Orlando Housing Report - May 2008
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).
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