Orlando Real Estate News

Existing-home sales rose in July to the highest level in five months, although sales have hovered in a relatively narrow range over the past 11 months, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 3.1 percent to a seasonally adjusted annual rate¹ of 5.00 million units in July from a downwardly revised level of 4.85 million in June, but are 13.2 percent lower than the 5.76 million-unit pace in July 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the up-and-down pattern may break soon. “We hope the new tools in the hands of home buyers from the recently enacted housing stimulus package will spark a sustained sales uptrend in the months ahead,” he said. “Buyers who’ve been on the sidelines should take a closer look at what’s available to them now in terms of financing and incentives. Given some of the inventory on the market, we also strongly encourage buyers to get a professional home inspection.”

The national median existing-home price3 for all housing types was $212,400 in July, down 7.1 percent from a year ago when the median was $228,600.

Lawrence Yun, NAR chief economist, said home prices in some regions could soon increase. “Sales have picked up significantly in several Florida and California markets. Home prices generally follow sales trends after a few months of lag time,” he said. “Still, inventory remains high in many parts of the country and will require time to fully absorb. We expect more balanced conditions in 2009 and will eventually return to normal long-term appreciation patterns.”

Analysis of NAR price data since 1968 shows home prices normally rise 1 to 2 percentage points above the overall rate of inflation, building wealth over the typical period of homeownership.

Total housing inventory at the end of July rose 3.9 percent to 4.67 million existing homes available for sale, which represents an 11.2.-month supply² at the current sales pace, up from a 11.1-month supply in June. The rise in supply results from a sharp increase in condo inventory; the single family supply declined.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.43 percent in July from 6.32 percent in June; the rate was 6.70 percent in July 2007.

Single-family home sales rose 3.1 percent to a seasonally adjusted annual rate of 4.39 million in July from 4.26 million in June, but are 12.4 percent below the 5.01 million-unit level a year ago. The median existing single-family home price was $210,900 in July, down 7.7 percent from July 2007.

Existing condominium and co-op sales increased 3.4 percent to a seasonally adjusted annual rate of 610,000 units in July from 590,000 in June, but are 18.6 percent below the 749,000-unit pace in July 2007. The median existing condo price4 was $223,400 in July, which is 2.7 percent below a year ago.

Regionally, existing-home sales in the West jumped 9.7 percent in July to a level of 1.13 million and are 0.9 percent higher than July 2007. The median price in the West was $273,200, down 22.2 percent from a year ago.

In the Northeast, existing-home sales rose 5.9 percent to an annual pace of 900,000 in July, but are 11.8 percent below a year ago. The median price in the Northeast was $278,700, which is 4.9 percent lower than July 2007.

Existing-home sales in the Midwest increased 0.9 percent to an annual rate of 1.12 million in July, but are 17.0 percent lower than July 2007. The median price in the Midwest was $175,400, up 1.0 percent from a year ago.

In the South, existing-home sales slipped 0.5 percent to an annual pace of 1.85 million in July, and are 18.1 percent below a year ago. The median price in the South was $179,300, down 3.5 percent from July 2007.

Orlando area home sales, as for the past five years, declined a fraction in July following a traditional summer peak in June. Members of the Orlando Regional Realtor® Association sold 1,436 homes during the month of July, 3.56 percent below the (1,489) sold in June. That tally is 5.77 percent below the total of 1,524 homes sold in July 2007.
Year to date, sales are down by 24.52 percent (8,387 through July 2008 compared to 11,112 through July 2007). However that gap is expected to close by year-end as the number of homes currently under contract (3,258) is 26.72 percent greater than the number of homes that were under contract in July 2007 (2,571). Pending sales for the past three months have been greater than their 2007 counterparts.

The median sales price of a home in the Orlando area in July declined to $207,500, a 3.94 percent decrease compared to the June 2008 median of $216,000. (The median sales price for July 2008 is 17.00 percent below the July 2007 median of $250,000).

