Orlando Home Prices on the Rise

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According to the Orlando Regional Realtor Association (ORRA), Orlando's housing market continues to see increases in median prices across-the-board, with each sales type and each home type recording positive year-to-year comparisons during April 2014.

The overall median price for the month of April is $163,000, a 13.43 percent increase over the April 2013 median price of $143,700. (In addition, the April overall median price is 1.88 percent above that of the $160,000 posted last month.) In fact, Orlando's overall median price has recorded year-to-year gains for 33 consecutive months and has risen 41.13 percent since July 2011.

Short sales experienced by greatest jump in median price increase in April, coming in at 17.39 percent higher than April 2013. The median for foreclosure sales increased 15.79 percent, while that for "normal" sales increased 8.14 percent.

The median price of single-family homes increased 10.22 percent when compared to April of last year, and the median price of condos increased 10.00 percent.

Completed Sales

Members of ORRA participated in the sales of 2,630 homes (all home types and all sale types combined) that closed in April 2014, an increase of 8.01 percent compared to March 2014 and a decrease of 4.99 percent compared to April 2013.

Orlando Regional Realtor Association Chairman Zola Szerences, RE/MAX 200 Realty, attributes the year-over-year sales decline in part to rising prices. "With the sharp increase in home values over the past few years, Orlando's market conditions are not quite so enticing to investors now," explains Szerencses. "The thinning out of investors is creating welcome opportunities for regular buyers, particularly the first-time buyers who so often have to compete with cash-holding investors for homes in the lower price categories."

"Normal" home sales in Orlando increased by 9.55 percent when compared to April 2013 and now make up 67.15 percent of the sales pie. Closings of short sales decreased by 59.39 percent while closings of foreclosures increased 9.82 percent.

Single-family home sales decreased 0.82 percent in April 2014 compared to April 2013, while condo sales decreased 18.69 percent. Compared to last month, single-family home sales increased 10.23 percent and condo sales increased 2.76 percent.

Homes of all types spent an average of 77 days on the market before coming under contract in April 2014, and the average home sold for 96.29 percent of its listing price. In April 2013 those numbers were 76 days and 96.85 percent, respectively.

The average interest rate paid by Orlando homebuyers in April decreased to 4.39 percent. Last month, homebuyers paid an average interest rate of 4.43 percent; this month last year, homebuyers paid an average interest rate of 3.49 percent.

Pending Sales

Pending sales - those under contract and awaiting closing - are currently at 7,465. The number of pending sales in April 2014 is 15.03 percent lower than it was in April 2013 (8,785), and 0.86 percent lower than it was in March 2014 (7,530).

Short sales made up 40.29 percent of pending sales in April 2014. Normal properties accounted for 39.17 percent of pendings, while bank-owned properties accounted for 20.54 percent.

Inventory

The number of existing homes (all sales types and all home types combined) that were available for purchase in April is 47.83 percent above that of April 2013 and now rests at 10,647. Inventory increased in number by 304 properties over last month.

The inventory of single-family homes is up by up by 50.10 percent when compared to April of 2013, while condo inventory is up by 39.84 percent. The inventory of duplexes, townhomes, and villas is up by 42.14 percent.

Current inventory combined with the current pace of sales created a 4.05-month supply of homes in Orlando for April. There was a 2.60-month supply in April 2013 and a 4.25-month supply last month.

Affordability

The April affordability index is 177.96 percent, a decrease from March's index of 180.26. (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 $55,727 can qualify to purchase one of 5,255 homes in Orange and Seminole counties currently listed in the local multiple listing service for $290,077 or less.

First-time homebuyer affordability in April decreased to 126.55 percent from last month's 128.19 percent. First-time buyers who earn the reported median income of $37,894 can qualify to purchase one of the 3,075 homes in Orange and Seminole counties currently listed in the local multiple listing service for $175,336 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were down 18.69 percent in April, with 335 sales recorded in April 2014 compared to 412 in April 2013.

Orlando homebuyers purchased 237 duplexes, town homes, and villas in April 2014, which is a 15.66 percent decrease compared to the 281 purchased in April 2013.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in April were down by 5.78 percent when compared to April of 2013. Throughout the MSA, 3,148 homes were sold in April 2014 compared with 3,341 in April 2013. To date, MSA sales are down 7.95 percent.

Each individual county's monthly sales comparisons are as follows:

• Lake: 0.96 above percent above April 2013;
• Orange: 13.31 percent below April 2013;
• Osceola: 2.49 percent above April 2013; and
• Seminole: 1.57 percent above April 2013.