Orlando median price and sales both rise in September; inventory dips
Orlando’s housing market in September recorded year-over-year increases in both sales (7%) and median price (5%). The inventory of homes available for purchase, however, saw a second consecutive decline after nine months of positive postings.
“The unexpected boost in post-summertime sales can be attributed in part to encouragement from falling interest rates,” says Orlando Regional REALTOR® Association President Jeffrey M. Fagan, Watson Realty Corp. “The average interest rate paid by Orlando homebuyers have dropped each month this year since February, and the September average rate of 3.68% is down 21% from the September 2018 average rate of 4.66 percent.”
Fagan also points out that lower interest rates help homebuyers overcome rising prices by providing more purchasing power.
The overall median price of Orlando homes (all types combined) sold in September is $245,000, which is 5.2% above the September 2018 median price of $233,000 and down 2.0% compared to the August 2019 median price of $250,000.
The median price for single-family homes that changed hands in September increased 19.4% over September 2018 and is now $303,000. The median price for condos increased 34.3% to $167,886.
The Orlando housing affordability index for September is 137.63%, up from 134.06% 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 97.87% from to 95.33% last month.
Sales and Inventory
Members of ORRA participated in 2,972 sales of all home types combined in September, which is a 7.1% more than the 2,776 sales in September 2018 and 12.5% less than the 3,397 sales in August 2019.
Sales of single-family homes (2,290) in September 2019 increased by 8.8% compared to September 2018, while condo sales (399) increased 2.1% year over year.
Sales of distressed homes (foreclosures and short sales) reached 112 in September and are 10.4% less than the 125 distressed sales in September 2018. Distressed sales made up 3.8% of all Orlando-area transactions last month.
The overall inventory of homes that were available for purchase in September (7,784) represents a decrease of 3.8% when compared to September 2018, and a 1.7% increase compared to last month. There were 5.7% fewer single-family homes and 2.1% less condos, year over year.
Current inventory combined with the current pace of sales created a 2.6-month supply of homes in Orlando for September. There was a 2.9-month supply in September 2018 and a 2.3-month supply in August 2019.
The average interest rate paid by Orlando homebuyers in September was 3.68%, down from 3.72% the month prior.
Homes that closed in September took an average of 51 days to move from listing to pending and an average of 37 days between pending and closing, for an average total of 88 days from listing to closing (up from a total of 86 days the month prior).
Pending sales in September are up 2.2% compared to September of last year and are down 9.3% compared to last month.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in September were up by 6.8% when compared to September of 2018. To date, sales are down 3.1%.
Each individual county’s sales comparisons are as follows:
*Lake: 8.3% above September 2018;
*Orange: 9.2% above September 2018;
*Osceola: 8.5% above September 2018; and
*Seminole: 1.6% below September 2018.