Fewer Homes and Higher Prices

Fewer homes are selling for higher prices, reveals the latest housing market activity report from the Orlando Regional REALTOR® Association. The data shows that home sales in July dropped more than 17 percent from that recorded in July 2013, while prices rose nearly 9 percent in the same year-over-year comparison.

The overall median price for the month is $171,000, an 8.92 percent increase over July 2013 and a 1.49 percent increase over last month.

Orlando’s overall median price has now recorded year-to-year gains for 37 consecutive months and has risen 48 percent since July 2011.

Foreclosures experienced the greatest jump in median price increase in July, coming in at 10.40 percent higher than in July 2013. The median for “normal” sales increased 8.11 percent, while that for short sales increased 6.53 percent.

The median price of single-family homes increased 11.47 percent when compared to July of last year, and the median price of condos increased 1.69 percent.

Completed Sales

Members of ORRA participated in the sales of 2,431 homes (all home types and all sale types combined) that closed in July 2014, a decrease of 17.82 percent compared to July 2013 and a decrease of 14.22 percent compared to June 2014.

According to ORRA Chairman Zola Szerencses, the biggest percentages of decline took place among cash sales and among homes in the lowest price categories, which are indicators of investor activity. “All-cash transactions have dropped 32 percent while sales of homes priced below $100,000 have dropped 30 percent,” explains Szerencses. “As Orlando’s values rise, investors are looking elsewhere for a better return on their investments.”

Closing of foreclosures in Orlando increased by 14.29 percent in when compared to July 2013. “Normal” home sales in Orlando decreased by 14.34 percent when compared to July 2013 and made up 67.34 percent of the sales pie. Closings of short sales decreased by 61.81 percent.

Single-family home sales decreased 16.39 percent in July 2014 compared to July 2013, while condo sales decreased 19.45 percent. Compared to last month, single-family home sales decreased 12.50 percent and condo sales decreased 17.42 percent.

Homes of all types spent an average of 73 days on the market before coming under contract in July 2014, and the average home sold for 96.61 percent of its listing price. In July 2013 those numbers were 63 days and 96.89 percent, respectively.

The average interest rate paid by Orlando homebuyers in July – 4.17 percent – remained the same from June. In July of last year, homebuyers paid an average interest rate of 4.51 percent.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 6,768. The number of pending sales in July 2014 is 15.29 percent lower than it was in July 2013 (7,990), and 5.14 percent lower than it was in June 2014 (7,135).

Short sales made up 35.45 percent of pending sales in July 2014. Normal properties accounted for 42.45 percent of pendings, while bank-owned properties accounted for 22.10 percent.

Inventory

The number of existing homes (all sales types and all home types combined) that were available for purchase in July is 49.31 percent above that of July 2013 and now rests at 12,093. Inventory increased in number by 575 properties over last month.

The inventory of single-family homes is up by up by 52.34 percent when compared to July of 2013, while condo inventory is up by 37.40 percent. The inventory of duplexes, townhomes, and villas is up by 43.57 percent.

Current inventory combined with the current pace of sales created a 4.97-month supply of homes in Orlando for July. There was a 2.74-month supply in July 2013 and a 4.06-month supply last month.

Affordability

The July affordability index is 174.75 percent, a decrease from June’s index of 177.22. (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 $55,898 can qualify to purchase one of 6,048 homes in Orange and Seminole counties currently listed in the local multiple listing service for $298,814 or less.

First-time homebuyer affordability in July decreased to 124.26 percent from last month’s 126.02 percent. First-time buyers who earn the reported median income of $38,011 can qualify to purchase one of the 3,479 homes in Orange and Seminole counties currently listed in the local multiple listing service for $180,617 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were down 19.45 percent in July, with 294 sales recorded in July 2014 compared to 365 in July 2013.

Orlando homebuyers purchased 198 duplexes, town homes, and villas in July 2014, which is a 27.94 percent decrease compared to the 274 purchased in July 2013.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July were down by 7.02 percent when compared to July of 2013. Throughout the MSA, 3,286 homes were sold in July 2014 compared with 3,534 in July 2013. To date, MSA sales are down 4.92 percent.

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

• Lake: 9.94 percent below July 2013;
• Orange: 7.42 percent below July 2013;
• Osceola: 9.59 percent below July 2013; and
• Seminole: 1.61 percent below July 2013.

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.