Orlando home sales increase 22 percent; median price rises 11 percent in August

 

Orlando consumers chased the traditional summertime homebuying wave to its tail end and racked up 22 percent more home sales in August of 2015 than in August of 2014. Buyer demand also helped swell the median home price by 11 percent, which marks the greatest month-over-month percentage increase this year.

The latest rise also marks 49 consecutive months of median price increases, with the August 2015 median price 57.58 percent higher than in July 2011.

The overall median price (all sales types and all home types combined) for the month of August 2015 is $182,000, a 11.08 percent jump compared to the $163,850 median price in August 2014. The median price is down 0.71 percent compared to the July 2015 median of $183,310.

The year-to-year median price of foreclosures increased 14.21 percent, while the median price for normal sales increased 8.95 percent and short sales decreased 3.21 percent. The median price of single-family homes increased 11.33 percent when compared to August of last year, and the median price of condos increased 13.14 percent.

Completed Sales

Members of ORRA participated in the sale of 3,094 homes (all home types and all sale types combined) that closed in August 2015, an increase of 21.81 percent compared to August 2014 and a decrease of 13.24 percent compared to July 2015.

According to ORRA President Sharon Voss, Watson Realty Corp, Orlando’s housing market is clearly demonstrating good health, with foreclosures and short sales fading into the background. “The strongest increases in sales this month took place among non-distressed homes and single-family homes,” she explains. “In addition, closer look at the inventory shows more normal homes on the market and also a tremendous decline in available foreclosures and short sales.”

Traditional sales in Orlando increased by 37.53 percent when compared to August 2014. Closings of short sales decreased by 38.02 percent while closings of foreclosures decreased 0.75 percent.

Single-family home sales increased 26.23 percent in August 2015 compared to August 2014, while condo sales decreased 0.87 percent.

Homes of all types spent an average of 69 days on the market before coming under contract in August 2015, and the average home sold for 97.02 percent of its listing price. In August 2014 those numbers were 69 days and 96.86 percent, respectively.

The average interest rate paid by Orlando homebuyers in August decreased to 3.96 percent, from the July 2015 rate of 3.98. This month last year, homebuyers paid an average interest rate of 4.16.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 5,913. The number of pending sales in August 2015 is 9.13 percent lower than it was in August 2014 (6,507) and 5.54 percent lower than it was in July 2015 (6,260).

Normal properties made up 57.70 percent of pending sales in August 2015. Short sales accounted for 21.38 percent of pendings, while bank-owned properties accounted for 20.92 percent.

Inventory

The number of existing homes (all types combined) that were available for purchase in August is 10.88 percent below that of August 2014 and now rests at 11,661. Inventory decreased in number by 158 properties over last month.

The inventory of single-family homes is down by 13.29 percent when compared to August of 2014, while condo inventory is down by 0.83 percent. The inventory of duplexes, townhomes, and villas is down by 4.67 percent.

Current inventory combined with the current pace of sales created a 3.77-month supply of homes in Orlando for August. There was a 5.15-month supply in August 2014 and a 3.31-month supply last month.

Affordability

The August affordability index is 170.58 percent, an increase from July’s index of 168.78. (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 $56,639 can qualify to purchase one of 5,339 homes in Orange and Seminole counties currently listed in the local multiple listing service for $310,448 or less.

First-time homebuyer affordability in August increased to 121.30 percent from last month’s 120.02 percent. First-time buyers who earn the reported median income of $38,515 can qualify to purchase one of the 2,800 homes in Orange and Seminole counties currently listed in the local multiple listing service for $187,648 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were down 0.87 percent in August, with 342 sales recorded in August 2015 compared to 345 in August 2014.

Orlando homebuyers purchased 269 duplexes, town homes, and villas in August 2015, which is 17.98 percent more than in August 2014.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in August were up by 12.06 percent when compared to August of 2014. Year to date, sales are up 19.24 percent in the MSA.

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

• Lake: 1.88 percent above August 2014;
• Orange: 12.36 percent above August 2014;
• Osceola: 26.72 percent above August 2014; and
• Seminole: 8.97 percent above August 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. Neither the association nor MFRMLS guarantees or is in any way responsible for its accurac

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.