The decrease in the median home price to $207,500 means that the area’s affordability index jumped in July to 103.80 percent. (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 $51,734 can qualify to purchase one of 11,620 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $215,305 or less.

The first time homebuyer affordability index increased to 73.81 percent from June’s 71.20 percent.

The area’s average interest rate was 6.40 percent in July 2008, up from 6.35 percent in June, 5.94 percent in May, and 5.77 percent in April.

Homes of all types spent an average of 117 days on the market before being sold in July 2008, and the average home sold for 93.50 percent of its listing price. In July 2007 those numbers were 96.00 and 94.66 percent, respectively. The majority of single-family homes (257) that changed hands in June 2008 were sold in the $200,000 - $250,000 price range. Another 170 homes sold in June for between $250,000 and $300,000. Four hundred seventy-seven homes sold for less than $200,000 in June, and 285 sold for more than $300,000. On the far ends of the scale, 25 homes were sold for $1 million or more while 9 homes sold for less than $50,000.

Orlando Housing Inventory

There are currently 24,742 homes available for purchase through the MLS. Inventory increased by 167 homes in July 2008, which means that 167 more homes entered the market than left the market. Compared to last year, the July 2008 inventory level (24,742) is 4.90 percent lower than it was in July 2007 (26,018).

The current inventory level reflects a 17.23-month supply at the current pace of sales, which is up from the 16.50-month supply recorded June. Altogether, inventory months-of-supply has declined 45.54 percent since January 2008.

There are 18,363 single-family homes currently listed in the MLS, a number that is nearly 1,000 less than this time last year. Most (3,132) are listed in the $200,000 - $250,000 price range. Condos currently make up 4,314 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,065. Most condos (605) are priced at $120,000 - $140,000. The majority of duplexes/town homes/villas (361) are listed in the $200,000 - $250,000 price category.

Orlando Condos and Town homes/Duplexes/Villas

The sales of condos in the Orlando area decreased by 23.98 percent in July: A total of 130 condos changed hands in July 2008 compared to 171 in July 2007. In a month-to-month comparison, July 2008 condo sales (130) decreased by 4.41 percent from June 2008 (136). Year to date, condo sales are down 45.34 percent, with 821 condos sold so far in 2008 compared to 1,502 sold through the same time in 2007.

In July, the most (22) condos that changed hands were in the $100,000 - $120,000 price category, while an additional 21 sold condos fell in the $120,000 – $140,000 range. These two price categories have seen the most condo-sales activity for the last five months.

Orlando homebuyers purchased 117 duplexes, town homes, and villas in July 2008, which is a 1.74 percent increase from July 2007 when 115 of these alternative housing types were purchased. Year-to-date, duplex, town home, and villa sales are down 18.79 percent. The majority (28) of duplexes, town homes, and villas sold in July 2008 fell into the $200,000 - $250,000 price category, while another 21 sold for between $160,000 and $180,000.

Orlando Area Housing (MSA) Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July were down by 4.49 percent when compared to July of last year. Throughout the entire MSA, 1,725 homes were sold in July 2008 compared with 1,806 in July 2007. Year-to-date, the MSA is down by 24.10 percent, with 10,088 homes sold far in 2008 compared to 13,291 sold through July 2007.

Seminole County’s July 2008 sales dropped 8.55 percent below that of July 2007 (353 to 386), while Orange County fell 9.57 percent (832 to 920). Lake County saw a 2.55 percent decline in the number of sales in July 2008 compared to July 2007 (268 to 275), and Osceola County experienced a 20.89 percent increase (272 to 225).

Each county’s year-to-date sales comparisons are as follows:

Lake: 13.70 percent below 2007 (1,732 homes sold to date in 2008 compared to 2,007 in 2007);
Orange: 26.32 percent below 2007 (4,916 homes sold to date in 2008 compared to 6,672 in 2007);
Osceola: 19.97 percent below 2007 (1,435 homes sold to date in 2008 compared to 1,793 in 2007); and
Seminole: 28.88 percent below 2007 (2,005 sold to date in 2008 compared to 2,819 in 2007).

