Homes Sold in Orlando Continue Rise, Pending Sales Pipeline Building

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(ORLANDO, FL) -- Members of the Orlando Regional Realtor Association in September sold 54.30 percent more homes than in September of last year, contributing to the area's year-to-date sales increase of 50.69 percent. The most recent statistics show a continuing broad improvement in the area's housing market, but ORRA President Les Simmonds, L.G. Simmonds Real Estate Corp., says economists expect a rise in foreclosures over the next 12 months and that it is important to maintain a healthy level of ready buyers to absorb the resulting increase in inventory.

"An extension and expansion of the $8,000 First-Time Homebuyer Tax Credit is critical to preserve incentives for financially qualified buyers to enter the market," says Simmonds. "Now that the market is showing some momentum, we have an opportunity to achieve a more rapid and broader stabilization in home prices. Extending and expanding the tax credit also would help to keep other families from becoming upside down in their mortgages or risk foreclosure."

There were 2,151 closings in September, which brings the year's total to 16,722, while a total of 11,097 homes had changed by this time last year. Of those September sales, 55.56 percent of the homes were either bank-owned (1,027) or distressed (168). The remaining (956) "normal" sales made up 44.44 percent.

There is currently more than twice the number of pending sales (8,790) than in September of last year (3,256). A total of 3,858 sales contracts were newly filed in the month of September alone, which is the most in a single month this year and a jump of 102.20 percent compared to September 2008 (1,908).

The median price of all existing homes sold in September declined 2.34 percent to $125,000 from the $128,000 recorded in August. That same median price is a decrease of 31.32 percent compared to September 2008's median of $181,995.

The $125,000 median price encompasses all types of sales situations. The median price for "normal" sales is $175,450 (a 6.33 percent increase from last month). The median price for bank-owned sales is $79,000 (down 6.00 percent from last month's $84,050), and the median price for distressed sales is $126,000 (up .16 percent from last month's $125,800).

The Orlando affordability index improved in September to 202.03 percent as a result in part of in the month's decrease in median price. (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 $52,592 can qualify to purchase one of 8,805 homes in Orange and Seminole counties currently listed in the local multiple listing service for $268,697 or less.

First-time homebuyer affordability in September increased to 143.66 percent. First-time buyers who earn the reported median income of $35,763 can qualify to purchase one of 5,716 homes in Orange and Seminole counties currently listed in the local multiple listing service for $162,412 or less.

Homes of all types spent an average of 97 days on the market before being sold in September 2009, and the average home sold for 94.27 percent of its listing price. In September 2008 those numbers were 112 and 94.38 percent, respectively. The area's average interest rate decreased in September to 5.09 percent.

Inventory

There are currently 15,967 homes available for purchase through the MLS. Inventory decreased by 394 homes from August 2009, which means that 394 more homes left the market than entered the market. Compared to last year, the September 2009 inventory level is 35.33 percent lower than it was in September 2008 (24,690).

The inventory level's 7.42-month supply for September is a fraction below August levels, which was 7.47 and the lowest since July 2006. Increased sales activity has led inventory months-of-supply to decline by 65.55 percent since January 2009, when months of supply clocked in at 21.54.

There are 11,710 single-family homes currently listed in the MLS, a number that is 6,459 (35.55 percent) less than in September of last year. As usual, most homes (1,378) are listed in the $200,000 - $250,000 price range. Condos currently make up 2,905 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,352. Most condos by far (641) are priced below $50,000; the majority of duplexes/town homes/villas (195) 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 242.62 percent in September when compared to September of last year, and decreased by 4.78 percent when compared to last month. A total of 418 condos changed hands in September of this year compared to 122 in September 2008. To date 3,058 condos have sold this year, a 187.68 percent increase over last year's 1,063 by this time.

The most (221) condos in a single price category that changed hands were yet again in the $1 - $50,000 price range, more than four times the number (52) that were sold in the next most populated category ($50,000 - $60,000). Nine condos sold for more than $250,000 in September.

Orlando homebuyers purchased 207 duplexes, town homes, and villas in September 2009, which is an 89.91 percent increase from September 2008 when 109 of these alternative housing types were purchased; year-to-date sales for these home types are up 51.96 percent. The majority (32) of duplexes, town homes, and villas sold in September 2009 fell into the $100,000 - $120,000 price category, with another 30 selling from the $120,000 to $140,000 price category.

MSA Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in September were up by 65.97 percent when compared to September of last year. Throughout the entire MSA, 2,795 homes were sold in September 2009 compared with 1,684 in September 2008. To date, MSA sales are up by 60.69 percent over this time last year, with sales at 21,539 compared to 2008's 13,404.

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

• Lake: 30.07 percent above 2008 (2,920 homes sold to date in 2009 compared to 2,245 in 2008);
• Orange: 72.96 percent above 2008 (11,384 homes sold to date in 2009 compared to 6,582 in 2008);
• Osceola: 109.37 percent above 2008 (4,135 homes sold to date in 2009 compared to 1,975 in 2008); and
• Seminole: 19.14 percent above 2008 (3,100 sold to date in 2009 compared to 2,602 in 2008).

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