Orlando Real Estate News

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.

Orlando home sales increase again - Orlando’s housing market for the second month experienced a month-over-month increase in the number of home sales, an increase in the number of pending sales contracts, and a decrease in the amount of inventory – all indicators of a continued, although admittedly glacially paced, shift toward a market balanced between buyers and sellers.
The monthly statistical reports released by the Orlando Regional Realtor® Association also revealed an across-the-board, four-month trend indicating decreases in Orange and Seminole counties’ month-to-month sales comparison percentages. For example, Orange County sales were down by 28 percent when comparing April 2008 to April 2007; 40.16 for March; 44.28 percent for February; and 49.23 percent for January.
The median sales price of a home in the Orlando area decreased by 4.09 percent ($9,000) from $220,000 in March 2008 to $211,000 in April 2008. The median sales price for April 2008 is 12.85 percent ($31,100) below that of April 2007 ($242,100).
The decrease in the median home price to $211,000 means that the area’s affordability index increased in April to 108.81 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 $51,563 can qualify to purchase one of 9,104 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $229,589 or less.
The first time homebuyer affordability index increased to 77.38 percent from March’s 72.78 percent.
The number of sales in the Orlando area declined by 25.03 percent in April 2008 compared to April of last year (1,147 to 1,530), but the number of sales that took place in April 2008 did increase by 2.41 percent compared to the number of sales that occurred in March 2008 (1,120).
There are currently 2,853 homes in the MLS with pending sales contracts (an indicator of future sales activity), up from 2,398 in March and 2,175 in February. The number of homes that came newly under contract in April increased by 333 to 2,012; there were 1,679 homes newly under contract in March and 1,537 in February.
The area’s average interest rate was 5.77 percent in April 2008, down from 5.94 percent in March and 5.87 in February. Homes of all types spent an average of 121 days on the market before being sold in April 2008; the average home sold for 93.14 percent of its listing price. In April 2007 those numbers were 97 and 95.49 percent, respectively.
The majority of single-family homes (232) that changed hands in April 2008 were sold in the $200,000 - $250,000 price range. Another 112 homes sold in April for between $250,000 and $300,000. Three hundred thirty-nine homes sold for less than $200,000 in April, and 259 sold for more than $300,000. On the far ends of the scale, 21 homes were sold for $1 million or more while 11 homes sold for less than $50,000.

Orlando Housing Inventory

There are currently 25,436 homes available for purchase through the MLS. Inventory decreased by 36 homes in April 2008, which means that 36 more homes left the market than entered the market. Compared to last year, the April 2008 inventory level (25,436) is 4.10 percent higher than it was in April 2007 (24,435).
The current inventory level reflects a 22.18-month supply at the current pace of sales, which is down from March 2008’s 22.74-month supply and February’s 27.32-month supply
There are 19,051 single-family homes currently listed in the MLS. Most (3,423) are listed in the $200,000 - $250,000 price range. Condos currently make up 4,310 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,075. Most condos (580) are priced at $120,000 - $140,000, but nearly as many are posted in the $140,000 - $160,000 range (519) and the $200,000 - $250,000 (516) range. The majority of duplexes/town homes/villas (404) 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 declined by 47.94 percent in April: A total of 101 condos changed hands in April 2008 compared to 194 in April 2007. In a month-to-month comparison, April 2008 condo sales (101) increased by 12.22 percent from March 2008 (90).
In April, exactly 20 condos changed hands in both the $100,000 - $120,000 and the $120,000 - $140,000 price categories. In March most (20) condos that sold fell into the $120,000 - $140,000 category, while in February most (16) fell in the $160,000 - $180,000 category.
Orlando homebuyers purchased 104 duplexes, town homes, and villas in April 2008, which is a 16.13 percent decline from April 2007 when 124 of these alternative housing types were purchased. Duplex, town home, and villa sales in April 2008 were down by 5.45 percent compared to the number of sales that took place in March 2008 (110), a month that saw a 39.24 percent increase over February. In addition, February sales increased by 46.30 percent over January.
The majority (24) of duplexes, town homes, and villas sold in April 2008 fell into the $180,000 - $200,000 price category.