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.

Housing Stimulus Bill signed into law today - H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:

• GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
• FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
• Homebuyer Tax Credit - a $7500 tax credit that would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
• FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
• Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
• VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
• Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
• GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
• Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
• National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
• CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
• LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
• Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

U.S. home sales fall slightly - Existing-home sales – including single-family, townhomes, condominiums and co-ops – fell 2.6 percent to a seasonally adjusted annual rate1 of 4.86 million units in June from a pace of 4.99 million in May, and are 15.5 percent lower than the 5.75 million-unit rate in June 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said there is something of a quandary in the current market. “A recent online survey of Realtors® shows nearly a quarter of potential home buyers are waiting on the sidelines,” he said. “However, timing the market can be very tricky, which is why home buyers should always have a long-term view to build wealth.”

Total housing inventory at the end of June rose 0.2 percent to 4.49 million existing homes available for sale, which represents an 11.1.-month supply2 at the current sales pace, up from a 10.8-month supply in May.

Lawrence Yun, NAR chief economist, said first-time home buyers are critical to the health of the housing market. “About four in 10 homes are purchased by first-time buyers, which frees existing owners to trade up,” Yun said. “With many potential first-time home buyers on the sidelines, a first-time buyer tax credit would have a significant positive impact on both housing and the economy. Combined with permanent increases to mortgage loan limits and enhancing the FHA loan program, the housing stimulus package working its way through Congress would go a long way toward helping consumers and boosting the overall economy.”

The national median existing-home price3 for all housing types was $215,100 in June, down 6.1 percent from a year ago when the median was $229,000.

Yun said there is a downward distortion in the price data. “With short sales and foreclosures accounting for approximately one-third of transactions, it’s hard to make an apples-to-apples comparison with a year ago when they were only a minor portion of the market,” he said.

Despite the overall sales decline, unpublished snapshot data shows existing-home sales rising significantly from a year ago in Bakersfield, Calif.; Fort Myers, Fla.; and Las Vegas.

“Sales are now beginning to pick up in Orlando, Fla., Phoenix, and Oakland, Calif.,” Yun said. “Interestingly, sales fell in Atlanta, Houston, and Kansas City, Mo., despite affordable home prices and solid local employment conditions.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.32 percent in June from 6.04 percent in May; the rate was 6.66 percent in June 2007.

Single-family home sales declined 3.2 percent to a seasonally adjusted annual rate of 4.27 million in June from 4.41 million in May, and are 14.8 percent below the 5.01 million-unit pace in June 2007. The median existing single-family home price was $213,800 in June, which is down 6.7 percent from a year ago.

Existing condominium and co-op sales rose 1.7 percent to a seasonally adjusted annual rate of 590,000 units in June from 580,000 in May, but are 19.7 percent below the 735,000-unit level a year ago. The median existing condo price4 was $224,200 in June, which is 2.2 percent lower than June 2007.

Regionally, existing-home sales in the West rose 1.0 percent in June to a pace of 1.03 million but are 6.4 percent lower than a year ago. The median price in the West was $288,400, which is 17.2 percent below June 2007.

In the South, existing-home sales fell 3.1 percent to an annual rate of 1.85 million in June, and are 18.1 percent below June 2007. The median price in the South was $185,300, down 2.4 percent from a year ago.

Existing-home sales in the Midwest declined 3.4 percent to an annual pace of 1.12 million in June, and are 17.6 percent below a year ago. The median price in the Midwest was $175,300, up 2.8 percent from June 2007.

In the Northeast, existing-home sales fell 6.6 percent to an annual rate of 850,000 in June, and are 15.8 percent below June 2007. The median price in the Northeast was $256,700, down 12.6 percent from June 2007.

