Orlando Home Sales Drop 20% Year-over-year in October 2010

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The Orlando Regional Realtor Association (ORRA) reported today that the median sales price of a home in the Orlando area held steady at $105,000 for the second month in a row.

The median price for October 2010 is a 5.11 percent increase from the $99,900 overall median price recorded in August. Compared to the October 2009 median price of $130,000, the October 2010 median price of $105,000 represents a decrease of 19.23 percent.

The median price for "normal" existing homes - i.e., those that are neither a short sale nor a foreclosure - sold in October rose 10.20 percent to $173,000 from the $156,990 posted in September 2010, according to ORRA. The October 2010 "normal" median price is just 1.42 percent below that of the October 2009 "normal" median price of $175,500.

The median price for bank-owned sales is $70,000 (down 1.41 percent from last month's $71,000), and the median price for short sales is $90,000 (down 18.12 percent from last month's $113,500).

"The wide variation in median price fluctuation across sales type categories is yet another demonstration how the sheer quantity of short sales and foreclosures continues to pull down the overall median price for the Orlando real estate market," explains ORRA Chairman of the Board Mike McGraw, McGraw Real Estate Services. Of the 1,848 sales in October, 605 "normal" sales accounted for only 32.74 percent of all sales, while 760 bank-owned and 483 short sales made up 67.26 percent.

Members of ORRA recorded completed sales on 1,848 homes in October, which is a 20.31 percent decrease over the October 2009 tally of 2,319 sales. To date, Orlando area home sales are up 26.12 percent over this time in 2009.

The number of new contracts filed in October 2010 (3,466) represents a decrease of 10.30 percent than were filed in October 2009 (3,864). The area's pending sales statistic -- also an indicator of future sales activity - indicates that 8,817 homes are currently under contract and awaiting closing. This number is a decrease of 2.57 percent from the 9,050 homes that were under contract in October 2009.

The Orlando affordability index increased to 267.93 percent in October. (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 $53,333 can qualify to purchase one of 9,309 homes in Orange and Seminole counties currently listed in the local multiple listing service for $281,322 or less.

First-time homebuyer affordability in October increased to 190.52 percent. First-time buyers who earn the reported median income of $36,266 can qualify to purchase one of 6,828 homes in Orange and Seminole counties currently listed in the local multiple listing service for $170,043 or less.

Homes of all types spent an average of 91 days on the market before coming under contract in October 2010, and the average home sold for 94.61 percent of its listing price. In October 2009 those numbers were 92 and 94.22 percent, respectively. The area's average interest rate decreased in October to 4.28 percent.

Inventory

There are currently 15,441 homes available for purchase through the MLS. Inventory decreased by 918 homes (5.61 percent) from September 2010, which means that 918 more homes exited the market than entered the market. The October 2010 inventory level is 1.92 percent lower than it was in October 2009 (15,743). The current pace of sales translates into 8.36 months of supply; October 2009 recorded 6.79 months of supply.

There are 12,124 single-family homes currently listed in the MLS, a number that is 5.29 percent more than the 11,515 single-family homes listed in October of last year. Condos currently make up 2,011 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,306.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area increased by 0.70 percent in October when compared to October of 2009 and decreased by 23.05 percent compared to September of this year. To date, condo sales are up 60.16 percent (5,636 condos sold to date in 2010, compared to 3,519 by this time in 2009).

The most (240) condos in a single price category that changed hands in October were yet again in the $1 - $50,000 price range, a category that has accounted for a whopping 54.76 percent of all condo sales in 2010 (the category with the next greatest percentage of sales is the $50,000 - $60,000 category, which with 676 year-to-date sales accounts for 11.99 percent of all condo sales).

Orlando homebuyers purchased 200 duplexes, town homes, and villas in October 2010, which is a 0.50 percent decline from October 2009 when 201 of these alternative housing types were purchased.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in October were down by 21.25 percent when compared to October of 2009. Throughout the MSA, 2,316 homes were sold in October 2010 compared with 2,941 in October 2009.

To date, sales throughout the MSA are 20.37 percent above this time in 2009 with 29,573 homes exchanging hands compared to 24,568. Each individual county's year-to-date sales comparisons are as follows:

• Lake: 5.57 percent above 2009 (3,527 homes sold to date in 2010 compared to 3,341 in 2009);

• Orange: 22.43 percent above 2009 (15,957 homes sold to date in 2010 compared to 13,034 in 2009);

• Osceola: 14.40 percent above 2009 (5,307 homes sold to date in 2010 compared to 4,639 in 2009); and

• Seminole: 34.55 percent above 2009 (4,782 sold to date in 2010 compared to 3,554 in 2009).

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