(Orlando, FL) -- The Orlando Regional Realtor Association (ORRA) reported today yet another increase for the median price of existing homes sold in the Orlando area.
Particularly noteworthy is that this month's bigger median price is accompanied by an increase in sales, one of the few times this duo has appeared together in recent years. The July 2012 median price of $125,750 is 8.87 percent higher than it was in July 2011.
Steady monthly increases have driven Orlando's median price up 16.44 percent since the beginning of the year, when it was $108,000. In addition, the median price has now posted positive year-to-year gains for 13 consecutive months.
All sales types experienced increases in median price in July. The median price of short sales increased 12.70 percent, while the median price of foreclosures increased 12.50 percent and normal sales increased 6.69 percent.
Members of ORRA participated in 2,355 home sales in July 2012, an increase of 2.66 percent compared to July 2011.
"What I find encouraging for the state of Orlando's housing market is the jump in the percentage of normal sales, which is up 16.34 percent for July 2012," says ORRA Chairman Stephen Baker, RE/MAX Central Realty. "The percentages of foreclosures sales and short sales are both down, which along with the decline in inventory indicates that the ocean of these sales types is drying to a puddle."
"In addition," Baker points out, "a steep 17 percent decline in condo sales is dragging down the overall sales percentage. Single-family home sales are actually up by 7 percent."
More than 48 percent of July 2012 sales were normal; short sales made up 28.20 percent and foreclosure sales made up 23.74 percent. By comparison, in July 2011 normal sales accounted for 42.41 percent while short sales accounted for 29.42 percent and foreclosures accounted for 28.16 percent.
Homes of all types spent an average of 82 days on the market before coming under contract in July 2012, and the average home sold for 96.14 percent of its listing price. In July 2011 those numbers were 101 days and 95.07 percent, respectively.
The average interest rate paid by Orlando homebuyers in July was 3.78 percent, yet another monthly decrease and again the lowest average interest rate since ORRA began tracking the statistic in 1989. A year ago, homebuyers paid an average interest rate of 4.53 percent.
Pending sales - those under contract and awaiting closing - are currently at 9,704. The number of pending sales in July 2012 is 1.67 percent lower than it was in July 2011 (9,869) and 2.60 percent lower than it was in June 2012 (9,963).
Short sales, which take much longer to process from contract to close, made up 68.60 percent of pending sales in July 2012. Normal properties accounted for 20.12 percent of pendings, while bank-owned properties accounted for 11.28 percent.
The number of existing homes available for purchase in Orlando is continuing a steady decline that began back in July 2010 at 16,563 and now rests at 8,106. In July 2012, inventory was 21.67 percent less than it was in July 2011.
The inventory of single-family homes is down by 25.46 percent when compared to July of 2011, while condo inventory has increased by 6.35.
The month-of-supply increased a bit in July following months of five months of decreases. The current inventory combined with the current pace of sales equates to a 3.44-month supply of homes in Orlando.
The steady increases in median price have led to steady decreases in Orlando's affordability index: the July index of 242.95 percent is a fraction lower than June 2012's index of 243.55 percent. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent 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 $54,530 can qualify to purchase one of 4,616 homes in Orange and Seminole counties currently listed in the local multiple listing service for $305,506 or less.
First-time homebuyer affordability in July dipped to 172.76 percent from last month's 173.19 percent. First-time buyers who earn the reported median income of $37,080 can qualify to purchase one of the 3,278 homes in Orange and Seminole counties currently listed in the local multiple listing service for $184,661 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area decreased by 17.41 percent in July when compared to July of 2011 (332 to 402).
The most (115) condos in a single price category that changed hands in July were yet again in the $1 - $50,000 price range and accounted for 34.64 percent of all condo sales.
Orlando homebuyers purchased 209 duplexes, town homes, and villas in July 2012, which is a 10.58 percent increase compared to July 2011. Most (31) fell within the $100,000 - $120,000 price range.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July were up by 0.98 percent when compared to July of 2011. Throughout the MSA, 2,884 homes were sold in July 2012 compared with 2,856 in July 2011. To date, sales are down 4.45 percent for all counties combined.
Each individual county's monthly sales comparisons are as follows:
Lake: 11.26 percent above July 2011 (405 homes sold in July 2012 compared to 364 in July 2011); Orange: 2.04 percent above July 2011 (1,450 homes sold in July 2012 compared to 1,421 in July 2011); Osceola: 7.65 percent below July 2011 (471 homes sold in July 2012 compared to 510 in July 2011); and Seminole: 0.53 percent below July 2011 (558 sold in July 2012 compared to 561 in July 2011).