Lack of inventory continues to squeeze Orlando home prices higher

Paper-thin inventory is continuing to bolster Orlando’s overall existing-home median price, which has cleared the $150,000 mark for the first time since December 2008, reports the Orlando Regional REALTOR® Association.

The median price of existing homes sold in Orlando during the month of June rose 22.40 percent — to $153,000 — when compared to June 2012 and 5.41 percent compared to May 2013. Orlando’s median price has risen 42 percent since January of 2012 and 61 percent since January 2011.

“Lack of inventory is continuing to drive prices up by forcing would-be buyers to duke it out over properties,” explains ORRA Chairman Steve Merchant, broker-owner of Global Realty International. “The median price increase is also a reflection of a transition that is taking place. As more homeowners are recognizing that now is a great time to sell and are adding their homes to the inventory, we’re shifting from a market dominated by lower-priced distressed sales to one dominated by higher-priced normal sales.”

In addition to the overall median increase, each individual sales type experienced a year-to-year median price increase in June, with foreclosures leading the way with a 24.28 percent jump. The median price of short sales increased 4.55 percent; the median price of normal sales increased 13.85 percent.

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Completed Sales

Members of ORRA participated in the sales of 2,563 homes (all types combined) that closed in June 2013, a decrease of 1.95 percent compared to June 2012. Single-family home sales increased 1.28 percent in June 2013 compared to June 2012, while condo sales decreased 15.84 percent.

Compared to June of 2012, the number of short sales (478) decreased 35.84 percent and the number of foreclosures (465) decreased 29.44 percent. The number of completed traditional sales (1,620), however, is a 33.88 percent increase compared to last year.

In June, short sales and foreclosures made up 36.79 percent of the entire sales pie, while normal sales made up 63.21 percent. Last year in June, those percentages were 53.71 percent and 46.29 percent, respectively.

Homes of all types spent an average of 66 days on the market before coming under contract in June 2013, and the average home sold for 97.14 percent of its listing price. In June 2012 those numbers were 85 days and 94.88 percent, respectively.

The average interest rate paid by Orlando homebuyers in June was 4.25 percent. Last month, homebuyers paid an average interest rate of 3.64 percent; this month last year, homebuyers paid an average interest rate of 3.80.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 8,441. The number of pending sales in June 2013 is 1.31 percent higher than it was in June 2012 (8,332) and 2.20 percent lower than it was in May 2013 (8,631).

Short sales made up 56.30 percent of pending sales in June 2013. Normal properties accounted for 30.79 percent of pendings, while bank-owned properties accounted for 12.91 percent.

Inventory

The number of existing homes (all types combined) available for purchase in Orlando is 6.39 percent below that of June 2012 and now rests at 7,616. Inventory increased in number by 344 properties over last month.

The inventory of single-family homes is down by 9.79 percent when compared to June of 2012, while condo inventory is up by 2.56 percent. The inventory of duplexes, townhomes, and villas is up by 12.65 percent.

Current inventory combined with the current pace of sales created a 2.97-month supply of homes in Orlando for June. There was a 3.11-month supply in June 2012 and a 2.44-month supply last month.

Affordability

The June affordability index is 190.84 percent, a decrease of 25.58 percentage points from May’s index of 216.42. (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.)

Steady increases in median price have caused the affordability index to drop 62 points since January 2013.

Buyers who earn the reported median income of $55,157 can qualify to purchase one of 3,742 homes in Orange and Seminole counties currently listed in the local multiple listing service for $291,983 or less.

First-time homebuyer affordability in June decreased to 135.71 percent from last month’s 153.90 percent. First-time buyers who earn the reported median income of $37,507 can qualify to purchase one of the 2,445 homes in Orange and Seminole counties currently listed in the local multiple listing service for $176,487 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were down 15.84 percent in June, with 356 sales recorded in June 2013 compared to 423 in June 2012.

The most (72) condos in a single price category that changed hands in June were yet again in the $1 – $50,000 price range and accounted for 20.22 percent of all condo sales.

Orlando homebuyers purchased 227 duplexes, town homes, and villas in June 2013, which is a 3.81 percent decrease compared to June 2012. Most (34) fell within the $100,000 – $120,000 price range category.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in June were down by 3.38 percent when compared to June of 2012. Throughout the MSA, 3,089 homes were sold in June 2013 compared with 3,197 in June 2012. To date, sales throughout the MSA are 7.96 percent above this time last year.

Each individual county’s monthly sales comparisons are as follows:

  • Lake: 22.79 percent above June 2012 (501 homes sold in June 2013 compared to 408 in June 2012);
  • Orange: 6.11 percent below June 2012 (1,553 homes sold in June 2013 compared to 1,654 in June 2012);
  • Osceola: 10.30 percent below June 2012 (444 homes sold in June 2013 compared to 495 in June 2012); and
  • Seminole: 7.66 percent below June 2012 (591 sold in June 2013 compared to 640 in June 2012).

View detailed statistical reports

This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the My Florida Regional Multiple Listing Service. Neither the association nor MFRMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or MFRMLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.

ORRA REALTOR® sales, referred to as the core market, represent all sales by members of the Orlando Regional REALTOR® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.

Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA.

Orlando Real Estate Market Report

SOURCE: Orlando Regional REALTOR® Association

Orlando area home sales soared 19.88 percent in November, led by a thunderous 50 percent increase in the number of traditional sales, reports the Orlando Regional REALTOR® Association.

The jump in traditional sales, which typically have steeper price tags than foreclosures and short sales, drove Orlando’s median price to its highest in three years. The November median of $129,000 is 12.17 percent above that of November 2011 ($115,000) and 5.31 percent above that of October 2012 ($122,500).

