Orlando's June Homes Sales Increase 27% Over June 2009

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(ORLANDO, FL) -- According to the Orlando Regional Realtor Association (ORRA), strong homebuyer demand continued in June, elevating the level of home sales and increasing the area's month-over-month median sales price for the sixth consecutive month. Completed sales on 2,834 homes in June, which is a 27.66 percent increase over the June 2009 mark of 2,220.

The number of new contracts filed in June 2010 (3,736) represents an increase of 1.36 percent more than were filed in June 2009 (3,686). The area's pending sales statistic -- also an indicator of future sales activity - is likewise remaining at a record high with 33.13 percent more homes (9,625) under contract and awaiting closing in June of this year than in June of last year (7,230).

And finally, the median price of all existing homes combined sold in June 2010 increased 0.87 percent to $116,000 from the $115,000 recorded in May 2010. June 2010's median price is, however, a decrease of 11.57 percent compared to June 2009's median of $131,175.

"Sales in June got a boost from the homebuyer tax credit, as buyers raced to close by the original deadline. The extended deadline of September 30, 2010 for closing tax credit eligible transactions will continue to increase sales in the next few months," explains ORRA Chairman of the Board Kathleen Gallagher McIver, RE/MAX Town & Country Realty. "Even with the expiration of the homebuyer tax credit, buying conditions remain favorable. Affordability, historically low interest rates, and a great selection of homes make this an excellent time to buy a home in Orlando."

June's $116,000 median price encompasses all types of sales situations and home types. The median price for "normal" sales is $175,000 (up 9.38 percent from last month's $160,000). The median price for bank-owned sales is $77,500 (down 4.32 percent from last month's $81,000), and the median price for short sales is $115,526 (up 4.78 percent from last month's $110,000).

Of the 2,834 sales in June, 911 "normal" sales accounted for 32.15 percent of all sales, while 1,211 bank-owned and 712 short sales made up 67.85 percent.

The Orlando affordability index decreased to 226.29 percent in June. (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 $53,105 can qualify to purchase one of 12,178 homes in Orange and Seminole counties currently listed in the local multiple listing service for $262,496 or less.

First-time homebuyer affordability in June decreased to 160.92 percent. First-time buyers who earn the reported median income of $36,111 can qualify to purchase one of 8,204 homes in Orange and Seminole counties currently listed in the local multiple listing service for $158,664 or less.

Homes of all types spent an average of 85 days on the market before coming under contract in June 2010, and the average home sold for 95.33 percent of its listing price. In June 2009 those numbers were 104 and 93.83 percent, respectively. The area's average interest rate decreased in June to 4.84 percent.
 
Inventory

There are currently 16,304 homes available for purchase through the MLS. Inventory increased by 341 homes from May 2010, which means that 341 more homes entered the market than left the market. The June 2010 inventory level is 8.56 percent lower than it was in June 2009 (17,831). The current pace of sales translates into 5.75 months of supply; June 2009 recorded 8.03 months of supply.

There are 12,353 single-family homes currently listed in the MLS, a number that is 509 (3.96 percent) less than in June of last year. Condos currently make up 2,568 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,383.
 
Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area increased by 48.54 percent in June when compared to June of 2009 and decreased by 4.99 percent compared to May of this year. To date, condo sales are up 85.20 percent (3,328 condos sold to date in 2010, compared to 1,797 by this time in 2009).

The most (326) condos in a single price category that changed hands in June were yet again in the $1 - $50,000 price range, which accounted for 53.53 percent of all condo sales.

Orlando homebuyers purchased 291 duplexes, town homes, and villas in June 2010, which is a 59.02 percent increase from June 2009 when 183 of these alternative housing types were purchased. Fifty duplexes, town homes, and villas sold in June 2010 fell into the $100,000 - $120,000 price categories.
 
MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in June were up by 20.85 percent when compared to June of 2009. Throughout the MSA, 3,495 homes were sold in June 2010 compared with 2,892 in June 2009.

To date, sales throughout the MSA are 38.33 percent above this time in 2009 with 17,957 homes exchanging hands compared to 12,981. Each individual county's year-to-date sales comparisons are as follows:
 

• Lake: 23.47 percent above 2009 (2,283 homes sold to date in 2010 compared to 1,849 in 2009);
• Orange: 41.33 percent above 2009 (9,701 homes sold to date in 2010 compared to 6,864 in 2009);
• Osceola: 24.56 percent above 2009 (3,079 homes sold to date in 2010 compared to 2,472 in 2009); and
• Seminole: 61.14 percent above 2009 (2,894 sold to date in 2010 compared to 1,796 in 2009).

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