Orlando 'Normal' Home Sales Increase in September, Median Price Up 21% in 2011

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(ORLANDO, FL) -- According to the Orlando Regional Realtor Association (ORRA), sales of foreclosed homes declined 52.66 percent in September of this year compared to last, while "normal" sales and short-sales both increased (by 18.44 percent and 25.82 percent, respectively). All together, the 2,054 sales transactions involving ORRA members in September 2011 are 13.48 percent lower than in September 2010.

ORRA's housing activity report for the month of September follows just days after an announcement by Freddie Mac that the national average rate on a 30-year fixed mortgage had fallen below 4 percent for the first time ever, to 3.94 percent.

Locally, buyers who purchased an Orlando area home in September are paying the lowest average interest rate - 4.19 percent - since ORRA began tracking the statistic in January of 1995.

"For those who can qualify, it's an extraordinary time to buy," says ORRA Chairman of the Board Mike McGraw, McGraw Real Estate Services, Inc. "Although Orlando's inventory is shrinking and the median price is rising, there are still plenty of available options and the median price is comparable to that back in 2001, when the interest rates were more than 7 percent."

The Orlando area's overall median price is $115,000 for the month of September, a 9.52 percent increase over September 2010. Since January of this year, Orlando's median price has increased by 21.18 percent.

The median price of "normal" sales closing in September 2011 was $153,500, and normal sales accounted for 38.46 percent of all transactions. These two steadily improving factors have been helping to keep overall median prices hovering above those recorded in 2010.

But the lower median price of foreclosures and short sales (which combined account for 61.54 percent of all sales in September) does continue to negatively influence the overall median price. The median price for bank-owned sales in September is $82,000 and the median price for short sales is $100,000.

Homes of all types spent an average of 100 days on the market before coming under contract in September 2011, and the average home sold for 93.80 percent of its listing price. In September 2010 those numbers were 87 days and 95.19 percent, respectively.

At the current pace of sales, there is a 4.83-month supply of homes in Orlando's inventory. The number of homes available for purchase in the Orlando area declined in September by 124 homes and now rests at 9,931. Overall inventory is down 39.29 percent from September of last year; single family home inventory is down 36.12 percent while condo inventory is down 50.16 percent.

Pending sales - those under contract and awaiting closing - are currently at 9,369. The number of pending sales in September 2011 is 7.53 percent greater than in September 2010.

Affordability

The Orlando affordability index increased to 250.11 percent in September. (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 $53,960 can qualify to purchase one of 5,455 homes in Orange and Seminole counties currently listed in the local multiple listing service for $287,628 or less.

First-time homebuyer affordability in September increased a bit to 177.86 percent from last month's 176.78 percent. First-time buyers who earn the reported median income of $36,693 can qualify to purchase one of the 3,831 homes in Orange and Seminole counties currently listed in the local multiple listing service for $173,855 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area (298) decreased by 47.16 percent in September when compared to September of 2010 (564).

The most (140) condos in a single price category that changed hands in September were yet again in the $1 - $50,000 price range and account for 46.98 percent of all condo sales. Low-priced units have overwhelmingly dominated condo sales since March of 2009; this year alone, low-priced sales have made up 48.63 percent of all sales.

Orlando homebuyers purchased 220 duplexes, town homes, and villas in September 2011, which is a 5.98 percent decrease from September 2010, when 234 of these alternative housing types were purchased. Most sales (36) were between $100,000 and $120,000.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in September were down by 13.75 percent when compared to September of 2010. Throughout the MSA, 2,541 homes were sold in September 2011 compared with 2,946 in September 2010. To date, sales in the MSA are down 2.55 percent.

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

Lake: 6.77 percent above September 2010 (331 homes sold in September 2011 compared to 310 in September 2010);

Orange: 17.48 percent below September 2010 (1,317 homes sold in September 2011 compared to 1,596 in September 2010);

Osceola: 25.09 percent below September 2010 (436 homes sold in September 2011 compared to 582 in September 2010); and

Seminole: 0.22 percent below September 2010 (457 sold in September 2011 compared to 458 in September 2010).

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