Orlando Real Estate Inventory Increases, Stalling Sellers Place Homes on Market – Regional Spotlight

RISMEDIA, Feb. 13, 2008-The multi-month decline in the number of homes available for purchase in the Orlando area reversed its trend in January, when 1,426 homes were added to the inventory. January historically sees an upward spike in inventory as a result of owners who hold out until after the holidays to put their homes on the market, explains the Orlando Regional Realtor Association.

The median sales price of a single-family home in the Orlando area in January 2008 dropped in one month by 1.22% ($2,750), from $225,000 in December 2007 to $222,250. The median sales price for January 2008 is 11.06% below that of January 2007 ($249,900).

The decrease in the median home price to $222,250 means that the area’s affordability index continues to improve – in January 2008 the index jumped again, to 104.9%. (An affordability index of 99% means that buyers earning the state-reported median income are 1% 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 $51,392 can qualify to purchase one of 7,713 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $233,140 or less.

The first time home buyer affordability index climbed in January as well, to 74.6.

The number of sales in the Orlando area declined by 48.54% in January 2008 compared to January of last year (756 to 1,469), and the number of sales that took place in January 2008 also decreased over the number of sales that occurred in December 2007 (1,076). The number of homes under contract increased from December to January by more than 200.

The area’s average interest rate was 5.60% in January 2008, a continuing downward trend since a high of 6.60% in August.

Homes of all types spent an average of 120 days on the market before being sold in January 2008; the average home sold for 94.21% of its original asking price. In December those numbers were 113 and 92.75%, respectively.

The majority of single-family homes (142) that changed hands in January 2008 were sold for between $200,000 and $250,000. Another 85 homes sold in January for between $250,000 and $300,000. Two hundred sixteen homes sold for less than $200,000 in January, and 186 sold for more than $300,000. On the far ends of the scale, 18 homes were sold for $1 million or more while only four homes sold for less than $50,000.

Inventory

There are currently 25,724 homes available for purchase through the MLS. Inventory increased by 1,426 homes in January 2008, which means that 1,426 more homes entered the market than left the market. During the holidays, inventory had remained steady and even dropped by as much as 1,874 homes in one month (December). Compared to last year, the January 2008 inventory level (25,724) is 21.00% higher than it was in January 2007 (21,266).

The inventory level reflects a 34.03-month supply at the current pace of sales.

There are 19,354 single-family homes currently listed in the MLS. Most (6,999) are listed in the $200,000 to $300,000 price range. Condos currently make up 4,184 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,186. Most condos (552) are priced at $120,000 to $140,000, but nearly equal numbers are posted in both the $140,000 to $160,000 and $160,000 to $180,000 ranges. The majority of duplexes/town homes/villas (536) are listed in the $200,000 to $250,000 range.

Condos and Town homes/Duplexes/Villas

The sales of condos in the Orlando area declined by 73.00% in January: A total of 77 condos changed hands in January 2008 compared to 288 in January 2007. In a month-to-month comparison, January 2008 condo sales (77) decreased by 20.00% from December 2007 (96).

The most (10) condos that changed hands in January 2008 fell into the $200,000 and $249,000 range.

Orlando home buyers purchased 50 duplexes, town homes, and villas in January 2008, which is a 53.00% decline from January 2007 when 106 of these alternative housing types were purchased. Duplex, town home, and villa sales in January 2008 were down by 60.00% compared to the number of sales that took place in December 2007 (125).

The majority (10) of duplexes, town homes, and villas sold in January 2008 fell into the $180,000 to $200,000 category.

MSA Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in January were down by 49.90% when compared to January of last year. Throughout the entire MSA, 884 homes were sold in January 2008 compared with 1,763 in January 2007.

Seminole County’s January 2008 sales dropped 47.60% below that of January 2007 (185 to 353), while Orange County fell 51.80% (437 to 906). Lake County saw a 37.10% decline in the number of sales in January 2008 compared to January 2007 (154 to 245), and Osceola County experienced a 58.30% drop (108 to 259).

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

Lake: 37.10% below 2007 (154 homes sold in 2008 compared to 245 in 2007);
Orange: 51.80% below 2007 (437 homes sold in 2008 compared to 908 in 2007);
Osceola: 58.30% below 2007 (108 homes sold in 2008 compared to 259 in 2007); and
Seminole: 47.60% below 2007 (185 sold in 2008 compared to 353 in 2007).

For more information, visit www.orlrealtor.com.