 With a little more than two weeks left before Congress leaves for the August recess, NAR is working hard to get a Housing Stimulus bill on the President’s desk.

         In the latest edition of the NAR’s President’s Podcast, NAR’s Chief Lobbyist Jerry Giovaniello explains what is included in this complicated legislation and why it is so important to REALTORS® and the housing market.

June home sales closed higher for a 5th straight month –  Indicators that Orlando’s housing market is marching toward a balance continued their onward progression in June, led by a four-month decline in inventory that has resulted in a 46.18 percent decrease in the months-of-supply since January. Other positive signs include an increase in the median home price and an ongoing increase in the monthly number of pending sales.

Members of ORRA sold 1,443 homes during the month of June 2008, which is 7.13 percent above the May 2008 tally of 1,347 home sales but 5.31 percent below the 1,524 homes sold in June 2007. To date, 6,905 homes have been sold by ORRA members during 2008; at this time last year that number was 9,588 (a 27.98 percent decrease).

The median sales price of a home in the Orlando area in June rose to $217,500, a 2.89 percent increase over the May 2008 median of $211,400. (The median sales price for June 2008 is 13.86 percent below the June 2007 median of $252,500).

The increase in the median home price to $217,500 means that the area’s affordability index dropped in June to 99.44 percent. (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 $51,677 can qualify to purchase one of 8,824 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $216,282 or less.

The first time homebuyer affordability index decreased to 70.71 percent from May’s 75.91 percent.

There are currently 3,329 homes in the MLS with pending sales contracts (an indicator of future sales activity), up from 3,225 in May; 2,853 in April; and 2,398 in March. The number of homes that came newly under contract in June increased slightly to 2,031; there were 2,010 homes newly under contract May, 2,012 in April, and 1,679 in March.

The area’s average interest rate was 6.35 percent in June 2008, up from 5.94 in May and 5.77 percent in April.

Homes of all types spent an average of 123 days on the market before being sold in June 2008; the average home sold for 93.38 percent of its listing price. In June 2007 those numbers were 98 and 94.91 percent, respectively.

The majority of single-family homes (265) that changed hands in June 2008 were sold in the $200,000 - $250,000 price range. Another 171 homes sold in June for between $250,000 and $300,000. Four hundred twenty-six homes sold for less than $200,000 in June, and 326 sold for more than $300,000. On the far ends of the scale, 19 homes were sold for $1 million or more while 9 homes sold for less than $50,000.

Orlando Housing Inventory

There are currently 24,575 homes available for purchase through the MLS. Inventory decreased by 440 homes in June 2008, which means that 440 more homes left the market than entered the market. June marks the fourth month in a row in which inventory has declined.

Compared to last year, the May 2008 inventory level (24,575) is 5.20 percent lower than it was in June 2007 (25,923).

The current inventory level reflects a 17.03-month supply at the current pace of sales, which reflects a five-month pattern of month-to-month decline (May 2008: 18.57; April 2008: 20.66; March 22.74; February: 27.32; January 31.64). Altogether, inventory months-of-supply has declined 46.21 percent since January 2008

There are 18,298 single-family homes currently listed in the MLS. Most (3,161) are listed in the $200,000 - $250,000 price range. Condos currently make up 4,254 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,023. Most condos (610) are priced at $120,000 - $140,000. The majority of duplexes/town homes/villas (387) are listed in the $200,000 - $250,000 price category.

Condos and Town homes/Duplexes/Villas

The sales of condos in the Orlando area declined by 29.89 percent in June: A total of 129 condos changed hands in June 2008 compared to 184 in June 2007. In a month-to-month comparison, June 2008 condo sales (129) decreased by 9.15 percent from May 2008 (142). Year to date, condo sales are down 48.61 percent, with 684 condos sold so far in 2008 compared to 1,331 sold through the same time in 2007.

