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.