Orlando Home Prices Up 19 Percent in February

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According to the Orlando Regional Realtor Association (ORRA), Orlando's housing Inventory increased by 42 percent in February, in advance of the spring selling season.

But despite tremendous gains in inventory over the last months, demand has continued to fuel the ongoing rise in Orlando's median price. The overall median price (all sales types and all home types combined) for the month of February is $158,000, an 18.80 percent increase compared to the $133,000 median price in February 2013.

"As prices continue to rise, non-distressed homeowners are entering the market and giving inventory a much-needed boost," says Orlando Regional Realtor Association Chairman Zola Szerencses, RE/MAX 200 Realty. "Even so, inventory still remains tight. Desirable homes are selling very fast and often receiving multiple offers."

Orlando's overall median price (all sales types and all home types combined) has recorded year-to-year gains for 31 consecutive months and has risen 36.80 percent since July 2011.

In addition to the year-to-year gain, the February median price is 5.69 percent higher than the January 2014 median price of $149,500.

Each individual sales type and home type saw a median price increase in February. "Normal" sales experienced a 12.23 percent jump, while the median price of short sales increased 18.30 percent and foreclosures increased 0.67 percent.

The median price of single-family homes increased 17.69 percent when compared to February of last year, and the median price of condos increased 16.40 percent.

Completed Sales

Members of ORRA participated in the sales of 1,917 homes (all home types and all sale types combined) that closed in February 2014, a decrease of 17.26 percent compared to February 2013. However, it is an increase of 1.48 percent compared to January 2014.

Szerencses explains that the pace of home sales has slowed as some would-be buyers -- especially first-time buyers -- face the challenge of higher prices, higher mortgage rates, and tight credit.

"Normal" home sales increased by 0.72 percent when compared to February 2013. Closings of short sales decreased by 63.53 percent while closings of foreclosures decreased 15.29 percent.

In February, short sales and foreclosures made up 34.27 percent of the entire sales pie, while normal sales made up 65.73 percent. Last year in February, those percentages were 46.01 percent and 53.99 percent, respectively.

Single-family home sales decreased 16.71 percent in February 2014 compared to February 2013, while condo sales decreased 18.40 percent. Compared to last month, single-family home sales increased 2.81 percent and condo sales increased 0.36 percent.

Homes of all types spent an average of 76 days on the market before coming under contract in February 2014, and the average home sold for 96.63 percent of its listing price. In February 2013 those numbers were 84 days and 96.22 percent, respectively.

The average interest rate paid by Orlando homebuyers in February decreased to 4.37 percent. Last month, homebuyers paid an average interest rate of 4.47 percent; this month last year, homebuyers paid an average interest rate of 3.21 percent.

Pending Sales

Pending sales - those under contract and awaiting closing - are currently at 7,085. The number of pending sales in February 2014 is 19.72 percent lower than it was in February 2013 (8,825), but 9.67 percent higher than it was in January 2014 (6,460).

Short sales made up 45.42 percent of pending sales in February 2014. Normal properties accounted for 35.67 percent of pendings, while bank-owned properties accounted for 18.91 percent.

Inventory

The number of existing homes (all sales types and all home types combined) that were available for purchase in February is 41.78 percent above that of February 2013 and now rests at 10,184. Inventory increased in number by 257 properties over last month.

The inventory of single-family homes is up by up by 44.01 percent when compared to February of 2013, while condo inventory is up by 34.29 percent. The inventory of duplexes, townhomes, and villas is up by 35.39 percent.

Current inventory combined with the current pace of sales created a 5.31-month supply of homes in Orlando for February. There was a 3.10-month supply in February 2013 and a 5.26-month supply last month.

Affordability

The February affordability index is 183.65 percent, a decrease from January's index of 191.09. (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 $55,613 can qualify to purchase one of 5,117 homes in Orange and Seminole counties currently listed in the local multiple listing service for $290,169 or less.

First-time homebuyer affordability in February decreased to 130.60 percent from last month's 135.89 percent. First-time buyers who earn the reported median income of $37,817 can qualify to purchase one of the 3,107 homes in Orange and Seminole counties currently listed in the local multiple listing service for $175,391 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were down 18.40 percent in February, with 275 sales recorded in February 2014 compared to 337 in February 2013.
 
Orlando homebuyers purchased 177 duplexes, town homes, and villas in February 2014, which is a 19.91 percent decrease over the 221 purchased in February 2013.