Highlights from the Orlando Regional Realtor Association’s most recent Market Pulse.
Orlando median price rises 10 percent; sales drop 3 percent
Home sales in the Orlando area slipped 3 percent in November, as the inventory of available properties dropped for the fifth consecutive month. At the same time, the median home price rose 10.30 percent in November compared to November 2014.
The Orlando median home price has now experienced year-over-year increases for the past 52 consecutive months; as of November the median price is 57.58 percent higher than it was in July 2011.
The overall median price (all sales types and all home types combined) for the month of November 2015 is $182,000, a 10.30 percent jump compared to the $165,000 median price in November 2014. The median price is up 1.17 percent compared to the October 2015 median of $179,900.
The year-to-year median price of normal sales increased 4.22 percent, while the median price for foreclosure sales increased 10.45 percent and short sales increased 28.00 percent. The median price of single-family homes increased 13.60 percent when compared to November of last year, and the median price of condos increased 4.22 percent.
Members of the Orlando Regional REALTOR® Association participated in the sale of 2,225 homes (all home types and all sale types combined) that closed in September 2015, a decrease of 2.84 percent compared to November 2014 and a decrease of 22.66 percent compared to October 2015.
According to ORRA President Sharon Voss, Watson Realty Corp, the traditional drop in sales between October and November is also impacted by multiple current market forces. “Steady decreases in inventory, continued increases in median price, and a rising interest rate all contributed to this month’s numbers,” says Voss.
Voss also points to an increase in “normal” closings, which in November accounted for a healthy 77 percent of all sales. Traditional sales in Orlando increased by 14.00 percent when compared to November 2014. Closings of short sales decreased by 37.06 percent while closings of foreclosures decreased 34.31 percent.
Single-family home sales decreased 4.34 percent in November 2015 compared to November 2014, while condo sales decreased 1.48 percent.
Homes of all types spent an average of 68 days on the market before coming under contract in November 2015, and the average home sold for 96.99 percent of its listing price. In November 2014 those numbers were 77 days and 95.89 percent, respectively.
The average interest rate paid by Orlando homebuyers in November was 4.01 percent. Last month, the average interest rate was 3.86 while this month last year homebuyers paid an average interest rate of 4.01.
Pending sales – those under contract and awaiting closing – are currently at 5,183. The number of pending sales in November 2015 is 15.87 percent lower than it was in November 2014 (6,161) and 1.86 percent lower than it was in October 2015 (5,281).
Normal properties made up 58.50 percent of pending sales in November 2015. Short sales accounted for 22.07 percent, while bank-owned properties accounted for 19.43 percent.
The number of existing homes (all types combined) that were available for purchase in November is 6.77 percent below that of November 2014 and now rests at 11,300. Inventory decreased in number by 111 properties over last month.
The inventory of normal homes increased 5.92 percent, while foreclosures decreased 39.56 percent and short sales decreased 45.76 percent.
The inventory of single-family homes is down by 6.50 percent when compared to November of 2014, while condo inventory is down by 9.75 percent. The inventory of duplexes, townhomes, and villas is down by 3.87 percent.
Current inventory combined with the current pace of sales created a 5.08-month supply of homes in Orlando for November. There was a 5.29-month supply in November 2014 and a 3.97-month supply last month.
The November affordability index is 170.12 percent, a decrease from October’s index of 175.05. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent 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.)
Buyers who earn the reported median income of $56,810 can qualify to purchase one of 4,885 homes in Orange and Seminole counties currently listed in the local multiple listing service for $309,621 or less.
First-time homebuyer affordability in November decreased to 120.98 percent from last month’s 124.48 percent. First-time buyers who earn the reported median income of $38,631 can qualify to purchase one of the 2,564 homes in Orange and Seminole counties currently listed in the local multiple listing service for $187,149 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were down 1.48 percent in November, with 267 sales recorded in November 2015 compared to 271 in November 2014.
Orlando homebuyers purchased 216 duplexes, town homes, and villas in November 2015, which is 9.09 percent more than in November 2014.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in November were down by 2.68 percent when compared to November of 2014. Year to date, sales are up 14.58 percent in the MSA.
Each individual county’s monthly sales comparisons are as follows:
- Lake: 13.73 percent below November 2014;
- Orange: 3.40 percent above November 2014;
- Osceola: 14.81 percent below November 2014; and
- Seminole: 2.36 percent above November 2014.