Orlando’s overall median price has now posted positive year-to-year gains for 17 consecutive months. In addition, the median price has climbed 19 percent since January 2012 and 36 percent since January 2011.

“All of our indicators point to a clearly improving housing market in Orlando,” says ORRA Chairman Stephen Baker, RE/MAX Central Realty. “I’m particularly heartened by the jump in traditional sales, which illustrates a pent-up demand from buyers. This is what owners who want to sell — but have been reluctant to put their homes on the market — have been waiting for.”

All sales types experienced year-to-year increases in median price in November. The median price of normal sales increased 4.76 percent, while the median price of foreclosures increased 12.43 percent and short sales increased 4.76 percent.

 

Orlando Home Sales in the Upswing in July

It’s another increase for the median price of existing homes sold in the Orlando. Particularly noteworthy is that this month’s bigger median price is accompanied by an increase in sales, one of the few times this duo has appeared together in recent years.

The July 2012 median price of $125,750 is 8.87 percent higher than it was in July 2011, reports the Orlando Regional REALTOR® Association.

Steady monthly increases have driven Orlando’s median price up 16.44 percent since the beginning of the year, when it was $108,000. In addition, the median price has now posted positive year-to-year gains for 13 consecutive months.

All sales types experienced increases in median price in July. The median price of short sales increased 12.70 percent, while the median price of foreclosures increased 12.50 percent and normal sales increased 6.69 percent.

Excerp from the Orlando Regional REALTOR® Association. CLICK HERE for the Full Story >>>

Orlando Real Estate Market Shifting to Favor Sellers

Median prices experience across-the-board increases

The median price of existing homes sold in the Orlando area has increased more than 15.74 percent since the beginning of the year, from $108,000 in January to $125,000 at the half-year mark in June, reports Orlando Regional REALTOR® Association. Compared to January 2011, the median price has increased 31.72 percent.

The June 2012 overall median price ($125,000) is 13.64 percent higher than it was in June 2011 ($110,000) and 4.17 percent higher than it was in May 2012 ($120,000). In addition, the median price has now posted positive year-to-year gains for 12 consecutive months.

All sales types experienced increases in median price in June. The median price of short sales increased 10.61 percent, while the median price of foreclosures increased 7.38 percent and normal sales increased 2.06 percent.

SOURCE: Orlando Regional REALTOR® Association (click here to read full story)
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Orlando Housing Report – May 2012

The year-to-year median sales price of Orlando area homes jumped more than 9 percent in May, marking the fourth consecutive monthly increase and a leap of 11.11 percent since January, reports the Orlando Regional REALTOR® Association.

The overall median price of Orlando homes increased 9.09 percent over May 2011’s median price of $110,000, to $120,000. In addition, the May 2012 overall median price is 2.56 percent higher than that recorded in April 2012 ($117,000).

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For detailed statistical reports, please visit www.orlrealtor.com and click on “Housing Statistics” on the top menu bar. This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the My Florida Regional Multiple Listing Service. Neither the association nor MFRMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or MFRMLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.
ORRA REALTOR® sales, referred to as the core market, represent all sales by members of the Orlando Regional REALTOR® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.
Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA.


FL Housing Market Continues Positive Signs in April 2012

Florida’s housing market had increased pending sales and higher median prices in April, along with a greatly reduced inventory of homes and condos for sale, according to Florida Realtors® latest housing data.

“Here in Florida, we’re seeing some strong numbers that show positive momentum for the state’s housing recovery and our economy,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “Home prices continue to rise in many markets. Inventory is down to extremely low levels while pending sales are on the rise – almost 38 percent for single-family homes and 25 percent for townhomes and condos. It is not unusual to see multiple offers.

“Now the challenge will be for appraisals to catch up. Overall, we are very happy to see the market move in this direction and expect this trend to continue.”

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Pending sales refer to contracts that are signed but not yet completed or closed; closed sales typically occur 30 to 90 days after sales contracts are written.

The statewide median sales price for single-family existing homes in April was $144,350, up 10.2 percent from the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department, and vendor partner 10K Research and Marketing. The statewide median for townhome-condo properties was $108,000, up 16.1 percent over April 2011.

The national median sales price for existing single-family homes in March 2012 was $163,600, up 1.9 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median sales price for single-family existing homes in March was $291,080; in Massachusetts, it was $267,500; in Maryland, it was $225,601; and in New York, it was $215,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Statewide sales of existing single-family homes totaled 17,544 in April, down slightly, 0.7 percent, compared to the year-ago figure. Looking at Florida’s year-to-year comparison for sales of townhomes/condos, a total of 9,765 units sold statewide last month, down 4.9 percent from those sold in April 2011. NAR reported the national median existing condo price in March 2012 was $165,200.

In April, there was a 5.8-month supply of single-family homes in inventory and a 5.7-month supply for townhomes/condos, according to Florida Realtors.

“The housing numbers for the state of Florida continue to signal recovery,” said Florida Realtors Chief Economist Dr. John Tuccillo. “Sales in 2012 are above where they were in 2011, a harbinger of a third straight year of improvement. More importantly, pending sales are up dramatically, and inventory is still falling. Financing constraints still mean that a significant percentage of these will not lead to closed sales, but with the numbers up, we are confident that closed sales will continue to rise.

“The increase in both median and average prices suggests that investors are having a strong impact on the market, soaking up lower priced inventory and causing buyers to move up the price ladder.”

The interest rate for a 30-year fixed-rate mortgage averaged 3.91 percent in April 2012, down from the 4.84 percent average during the same month a year earlier, according to Freddie Mac.

SOURCE: Florida Association of Realtors®