From the Orlando Regional Realtor Association’s most recent Market Pulse.
Sales activity versus available inventory drives Orlando’s supply of homes to its lowest point since 2013
Buyer activity during the month of March pushed the supply of homes available for purchase in Orlando to just 2.48 months’ worth, the lowest since May of 2013 and swinging the market pendulum further towards favoring sellers. Housing economists consider six months of supply to indicate a market that is balanced between buyers and sellers.
“Buyers have turned out in force for the start of Orlando’s traditional spring/summer buying season, enough to drive sales up by nearly 40 percent compared to last month,” says Orlando Regional REALTOR® Association President Bruce Elliott, Regal R.E. Professionals LLC. “The health of Orlando’s economy and job market are significant factors in the jump in sales, as a sense of urgency among buyers trying to beat an anticipated increase in mortgage rates.”
“Inventory remains a challenge for buyers, especially in the under-$300,000 range where choices are minimal and prices are being bid higher by multiple offers,” continues Elliott.
Orlando’s overall median home price (all home types combined) is $217,000, which is 11.3 percent above the March 2016 median price of $195,000. Year-over-year increases in median price have been recorded for the past 68 consecutive months; as of March 2017, the overall median is 87.9 percent higher than it was back in July 2011.
The median price for single-family homes that changed hands in March increased 10.6 percent over March 2016 and is now $234,900. The median price for condos increased 6.3 percent to $102,000.
The overall average home price for March 2017 is $253,985, an increase of 10.1 percent over the average home price in March 2016. The average home listed for $261,787 in March and sold for 97.02 percent of its listing price (97.16 percent in March 2016).
Members of ORRA participated in 3,437 sales of all home types combined in March, which is 12.4 percent more than the 3,058 sales in March 2016 and 38.5 percent more than the 2,482 sales in February 2017.
Sales of single-family homes (2,707) in March 2017 increased by 10.6 percent compared to March 2016, while condo sales (405) increased 18.4 percent.
Sales of distressed homes (foreclosures and short sales) reached only 271 in March and is 46.7 percent less than in March 2016. Distressed sales made up 7.9 percent of all Orlando-area transactions last month.
The average interest rate paid by Orlando homebuyers in March was 4.29 percent, steady from 4.29 percent the month prior.
The overall inventory of homes that were available for purchase in March represents a decrease of 19.3 percent when compared to March 2016. There were 18.7 percent fewer single family homes and 23.5 percent fewer condos.
Current inventory combined with the current pace of sales created a 2.48-month supply of homes in Orlando for March. There was a 3.46-month supply in March 2016 and a 3.41-month supply last month.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in March are up by 10.8 percent when compared to March of 2016. Year to date, MSA sales are up 6.8 percent
Each individual county’s sales comparisons are as follows:
• Lake: 21.0 percent above March 2016;
• Orange: 9.7 percent above March 2016;
• Osceola: 10.8 percent above March 2016; and
• Seminole: 5.3 percent above March 2016.