Two-thirds of Orlando's Home Closings are Foreclosures and Short Sales, Says ORRA

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(ORLANDO, FL) -- According to a report just released by the Orlando Regional Realtor Association (ORRA), 54.72 percent more homes closed in October of this year than last. ORRA Chairman of the Board Kathleen Gallagher-McIver, RE/MAX Town and Country attributed to people responding to the first-time homebuyer tax credit. "Now that the tax credit has been extended to April 2010 and expanded, Realtors expect to see even more improvement as additional eligible buyers enter the market," continues Gallagher-McIver

While most details for first-time homebuyers mirror the rules currently in existence, the new law:

• Extends the $8,000 tax credit to homes under a sales contract by April 30, 2010;

• Expands to include a new $6,500 credit for owners of existing homes who are purchasing a new principal residence (an existing homeowner can claim the $6,500 tax credit if they lived in their principal residence for five consecutive years out of the last eight); and

• Raises income eligibility limits to claim the full credit for both groups of homebuyers to $125,000 for individuals and $225,000 for married couples (effective Dec. 1, 2009).

ORRA reports that there were 2,206 closings in October, which brings the year's total to 19,069, while a total of 12,325 homes had changed by this time last year. Of those October sales, 62.47 percent of the homes were either bank-owned (928) or short sales (450). The remaining (828) "normal" sales made up 37.53 percent.

There is currently almost three times the number of pending sales (9,050) than in October of last year (3,316). A total of 3,864 sales contracts were newly filed in the month of October alone, which is the most in a single month this year and a jump of 97.24 percent compared to October 2008 (1,959).

The median price of all existing homes sold in October 2009 increased 4.00 percent to $130,000 from the $125,000 recorded in September 2009. October 2009's median price is a decrease of 25.99 percent compared to October 2008's median of $175,650.

The $130,000 median price encompasses all types of sales situations. The median price for "normal" sales is $178,910 (a 4.33 percent decrease from last month). The median price for bank-owned sales is $79,900 (up 3.77 percent from last month's $79,000), and the median price for short sales is $125,000 (down 1.68 percent from last month's $127,115).

The Orlando affordability index declined from 202.03 percent in September to 196.02 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 $52,649 can qualify to purchase one of 8,573 homes in Orange and Seminole counties currently listed in the local multiple listing service for $260,705 or less.

First-time homebuyer affordability in October decreased to 139.39 percent. First-time buyers who earn the reported median income of $35,801 can qualify to purchase one of 5,362 homes in Orange and Seminole counties currently listed in the local multiple listing service for $157,582 or less.

Homes of all types spent an average of 98 days on the market before being sold in October 2009, and the average home sold for 94.10 percent of its listing price. In October 2008 those numbers were 110 and 93.09 percent, respectively. The area's average interest rate decreased in October to 5.02 percent.

Inventory

There are currently 15,743 homes available for purchase through the MLS. Inventory decreased by 224 homes from September 2009, which means that 224 more homes left the market than entered the market. Compared to last year, the October 2009 inventory level is 36.15 percent lower than it was in October 2008 (24,657).

The inventory level's 7.14-month supply for October is slightly above September's level, which was 6.97(which itself was the lowest since July 2006). Increased sales activity has led inventory months-of-supply to decline by 66.85 percent since January 2009, when months of supply clocked in at 21.54.

There are 11,515 single-family homes currently listed in the MLS, a number that is 6,612 (36.48 percent) less than in October of last year. As usual, most homes (1,323) are listed in the $200,000 - $250,000 price range. Condos currently make up 2,873 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,355. Most condos by far (669) are priced below $50,000; the majority of duplexes/town homes/villas (184) are listed in the $120,000 - $140,000 price category.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area increased by 236.89 percent in October when compared to October of last year, and decreased by 8.26 percent when compared to last month. A total of 411 condos changed hands in October of this year compared to 122 in October 2008. To date 3,499 condos have sold this year, a 195.27 percent increase over last year's 1,185 by this time.

The most (215) condos in a single price category that changed hands were yet again in the $1 - $50,000 price range, more than five times the number (40) that were sold in the next most populated category ($60,000 - $70,000). Nine condos sold for more than $250,000 in October.

Orlando homebuyers purchased 188 duplexes, town homes, and villas in October 2009, which is an 82.52 percent increase from October 2008 when 103 of these alternative housing types were purchased; year-to-date sales for these home types are up 56.39 percent. The majority (27) of duplexes, town homes, and villas sold in October 2009 fell into the $100,000 - $120,000 price category, with 21 and 20 selling in the $120,000 - $140,000 and $140,000 - 160,000 price categories, respectively. Twenty duplexes, town homes, and villas sold for less than $50,000 in October.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in October were up by 77.43 percent when compared to October of last year. Throughout the MSA, 2,807 homes were sold in October 2009 compared with 1,582 in October 2008. To date, MSA sales are up by 63.05 percent over this time last year, with sales at 24,434 compared to 2008's 14,986.

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

Lake: 32.29 percent above 2008 (3,323 homes sold to date in 2009 compared to 2,512 in 2008);
Orange: 76.73 percent above 2008 (12,958 homes sold to date in 2009 compared to 7,332 in 2008);
Osceola: 102.46 percent above 2008 (4,612 homes sold to date in 2009 compared to 2,278 in 2008); and
Seminole: 23.64 percent above 2008 (3,541 sold to date in 2009 compared to 2,864 in 2008).


 

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