Orlando home sales, median price on the rise in November while inventory drops
Orlando’s housing market in recorded 3% year-over-year increases in both median price and sales in November, reports the Orlando Regional REALTOR® Association. The association’s data also show that the inventory of homes available for purchase declined for the fourth consecutive month, with November’s 10 percent drop the steepest of 2019.
“Despite our ongoing inventory challenge, there are some very interesting forward-looking indicators this month,” says ORRA President Jeffrey M. Fagan, Watson Realty Corp. “For example, the pending sales tally is up 17 percent compared to November of last year, and the new-contract count is up a whopping 28 percent. While some of this movement can be attributed to the traditional rush to close before the new year and desire to take advantage of homeownership’s tax benefits, I’d point my finger squarely at the very favorable interest rate that homebuyers are currently enjoying.”
The overall median price of Orlando homes (all types combined) sold in November is $240,000, which is 3.0% above the November 2018 median price of $233,000 and down 0.8% compared to the October 2019 median price of $242,000.
The median price for single-family homes that changed hands in November increased 3.2% over November 2018 and is now $259,000. The median price for condos increased 0.3% to $135,000.
The Orlando housing affordability index for November is 141.87% up from 140.70% 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 to 100.88% from 100.05% from last month.
Sales and Inventory
Members of ORRA participated in 2,671 sales of all home types combined in November, which is 3.3% more than the 2,585 sales in November 2018 and 8.1% less than the 2,906 sales in October 2019.
Sales of single-family homes (2,044) in November 2019 increased by 2.9% compared to November 2018, while condo sales (340) increased 3.0% year over year.
Sales of distressed homes (foreclosures and short sales) reached 113 in November and are 12.4% less than the 129 distressed sales in November 2018. Distressed sales made up 4.2% of all Orlando-area transactions last month.
The overall inventory of homes that were available for purchase in November (7,562) represents a decrease of 10.3% when compared to November 2018, and a 3.5% decrease compared to last month. There were 11.2% fewer single-family homes and 12.3% less condos, year over year.
Current inventory combined with the current pace of sales created a 2.8-month supply of homes in Orlando for November. There was a 3.3-month supply in November 2018 and a 2.7-month supply in October 2019.
The average interest rate paid by Orlando homebuyers in November was 3.61%, the same as the month prior.
Homes that closed in November took an average of 54 days to move from listing to pending and an average of 37 days between pending and closing, for an average total of 91 days from listing to closing (static from a total of 91 days the month prior).
Pending sales in November are up 17.4% compared to November of last year and are down 2.1% compared to last month.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in November were down by 0.6% when compared to November of 2018. To date, sales are down 2.7%.
Each individual county’s sales comparisons are as follows:
*Lake: 3.1% above November 2018;
*Orange: 0.8% below November 2018;
*Osceola: 5.1% below November 2018; and
*Seminole: 0.9% above November 2018.
Source: The Orlando Regional REALTOR® Association