Orlando Real Estate - Monthly Housing Sales Increase as Median Price Drops

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RISMEDIA, April 15, 2008-Orlando’s housing marketing experienced a month-over-month increase in the number of home sales, an increase in the number of pending sales contracts, and a decrease in the amount of inventory - all baby steps toward a market balanced between buyers and sellers.

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

- the sales of homes costing upwards of $1 million more than doubled in March compared to last month;
- the sales of duplexes, town homes, and villas have increased in each of the last three months; and
- the majority of condos sold have fallen into lower and lower price categories for each of the last three months.

The median sales price of a single-family home in the Orlando area decreased by 1.35% ($3,000) from $223,000 in February 2008 to $220,000 in March 2008. The median sales price for March 2008 is 8.33% below that of March 2007 ($240,000).

The decrease in the median home price to $220,000 means that the area’s affordability index increased in March to 102.35%. (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 $51,506 can qualify to purchase one of 10,980 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $225,170 or less.

The first time home buyer affordability index held steady in March, at 72.78.

The number of sales in the Orlando area declined by 39.29% in March 2008 compared to March of last year (1,080 to 1,779), but the number of sales that took place in March 2008 increased by 13.56% compared to the number of sales that occurred in February 2008 (951).

There are currently 2,398 homes in the MLS with pending sales contracts (an indicator of future sales activity), up from 1,731 in January and 2,175 in February. The number of homes newly under contract increased by 142 in March, and the increase from January to February was 298.

The area’s average interest rate was 5.94% in March 2008, up from 5.87% in February but down from 2007’s high of 6.60% in August.

Homes of all types spent an average of 130 days on the market before being sold in March 2008; the average home sold for 93.53% of its original asking price. In March 2007 those numbers were 90 and 95.87%, respectively.

The majority of single-family homes (223) that changed hands in March 2008 were sold for between $200,000 and $250,000. Another 129 homes sold in March for between $250,000 and $300,000. Two hundred eighty-four homes sold for less than $200,000 in March, and 260 sold for more than $300,000. On the far ends of the scale, 31 homes were sold for $1 million or more (double the number sold in February) while only 10 homes sold for less than $50,000.

There are currently 25,472 homes available for purchase through the MLS. Inventory decreased by 512 homes in March 2008, which means that 512 more homes left the market than entered the market. Compared to last year, the March 2008 inventory level (25,472) is 8.18% higher than it was in March 2007 (23,547).

The current inventory level reflects a 23.59-month supply at the current pace of sales, which is down from February 2008’s 27.32-month supply.

There are 19,197 single-family homes currently listed in the MLS. Most (6,489) are listed in the $200,000 to $300,000 price range. Condos currently make up 4,175 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,100. 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 the $200,000 to $250,000 ranges. The majority of duplexes/town homes/villas (447) 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 65.57% in March: A total of 84 condos changed hands in March 2008 compared to 244 in March 2007. In a month-to-month comparison, March 2008 condo sales (84) decreased by 26.32% from February 2008 (114).

The most (18) condos that changed hands in March 2008 fell into the $120,000 to $140,000 range; last month, most condos sold in the $160,000 to $180,000 range.

Orlando homebuyers purchased 100 duplexes, town homes, and villas in March 2008, which is a 31.97% decline from March 2007 when 147 of these alternative housing types were purchased. However, duplex, town home, and villa sales in March 2008 were up by 26.58% compared to the number of sales that took place in February 2008 (79), the second month-over-month increase already this year.

The majority (20) of duplexes, town homes, and villas sold in March 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 March were down by 38.65% when compared to March of last year. Throughout the entire MSA, 1,319 homes were sold in March 2008 compared with 2,150 in March 2007. Year-to-date, the MSA is down by 40.91%, with 3,429 homes sold far in 2008 compared to 5,803 sold through March 2007.

Seminole County’s March 2008 sales dropped 41.26% below that of March 2007 (252 to 429), while Orange County fell 41.99% (637 to 1,098). Lake County saw a 24.09% decline in the number of sales in March 2008 compared to March 2007 (249 to 328), and Osceola County experienced a 38.64% drop (181 to 295).

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

Lake: 23.57% below 2007 (655 homes sold to date in 2008 compared to 857 in 2007);
Orange: 44.93% below 2007 (1,647 homes sold to date in 2008 compared to 2,991 in 2007);
Osceola: 43.14% below 2007 (460 homes sold to date in 2008 compared to 809 in 2007); and
Seminole: 41.80% below 2007 (667 sold to date in 2008 compared to 1,146 in 2007).

For more information, visit www.orlrealtor.com.

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

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