Orlando Home Sales Dip 3% in September, Prices Up 5%

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According to the Orlando Regional Realtor Association (ORRA), the median sales price of existing homes in September climbed 5.11 percent to $105,000, up from the $99,900 median price recorded in August.

Compared to the September 2009 median price of $125,000, the September 2010 median price of $105,000 represents a decrease of 16.00 percent.

The median price for "normal" sales is $157,000 (down 5.36 percent from last month's $165,900). The median price for bank-owned sales is $72,388 (up 3.41 percent from last month's $70,000), and the median price for short sales is $110,000 (up 10.00 percent from last month's $100,000).

Members of ORRA recorded completed sales on 2,226 homes in September, which is a 2.88 percent decrease over the September 2009 tally of 2,292 sales. To date, Orlando area home sales are up 31.63 percent over this time in 2009.

Of the 2,226 sales in September, 637 "normal" sales accounted for 28.62 percent of all sales, while 1,046 bank-owned and 543 short sales made up 71.38 percent.

The number of new contracts filed in September 2010 (3,654) represents a decrease of 5.29 percent than were filed in September 2009 (3,858). The area's pending sales statistic -- also an indicator of future sales activity - indicates that 8,713 homes are currently under contract and awaiting closing. This number is nearly equal to the number under contract in September 2009 (8,790) and down from the peak in April 2010 (10,832).

"What we are seeing," explains ORRA Chairman of the Board Kathleen Gallagher McIver, RE/MAX Town & Country Realty, "is that a huge backlog of pending sales have finally worked through the system. Going forward, I now expect both the completed sales and pending sales columns to be lower compared to the previous year."

The Orlando affordability index decreased to 262.01 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 $53,276 can qualify to purchase one of 9,941 homes in Orange and Seminole counties currently listed in the local multiple listing service for $275,107 or less.

First-time homebuyer affordability in September decreased to 186.32 percent. First-time buyers who earn the reported median income of $36,228 can qualify to purchase one of 7,056 homes in Orange and Seminole counties currently listed in the local multiple listing service for $166,287 or less.

Homes of all types spent an average of 88 days on the market before coming under contract in September 2010, and the average home sold for 95.14 percent of its listing price. In September 2009 those numbers were 96 and 94.23 percent, respectively. The area's average interest rate decreased in September to 4.46 percent.

Inventory

There are currently 16,359 homes available for purchase through the MLS. Inventory decreased by 176 homes from August 2010, which means that 176 more homes exited the market than entered the market. The September 2010 inventory level is 2.46 percent higher than it was in September 2009 (15,967). The current pace of sales translates into 7.35 months of supply; September 2009 recorded 6.97 months of supply.

 There are 12,718 single-family homes currently listed in the MLS, a number that is 1,008 (8.61 percent) more than in September of last year. Condos currently make up 2,227 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,414.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area increased by 15.85 percent in September when compared to September of 2009 and decreased by 22.65 percent compared to August of this year. To date, condo sales are up 67.00 percent (5,157 condos sold to date in 2010, compared to 3,088 by this time in 2009).

The most (272) condos in a single price category that changed hands in September were yet again in the $1 - $50,000 price range, a category that has accounted for a whopping 54.47 percent of all condo sales in 2010.

Orlando homebuyers purchased 217 duplexes, town homes, and villas in September 2010, which is a 3.13 percent decline from September 2009 when 222 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 September were down by 4.58 percent when compared to September of 2009. Throughout the MSA, 2,751 homes were sold in September 2010 compared with 2,883 in September 2009.

To date, sales throughout the MSA are 25.13 percent above this time in 2009 with 27,062 homes exchanging hands compared to 21,627. Each individual county's year-to-date sales comparisons are as follows:

Lake: 9.59 percent above 2009 (3,224 homes sold to date in 2010 compared to 2,942 in 2009);

Orange: 27.49 percent above 2009 (14,629 homes sold to date in 2010 compared to 11,475 in 2009);

Osceola: 17.59 percent above 2009 (4,813 homes sold to date in 2010 compared to 4,093 in 2009); and

Seminole: 41.03 percent above 2009 (4,396 sold to date in 2010 compared to 3,117 in 2009).

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