Orlando home sales and median price increase in July as inventory plummets
Orlando’s housing market in July saw a surge in buyer activity that tipped home sales back into the black after three months of precipitous year-over-year declines caused by the COVID-19 pandemic, reports the Orlando Regional REALTOR® Association. The median price of homes sold in Orlando continued on its upward path, while inventory fell to its lowest level this year.
“The steep pause in closing activity during April, May, and June created a transaction surge in July that was actually 1% greater than in July of last year,” explains ORRA President Reese Stewart, RE/MAX Properties SW, who also notes low interest rates as a factor that is driving buyers. “Orlando REALTORS® across the board are reporting a level of buyer demand that continues to far exceed the supply of available properties. We can easily attribute any future depression in sales to an accelerating lack of inventory.”
The overall median price of Orlando homes (all types combined) sold in July is $270,000, which is 9.2% above the July 2019 median price of $247,250 and 1.9% above the June 2020 median price of $265,000.
The median price for single-family homes that changed hands in July increased 10.1% over July 2019 and is now $295,000. The median price for condos increased 5.1% to $145,000 and townhomes/villas/duplexes increased 4.6% to $224,900.
The Orlando housing affordability index for July is 137.74%, down from 139.10% 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 homebuyer affordability index decreased to 97.95 from 98.92 last month.
Sales and Inventory
Members of ORRA participated in 3,679 sales of all home types combined in July, which is 1.4% more than the 3,628 sales in July 2019 and 18.6% more than the 3,103 sales in June 2020.
Sales of single-family homes (2,920) in July 2020 increased by 2.4% compared to July 2019, while condo sales (401) decreased 4.8% year over year. Duplexes, townhomes, and villas (358 combined) increased 0.9% over July 2019.
Sales of distressed homes (foreclosures and short sales) reached 79 in July and are 27.5% less than the 109 distressed sales in July 2019. Distressed sales made up 2.2% of all Orlando-area transactions last month.
The average interest rate paid by Orlando homebuyers in July was 2.97%, down from 3.04% the month prior.
Homes that closed in July took an average of 54 days to move from listing to pending and an average of 39 days between pending and closing, for an average total of 93 days from listing to closing (up from a total of 87 days the month prior).
The overall inventory of homes that were available for purchase in July (6,220) represents a decrease of 22.2% when compared to July 2019, and a 5.1% decrease compared to last month. There were 32.7% fewer single-family homes; 11.4% more condos; and 22.8% more duplexes/townhomes/villas, year over year.
Pending sales in July are up 8.7% compared to July of last year and are down 1.5% compared to last month.
New contracts are up 8.2% year over year, and new listings are up 3.6%
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July were 2.1% lower than in July of 2019. To date, sales in the MSA are down by 13.6%.
Each individual county’s sales comparisons are as follows:
*Lake: 6.8% above July 2019;
*Orange: 5.2% below July 2019;
*Osceola: 4.3% below July 2019; and
*Seminole: 0.5% above July 2019.