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.

What are ‘pocket listings’? Are they legal?

ORLANDO, Fla. – July 1, 2013 – Non-MLS listings are legal in Florida; but if not handled correctly, they can create legal and fair housing problems for a listing broker.

“Pocket listing” is not a legal term. It generally refers to any listing held back from the local MLS and sold independently.

Since an MLS exposes a home to areas far and wide, it creates competition and can maximize profit for the seller. However, some sellers don’t want that kind of exposure, and they see a bigger advantage in keeping their home out of the MLS. Celebrities may be the best example. They don’t want any army of fans touring their home – fans that can’t afford the home in the first place. Non-famous sellers may opt for a pocket listing because they fear vandals or they want to keep the details confidential.

“There are legitimate reasons to withhold a listing from the MLS,” says Florida Realtors’ Vice President and General Counsel Margy Grant. “But while the sale is legal in Florida, it can sometimes indicate a bigger problem. For that reason, it’s important for sellers to fully understand the ramifications of a non-MLS listing, authorize it and – most importantly – for a Realtor or broker to have some kind of documentation showing that the seller made an informed choice.”

Legal

Non-MLS listings can sometimes lead to disgruntled sellers who decide, after the fact, that they could have received more money for their property. A broker could face allegations that their failure to put the property in the MLS deprived the seller the ability to attract the highest and best price for their property.

“We can’t predict the future,” says Grant. “Florida brokers should make sure the seller chose to withhold their property from the MLS. Sellers should be told the pros and cons upfront. But even proving that the seller willingly chose to withhold the property from the MLS may not be enough. A broker should also show that the seller understood the marketing advantages of an MLS before he made a decision.”

Disparate impact – fair housing

“In some cases, a non-MLS listing could lead to allegations of discrimination,” says Grant. “Realtors would turn down a seller who wants to withhold a listing from MLS in order to keep a specific race or other protected class out of his neighborhood. However, the fair housing laws go a step further, and these listings could break the law even if discrimination isn’t intended.”

“Disparate impact” under the Fair Housing Act considers it discrimination if a practice “actually or predictably results in a disparate impact on a group of persons or creates, increases, reinforces or perpetuates segregated housing patterns because of race, color, religion, sex, handicap, familial status or national origin.”

Since a non-MLS listing is marketed to a private and usually small group, the makeup of that group becomes important. If the makeup of the listing group tends to mirror the makeup of the neighborhood, it could appear to perpetuate discrimination without meaning to do so. Multiple pocket listings in a single neighborhood could be seen as a way to discriminate without being obvious.

“The disparate impact appearance can be challenging,” says Grant. “If there’s any concern about a fair housing impact, a broker should be able to justify the reason it was withheld from the MLS and illustrate that the property was marketed in a fair and equitable manner.

© 2013 Florida Realtors®

Windermere Gazette – Spring 2013 Issue

The Spring 2013 issue of the Town of Windermere Gazette has been published.

This issue includes information about events, such as the Farmer’s Market, Food Truck Nights, 5k Run, Elders Luncheon and Women’s Self Defense Seminar, as well as Town news.

Pick up your copy at our Irma G. Yapor office on Main Street, or view it online using the link below:

>>>  Click Here to View the Windermere Gazette – Spring 2013 issue

 

U.S. home prices rise 8.1%, most since June 2006

WASHINGTON (AP) – March 26, 2013 – U.S. home prices rose in January at the fastest annual pace since June 2006, just before the housing bubble burst. The gain shows the housing recovery is strengthening ahead of the all-important spring buying season.

The Standard & Poor’s/Case-Shiller 20-city home price index climbed 8.1 percent in the 12 months ending in January. That’s up from a 6.8 annual gain in December. Prices rose in all 20 cities. Eight markets posted double-digit increases, led by a 23.2 percent gain in Phoenix. Prices rose 17.5 percent in San Francisco and 15.3 percent in Las Vegas, one of the nation’s hardest hit markets during the crisis.

Prices rose in 11 of 20 cities on a month-over-month basis. The monthly numbers are not seasonally adjusted and reflect the slower winter buying period.

The S&P/Case-Shiller index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The January figures are the latest available.

Home prices nationwide are still 29 percent below their peak reached at the height of the housing bubble in August 2006. They are only back to where they were in August 2003.

Still, steady price increases should help make the housing recovery sustainable and add to economic growth. Higher home prices encourage more people to buy before prices rise further.

“Over time, persistently rising house prices also boost household wealth, make lenders more willing to lend because the asset they’re underwriting is appreciating, and ease pressure on local government budgets that get revenue from property taxes,” Jonathan Basile, director of economics at Credit Suisse, wrote in a research note.

Other recent reports have shown a strengthening recovery in housing, helped by near-record-low mortgage rates. Construction of single-family homes rose in February at the fastest pace in 4 ½ years. Sales of previously owned homes rose last month to their fastest pace in more than three years.

More Americans are putting their houses on the market, suggesting they believe the housing market will continue to strengthen.

The number of available homes for sale rose 10 percent last month, the first monthly gain since April. Even with the gain, the inventory of homes for sale was still 19 percent below a year ago.

Investment in housing, including home construction, contributed to the nation’s economic growth last year for the first time since 2005; from 2006 through 2011, a drop in housing investment dragged economic growth down.

SOURCE: Florida Realtors® Association
Copyright © 2013 The Associated Press

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).

Read more ‣

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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.