Orlando MSA Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in April were down by 24.95 percent when compared to April of last year. Throughout the entire MSA, 1,375 homes were sold in April 2008 compared with 1,832 in April 2007. Year-to-date, the MSA is down by 36.62 percent, with 4,839 homes sold far in 2008 compared to 7,635 sold through April 2007.
Seminole County’s April 2008 sales dropped 29.34 percent below that of April 2007 (277 to 392), while Orange County fell 28.00 percent (653 to 907). Lake County saw a 13.26 percent decline in the number of sales in April 2008 compared to April 2007 (242 to 279), and Osceola County experienced a 20.08 percent drop (203 to 254).
Each county’s year-to-date sales comparisons are as follows:
Lake: 20.86 percent below 2007 (899 homes sold to date in 2008 compared to 1,136 in 2007);
Orange: 40.48 percent below 2007 (2,320 homes sold to date in 2008 compared to 3,898 in 2007);
Osceola: 37.06 percent below 2007 (669 homes sold to date in 2008 compared to 1,063 in 2007); and
Seminole: 38.17 percent below 2007 (951 sold to date in 2008 compared to 1,538 in 2007).

U. S. existing-home sales moved down in March, remaining within a narrow range of sales activity that has persisted since last September, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – were down 2.0 percent to a seasonally adjusted annual rate1 of 4.93 million units in March from a level of 5.03 million in February, and remain 19.3 percent below the 6.11 million-unit pace in March 2007. A rise in condo sales in March was offset by a drop in single-family sales. Regionally, sales rose in the Northeast and West but fell in the Midwest and South.

Lawrence Yun, NAR chief economist, said the market is performing unevenly. “Though mortgage rates are at historically low levels, some borrowers are facing restrictive lending practices in declining markets,” he said. “At the same time, many buyers continue to bide their time with a large number of homes to choose from, while other potential buyers remain on the sidelines.”

The national median existing-home price2 for all housing types was $200,700 in March, down 7.7 percent from a year ago when the median was $217,400. Because the slowdown in home sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively higher sales activity in low-cost markets.

A mix of market conditions continues around the country, but areas showing healthy price gains include Des Moines, Iowa; Austin, Texas; and Durham, N.C.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.97 percent in March from 5.92 percent in February; the rate was 6.16 percent in March 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said there are problems with the implementation of mortgage guidelines. “It appears there is some over-reaction on the part of some lenders now in requiring higher downpayment percentages than may be necessary,” he said. “On the other hand, buyers in many parts of the country are able to take advantage of more lenient policies for FHA loans. However, because lenders don’t have enough underwriting experience with FHA loans in high-cost areas, there are localized bottlenecks in loan processing. Consumers should consult with a Realtor® in their area to learn about the kind of financing that may be available to meet their needs.”

Yun offered a caution. “With elevated inflation, the Federal Reserve should be extra careful about further rate cuts,” he said. “Mortgage interest rates, which do not move directly with Fed funds rates, may rise measurably and hurt the housing recovery if inflation gets out of hand. Monetary stimulus is plentiful – what is needed more at this point is a home buyer tax credit to get buyers off the sidelines and prevent the market from overshooting on the downside.”

Total housing inventory rose 1.0 percent at the end of March percent to 4.06 million existing homes available for sale, which represents a 9.9-month supply3 at the current sales pace, up from a 9.6-month supply in February.

Single-family home sales fell 2.7 percent to a seasonally adjusted annual rate of 4.35 million in March from 4.47 million in February, and are 18.4 percent below the 5.33 million-unit pace in March 2007. The median existing single-family home price was $198,200 in March, down 8.3 percent from a year ago.

Existing condominium and co-op sales rose 3.6 percent to a seasonally adjusted annual rate of 580,000 units in March from 560,000 in February, but are 25.5 percent below the 779,000-unit level a year ago. The median existing condo price4 was $219,400 in March, which is 2.8 percent lower than March 2007.

Regionally, existing-home sales in the Northeast rose 2.2 percent to an annual pace of 910,000 in March, but are 18.8 percent below March 2007. The median price in the Northeast was $284,300, up 4.6 percent from a year ago.