In June, the most (19) condos that changed hands were in the $120,000 - $140,000 price category, while an additional 18 sold condos fell in the $100,000 – $120,000 range. In May most sold condos (24) were in the $100,000 - $120,000 range, while in April there were 21 condos each in both the $100,000 - $120,000 and the $120,000 - $140,000 categories. Buyers are clearly favoring lower-priced condos: June saw the sale of 111 sold condos priced $250,000 or lower compared to 18 priced $250,000 or higher (most single family home sales historically cluster around $250,000).

Orlando homebuyers purchased 126 duplexes, town homes, and villas in June 2008, which is a 5.00 percent increase from June 2007 when 120 of these alternative housing types were purchased. Duplex, town home, and villa sales in June 2008 were up as well, by 9.57 percent, when compared to the number of sales that took place in May 2008 (115). Month-to-month increases in the sales of these housing types have been posted in February, March, and April (May sales were down by 4.17 percent).

The majority (23) of duplexes, town homes, and villas sold in June 2008 fell into the $140,000 - $160,000 price category, while another 22 sold from the $160,000 - $180,000.

Orlando MSA Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in June were down by 7.56 percent when compared to June of last year. Throughout the entire MSA, 1,712 homes were sold in June 2008 compared with 1,852 in June 2007. Year-to-date, the MSA is down by 27.67 percent, with 8,307 homes sold far in 2008 compared to 11,485 sold through June 2007.

Seminole County’s June 2008 sales dropped 21.99 percent below that of June 2007 (337 to 432), while Orange County fell 1.02 percent (875 to 884). Lake County saw a 9.51 percent decline in the number of sales in June 2008 compared to June 2007 (257 to 284), and Osceola County experienced a 3.57 percent drop (243 to 252).

Each county’s year-to-date sales comparisons are as follows:

Lake: 15.88 percent below 2007 (1,457 homes sold to date in 2008 compared to 1,732 in 2007);
Orange: 29.61 percent below 2007 (4,049 homes sold to date in 2008 compared to 5,752 in 2007);
Osceola: 26.28 percent below 2007 (1,156 homes sold to date in 2008 compared to 1,568 in 2007); and
Seminole: 32.39 percent below 2007 (1,645 sold to date in 2008 compared to 2,433 in 2007).

U.S. existing home sales were up slightly in May, due in part to higher home affordability levels for buyers.
 

Existing home sales – including single-family, townhomes, condominiums and co-ops – increased 2.0 percent to a seasonally adjusted annual rate 1 of 4.99 million units in May from a level of 4.89 million in April, but are 15.9 percent below the 5.93 million-unit pace in May 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said buyers are seeing value in the current housing market. “Home buyers are starting to get off the fence and into the market, drawn by drops in home prices in many areas and armed with greater access to affordable mortgages,” he said. “Today’s buyer plans to stay in a home for 10 years, which is a good strategy for building long-term wealth.”

The national median existing-home price2 for all housing types was $208,600 in May, down 6.3 percent from a year ago when the median was $222,700.

Lawrence Yun, NAR chief economist, said there’s still a lot of inventory in the market. “The large supply of homes on the market clearly favors buyers, and it should take several months to draw the inventory down,” he said. “Stabilization in home prices can only occur with buyers returning to the market, so we are encouraged by rising home sales, particularly in distressed markets. Foreclosures and short sales appear to be a larger part of the market, particularly in California, and are creating a drag on current home prices.”

Total housing inventory at the end of May fell 1.4 percent to 4.49 million existing homes available for sale, which represents a 10.8-month supply3 at the current sales pace, down from a 11.2-month supply in April.

Although conditions remain mixed around the country, unpublished snapshot data shows a number of areas are experiencing much higher sales activity than May 2007, including Sacramento, the San Fernando Valley and Monterey County in California; Sarasota, Fla.; and Battle Creek, Mich.

