Orlando inventory jumps 8 percent as sales slip 14 percent and median price hangs tight
The Orlando housing market in January saw its third consecutive month of year-over-year increases in the number of homes available for purchase, along with a slide in sales and a holding steady of the median price.
Orlando Regional REALTOR® Association President Jeffrey M. Fagan, Watson Realty Corp., explains that the expanded inventory is advantageous to prospective buyers, particularly those interested in purchasing condos.
“Our condo inventory rose by 26 percent last month, and this home type is an excellent option for those seeking entry into homeownership as a relief from Orlando’s soaring rental rates,” says Fagan. “Condos also tend to be cheaper than single-family homes; for example, the median price of a condo sold in January was only $125,000 compared to $247,950 for a single-family home.”
The overall median price of Orlando homes (all types combined) sold in January is $226,500, which is 0.7 percent above the January 2018 median price of $225,000 and 2.4 percent below the December 2018 median price of $225,000.
Year-over-year increases in median price have been recorded for the past 91 consecutive months; as of January 2019, the overall median price is 96.1 percent higher than it was back in July 2011.
The median price for single-family homes that changed hands in January increased 3.3 percent over January 2018 and is now $247,950. The median price for condos increased 8.7 percent to $125,000.
The Orlando housing affordability index for January is 136.65 percent, up from 132.46 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 increased to 97.17 from 94.19 percent last month.
Sales and Inventory
Members of ORRA participated in 1,938 sales of all home types combined in January, which is 13.8 percent less than the 2,249 sales in January 2018 and 20.0 percent less than the 2,422 sales in December 2018.
Sales of single-family homes (1,486) in January 2019 decreased by 15.0 percent compared to January 2018, while condo sales (289) increased 7.0 percent year over year.
Sales of distressed homes (foreclosures and short sales) reached 92 in January and are 34.8 percent less than the 141 distressed sales in January 2018. Distressed sales made up just 4.8 percent of all Orlando-area transactions last month.
The overall inventory of homes that were available for purchase in January (8,243) represents an increase of 8.4 percent when compared to January 2018, and a 4.7 percent increase compared to last month. There were 6.8 percent more single-family homes and 26.2 percent more condos, year over year.
Current inventory combined with the current pace of sales created a 4.3-month supply of homes in Orlando for January. There was a 3.3-month supply in December 2018 and a 3.4-month supply in January 2018.
The average interest rate paid by Orlando homebuyers in January was 4.32 percent, down from 4.38 percent the month prior.
Homes that closed in January took an average of 60 days to move from listing to pending and an average of 38 days between pending and closing, for an average total of 98 days from listing to closing (up from a total of 92 days the month prior).
Pending sales in January are down 16.5 percent compared to January of last year and are up 24.8 percent compared to last month.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in January were down by 14.6 percent when compared to January of 2018.
Each individual county’s sales comparisons are as follows:
*Lake: 5.9 percent below January 2018;
*Orange: 17.9 percent below January 2018;
*Osceola: 19.2 percent below January 2018; and
*Seminole: 8.2 percent below January 2018.