Orlando's Median Home Price Drops 5.38% in November, Driven by Distressed Sales

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(ORLANDO, FL) -- According to a prepared statement by the Orlando Regional Realtors Association (ORRA) today, Orlando area sales closed 101.62% more homes in November of this year than last, bringing current year-to-date Orlando area sales to 59.43% above 2008.

ORRA Chairman of the Board Kathleen Gallagher McIver, RE/MAX Town & Country Realty, expects positive sales comparisons to continue in the months to come as the glut of short sales and distressed sales labor their way through the closing process and as additional buyers jump to take advantage of the expanded homebuyer tax credit.

There were 2,238 closings in November, which brings the year's total to 21,420 while a total of 13,435 homes had changed by this time last year. Of those November sales, 63.45 percent of the homes were either bank-owned (957) or short sales (463). The remaining (818) "normal" sales made up 36.55 percent.

There is currently more than double the number of pending sales (8,633) than in November of last year (3,326). A total of 3,023 sales contracts were newly filed in the month of November, which is a jump of 83.88 percent compared to November 2008 (1,644).

The median price of all existing homes combined sold in November 2009 decreased 5.38 percent to $123,000 from the $130,000 recorded in October 2009. November 2009's median price is a decrease of 25.90 percent compared to November 2008's median of $166,000.

The $123,000 median price encompasses all types of sales situations and home types; the tremendous number of bank-owned and short sales -- plus all those very low-priced condo sales -- drives the overall median price down. The median price for "normal" sales is $173,960 (a 3.35 percent decrease from last month). The median price for bank-owned sales is $84,000 (up 5.00 percent from last month's $79,998), and the median price for short sales is $122,000 (down 2.40 percent from last month's $125,000).

The Orlando affordability index increased more than 12 percent to 209.06 percent in November. (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 $52,706 can qualify to purchase one of 9,195 homes in Orange and Seminole counties currently listed in the local multiple listing service for $278,049 or less.

First-time homebuyer affordability in November increased approximately 10 percent to 148.66 percent. First-time buyers who earn the reported median income of $35,840 can qualify to purchase one of 6,057 homes in Orange and Seminole counties currently listed in the local multiple listing service for $168,065 or less.

Homes of all types spent an average of 86 days on the market (the lowest since December 2006) before coming under contract in November 2009, and the average home sold for 94.94 percent of its listing price. In November 2008 those numbers were 108 and 92.74 percent, respectively. The area's average interest rate decreased in November to 4.95 percent.

Inventory

There are currently 16,002 homes available for purchase through the MLS. Inventory increased by 259 homes from October 2009, which means that 259 more homes entered the market than left the market. Compared to last year, the November 2009 inventory level is 34.44 percent lower than it was in November 2008 (24,408).

The inventory level's 7.15-month supply for November is slightly above October level, which was 6.79 (the lowest since July 2006). Increased sales activity has led inventory months-of-supply to decline by (66.81) percent since January 2009, when months of supply clocked in at 21.54.

There are 11,748 single-family homes currently listed in the MLS, a number that is 6,111 (34.22 percent) less than in November of last year. As usual, most homes (1,362) are listed in the $200,000 - $250,000 price range. Condos currently make up 2,865 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,389. Most condos by far (740) are priced below $50,000; the majority of duplexes/town homes/villas (179) 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 239.47 percent in November when compared to November of last year, and decreased by 10.21 percent when compared to last month. A total of 387 condos changed hands in November of this year compared to 114 in November 2008. To date 3,906 condos have sold this year, a 200.69 percent increase over last year's 1,299 by this time.

The most (185) condos in a single price category that changed hands were yet again in the $1 - $50,000 price range; condos selling for less than $50,000 make up 48.87 percent of all condo sales this year. Six condos sold for more than $250,000 in November.

Orlando homebuyers purchased 224 duplexes, town homes, and villas in November 2009, which is a 135.79 percent increase from November 2008 when 95 of these alternative housing types were purchased; year-to-date sales for these home types are up 64.13 percent. The majority (40) of duplexes, town homes, and villas sold in November 2009 fell into the $100,000 - $120,000 price category. Sixteen duplexes, town homes, and villas sold for less than $50,000 in November, which brings the total number of those sold for less than $50,000 this year to 173.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in November were up by 109.68 percent when compared to November of last year. Throughout the MSA, 2,816 homes were sold in November 2009 compared with 1,343 in November 2009. To date, MSA sales are up by 67.70 percent over this time last year, with sales at 27,384 compared to 2008's 16,329.

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

• Lake County: 36.63 percent above 2008 (3,726 homes sold to date in 2009 compared to 2,727 in 2008);

• Orange County: 81.18 percent above 2008 (14,516 homes sold to date in 2009 compared to 8,012 in 2008);

• Osceola County: 106.84 percent above 2008 (5,198 homes sold to date in 2009 compared to 2,513 in 2008); and

• Seminole County: 28.18 percent above 2008 (3,944 sold to date in 2009 compared to 3,077 in 2008).

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