Orlando median price rises in October while sales and inventory drop
Orlando’s housing market in recorded a 6% year-over-year increase in median price and a small 1% decrease in sales in October. The inventory of homes available for purchase appears to be back on a declining trend, with a decrease (5%) for the third consecutive month.
“Low inventory translates into opportunity for sellers,” says Orlando Regional REALTOR® Association President Jeffrey M. Fagan, Watson Realty Corp. “Declining interest rates mean greater purchasing power, which is alluring to buyers, and our local demand is illustrated by an 8 percent increase in pending sales for October.”
“The holidays and wintertime are actually excellent times to list a home, especially here in Orlando where we don’t have weather concerns” continues Fagan, “Those who are searching for a home during these periods tend to be very serious about making a purchase, and with fewer customers real estate service providers tend to be more attentive.”
October Housing Market Indicators
The overall median price of Orlando homes (all types combined) sold in October is $242,000, which is 5.7% above the October 2018 median price of $229,000 and down 1.2% compared to the September 2019 median price of $245,000.
The median price for single-family homes that changed hands in October increased 5.2% over October 2018 and is now $263,000. The median price for condos increased 12.8% to $143,500.
The Orlando housing affordability index for October is 140.70, up from 137.63% 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 100.05 from 97.87% from last month.
Sales and Inventory
Members of ORRA participated in 2,899 sales of all home types combined in October, which is 0.9% less than the 2,924 sales in October 2018 and 3.0% less than the 2,989 sales in September 2019.
Sales of single-family homes (2,227) in October 2019 decreased by 0.1% compared to October 2018, while condo sales (360) decreased 10.5% year over year.
Sales of distressed homes (foreclosures and short sales) reached 100 in October and are 20.0% less than the 125 distressed sales in October 2018. Distressed sales made up 3.5% of all Orlando-area transactions last month.
The overall inventory of homes that were available for purchase in October (7,837) represents a decrease of 5.3% when compared to October 2018, and a 0.7% increase compared to last month. There were 6.4% fewer single-family homes and 5.4% less condos, year over year.
Current inventory combined with the current pace of sales created a 2.7-month supply of homes in Orlando for October. There was a 2.8-month supply in October 2018 and a 2.6-month supply in September 2019.
The average interest rate paid by Orlando homebuyers in October was 3.61%, down from 3.68% the month prior.
Homes that closed in October 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 (up from a total of 89 days the month prior).
Pending sales in October are up 8.3% compared to October of last year and are up 0.6% compared to last month.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in October were down by 1.6% when compared to October of 2018. To date, sales are down 2.9%.
Each individual county’s sales comparisons are as follows:
*Lake: 5.8% above October 2018;
*Orange: 2.8% below October 2018;
*Osceola: 0.7% below October 2018; and
*Seminole: 5.7% below October 2018.