RISMEDIA, July 11, 2008-Indicators that Orlando’s housing market is marching toward a balance continued their onward progression in June, led by a four-month decline in inventory that has resulted in a 46.18% decrease in the months-of-supply since January. Other positive signs include an increase in the median home price and an ongoing increase in the monthly number of pending sales.
Members of ORRA sold 1,443 homes during the month of June 2008, which is 7.13% above the May 2008 tally of 1,347 home sales but 5.31% below the 1,524 homes sold in June 2007. To date, 6,905 homes have been sold by ORRA members during 2008; at this time last year that number was 9,588 (a 27.98% decrease).
The median sales price of a home in the Orlando area in June rose to $217,500, a 2.89% increase over the May 2008 median of $211,400. (The median sales price for June 2008 is 13.86% below the June 2007 median of $252,500).
The increase in the median home price to $217,500 means that the area’s affordability index dropped in June to 99.44%. (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 $51,677 can qualify to purchase one of 8,824 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $216,282 or less.
The first time home buyer affordability index decreased to 70.71% from May’s 75.91%. There are currently 3,329 homes in the MLS with pending sales contracts (an indicator of future sales activity), up from 3,225 in May; 2,853 in April; and 2,398 in March. The number of homes that came newly under contract in June increased slightly to 2,031; there were 2,010 homes newly under contract May, 2,012 in April, and 1,679 in March.
The area’s average interest rate was 6.35% in June 2008, up from 5.94 in May and 5.77% in April.
Homes of all types spent an average of 123 days on the market before being sold in June 2008; the average home sold for 93.38% of its listing price. In June 2007 those numbers were 98 and 94.91%, respectively.
The majority of single-family homes (265) that changed hands in June 2008 were sold in the $200,000 – $250,000 price range. Another 171 homes sold in June for between $250,000 and $300,000. Four hundred twenty-six homes sold for less than $200,000 in June, and 326 sold for more than $300,000. On the far ends of the scale, 19 homes were sold for $1 million or more while 9 homes sold for less than $50,000.
There are currently 24,575 homes available for purchase through the MLS. Inventory decreased by 440 homes in June 2008, which means that 440 more homes left the market than entered the market. June marks the fourth month in a row in which inventory has declined.
Compared to last year, the May 2008 inventory level (24,575) is 5.20% lower than it was in June 2007 (25,923).
The current inventory level reflects a 17.03-month supply at the current pace of sales, which reflects a five-month pattern of month-to-month decline (May 2008: 18.57; April 2008: 20.66; March 22.74; February: 27.32; January 31.64). Altogether, inventory months-of-supply has declined 46.21% since January 2008
There are 18,298 single-family homes currently listed in the MLS. Most (3,161) are listed in the $200,000 – $250,000 price range. Condos currently make up 4,254 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,023. Most condos (610) are priced at $120,000 – $140,000. The majority of duplexes/town homes/villas (387) are listed in the $200,000 – $250,000 price category.
Condos and Town homes/Duplexes/Villas
The sales of condos in the Orlando area declined by 29.89% in June: A total of 129 condos changed hands in June 2008 compared to 184 in June 2007. In a month-to-month comparison, June 2008 condo sales (129) decreased by 9.15% from May 2008 (142). Year to date, condo sales are down 48.61%, with 684 condos sold so far in 2008 compared to 1,331 sold through the same time in 2007.
In June, the most (19) condos that changed hands were in the $120,000 – $140,000 price category, while an additional 18 sold condos fell in the $100,000 – $120,000 range. In May most sold condos (24) were in the $100,000 – $120,000 range, while in April there were 21 condos each in both the $100,000 – $120,000 and the $120,000 – $140,000 categories. Buyers are clearly favoring lower-priced condos: June saw the sale of 111 sold condos priced $250,000 or lower compared to 18 priced $250,000 or higher (most single family home sales historically cluster around $250,000).
Orlando home buyers purchased 126 duplexes, town homes, and villas in June 2008, which is a 5.00% increase from June 2007 when 120 of these alternative housing types were purchased. Duplex, town home, and villa sales in June 2008 were up as well, by 9.57%, when compared to the number of sales that took place in May 2008 (115). Month-to-month increases in the sales of these housing types have been posted in February, March, and April (May sales were down by 4.17%).
The majority (23) of duplexes, town homes, and villas sold in June 2008 fell into the $140,000 – $160,000 price category, while another 22 sold from the $160,000 – $180,000.
Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in June were down by 7.56% when compared to June of last year. Throughout the entire MSA, 1,712 homes were sold in June 2008 compared with 1,852 in June 2007. Year-to-date, the MSA is down by 27.67%, with 8,307 homes sold far in 2008 compared to 11,485 sold through June 2007.
Seminole County’s June 2008 sales dropped 21.99% below that of June 2007 (337 to 432), while Orange County fell 1.02% (875 to 884). Lake County saw a 9.51% decline in the number of sales in June 2008 compared to June 2007 (257 to 284), and Osceola County experienced a 3.57% drop (243 to 252).
Each county’s year-to-date sales comparisons are as follows:
Lake: 15.88% below 2007 (1,457 homes sold to date in 2008 compared to 1,732 in 2007);
Orange: 29.61% below 2007 (4,049 homes sold to date in 2008 compared to 5,752 in 2007);
Osceola: 26.28% below 2007 (1,156 homes sold to date in 2008 compared to 1,568 in 2007); and
Seminole: 32.39% below 2007 (1,645 sold to date in 2008 compared to 2,433 in 2007).
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