Regional Spotlight: Orlando Inventory Drops a Bit, Median Price Sticks

RISMEDIA, Dec. 12, 2007-The number of homes on the market in the Orlando area dropped by 158 homes during the month of November, which provides a baby’s breath of relief to the area’s record-high inventory. Every month so far in 2007 except for September – when inventory decreased by three homes – has seen more homes added to the market than subtracted.

The median sales price of a single-family home in the Orlando area held steady at $235,000 for the third month in a row, reports the Orlando Regional Realtor® Association. The median price for November 2007 is 6.0% below that of November 2006 ($250,000), and the year-to-date median home sales price ($245,000) is 1.21% below 2006 ($248,000).

The number of sales in the Orlando area declined by 47.66% in November 2007 compared to November of last year (963 to 1,840). The number of sales that took place in November 2007 decreased over the number of sales that occurred in October 2007 (1,090). Year-to-date sales for 2007 (15,602 through November) are down by 39.1% over the same period in 2006 (25,614).

The area’s average interest rate was 6.08% in November 2007 – which represents a continuing downward trend since a high of 6.60% in August.

The drop in the median home price to $235,000 that took place in September means that the area’s affordability index has improved by nearly 9 percentage points to 93.9% over the last four months. (An affordability index of 93.9% means that buyers earning the state-reported median income are 6.1% short of the income necessary to purchase a median-priced home.)

Buyers who earn the median income of $51,218 can qualify to purchase one of 6,966 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $199,750 or less.

The first-time home buyer affordability index climbed a fraction in November to 66.7.

Homes of all types spent an average of 115 days on the market before being sold in November 2007; and the average home sold for 93.8% of its original asking price. In October, those numbers were 111 and 94.0%, respectively.

The majority of single-family homes (189) that changed hands in November 2007 were sold for between $200,000 and $250,000, while another 122 homes were sold for between $250,000 and $300,000. One-hundred ninety-six homes sold for less than $200,000 in November, and 258 sold for more than $300,000. On the far ends of the scale, 26 homes were sold for $1 million or more while only one home sold for less than $50,000.

Inventory

There are currently 26,172 homes available for purchase through the MLS. Inventory decreased by 158 homes in November 2007, which means that 158 fewer homes entered the market than left the market. October 2007 saw an increase of 20 homes, while September 2007 saw a decrease of three.

Compared to last year, the November 2007 inventory level is 23.9% higher than in November 2006.

The inventory level reflects a 27.18-month supply at the current pace of sales. There are 19,627 single-family homes currently listed in the MLS. Most (7,289) are listed in the $200,000 – $300,000 price range, while another 1,928 are listed in the $300,000 – $350,000 range. Condos currently make up 4,274 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,271. Most condos (640) are priced at $200,000 to $250,000; most duplexes/town homes/villas (593) also fall into the $200,000 – $250,000 range.

Condos and Town homes/Duplexes/Villas

The sales of condos in the Orlando area declined by 68.0% in November: A total of 104 condos changed hands in November 2007 compared to 323 in November 2006. In a month-to-month comparison, November 2007 condo sales (104) decreased by 11.1% from October 2007 (117). Most condos (19) that changed hands in November 2007 were sold for between $120,000 and $140,000; followed by 15 condos that were sold for between $140,000 and $160,000. Year-to-date condo sales are down by 57.0% (2,005 condos have been sold so far in 2007 compared to 4,642 by this time last year).

Orlando home buyers purchased 74 duplexes, town homes, and villas in November 2007, which is a 50.0% decline over November 2006 when 149 of these alternative housing types were purchased. Duplex, town home, and villa sales in November 2007 were down by 21.3% compared to the number of sales that took place in October 2007 (94). Overall, duplex, town home, and villa sales are down this year by 40.0%. The majority (16) of duplexes, town homes, and villas sold in November 2007 fell into the $200,000 to 250,000 category.

MSA Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in October were down by 48.0% when compared to November of last year. Throughout the entire MSA, 1,150 homes were sold in November 2007 compared with 2,210 in November 2006. To date, 18,694 homes have been sold this year while 31,010 homes had been sold as of this time last year (a 39.7% decline).

Seminole County’s November 2007 sales dropped 46.9% below that of November 2006 (245 to 461), while Orange County fell 50.9% (559 to 1,139). Lake County saw a 39.9% decline in the number of sales in November 2007 compared to November 2006 (188 to 313), and Osceola County experienced a 46.8% drop (158 to 297).

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

Lake: 31.7% below 2006 (2,913 homes sold in 2007 compared to 4,266 in 2006);
Orange: 41.3% below 2006 (9,266 homes sold in 2007 compared to 15,799 in 2006);
Osceola: 46.5% below 2006 (2,523 homes sold in 2007 compared to 4,712 in 2006); and
Seminole: 36.2% below 2006 (3,992 homes sold in 2007 compared to 6,253 in 2006).

For more information, visit www.orlRealtor.com.