Orlando Real Estate – February Sees Start of Spring Selling Season

Print Article Print Article

RISMEDIA, March 12, 2008-Orlando’s housing marketing upheld its annual tradition in February with a month-to-month increase that heralds the start of the spring selling season. The 922 sales that took place in February 2008 are a 13.4% increase over January 2008’s 813 sales; however, sales in February 2008 are down by 40.17% when compared to February 2007.

The monthly statistical reports released by the Orlando Regional Realtor® Association revealed some additional interesting tidbits for the month of February:

- Sales in Lake County were down by only 13.73%, compared to 45.69%, 41.76%, and 40.39% in Orange, Seminole, and Osceola counties respectively;
- Sales of duplexes, town homes, and villas increased by 37.04% from month to month; and
- The sales of condos increased by 15.22% from month to month.

The median sales price of a single-family home in the Orlando area increased by 0.68% ($1,500) from $221,500 in January 2008 to $223,000 in February 2008. The median sales price for February 2008 is 12.55% below that of February 2007 ($255,000).

The increase in the median home price to $223,000 means that the area’s affordability index dropped in February to 101.62. (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 $51,449 can qualify to purchase one of 8,509 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $226,568 or less.

The first time home buyer affordability index dipped a bit in February, to 72.27% from 74.84 in January. The number of sales in the Orlando area declined by 40.17% in February 2008 compared to February of last year (922 to 1,541), but the number of sales that took place in February 2008 increased over the number of sales that occurred in January 2008 (813).

There are currently 2,175 homes in the MLS with pending sales contracts (an indicator of future sales activity), up from 1,731 in January. The number of homes newly under contract increased by almost 300 in February; the increase from December 2007 to January 2008 was more than 200.

The area’s average interest rate was 5.87% in February 2008, up from 5.60% in January but down from 5.93 in December 2007.

Homes of all types spent an average of 123 days on the market before being sold in February 2008; the average home sold for 93.21% of its original asking price. In December 2007 those numbers were 113 and 92.75%, respectively.

The majority of single-family homes (188) that changed hands in February 2008 were sold for between $200,000 and $250,000. Another 117 homes sold in February for between $250,000 and $300,000. Two hundred twenty-nine homes sold for less than $200,000 in February, and 208 sold for more than $300,000. On the far ends of the scale, 15 homes were sold for $1 million or more while only nine (up from four in January) homes sold for less than $50,000.

Inventory

There are currently 25,984 homes available for purchase through the MLS. Inventory increased by 260 homes in February 2008, which means that 260 more homes entered the market than left the market. Compared to last year, the February 2008 inventory level (25,984) is 17.81% higher than it was in February 2007 (22,055).

The current inventory level reflects a 28.18-month supply at the current pace of sales, which is down from January 2008’s 31.64-month supply.

There are 19,531 single-family homes currently listed in the MLS. Most (6,872) are listed in the $200,000 to $300,000 price range. Condos currently make up 4,242 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,211. Most condos (573) are priced at $120,000 to $140,000, but nearly equal numbers are posted in both the $160,000 to $180,000 and the $200,000 to $250,000 ranges. The majority of duplexes/town homes/villas (498) 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 54.31% in February: A total of 106 condos changed hands in February 2008 compared to 232 in February 2007. In a month-to-month comparison, February 2008 condo sales (106) increased by 15.22% from January 2008 (92).

The most (16) condos that changed hands in February 2008 fell into the $160,000 and $180,000 range.

Orlando home buyers purchased 74 duplexes, town homes, and villas in February 2008, which is a 42.19% decline from February 2007 when 128 of these alternative housing types were purchased. However, duplex, town home, and villa sales in February 2008 were up by 37.04% compared to the number of sales that took place in January 2008 (54).

The majority (16) of duplexes, town homes, and villas sold in February 2008 fell into the $140,000 to $160,000 category.

MSA Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in February were down by 39.42% when compared to February of last year. Throughout the entire MSA, 1,145 homes were sold in February 2008 compared with 1,890 in February 2007. Year-to-date, the MSA is down by 43.09%, with 2,079 homes sold far in 2008 compared to 3,653 sold through February 2007.

Seminole County’s February 2008 sales dropped 41.76% below that of February 2007 (212 to 364), while Orange County fell 45.69% (536 to 987). Lake County saw a 13.73% decline in the number of sales in February 2008 compared to February 2007 (245 to 284), and Osceola County experienced a 40.39% drop (152 to 255).

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

Lake: 23.44% below 2007 (405 homes sold to date in 2008 compared to 529 in 2007);
Orange: 47.39% below 2007 (996 homes sold to date in 2008 compared to 1,893 in 2007);
Osceola: 47.67% below 2007 (269 homes sold to date in 2008 compared to 514 in 2007); and
Seminole: 42.96% below 2007 (409 sold to date in 2008 compared to 717 in 2007).

For more information, visit www.orlRealtor.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

For more of real estate’s top tips and best practices, see:


© RISMedia 2009. All Rights Reserved