Article from Orlando Regional Realtor AssociationThe median price of Orlando homes sold in January ($148,274) decreased by 33.06 percent compared to January 2008 while the area’s average interest rate dropped to its lowest point since May of 2005, creating market conditions that further tilt in favor of buyers.
Home sales are up, with members of the Orlando Regional Realtor® Association involved in the sale of 17.71 percent more homes in January of this year than January of last year: 957 to 813. Geographically, Osceola County recorded the greatest increase of sales activity amongst the four counties in the Orlando MSA: 120.51 percent. Lake and Orange counties posted sales increases as well (25.63 percent and 42.83 percent, respectively); Seminole County sales declined 16.24 percent.
“Buyers are responding to lower prices and mortgage rates,” says ORRA President Les Simmonds, L.G. Simmonds Real Estate Corp., “but uncertainty about the economy is creating hesitancy and pent-up demand. Additional actions, such as the proposed homebuyer tax credit and an increased availability of mortgages, are needed to stimulate the sales that will decrease inventory and stabilize prices.”
The number of pending sales, considered by housing economists to be a reliable predicator of future sales activity, continued its upward trend to 3,830. There are 121.25 percent more homes under contract in January 2009 than compared to January 2008 (1,713).
The decrease in median price drove the area’s affordability index to another record high of 165.27 percent. (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 $52,136 can qualify to purchase one of 12,122 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $245,046 or less.
The first-time homebuyer affordability has increased to 117.52 percent.
The area’s average interest rate was 5.28 percent in January 2009, the lowest level since May 2005.
Homes of all types spent an average of 104 days on the market before being sold in January 2009, and the average home sold for 92.63 percent of its listing price (a decrease from December 2008’s 92.83 percent). In January 2008 those numbers were 117 and 94.16 percent, respectively.
The majority of single-family homes (111) that changed hands in January 2009 were sold in the $200,000 – $250,000 price range; 75 homes sold in the $140,000 – $160,000 category and 71 homes sold in the $160,000 – $180,000 category. Four hundred seventy-four homes sold for less than $200,000 in November, and 198 sold for more than $300,000. On the far ends of the scale, 13 homes were sold for $1 million or more while 52 homes sold for less than $50,000.
There are currently 22,613 homes available for purchase through the MLS. Inventory increased by 89 homes from December 2008, which means that 89 more homes came onto the market than left the market. Compared to last year, the January 2009 inventory level is 12.09 percent lower than it was in January 2008 (25,724).
The inventory level reflects a 23.63-month supply at the current pace of sales, which is up from the 15.59-month supply recorded in December 2008 and down from the 31.64-month supply recorded in January 2008.
There are 16,403 single-family homes currently listed in the MLS, a number that is 2,951 (15.25 percent) less than this time last year. As usual, most (2,305) are listed in the $200,000 – $250,000 price range. Condos currently make up 4,191 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,019. Most condos (410) are priced below $50,000, with another 393 priced between $100,000 and $120,000. The majority of duplexes/town homes/villas (322) are listed in the $120,000 – $140,000 price category.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area has increased by 44.57 percent. A total of 133 condos changed hands in January of this year compared to 92 in January 2008. The most (50) condos in a single price category that changed hands were in the $1 – $50,000 price range, more than double the number (22) that were sold in the next most populated category ($60,000 – $70,000). No condos whatsoever sold for more than $250,000 in January.
Orlando home buyers purchased 84 duplexes, town homes, and villas in January 2009, which is a 55.56 percent increase from January 2008 when 54 of these alternative housing types were purchased. The majority (17) of duplexes, town homes, and villas sold in January 2009 fell into the $140,000 – $160,000 price category.
Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in January were up by 37.15 percent when compared to January of last year. Throughout the entire MSA, 1,281 homes were sold in January 2009 compared with 934 in January 2008.
Each county’s January 2009 to January 2009 sales comparisons are as follows:
Lake: 25.63 percent above 2008 (201 homes sold to date in 2009 compared to 160 in 2008);
Orange: 42.83 percent above 2008 (657 homes sold to date in 2009 compared to 460 in 2008);
Osceola: 120.51 percent above 2008 (258 homes sold to date in 2009 compared to 117 in 2008); and
Seminole: 16.24 percent below 2008 (165 sold to date in 2009 compared to 197 in 2008).
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 or its Multiple Listing Service (MLS). Neither the Association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS 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.
Statistics on the sales of area homes that are sold without the assistance of a REALTOR® are available in the Real Estate Index, a report produced jointly by ORRA and the Real Estate Attorney’s Fund.