $300,000, while the higher price categories ($900,000 and above) favor buyers with more than nine months’ worth of inventory.
ORRA’s report also shows that the overall median price is back on a healthy rising trajectory and increased by 5% in July. That’s a 114 percent improvement since July of 2011, when the Orlando housing market began its recovery.
Single-family Home Update
The year-over-year median price for single-family homes increased by 5% to $267,500 in July, while the month-to-month price decreased 1%. The inventory of this home type improved by 4% over July2018, and there are currently 6,265 single-family homes available for purchase through the multiple listing service.
Single-family home sales bumped up 7% in July, with 2,849 units sold throughout the Orlando area versus 2,659 a year earlier. Compared to last month, single-family sales are up 6%.
The year-over-year median price for condos increased by 8% to $138,000 in July, and it increased by3% when compared to last month. Condo inventory improved by 16% over July 2018, and there are currently 1,115 units available for purchase through the multiple listing service.
Condo sales in July (419) are up by 4% over July 2018 and are up by 3% over June 2019.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July were up by 6.5% when compared to July of 2018. To date, sales are down 4.9%.
Each individual county’s sales comparisons are as follows:
*Lake: 9.5% above July 2018;
*Orange: 5.7% above July 2018;
*Osceola: 14.5% above July 2018; and
*Seminole: 0.1% above July 2018.