Orlando's Home Prices Plummet 14.17% in January, Record 73.4 % Were Bank REO and Short Sale Closings

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(ORLANDO, FL) -- According the Orlando Regional Realtor Association (ORRA), a record breaking 73.42 percent of closings in January were categorized as either bank-owned or short sales, leaving only 26.58 percent worth of normal sales to buoy the area's overall median price.

The median price of all existing homes combined sold in January 2010 decreased 14.17 percent to $103,000 from the $120,000 recorded in December 2009. January 2010's median price is a decrease of 30.41 percent compared to January 2009's median of $148,000.

However, that $103,000 median price encompasses all types of sales situations and home types (including the enormous percentage of condos sold for less than $50,000). The median price for "normal" sales is $169,990 (a miniscule decrease from last month's $175,000). The median price for bank-owned sales is $69,550 (down 13.06 percent from last month's $80,000), and the median price for short sales is $115,000 (down 11.88 percent from last month's $130,500).

"Homeowners should note that Orlando's median price is being downwardly distorted by the significant proportion of distressed and bank-owned sales," says ORRA Chairman of the Board Kathleen Gallagher McIver, RE/MAX Town & Country Realty. "This distorted median price does not equate to an across-the-board loss of value for traditional homes in good condition."

Orlando Realtors recorded 1,742 closings in January, 65.90 percent more than in January 2009. Of those sales, 463 "normal" sales accounted for only 26.58 percent, while 830 bank-owned and 449 short sales made up 73.42 percent.

There were 124.28 percent more homes (8,590) under contract and awaiting closing in January of this year than in January of last year (3,830). A total of 3,579 sales contracts were newly filed in the month of January, which is a jump of 56.84 percent compared to January 2009 (2,282).

The Orlando affordability index increased to 247.36 percent in January from 204.07 percent in December 2009. (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 $52,820 can qualify to purchase one of 9,075 homes in Orange and Seminole counties currently listed in the local multiple listing services for $254,782 or less.

First-time homebuyer affordability in January jumped 16.37 percent to 175.90 percent. First-time buyers who earn the reported median income of $35,918 can qualify to purchase one of 5,854 homes in Orange and Seminole counties currently listed in the local multiple listing service for $154,002 or less.

Homes of all types spent an average of 90 days on the market before coming under contract in January 2010, and the average home sold for 93.63 percent of its listing price. In January 2009 those numbers were 103 and 92.63 percent, respectively. The area's average interest rate increased in January by a hundredth of a point to 5.05 percent.

Inventory

There are currently 15,911 homes available for purchase through the MLS. Inventory increased by 362 homes from December 2009, which means that 362 more homes entered the market than left the market. The January 2010 inventory level is (29.61) percent lower than it was in January 2009 (22,613). The current pace of sales translates into 9.13 months of supply; January 2009 recorded 21.54 months of supply.

There are 11,756 single-family homes currently listed in the MLS, a number that is 4,647 (28.33 percent) less than in January of last year. Condos currently make up 2,802 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,353.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area increased by 168.03 percent in January when compared to January of last year, and decreased by 12.83 percent when compared to December 2009. A total of 394 condos changed hands in January of this year compared to 147 in January 2009.

The most (217) condos in a single price category that changed hands in January were yet again in the $1 - $50,000 price range, which accounted for 55.08 percent of all condo sales. Thirteen condos sold for more than $250,000 in January.

Orlando homebuyers purchased 162 duplexes, town homes, and villas in January 2010, which is a 76.09 percent increase from January 2009 when 92 of these alternative housing types were purchased. The majority (30) of duplexes, town homes, and villas sold in January 2010 fell into the $100,000 - $120,000 price category. Twenty-four duplexes, town homes, and villas sold for less than $50,000 in January.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in January were up by 51.07 percent when compared to January of 2009. Throughout the MSA, 2,112 homes were sold in January 2010 compared with 1,398 in January 2009.

Each county's year-to-date sales comparisons are as follows:

Lake: 44.13 percent above 2009 (307 homes sold to date in 2010 compared to 213 in 2009);

Orange: 62.21 percent above 2009 (1,176 homes sold to date in 2010 compared to 725 in 2009);

Osceola: 23.57 percent above 2009 (346 homes sold to date in 2010 compared to 280 in 2009); and

Seminole: 57.22 percent above 2009 (283 sold to date in 2010 compared to 180 in 2009).

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