Median Home Price Jumps 14% In May

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Orlando’s housing market continues to see across-the-board increases in median prices, with each sales type and each home type recording positive year-to-year comparisons in May.

The overall median price for the month of May is $165,000, a 13.68 percent increase over the May 2013 median price of $145,148. (In addition, the May overall median price is 1.54 percent above that of the $162,500 posted last month.) In fact, Orlando’s overall median price has recorded year-to-year gains for 35 consecutive months and has risen 42.86 percent since July 2011.
OrlHousMrktSnap062014
Short sales experienced the greatest jump in median price increase in May, coming in at 13.56 percent higher than May 2013. The median for foreclosure sales increased 10.00 percent, while that for “normal” sales increased 9.00 percent.

The median price of single-family homes increased 9.62 percent when compared to May of last year, and the median price of condos increased 4.44 percent.

Completed Sales

Members of ORRA participated in the sales of 2,651 homes (all home types and all sale types combined) that closed in May 2014, a decrease of 11.16 percent compared to May 2013 and a decrease of 1.74 percent compared to April 2014.

Orlando Regional REALTOR® Association Chairman Zola Szerences, RE/MAX 200 Realty, attributes the decrease in sales partly to a decline in investors due Orlando’s rising home values, and also partly to the increase of available foreclosures.

“While foreclosures are adding a much needed injection of inventory, they are also slowing completed sales,” says Szerencses. “Much like short sales, foreclosure transactions take longer to process than normal transactions. As the proportion of foreclosures rises in the pending sales category (it’s up 41 percent in May), year-to-year closing comparisons will drop as a side effect.”

Closing of foreclosures in Orlando increased by 15.49 percent in when compared to May 2013. “Normal” home sales in Orlando decreased by 0.34 percent when compared to May 2013 and now make up 66.01 percent of the sales pie. Closings of short sales decreased by 62.88 percent.

Single-family home sales decreased 8.31 percent in May 2014 compared to May 2013, while condo sales decreased 24.01 percent. Compared to last month, single-family home sales decreased 1.99 percent and condo sales decreased 1.71 percent.

Homes of all types spent an average of 73 days on the market before coming under contract in May 2014, and the average home sold for 96.21 percent of its listing price. In May 2013 those numbers were 69 days and 96.77 percent, respectively.

The average interest rate paid by Orlando homebuyers in May decreased to 4.16 percent. Last month, homebuyers paid an average interest rate of 4.39 percent; this month last year, homebuyers paid an average interest rate of 3.64 percent.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 7,407. The number of pending sales in May 2014 is 14.18 percent lower than it was in May 2013 (8,631), and 0.78 percent lower than it was in April 2014 (7,465).

Short sales made up 39.25 percent of pending sales in May 2014. Normal properties accounted for 39.27 percent of pendings, while bank-owned properties accounted for 21.48 percent.

Inventory

The number of existing homes (all sales types and all home types combined) that were available for purchase in May is 50.00 percent above that of May 2013 and now rests at 10,908. Inventory increased in number by 261 properties over last month.

The inventory of single-family homes is up by up by 53.27 percent when compared to May of 2013, while condo inventory is up by 38.56 percent. The inventory of duplexes, townhomes, and villas is up by 42.57 percent.

Current inventory combined with the current pace of sales created a 4.11-month supply of homes in Orlando for May. There was a 2.44-month supply in May 2013 and a 3.95-month supply last month.

Affordability

The May affordability index is 180.86 percent, an increase from April’s index of 178.51. (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 $55,784 can qualify to purchase one of 7,581 homes in Orange and Seminole counties currently listed in the local multiple listing service for $298,419 or less.

First-time homebuyer affordability in May increased to 128.61 percent from last month’s 126.94 percent. First-time buyers who earn the reported median income of $37,933 can qualify to purchase one of the 4.534 homes in Orange and Seminole counties currently listed in the local multiple listing service for $180,378 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were down 24.01 percent in May, with 345 sales recorded in May 2014 compared to 454 in May 2013.

Orlando homebuyers purchased 242 duplexes, town homes, and villas in May 2014, which is a 13.26 percent decrease compared to the 279 purchased in May 2013.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in May were down by 9.55 percent when compared to May of 2013. Throughout the MSA, 3,269 homes were sold in May 2014 compared with 3,614 in May 2013. To date, MSA sales are down 7.69 percent.

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

  • Lake: 2.23 percent below May 2013;
  • Orange: 14.21 percent below May 2013;
  • Osceola: 8.01 percent below May 2013; and
  • Seminole: 4.79 percent below May 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.