Orlando Enjoys Third Consecutive Median Home Price Increase in April

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According to the Orlando Regional Realtor Association (ORRA), the median sales price of Orlando area homes jumped more than 10 percent in April.

The overall median price of Orlando homes increased 10.48 percent over April 2011's median price of $105,000, to $116,000. In addition, the April 2012 overall median price is 0.87 percent higher than that recorded in March 2012 ($115,000).

The April 2012 median prices of both bank-owned sales and short sales increased in comparison to April 2011: bank-owned sales by 6.01 percent (to $84,700 from $79,900) and short sales by 5.56 percent (to $95,000 from $90,000). The median price of normal sales decreased by 2.23 percent (to $158,000 from $161,600).

"The overall median price has increased for three consecutive months," notes ORRA Chairman Stephen Baker, RE/MAX Central Realty, "while demand has created inventory declines for the last 18 months. Add in today's prices and the lowest mortgage rates since the 1950s, and now we have a market with buyers competing for available homes."

The average interest rate paid by Orlando homebuyers in April was 4.03 percent. The lowest average interest rate since ORRA began tracking the statistic hit in February 2012, when it was 3.92 percent. A year ago, homebuyers paid an average interest rate of 4.89 percent.

Members of ORRA participated in 2,353 home sales in April 2012, a decrease of 4.50 percent compared to April 2011 and a decrease of 3.37 compared to March 2012. More than 45 percent of April 2012 sales were normal; short sales made up 29.41 percent and foreclosure sales made up 25.41 percent. By comparison, in April 2011 normal sales accounted for 34.25 percent while short sales accounted for 25.53 percent and foreclosures accounted for 40.22 percent.

Homes of all types spent an average of 87 days on the market before coming under contract in April 2012, and the average home sold for 95.42 percent of its listing price. In April 2011 those numbers were 104 days and 94.11 percent, respectively.

Pendings

Pending sales - those under contract and awaiting closing - are currently at 10,078. The number of pending sales in April 2012 is 1.24 percent higher than it was in April 2011 (9,955) and 3.39 percent higher than it was in March 2012 (9,748).

Short sales, which take much longer to process from contract to close, made up 67.78 percent of pending sales in April 2012. "Normal" properties accounted for 19.47 percent of pendings, while bank-owned properties accounted for 12.75 percent.

Inventory

The number of existing homes available for purchase in Orlando is continuing a steady decline that began in back in July 2010 at 16,563 and now rests at 8,642. In April 2012, inventory was 24.72 percent less than it was in April 2011.

The inventories of single-family homes and condos are both down: single-family by 26.58 percent and condo by 8.04 percent.

The current inventory combined with the current pace of sales equates to a 3.67-month supply of homes in Orlando. The months of supply in March 2012 (3.56) marked a pace not seen since December of 2005 when it was a 3.58-month supply.

Affordability

The increase in median price has led to a decrease in Orlando's affordability index: the April index of 254.69 percent is three percentage points lower than March 2012's index of 257.88 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 $54,359 can qualify to purchase one of 4,792 homes in Orange and Seminole counties currently listed in the local multiple listing service for $295,442 or less.

First-time homebuyer affordability in April dipped to 181.11 percent from last month's 183.38 percent. First-time buyers who earn the reported median income of $36,964 can qualify to purchase one of the 3,445 homes in Orange and Seminole counties currently listed in the local multiple listing service for $178,578 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area decreased by 12.19 percent in April when compared to April of 2011 (425 to 484).

The most (148) condos in a single price category that changed hands in April were yet again in the $1 - $50,000 price range and accounted for 34.82 percent of all condo sales.

Orlando homebuyers purchased 226 duplexes, town homes, and villas in April 2012, which is a 3.67 percent increase compared to April 2011. Most (36) fell within the $100,000 - $120,000 price range.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in April were down by 9.02 percent when compared to April of 2011. Throughout the MSA, 2,895 homes were sold in April 2012 compared with 3,182 in April 2011. To date, sales are down 9.72 percent for all counties combined.

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

Lake: 1.75 percent below April 2011 (393 homes sold in April 2012 compared to 400 in April 2011);
Orange: 10.26 percent below April 2011 (1,443 homes sold in April 2012 compared to 1,608 in April 2011);
Osceola: 26.43 percent below April 2011 (490 homes sold in April 2012 compared to 666 in April 2011);
Seminole: 12.01 percent above April 2011 (569 sold in April 2012 compared to 508 in April 2011).