Orlando Median Home Price Dips to $250,000; Inventory Growth Slows Dramatically

RISMEDIA, August 14, 2007—The median price of a home purchased in the Orlando area in July of this year decreased to $250,000, a 1.92% drop over July 2006’s median price of $254,900. In addition, the latest data released from the Orlando Regional Realtor® Association reveals that inventory growth slowed from 460 newly added available homes in June 2007 to just 95 in July 2007.

The number of sales in the Orlando area declined by 42.65% in July 2007 compared to July of last year (1,354 to 2,361). The number of sales that took place in July 2007 also declined over the number of sales that occurred in June 2007 (1,524). Year-to-date sales for 2007 (10,942 through July) are down by 37.74% over the same period in 2006 (17,575).

The Orlando Housing Affordability Index and the First-time Home buyers Affordability Index both remained steady in July: the prior currently holds at 84.0% while the latter changed from 59.7% in June 2007 to 59.8% in July 2007. (An affordability index of 84.0% means that buyers earning the state-reported median income are 16% short of the income necessary to purchase a median-priced home.)

The area’s average interest rate of 6.50% — a tick above last month’s rate of 6.40% — is actually a tiny bit lower than the July 2006 average interest rate of 6.53%.

Homes of all types spent an average of 100 days on the market before being sold; and the average home sold for 94.63% of its original asking price.

The majority of single-family homes (258) that changed hands in July 2007 were sold for between $200,000 and $250,000, while another 207 homes were sold for between $250,000 and $300,000. Two-hundred and seven homes sold for less than $200,000 in July, and 440 sold for more than $300,000. On the far ends of the scale, 24 homes were sold for $1 million or more while only one home sold for less than $50,000.

Inventory

There are currently 26,018 homes available for purchase through the local multiple listing service (MLS). Inventory increased by just 95 homes in July 2007; June 2007 saw an increase of 460 homes and May 2007 saw an increase of 1,028. Compared to last year, the July 2007 inventory level is 31.22% higher than July 2006.

The current inventory level reflects a 19.22-month supply at the current pace of sales.
There are 19,368 single-family homes currently listed in the MLS. Most (3,723) are listed in the $250,000 – $300,000 price range, while another 3,515 are listed in the $200,000 – $250,000 range. Condos currently make up 4,442 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,208. Most condos (807) are priced at $200,000 to $250,000; most duplexex/townhomes/villas (577) are priced likewise.

Condos and Town homes/Duplexes/Villas

The sales of condos in the Orlando area declined by 64% in July: A total of 152 condos changed hands in July 2007 compared to 418 in July 2006. In a month-to-month comparison, July 2007 condo sales decreased from June 2007 (152 to 184). Most condos (36) that changed hands in July 2007 were sold for between $120,000 and $140,000; followed by 28 condos that were sold for between $140,000 and $160,000. Year-to-date condo sales are down by 55% (1,483 condos have been sold so far in 2007 compared to 3,303 by this time last year).

Orlando home buyers purchased 90 duplexes, town homes, and villas in July 2007, which is a 45% decline over July 2006 when 163 of these alternative housing types were purchased. Duplex, town home, and villa sales in July 2007 were also down compared to the number of sales that took place in June 2007 (120). The majority (24) of duplexes, town homes, and villas sold in July 2007 cost between $200,000 and $250,000.

MSA Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July were down by 43.5% when compared to July of last year.

Throughout the entire MSA, 1,605 homes were sold in July 2007 compared with 2,843 in July 2006. To date, 13,090 homes have been sold this year while 21,435 homes had been sold as of this time last year (a 38.9% decline).

Seminole County’s July 2007 sales dropped 36.9% below that of July 2006 (353 to 559), while Orange County fell 41.2% (833 to 1,416). Lake County saw a 44.9% decline in the number of sales in July 2007 compared to July 2006 (227 to 412), and Osceola County experienced a 57.9% drop (192 to 456).

Each county’s year-to-date sales percentages are currently as follows:

Lake: 34.8% below 2006 (1,959 homes sold in 2007 compared to 3,003 in 2006);
Orange: 39.3% below 2006 (6,585 homes sold in 2007 compared to 10,841 in 2006);
Osceola: 47.2% below 2006 (1,760 homes sold in 2007 compared to 3,335 in 2006); and
Seminole: 34.5% below 2006 (2,786 homes sold in 2007 compared to 4,256 in 2006).

For detailed statistical reports, please visit www.orlRealtor.com and click on Housing Statistics on the top menu bar. This representation is based in whole or in part on data supplied by the Orlando Regional Realtor® Association or its Multiple Listing Service (MLS). Neither the Association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.

ORRA Realtor® sales, referred to as the core market, represent all sales by members of the Orlando Regional Realtor® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.

Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any Realtor® association, not just members of ORRA.

Statistics on the sales of area homes that are sold without the assistance of a Realtor® are available in the Real Estate Index, a report produced jointly by ORRA and the Real Estate Attorney’s Fund.

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