Orlando’s median home price and inventory rise while sales decline in February
The Orlando housing market saw its median price continue a years-long upward trek with an economically healthy 3 percent year-over-year increase in February. Sales dipped a fraction and inventory increased for the fourth consecutive month, just in time for the start of Orlando’s homebuying season.
“March and April typically herald the beginning of our most active period, when a great many prospective buyers begin getting serious about being settled into a home before the new school year,” says Orlando Regional REALTOR® Association President Jeffrey M. Fagan, Watson Realty Corp. “Despite a decrease in year-over-year sales, greater inventory combined with moderated prices and interest rates that are at historic lows is expected produce our traditional uptick in springtime homebuying.”
The overall median price of Orlando homes (all types combined) sold in February is $235,000, which is 2.6 percent above the February 2018 median price of $229,000 and 3.5 percent above the January 2019 median price of $227,000.
Year-over-year increases in median price have been recorded for the past 92 consecutive months; as of February 2019, the overall median price is 103.5 percent higher than it was back in July 2011.
The median price for single-family homes that changed hands in February remained stable over February 2018 and is now $249,900. The median price for condos increased 13.3 percent to $137,000.
The Orlando housing affordability index for February is 131.64 percent, down from 136.05 percent last month. (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.)
The first-time homebuyers affordability index decreased to 93.61 from 96.74 percent last month.
Sales and Inventory
Members of ORRA participated in 2,402 sales of all home types combined in February, which is 5.4 percent less than the 2,538 sales in February 2018 and 23.2 percent more than the 1,950 sales in January 2019.
Sales of single-family homes (1,865) in February 2019 decreased by 2.9 percent compared to February 2018, while condo sales (261) decreased 12.9 percent year over year.
Sales of distressed homes (foreclosures and short sales) reached 104 in February and are 26.2 percent less than the 141 distressed sales in February 2018. Distressed sales made up just 4.3 percent of all Orlando-area transactions last month.
The overall inventory of homes that were available for purchase in February (8,194) represents an increase of 6.3 percent when compared to February 2018, and a 0.6 percent decrease compared to last month. There were 4.6 percent more single-family homes and 29.0 percent more condos, year over year.
Current inventory combined with the current pace of sales created a 3.4-month supply of homes in Orlando for February. There was a 4.2-month supply in January 2018 and a 3.0-month supply in February 2018.
The average interest rate paid by Orlando homebuyers in February was 4.34 percent, up from 4.32 percent the month prior.
Homes that closed in February took an average of 62 days to move from listing to pending and an average of 35 days between pending and closing, for an average total of 97 days from listing to closing (down from a total of 98 days the month prior).
Pending sales in February are down 15.1 percent compared to February of last year and are up 17.0 percent compared to last month.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in February were down by 10.0 percent when compared to February of 2018.
Each individual county’s sales comparisons are as follows:
*Lake: 16.0 percent below February 2018;
*Orange: 6.2 percent below February 2018;
*Osceola: 21.0 percent below February 2018; and
*Seminole: 2.8 percent below February 2018.