By ORRA Realtor News August 17, 2015: 7:48 PM ET
Orlando’s summertime sales stampede continued through July, which saw closings of existing homes increase more than 33 percent, reports the Orlando Regional REALTOR® Association. In addition, the area’s median price experienced yet another rise in July, marking 48 consecutive months of year-to-year increases. The July 2015 median price is now 59.20 percent higher than in July 2011.
The overall median price (all sales types and all home types combined) for the month of July 2015 is $183,875, a 7.56 percent increase compared to the $170,950 median price in July 2014. The median price is up 2.15 percent compared to the June 2015 median price of $180,000.
The year-to-year median price of foreclosures increased 13.30 percent, while the median price for normal sales increased 1.25 percent and short sales decreased 22.25. The median price of single-family homes increased 5.26 percent when compared to July of last year, and the median price of condos increased 10.31 percent.
Members of ORRA participated in the sale of 3,388 homes (all home types and all sale types combined) that closed in July 2015, an increase of 33.28 percent compared to July 2014 and a decrease of 5.97 percent compared to June 2015.
According to ORRA President Sharon Voss, Watson Realty Corp., strong buyer demand is reflected in the inventory of available homes. “For the first time since July 2013, inventory experienced a year-over-year decline,” says Voss. “Both the overall and single-family inventory is down this month, by 2 and 4 percent respectively. Between great interest rates and prices that still haven’t reached their pre-bubble potential, Orlando’s housing market is very appealing to buyers and we need more sellers in order to keep up!”
Traditional sales in Orlando increased by 51.48 percent when compared to July 2014. Closings of short sales decreased by 40.37 percent while closings of foreclosures increased 10.22 percent.
Single-family home sales increased 33.73 percent in July 2015 compared to July 2014, while condo sales increased 20.26 percent.
Homes of all types spent an average of 69 days on the market before coming under contract in July 2015, and the average home sold for 96.92 percent of its listing price. In July 2014 those numbers were 73 days and 96.63 percent, respectively.
The average interest rate paid by Orlando homebuyers in July decreased to 3.98 percent, from the June 2015 rate of 4.08. This month last year, homebuyers paid an average interest rate of 4.17.
Pending sales – those under contract and awaiting closing – are currently at 6,260. The number of pending sales in July 2015 is 7.51 percent lower than it was in July 2014 (6,768) and 9.29 percent lower than it was in June 2015 (6,901).
Normal properties made up 56.29 percent of pending sales in July 2015. Short sales accounted for 21.37 percent of pendings, while bank-owned properties accounted for 22.23 percent.
The number of existing homes (all types combined) that were available for purchase in July is 2.27 percent below that of July 2014 and now rests at 11,819. Inventory decreased in number by 239 properties over last month.
The inventory of single-family homes is down by 4.41 percent when compared to July of 2014, while condo inventory is up by 3.37 percent. The inventory of duplexes, townhomes, and villas is up by 8.75 percent.
Current inventory combined with the current pace of sales created a 3.49-month supply of homes in Orlando for July. There was a 4.76-month supply in July 2014 and a 3.35-month supply last month.
The July affordability index is 168.26 percent, a decrease from June’s index of 169.63. (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 $56,582 can qualify to purchase one of 5,506 homes in Orange and Seminole counties currently listed in the local multiple listing service for $309,386 or less.
First-time homebuyer affordability in July decreased to 119.65 percent from last month’s 120.63 percent. First-time buyers who earn the reported median income of $38,476 can qualify to purchase one of the 2,947 homes in Orange and Seminole counties currently listed in the local multiple listing service for $187,006 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were up 20.26 percent in July, with 374 sales recorded in July 2015 compared to 311 in July 2014.
Orlando homebuyers purchased 310 duplexes, town homes, and villas in July 2015, which is 48.33 percent more than in July 2014.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July were up by 16.16 percent when compared to July of 2014. Year to date, sales are up 19.26 percent in the MSA.
*Each individual county’s monthly sales comparisons are as follows:
• Lake: 24.26 percent above July 2014;
• Orange: 11.39 percent above July 2014;
• Osceola: 14.72 percent above July 2014; and
• Seminole: 23.11 percent above July 2014.
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