Orlando Home Prices and Sales Uptick in June

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According to the Orlando Regional Realtor Association (ORRA), sales of Orlando homes increased by almost 6 percent in June, which marks the first positive year-over-year sales comparison in eight months. In addition, sales increased by nearly 5 percent when compared to last month.

ORRA Chairman Zola Szerencses attributes the bump in sales to more homes being available for purchase. "We've had double-digit increases in inventory for months, and the additional supply is accelerating sales," says Szerencses. "Would-be buyers who were blocked by competition last year are finding more to choose from."

Orlando's housing market also charted positive for overall median price in June. The overall median price for the month is $165,100, a 9.88 percent increase over June 2013 and a 0.06 percent increase over last month.

Orlando's overall median price has now recorded year-to-year gains for 36 consecutive months and has risen 42.94 percent since July 2011.

Short sales experienced the greatest jump in median price increase in June, coming in at 16.36 percent higher than June 2013. The median for foreclosure sales decreased 0.47 percent, while that for "normal" sales increased 4.87 percent.

The median price of single-family homes increased 7.06 percent when compared to June of last year, and the median price of condos increased 5.13 percent.

Completed Sales

Members of ORRA participated in the sales of 2,817 homes (all home types and all sale types combined) that closed in June 2014, an increase of 5.94 percent compared to June 2013 and an increase of 4.99 percent compared to May 2014.

Closing of foreclosures in Orlando increased by 54.66 percent in when compared to June 2013. "Normal" home sales in Orlando increased by 11.31 percent when compared to June 2013 and made up 65.67 percent of the sales pie. Closings of short sales decreased by 57.20 percent.

Single-family home sales increased 7.91 percent in June 2014 compared to June 2013, while condo sales decreased 6.91 percent. Compared to last month, single-family home sales increased 5.90 percent and condo sales decreased 0.28 percent.

Homes of all types spent an average of 71 days on the market before coming under contract in June 2014, and the average home sold for 96.98 percent of its listing price. In June 2013 those numbers were 68 days and 97.18 percent, respectively.

The average interest rate paid by Orlando homebuyers increased a hundredth of a percent to 4.17 percent. Last month, homebuyers paid an average interest rate of 4.16 percent; this month last year, homebuyers paid an average interest rate of 4.25 percent.

Pending Sales

Pending sales - those under contract and awaiting closing - are currently at 7,135. The number of pending sales in June 2014 is 15.47 percent lower than it was in June 2013 (8,441), and 3.67 percent lower than it was in May 2014 (7,407).

Short sales made up 37.74 percent of pending sales in June 2014. Normal properties accounted for 40.98 percent of pendings, while bank-owned properties accounted for 21.28 percent.

Inventory

The number of existing homes (all sales types and all home types combined) that were available for purchase in June is 51.23 percent above that of June 2013 and now rests at 11,518. Inventory increased in number by 610 properties over last month.

The inventory of single-family homes is up by up by 55.69 percent when compared to June of 2013, while condo inventory is up by 36.46 percent. The inventory of duplexes, townhomes, and villas is up by 39.30 percent.

Current inventory combined with the current pace of sales created a 4.09-month supply of homes in Orlando for June. There was a 2.86-month supply in June 2013 and a 4.07-month supply last month.

Affordability

The June affordability index is 180.85 percent, a very small decrease from May's index of 180.86. (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 $55,841 can qualify to purchase one of 5,810 homes in Orange and Seminole counties currently listed in the local multiple listing service for $298,581 or less.

First-time homebuyer affordability in June decreased a teeny fraction to 128.60 percent from last month's 128.61 percent. First-time buyers who earn the reported median income of $37,972 can qualify to purchase one of the 3,373 homes in Orange and Seminole counties currently listed in the local multiple listing service for $180,476 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were down 6.91 percent in June, with 350 sales recorded in June 2014 compared to 376 in June 2013.

Orlando homebuyers purchased 258 duplexes, town homes, and villas in June 2014, which is a 9.32 percent increase compared to the 236 purchased in June 2013.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in June were up by 1.38 percent when compared to June of 2013. Throughout the MSA, 3,242 homes were sold in June 2014 compared with 3,198 in June 2013. To date, MSA sales are down 5.57 percent.

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

• Lake: 4.14 percent above June 2013;
• Orange: 5.06 percent below June 2013;
• Osceola: 14.16 percent above June 2013; and
• Seminole: 6.47 percent above June 2013.