Existing-home sales in the West rose 2.2 percent in March to a level of 940,000 but are 22.3 percent below a year ago. The median price in the West was $285,100, which is 14.7 percent lower than March 2007.

In the South, existing-home sales fell 3.5 percent to an annual rate of 1.92 million in March and are 20.0 percent below March 2007. The median price in the South was $167,200, down 7.1 percent from a year ago.

Existing-home sales in the Midwest dropped 6.5 percent to an annual rate of 1.16 million in March, and are 15.9 percent below a year ago. The median price in the Midwest was $152,600, down 5.3 percent from March 2007.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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1 The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 percent of total home sales, are based on a much larger sample – nearly 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

2 The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the geographic composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

3 Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982. Condos were tracked quarterly prior to 1999 when single-family homes accounted for more than nine out of 10 purchases (e.g., condos were 9.5 percent of transactions in 1998, 8.5 percent in 1990 and only 6.1 percent in 1982).

4 Because there is a concentration of condos in high-cost metro areas, the national median condo price can be higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.

Existing-home sales for April will be released May 23, and the next Forecast/Pending Home Sales Index is scheduled for May 7.

March sales increase as prices decline – Orlando’s housing market experienced an increase in the number of home sales month over month, an increase in the number of pending sales contracts, and a decrease in the amount of inventory – all positive moves towards a more balanced market between buyers and sellers.

Orlando Regional Realtor® Association’s monthly statistical reports released revealed some additional interesting signs for the month of March:

the sales of homes costing upwards of $1 million more than doubled in March compared to last month;
the sales of duplexes, town homes, and villas have increased in each of the last three months; and
the majority of condos sold have fallen into lower and lower price categories for each of the last three months.
The median sales price of a single-family home in the Orlando area decreased by 1.35 percent ($3,000) from $223,000 in February 2008 to $220,000 in March 2008. The median sales price for March 2008 is 8.33 percent below that of March 2007 ($240,000).

The decrease in the median home price to $220,000 means that the area’s affordability index increased in March to 102.35 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 $51,506 can qualify to purchase one of 10,980 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $225,170 or less.

The first time homebuyer affordability index held steady in March, at 72.78.

The number of sales in the Orlando area declined by 39.29 percent in March 2008 compared to March of last year (1,080 to 1,779), but the number of sales that took place in March 2008 increased by 13.56 percent compared to the number of sales that occurred in February 2008 (951).

There are currently 2,398 homes in the MLS with pending sales contracts (an indicator of future sales activity), up from 1,731 in January and 2,175 in February. The number of homes newly under contract increased by 142 in March, and the increase from January to February was 298.

The area’s average interest rate was 5.94 percent in March 2008, up from 5.87 percent in February but down from 2007’s high of 6.60 percent in August.

Homes of all types spent an average of 130 days on the market before being sold in March 2008; the average home sold for 93.53 percent of its original asking price. In March 2007 those numbers were 90 and 95.87 percent, respectively.

The majority of single-family homes (223) that changed hands in March 2008 were sold for between $200,000 and $250,000. Another 129 homes sold in March for between $250,000 and $300,000. Two hundred eighty-four homes sold for less than $200,000 in March, and 260 sold for more than $300,000. On the far ends of the scale, 31 homes were sold for $1 million or more (double the number sold in February) while only 10 homes sold for less than $50,000.

Inventory

There are currently 25,472 homes available for purchase through the MLS. Inventory decreased by 512 homes in March 2008, which means that 512 more homes left the market than entered the market. Compared to last year, the March 2008 inventory level (25,472) is 8.18 percent higher than it was in March 2007 (23,547).

The current inventory level reflects a 23.59-month supply at the current pace of sales, which is down from February 2008’s 27.32-month supply

There are 19,197 single-family homes currently listed in the MLS. Most (6,489) are listed in the $200,000 to $300,000 price range. Condos currently make up 4,175 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,100. Most condos (552) are priced at $120,000 to $140,000, but nearly equal numbers are posted in both the $140,000 to $160,000 and the $200,000 to $250,000 ranges. The majority of duplexes/town homes/villas (447) are listed in the $200,000 to $250,000 range.

