Orlando Housing Market Enjoying 'Across-the-board' Price Increases, Up 16% in 2012 and 32% Over Last Year

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According to the Orlando Regional Realtor Association (ORRA), the median price of existing homes sold in the Orlando area has increased more than 15.74 percent since the beginning of the year, from $108,000 in January to $125,000 at the half-year mark in June. When compared to January 2011, the median price has increased 31.72 percent.

The June 2012 overall median price ($125,000) is 13.64 percent higher than it was in June 2011 ($110,000) and 4.17 percent higher than it was in May 2012 ($120,000). In addition, the median price has now posted positive year-to-year gains for 12 consecutive months.

All sales types experienced increases in median price in June. The median price of short sales increased 10.61 percent, while the median price of foreclosures increased 7.38 percent and normal sales increased 2.06 percent.

"In addition to across-the-board increases in median price, we are experiencing an increase in the number of homes selling for at or above listing price," says ORRA Chairman Stephen Baker, RE/MAX Central Realty. "Buyers are clamoring for quality homes - more than 43 percent of all sellers in June sold their homes for the asking price or even higher."

"If homeowners are looking for more signs of a seller-favored market, they need look no further than the months-of-supply statistic," continues Baker. "Our inventory is so low that we now have only a 3.32-month of supply, which has not been seen since the red-hot sellers' market in 2005."

Members of ORRA participated in 2,449 home sales in June 2012, a decrease of 6.20 percent compared to June 2011 and a decrease of 0.81 compared to May 2012.

More than 46 percent of June 2012 sales were normal; short sales made up 28.42 percent and foreclosure sales made up 24.70 percent. By comparison, in June 2011 normal sales accounted for 39.45 percent while short sales accounted for 27.96 percent and foreclosures accounted for 32.59 percent.

Homes of all types spent an average of 85 days on the market before coming under contract in June 2012, and the average home sold for 94.83 percent of its listing price. In June 2011 those numbers were 102 days and 95.12 percent, respectively.

The average interest rate paid by Orlando homebuyers in June was 3.80 percent, the lowest average interest rate since ORRA began tracking the statistic in 1989. A year ago, homebuyers paid an average interest rate of 4.56 percent.

Pendings

Pending sales - those under contract and awaiting closing - are currently at 9,963. The number of pending sales in June 2012 is 1.23 percent lower than it was in June 2011 (10,087) and 3.19 percent lower than it was in May 2012 (10,291).

Short sales, which take much longer to process from contract to close, made up 67.62 percent of pending sales in June 2012. Normal properties accounted for 20.10 percent of pendings, while bank-owned properties accounted for 12.28 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 8,136. In June 2012, inventory was 22.95 percent less than it was in June 2011.

The inventory of single-family homes is down by 26.26 percent when compared to June of 2011, while condo inventory has increased a fraction (by 0.60 percent).

The month-of-supply dropped yet again in June. The current inventory combined with the current pace of sales equates to a 3.32-month supply of homes in Orlando, which is a number not seen since September of 2005's 2.29-month supply.

Affordability

The steady increases in median price have led to steady decreases in Orlando's affordability index: the June index of 243.55 percent is seven percentage points lower than May 2012's index of 250.73 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 $54,473 can qualify to purchase one of 4,599 homes in Orange and Seminole counties currently listed in the local multiple listing service for $304,442 or less.

First-time homebuyer affordability in June dropped to 173.19 percent from last month's 178.30 percent. First-time buyers who earn the reported median income of $37,042 can qualify to purchase one of the 3,261 homes in Orange and Seminole counties currently listed in the local multiple listing service for $184,018 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area decreased by 13.97 percent in June when compared to June of 2011 (394 to 458).

The most (135) condos in a single price category that changed hands in June were yet again in the $1 - $50,000 price range and accounted for 34.26 percent of all condo sales.

Orlando homebuyers purchased 225 duplexes, town homes, and villas in June 2012, which is a 6.64 percent decrease compared to June 2011. Most (31) 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 June were down by 6.64 percent when compared to June of 2011. Throughout the MSA, 3,011 homes were sold in June 2012 compared with 3,225 in June 2011. To date, sales are down 6.33 percent for all counties combined.

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

• Lake: 2.72 percent below June 2011 (393 homes sold in June 2012 compared to 404 in June 2011);

• Orange: 8.05 percent below June 2011 (1,553 homes sold in June 2012 compared to 1,689 in June 2011);

• Osceola: 22.39 percent below June 2011 (468 homes sold in June 2012 compared to 603 in June 2011); and

• Seminole: 12.85 percent above June 2011 (597 sold in June 2012 compared to 529 in June 2011).