Orlando Florida Home Prices Up Nearly 20% in 2011 – Orlando Florida’s median home price was down slightly for December, but finished 2011 up 19.7%. Orlando’s median price now at $113,750, was down $1,250 from November when the median home price in Orlando was $112,825. The trend in Orlando home prices is looking much better for sellers, as the median home price jumps from $95,000 in January to close the year at $113,750. The number of available homes for sale in the Orlando area was down as for the year as well. Buyers now have fewer homes to choose from as inventory levels fell a whopping 35.8% from January’s 18,751 units, to the 12,041 homes that are now available for purchase in the Orlando area.
Unsold Homes – December 2011 (12,041): In December the number of available homes for sale drops to 12,041. This drop in the number of homes for sale in the Orlando area represents a 35.8% reduction in homes for sale in the Orlando area. The number of available homes for sale in the Orlando area went from 18,751 units in January 2011 to 12,041 homes for sale at the end of December 2011, for the 35.8 percent reduction in homes for sale in Orlando’s MSA.
Unsold Homes, Months of Inventory – (4.31 MOI): December’s Months of Inventory (MOI) was down from 5.21 to 4.31 MOI, which means the market is more favorable, statistically, for home sellers this month. At 4.31 MOI, Orlando is considered to be a statistical seller’s market. Experts point to a six month supply (6.0 MOI) of homes for sale as a balanced market.
Sold Homes – December 2011 (2,796): The number of homes that sold and closed in December was up by 422 sold units for a total of 2,796 homes that sold in December. The 2796 homes that sold in December represent a 17.8% increase in homes sold compared to November.
Median Home Price – December 2011 ($113,750): Orlando’s Median Home Price cooled just a bit in December to close 2011 at $113,750. The median home price in Orlando started the year at $95,000, but closed 2011 at $113,750, up a substantial 19.7% for the year.
Summary: Although Orlando’s median home price was down a bit for the month of December, the median home price rose by $18,750 or 19.7% to finish the year at a much stronger $113,750 median home price.
Inventory levels have also provided hope for home sellers, as fewer homes for sale mean greater competition for their properties. In January sellers were faced with 18,751 competing properties. But things have changed quite favorably for sellers as the market consumes 35.85% of the available home inventory, reducing the inventory from 18,751 homes in January to a mere 12,041 homes for sale to close out 2011. I do expect an increase in inventory for the new year, as many agents and sellers prefer waiting out the holiday season to list in the new year. I also expect for the banks to add foreclosures listings as they begin to clear hurdles that have prevented some distressed properties from hitting the market.
Short sales and bank-owned foreclosures continue to pressure prices downward. This month the number of bank-owned and short sales on the market remained flat. I do expect to see more foreclosure properties to hit the market in 2012.
With current inventory levels now at only 4.31 MOI, we have reached a balanced market. In fact, now the Orlando real estate market statistically favors sellers. If inventory levels remain where they are now, or go lower, we should see home prices rise over time. I do have concerns about the possibility of “hidden inventory” being released into the market. I’m not sure why the foreclosure inventory is so low, but I do feel that there may be a substantial backlog of foreclosures that have yet to hit the market. This backlog may be the result of the bank’s reluctance to foreclose, a backlog in the court system, or governmental programs. Since we don’t know all the forces at play, we must deal with the facts at hand, which I have tried to include in this post. Please post a comment, if you have any questions or insights.
Communities in Focus: The Dr Phillips area finishes the year with strong sales. Avalon Park, Hunters Creek, and Metrowest were our hottest selling featured communities this month, with inventories of 2.00, 2.30, and 2.30 MOI respectively. Home sales and inventory levels in our featured communities are as follow:
| Active Listings | Properties Sold | MOI | |
|---|---|---|---|
| Orlando MSA Real Estate | 12,041 | 2,796 | 4.31 |
| Short Sales | 3,487 | 987 | 3.53 |
| Foreclosures | 938 | 641 | 1.46 |
| Altamonte Springs | 195 | 87 | 2.24 |
| Apopka | 445 | 115 | 3.87 |
| Casselberry | 121 | 52 | 2.33 |
| Celebration | 99 | 15 | 6.60 |
| Clermont | 620 | 103 | 6.02 |
| Davenport | 606 | 117 | 5.18 |
| Kissimmee | 1,143 | 389 | 2.94 |
| Lake Mary | 232 | 52 | 4.46 |
| Longwood | 298 | 64 | 4.66 |
| Maitland | 119 | 27 | 4.41 |
| Montverde | 28 | 2 | 14.00 |
| Mount Dora | 339 | 40 | 8.48 |
| Ocoee | 143 | 61 | 2.34 |
| Orlando | 3,245 | 992 | 3.27 |
| Oviedo | 239 | 72 | 3.32 |
| Sanford | 394 | 98 | 4.02 |
| Sorrento | 63 | 20 | 3.15 |
| St Cloud | 342 | 67 | 5.10 |
| Windermere | 352 | 62 | 5.68 |
| Winter Garden | 182 | 49 | 3.71 |
| Winter Park | 398 | 90 | 4.42 |
| Winter Springs | 171 | 46 | 3.72 |
| COMMUNITIES | |||
| Avalon Park | 96 | 48 | 2.00 |
| Baldwin Park | 29 | 9 | 3.22 |
| College Park | 101 | 15 | 6.73 |
| Conway Area | 92 | 15 | 6.13 |
| Dr Phillips Area | 202 | 56 | 3.61 |
| Heathrow | 61 | 7 | 8.71 |
| Hunter's Creek | 69 | 30 | 2.30 |
| Isleworth | 49 | 3 | 16.33 |
| Keene's Point | 43 | 9 | 4.78 |
| Lake Nona | 133 | 33 | 4.03 |
| Metrowest | 76 | 33 | 2.30 |
| Waterford Lakes | 47 | 20 | 2.35 |
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