Condos and Town homes/Duplexes/Villas

The sales of condos in the Orlando area declined by 65.57 percent in March: A total of 84 condos changed hands in March 2008 compared to 244 in March 2007. In a month-to-month comparison, March 2008 condo sales (84) decreased by 26.32 percent from February 2008 (114).

The most (18) condos that changed hands in March 2008 fell into the $120,000 to $140,000 range; last month, most condos sold in the $160,000 to $180,000 range.

Orlando homebuyers purchased 100 duplexes, town homes, and villas in March 2008, which is a 31.97 percent decline from March 2007 when 147 of these alternative housing types were purchased. However, duplex, town home, and villa sales in March 2008 were up by 26.58 percent compared to the number of sales that took place in February 2008 (79), the second month-over-month increase already this year. The majority (20) of duplexes, town homes, and villas sold in March 2008 fell into the $140,000 to $160,000 category.

MSA Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in March were down by 38.65 percent when compared to March of last year. Throughout the entire MSA, 1,319 homes were sold in March 2008 compared with 2,150 in March 2007. Year-to-date, the MSA is down by 40.91 percent, with 3,429 homes sold far in 2008 compared to 5,803 sold through March 2007.

Seminole County’s March 2008 sales dropped 41.26 percent below that of March 2007 (252 to 429), while Orange County fell 41.99 percent (637 to 1,098). Lake County saw a 24.09 percent decline in the number of sales in March 2008 compared to March 2007 (249 to 328), and Osceola County experienced a 38.64 percent drop (181 to 295).

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

Lake: 23.57 percent below 2007 (655 homes sold to date in 2008 compared to 857 in 2007);
Orange: 44.93 percent below 2007 (1,647 homes sold to date in 2008 compared to 2,991 in 2007);
Osceola: 43.14 percent below 2007 (460 homes sold to date in 2008 compared to 809 in 2007); and
Seminole: 41.80 percent below 2007 (667 sold to date in 2008 compared to 1,146 in 2007).

February sales increase - Orlando’s real estate market upheld its annual trend of increased sales over the month of January, which signals the start of the spring selling season. The 922 sales in this February are a 13.4 percent increase over January’s 813 sales; however, sales in February 2008 are down by 40.17 percent when compared to February of 2007.

The monthly statistical reports released by the Orlando Regional Realtor® Association revealed some additional interesting tidbits for the month of February:

Sales in Lake County were down by only 13.73 percent, compared to 45.69 percent, 41.76 percent, and 40.39 percent in Orange, Seminole, and Osceola counties respectively;
Sales of town homes, villas and duplexes increased by 37.04 percent from month to month; and the sales of condos increased by 15.22 percent from month to month.
The median sales price of a single-family home in the Orlando area increased by 0.68 percent ($1,500) from $221,500 in January to $223,000 in February. The median sales price for February 2008 is 12.55 percent below that of February 2007 ($255,000).

The increase in the median home price to $223,000 means that the area’s affordability index dropped in February to 101.62. (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 $51,449 can qualify to purchase one of 8,509 homes in Orange and Seminole counties currently listed in the local MLS for $226,568 or less.

The first time homebuyer affordability index dipped a bit in February, to 72.27 percent from 74.84 in January.

The number of sales in the Orlando area declined by 40.17 percent this February compared to last year’s (922 to 1,541), but the number of sales that took place in February 2008 increased over the number of sales that occurred in January (813).

There are currently 2,175 homes in the MLS with pending sales contracts (an indicator of future sales activity), up from 1,731 in January. The number of homes newly under contract increased by almost 300 in February; the increase from December 2007 to January 2008 was more than 200.

The area’s average interest rate was 5.87 percent in February 2008, up from 5.60 percent in January but down from 5.93 in December 2007.

Homes of all types spent an average of 123 days on the market before being sold in February 2008; the average home sold for 93.21 percent of its original asking price. In December 2007 those numbers were 113 and 92.75 percent, respectively.

The majority of single-family homes (188) that changed hands in February 2008 were sold for between $200,000 and $250,000. Another 117 homes sold in February for between $250,000 and $300,000. Two hundred twenty-nine homes sold for less than $200,000 in February, and 208 sold for more than $300,000. On the far ends of the scale, 15 homes were sold for $1 million or more while only nine (up from four in January) homes sold for less than $50,000.

