Orlando housing market ends 2016 with increases in cumulative median price and sales
From the Orlando Regional Realtor Association’s most recent Market Pulse.
Orlando’s 2016 annual median price ($200,000) is a healthy 12.0 percent higher than the 2015 annual median price ($178,500), thanks to another 12 months of year-over-year price increases. Sales for 2016 finished out at 35,780 and squeaks in at 1.8 percent above the cumulative sales total of 35,151 for 2015.
“The most notable trend we saw in 2016 was our consistently declining inventory, which posted year-over-year drops every single month,” says Orlando Regional REALTOR® Association President Bruce Elliott, Regal R.E. Professionals LLC. “Reduced inventory resulted in a year of fewer options for buyers and dampened sales, plus contributed to consistently rising prices.”
The Orlando housing market experienced increases in both median price and sales in December, while the inventory of homes available for purchase continued its downward trend.
Orlando’s overall median home price (all home types combined) is $207,900, which is 12.4 percent above the December 2015 median price of $185,000. Year-over-year increases in median price have been recorded for the past 65 consecutive months; as of December 2016, the overall median is 80.0 percent higher than it was back in July 2011.
The median price for single-family homes that changed hands in December increased 10.7 percent over December 2015 and is now $227,000. The median price for condos increased 15.1 percent to $97,750.
Members of the Orlando Regional REALTOR Association participated in 2,948 sales of all home types combined in December, which is 11.7 percent more than the 2,639 sales in December 2015.
“In addition to the traditional December sales rush by those who wish to take advantage of the tax benefits of homeownership, the possibility of additional increases in mortgage interest rates is likely spurring buyers who want to lock in while they remain at historic lows,” says Elliott. “REALTOR® economists anticipate interest rates to continue rising and reach around the 4.5 percent mark by the end of 2017. Elevated sales is a trend that could persist into the usually slower spring months despite the challenge of Orlando’s limited inventory, especially within the lower-price categories.”
Sales of single-family homes (2,347) in December 2016 increased by 14.0 percent compared to December 2015, while condo sales (314) decreased 7.4 percent.
Sales of distressed homes (foreclosures and short sales) reached only 287 in December and is a full 50 percent less than in December 2015. Distress sales now make up less than 10 percent of all Orlando-area transactions.
The average interest rate paid by Orlando homebuyers in December was 4.32 percent, up from 3.82 percent the month prior.
The inventory of single-family homes available for purchase in December represents a decrease of 19.9 percent when compared to December 2015. There are 18.4 percent fewer condos available.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in December are down by 1.1 percent when compared to December of 2015.
Each individual county’s monthly sales comparisons are as follows:
• Lake: 1.7 percent below December 2015;
• Orange: 1.0 percent below December 2015;
• Osceola: 4.4 percent above December 2015; and
• Seminole: 5.2 percent below December 2015.
• The 2016 median price of $200,000 is an increase of 12.0 percent when compared to 2015’s median price of $178,500.
• The annual median price of single-family homes increased 12.8 percent to $220,000 in 2016, while the median price of condos increased 7.3 percent to $95,000. The median for duplexes, town homes, and villas increased 10 percent.
• The 2016 median price of normal homes increased 5 percent to $210,000. The short sales median price increased by 8.7 percent and the bank-owned median price increased by 8.0 percent.
• Sales in 2016 were up by 1.8 percent over 2015. A total of 35,780 homes were sold in 2016 compared to 35,151 the previous year.
• Sales of single-family homes increased 2.4 percent over 2015, while condo sales decreased 3.5 percent. Sales of duplexes, town homes, and villas increased 3.5 percent.
• Normal sales increased by 21.1 percent in 2016. Foreclosure sales decreased 53.0 percent in 2016, and short sales decreased by 30.0 percent.
• By year’s end in 2016, 43,009 homes were sold in the Orlando MSA whereas 43,130 homes had been sold by year’s end in 2015, for a 0.3 percent decrease.