“Keep in mind that the volume of home sales is the primary driver of economic activity that is tied to housing,” Yun said. “It’d be premature to say the improvement marks a turnaround. The market is fragile, so a first-time home buyer tax credit and a permanent raise in loan limits would be important steps to get the housing engine humming.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.04 percent in May from 5.92 percent in April; the rate was 6.26 percent in May 2007.

Single-family home sales rose 1.6 percent to a seasonally adjusted annual rate of 4.41 million in May from 4.34 million in April, but are 14.5 percent below the 5.16 million-unit pace in May 2007. The median existing single-family home price was $206,700 in May, which is 6.8 percent below a year ago.

Existing condominium and co-op sales increased 5.5 percent to a seasonally adjusted annual rate of 580,000 units in May from 550,000 in April, but are 24.6 percent lower than the 769,000-unit level a year ago. The median existing condo price4 was $223,400 in May, down 2.1 percent from May 2007.

Regionally, existing-home sales in the Midwest rose 5.5 percent in May to a pace of 1.16 million but are 16.5 percent lower than a year ago. The median price in the Midwest was $165,300, which is 0.7 percent below May 2007.

In the Northeast, existing-home sales rose 4.6 percent to an annual rate of 910,000 in May, but are 15.0 percent below May 2007. The median price in the Northeast was $278,000, down 2.4 percent from a year ago.

Existing-home sales in the West increased 2.0 percent to an annual pace of 1.02 million in May, but are 12.8 percent below a year ago. The median price in the West was $286,600, which is 16.0 percent lower than May 2007.

In the South, existing-home sales slipped 0.5 percent to an annual rate of 1.91 million in May, and are 17.0 percent below May 2007. The median price in the South was $175,000, down 4.3 percent from May 2007.

May closed sales increase for the 4th straight month – Orlando Florida’s housing market appears to be stabilizing a bit, and moving towards a more balanced market between home buyers and sellers.

For the forth month in a row, the Orlando Regional Realtor Association reported a month over month increase in the number of closed home sales. Also, an increase in the number of contracts pending, and a decrease in the amount of inventory all point to some positive moves in the market.

The Orlando Regional Realtors Associations’ (ORRA) members sold 1,276 homes in May 2008, which is a 3.66 percent increase over the 1,231 sales in April 2008. The 1,276 home sales this May is still 26.88 percent below the 1,745 homes sold in May 2007.

There was a slight increase in Orlando home prices this May. May’s median price rose to $214,000, a 1.42 percent increase over the April 2008 median price of $211,000. The $214,000 median price this year is down from $250,000 or 14.40 percent from May 2007.

The increase in the median home price to $214,000 means that the area’s affordability index dropped a fraction in May to 105.45 percent. (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.) Home buyers who earn the reported median income of $48,952 can qualify to purchase one of 9,294 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $225,663 or less.

The first time homebuyer affordability index decreased to 74.99 percent from April’s 77.38 percent.

There are currently 3,225 homes in the MLS with pending sales contracts (an indicator of increasing sales activity), up from 2,853 in April and 2,398 in March. The number of homes that came newly under contract in May decreased slightly to 2,010; there were 2,012 homes newly under contract in April and 1,679 in March.

The area’s average interest rate was 5.94 percent in May 2008, up from 5.77 percent in April.

Homes of all types spent an average of 121 days on the market before being sold in May 2008; the average home sold for 93.79 percent of its listing price. In May 2007 those numbers were 94 and 95.43 percent, respectively.

The majority of single-family homes (243) that changed hands in May 2008 were sold in the $200,000 - $250,000 price range. Another 137 homes sold in May for between $250,000 and $300,000. Three hundred seventy-five homes sold for less than $200,000 in May, and 284 sold for more than $300,000. On the far ends of the scale, 25 homes were sold for $1 million or more while 11 homes sold for less than $50,000.