Inventory

There are currently 25,984 homes available for purchase through the MLS. Inventory increased by 260 homes in February 2008, which means that 260 more homes entered the market than left the market. Compared to last year, the February 2008 inventory level (25,984) is 17.81 percent higher than it was in February 2007 (22,055).

The current inventory level reflects a 28.18-month supply at the current pace of sales, which is down from January 2008’s 31.64-month supply

There are 19,531 single-family homes currently listed in the MLS. Most (6,872) are listed in the $200,000 to $300,000 price range. Condos currently make up 4,242 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,211. Most condos (573) are priced at $120,000 to $140,000, but nearly equal numbers are posted in both the $160,000 to $180,000 and the $200,000 to $250,000 ranges. The majority of duplexes/town homes/villas (498) are listed in the $200,000 to $250,000 range.

Condos and Town homes/Duplexes/Villas

The sales of condos in the Orlando area declined by 54.31 percent in February: A total of 106 condos changed hands in February 2008 compared to 232 in February 2007. In a month-to-month comparison, February 2008 condo sales (106) increased by 15.22 percent from January 2008 (92).

The most (16) condos that changed hands in February 2008 fell into the $160,000 and $180,000 range.

Orlando homebuyers purchased 74 duplexes, town homes, and villas in February 2008, which is a 42.19 percent decline from February 2007 when 128 of these alternative housing types were purchased. However, duplex, town home, and villa sales in February 2008 were up by 37.04 percent compared to the number of sales that took place in January 2008 (54).

The majority (16) of duplexes, town homes, and villas sold in February 2008 fell into the $140,000 to $160,000 category.

MSA Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in February were down by 39.42 percent when compared to February of last year. Throughout the entire MSA, 1,145 homes were sold in February 2008 compared with 1,890 in February 2007. Year-to-date, the MSA is down by 43.09 percent, with 2,079 homes sold far in 2008 compared to 3,653 sold through February 2007.

Seminole County’s February 2008 sales dropped 41.76 percent below that of February 2007 (212 to 364), while Orange County fell 45.69 percent (536 to 987). Lake County saw a 13.73 percent decline in the number of sales in February 2008 compared to February 2007 (245 to 284), and Osceola County experienced a 40.39 percent drop (152 to 255).

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

Lake: 23.44 percent below 2007 (405 homes sold to date in 2008 compared to 529 in 2007);
Orange: 47.39 percent below 2007 (996 homes sold to date in 2008 compared to 1,893 in 2007);
Osceola: 47.67 percent below 2007 (269 homes sold to date in 2008 compared to 514 in 2007); and
Seminole: 42.96 percent below 2007 (409 sold to date in 2008 compared to 717 in 2007).

The two largest sources of U.S. mortgage financing agreed on Monday to sponsor a new home appraisal watchdog to prevent inflated home values.

Fannie Mae and Freddie Mac will uphold a new code of conduct meant to keep mortgage lenders at arm’s length from home appraisers and will also spend $24 million to jump-start the new oversight body in a deal to prevent lawsuits from New York Attorney General Andrew Cuomo.

Starting January 1, 2009, the government-sponsored enterprises will buy home loans only from lenders that endorse an appraiser code of conduct that Cuomo said he hopes will become an industry standard.

“This is one of the greatest, most dramatic reforms of the housing industry in the last 20 years,” Cuomo said at a press event in New York announcing the deal. “We believe as a group that this will be a significant and dramatically positive reform.”

Since Wall Street gladly bought and bundled home loans for investors during the housing boom, lenders may have felt more comfortable inflating loan amounts. Cuomo filed subpoenas against Fannie Mae and Freddie Mac to determine whether the companies stood by as that happened.

The new code will prohibit mortgage brokers from selecting a home appraiser, while lenders may not use in-house assessors for initial reports on the value of homes. In another provision of the settlement, Fannie Mae and Freddie Mac will each provide $12 million over the five years to help establish an appraisal oversight body.

The companies’ federal regulator, the Office of Federal Housing Enterprise Oversight, will host the new watchdog group, which will maintain a consumer hotline and promote appraiser independence.

The new standards will help break long-standing business practices under which lenders often had close ties to home appraisers.