Orlando Housing Market Report: November 2014
Orlando home sales, price rise as interest rate declines
Declining interest rates and swelling inventory have contributed to another month of increased home sales in the Orlando area, reports the Orlando Regional REALTOR® Association.
“Buyers who are inclined to put their home search on hold during the traditionally slow real estate months may want to rethink their strategy,” says ORRA Chairman Zola Szerencses, Keller Williams Heritage Realty. “With the average interest rate at its lowest point in 18 months — 4.01 percent — plus an inventory plumped up with new foreclosures, our winter housing market has many gifts to offer buyers.”
The median price of all home types and all sale types showed across-the-board gains in November.
The overall median price for November is $165,000, a 6.45 percent increase over November 2013 and a 3.13 percent increase compared to last month. Orlando’s overall median price has now recorded year-to-year gains for 41 consecutive months and has risen 42.86 percent since July 2011.
Foreclosures experienced the greatest jump in median price increase (21.01 percent) in November. The median for normal sales increased 7.34 percent, while that for short sales increased 3.25 percent.
The median price of single-family homes increased 5.22 percent when compared to November of last year, and the median price of condos increased 4.14 percent.
Members of ORRA participated in the sales of 2,243 homes (all home types and all sale types combined) that closed in November 2014, an increase of 5.31 percent compared to November 2013 and a decrease of 22.33 percent compared to October 2014.
Closing of foreclosures in Orlando increased by 44.21 percent in when compared to November 2013. “Normal” home sales in Orlando increased by 5.31 percent when compared to November 2013 and made up 66.03 percent of the sales pie. Closings of short sales decreased by 52.56 percent.
Single-family home sales increased 10.12 percent in November 2014 compared to November 2013, while condo sales decreased 9.52 percent. Compared to last month, single-family home sales decreased 19.60 percent and condo sales decreased 33.17 percent.
Homes of all types spent an average of 77 days on the market before coming under contract in November 2014, and the average home sold for 95.85 percent of its listing price. In November 2013 those numbers were 67 days and 96.69 percent, respectively.
The average interest rate paid by Orlando homebuyers in November – 4.01 percent – decreased from October’s 4.05 percent. In November of last year, homebuyers paid an average interest rate of 4.36 percent.
Pending sales – those under contract and awaiting closing – are currently at 6,163. The number of pending sales in November 2014 is 5.48 percent lower than it was in November 2013 (6,520), and 3.48 percent lower than it was in October 2014 (6,385).
Normal properties made up 41.20 percent of pending sales in November 2014. Short sales accounted for 30.94 percent of pendings while bank-owned properties accounted for 27.86 percent.
The number of existing homes (all sales types and all home types combined) that were available for purchase in November is 26.14 percent above that of November 2013 and now rests at 12,121. Inventory decreased 3.09 percent from last month.
The inventory of foreclosure sales increased by 33.05 percent in November 2014 compared to November 2013. The inventory of normal sales increased by 34.63 percent, and short sales inventory decreased 18.84 percent.
The inventory of single-family homes is up by up by 26.16 percent when compared to November of 2013, while condo inventory is up by 25.07 percent. The inventory of duplexes, townhomes, and villas is up by 28.03 percent.
Current inventory combined with the current pace of sales created a 5.40-month supply of homes in Orlando for November. There was a 4.51-month supply in November 2013 and a 4.33-month supply last month.
The November affordability index is 185.34 percent, a decrease from October’s index of 190.00. (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 $56,126 can qualify to purchase one of 6,237 homes in Orange and Seminole counties currently listed in the local multiple listing service for $305,819 or less.
First-time homebuyer affordability in November decreased to 131.80 percent from last month’s 135.11 percent. First-time buyers who earn the reported median income of $38,166 can qualify to purchase one of the 3,608 homes in Orange and Seminole counties currently listed in the local multiple listing service for $184,851 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were down 9.52 percent, with 266 sales recorded in November 2014 compared to 294 in November 2013.
Orlando homebuyers purchased 193 duplexes, town homes, and villas in November 2014, which is a 10.65 percent decrease compared to the 216 purchased in November 2013.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in November were up by 6.91 percent when compared to November of 2013. Throughout the MSA, 2,769 homes were sold in November 2014 compared with 2,590 in November 2013. To date, MSA sales are up 0.75 percent.
Each individual county’s monthly sales comparisons are as follows:
• Lake: 6.12 percent above November 2013;
• Orange: 6.44 percent above November 2013;
• Osceola: 7.97 percent above November 2013; and
• Seminole: 7.89 percent above November 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.