Orlando Housing Inventory

There are currently 25,015 homes available for purchase through the MLS. Inventory decreased by 421 homes in May 2008, which means that 421 more homes left the market than entered the market. Compared to last year, the May 2008 inventory level (25,015) is 1.76 percent lower than it was in May 2007 (25,463).

The current inventory level reflects a 19.60-month supply at the current pace of sales, which is down from April 2008’s 20.66-month supply and March’s 22.74-month supply.

There are 18,665 single-family homes currently listed in the MLS. Most (3,310) are listed in the $200,000 - $250,000 price range. Condos currently make up 4,283 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,067. Most condos (591) are priced at $120,000 - $140,000, but nearly as many are posted in the $140,000 - $160,000 range (513). The majority of duplexes/town homes/villas (413) are listed in the $200,000 - $250,000 price category.

Condos and Town homes/Duplexes/Villas

The sales of condos in the Orlando area declined by 30.16 percent in May: A total of 132 condos changed hands in May 2008 compared to 189 in May 2007. In a month-to-month comparison, May 2008 condo sales (132) increased by 12.82 percent from April 2008 (117).

In May, the most (22) condos that changed hands were the $100,000 - $120,000 price category. In April there were 21 condos fell into both the $100,000 - $120,000 and the $120,000 - $140,000 categories, while in March most (20) fell in the $120,000 - $140,000 category.

Orlando homebuyers purchased 105 duplexes, town homes, and villas in May 2008, which is a 31.82 percent decline from May 2007 when 154 of these alternative housing types were purchased. Duplex, town home, and villa sales in May 2008 were down by 12.50 percent compared to the number of sales that took place in April 2008 (120), a month that saw a 9.09 percent increase over March. In addition, March sales increased by 39.24 percent over February.

The majority (21) of duplexes, town homes, and villas sold in May 2008 fell into the $140,000 - $160,000 price category.

Orlando MSA Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in May were down by 20.77 percent when compared to May of last year.
Throughout the entire MSA, 1,583 homes were sold in May 2008 compared with 1,998 in May 2007. Year-to-date, the MSA is down by 32.36 percent, with 6,516 homes sold far in 2008 compared to 9,633 sold through May 2007.

Seminole County’s May 2008 sales dropped 29.16 percent below that of May 2007 (328 to 463), while Orange County fell 21.03 percent (766 to 970). Lake County saw a 12.82 percent decline in the number of sales in May 2008 compared to May 2007 (272 to 312), and Osceola County experienced a 14.23 percent drop (217 to 253).

Each county’s year-to-date sales comparisons are as follows:

Lake: 17.96 percent below 2007 (1,188 homes sold to date in 2008 compared to 1,448 in 2007);
Orange: 35.66 percent below 2007 (3,132 homes sold to date in 2008 compared to 4,868 in 2007);
Osceola: 31.38 percent below 2007 (903 homes sold to date in 2008 compared to 1,316 in 2007); and
Seminole: 35.38 percent below 2007 (1,293 sold to date in 2008 compared to 2,001 in 2007).

A temporary tax credit would be the best incentive to move hesitant home buyers into the market, the NATIONAL ASSOCIATION OF REALTORS® told Congress on Thursday.

NAR said the tactic has been successful before; A 1975 temporary tax credit helped to “clear an over-supply of newly constructed homes during an economic downturn.”

“We urge Congress to move quickly to conference and final passage of this tax incentive,” said Jim Helsel, NAR treasurer and a partner in RSR, REALTORS®, in Lemoyne, Penn. “Failure to act quickly could further stall the housing market, hurting many of our members, who are predominantly small businesses owners and self-employed individuals.”

Testifying for NAR before the House Committee on Small Business, Helsel said there are “three critical features for an optimal home buyer tax credit.”
The credit should apply to all residential real estate — not solely foreclosed properties.
It should be temporary and only apply for a short period of time.
It should provide higher income limits than those the House has imposed, particularly for single individuals.

“If these measures are put in place, many individuals who are sitting on the fence will take steps to buy a home. This would not only help homeowners, buyers and sellers, but also it could expand activity as individuals furnish, paint and improve their homes. This would help boost the nation’s economy,” Helsel said.

NAR also discussed the importance of updating the “passive loss” rules that were enacted in 1986 to bring small investors back to real estate. The passive loss rules were not indexed for inflation, making the tax incentive irrelevant in most cases, Helsel said.

Source: NAR

U.S. existing home sales were down slightly in April, due in part to restrictive lending which hampered home buyers. At the same time, a number of areas are showing sales gains over last year. A recent reversal in mortgage policies should better position the market for a turnaround.

Existing home sales – including single-family, townhomes, condominiums and co-ops – declined 1.0 percent to a seasonally adjusted annual rate 1 of 4.89 million units in April from an upwardly pace of 4.94 million in March, and are 17.5 percent below the 5.93 million-unit level in April 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the good news is that mortgage restrictions have just been eased. “In the past week, Freddie Mac and Fannie Mae announced that they were eliminating their ‘declining market’ policies, effective June 1,” he said. “This means consumers across the country will have access to safe, affordable financing with downpayments of only 5 percent on most mortgages, with 100 percent financing available on some loan products, and we could see an upturn in home sales this summer.”

Lawrence Yun, NAR chief economist, said eliminating restrictive policies should be a big help to home buyers. “I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant,” he said. “Also, a recent notable drop in interest rates on conforming jumbo loans will help consumers in high-cost markets like California and New York.”

The unusual mix of market conditions around the country continues, but areas showing healthy price gains include Greenville, S.C., and Springfield, Mo., both with solid local economies. “On the other hand, some markets like San Diego, Calif., and Fort Myers, Fla., are experiencing rising sales after sudden double-digit drops in local home prices, so lower prices and low interest rates are starting to generate results,” Yun said.

The national median existing home price for all housing types was $202,300 in April, which is 8.0 percent below a year ago when the median was $219,900. Because the slowdown in sales from a year ago is greatest in high-cost areas, there is a downward distortion to the national median with relatively more sales in low and moderate priced markets.

Total housing inventory at the end of April rose 10.5 percent to 4.55 million existing homes available for sale, which represents an 11.2 month supply at the current sales pace, up from a 10.0 month supply in March.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage slipped to 5.92 percent in April from 5.97 percent in March; the rate was 6.18 percent in April 2007.

Single-family home sales slipped 0.5 percent to a seasonally adjusted annual rate of 4.34 million in April from 4.36 million in March, and are 16.1 percent below the 5.17 million-unit level recorded one year ago. The median existing single-family home price was $200,700 in April, down 8.5 percent from April 2007.

Existing condominium and co-op sales fell 5.2 percent to a seasonally adjusted annual rate of 550,000 units in April from 580,000 in March, and are 27.9 percent below the 763,000-unit pace in April 2007. The median existing condo price4 was $214,900 in April, which is 3.7 percent below a year ago.

Regionally, existing-home sales in the West rose 6.4 percent in April to a level of 1.00 million but are 15.3 percent below a year ago. The median price in the West was $285,700, which is 16.7 percent lower than April 2007.

In the South, existing-home sales were unchanged from March at an annual rate of 1.92 million in April, but are 18.6 percent below April 2007. The median price in the South was $170,800, down 5.1 percent from a year ago.

Existing-home sales in the Northeast fell 4.4 percent to an annual pace of 870,000 in April, and are 14.7 percent below a year ago. The median price in the Northeast was $262,000, which is 7.7 percent below April 2007.

In the Midwest, existing-home sales were at an annual rate of 1.10 million in April, which is 6.0 below March and 19.7 percent lower than April 2007. The median price in the Midwest was $159,100, down 2.9 percent from April 2007.