(ORLANDO, FL) -- According to the Orlando Regional Realtor Association (ORRA), sales of existing single-family homes in October 2011 jumped 18% over last October's home sales pace, marking the year's greatest month-over-month increase in sales of this home type.
In addition to the 18.16 percent increase in existing single-family home sales, Orlando's overall home sales (homes, condos and townhomes) for October have increased by 5.89 percent.
"October marks the first time since March that overall sales have indicated a month-over-month improvement," says ORRA Chairman Mike McGraw, McGraw Real Estate Services, PL. "This additional activity can be attributed to a multitude of local factors -- such as low interest rates, a higher percentage of "normal" sales, and a steady incline in median price -- that are encouraging buyers to take advantage of today extraordinary market conditions."
In addition to an increase in sales, the overall median price of all home sale types combined ($112,700) increased by 7.33 percent compared to the $105,000 median price in October 2010. Since January of this year, Orlando's median price has increased by 18.76 percent.
The median price of "normal" sales closing in October 2011 was $153,000, and normal sales accounted for 41.30 percent of all transactions. These two steadily improving factors have been helping to keep overall median prices hovering above those recorded in 2010.
But the lower median price of foreclosures and short sales (which combined account for 58.70 percent of all sales in October) does continue to negatively influence the overall median price. The median price for bank-owned sales in October is $80,000 and the median price for short sales is $95,000.
Sales of foreclosed homes declined 38.50 percent in October of this year compared to last, while short sales and "normal" sales both increased (by 40.83 percent and 34.91 percent, respectively).
Buyers who purchased an Orlando area home in October paid average interest rate of 4.21 percent, which is slightly above the 4.19 percent average interest rate recorded for September. That rate was the lowest since the Orlando Regional REALTOR® Association began tracking the statistic in January of 1995.
Homes of all types spent an average of 106 days on the market before coming under contract in October 2011, and the average home sold for 94.66 percent of its listing price. In October 2010 those numbers were 91 days and 94.67 percent, respectively.
At the current pace of sales, there is a 4.82-month supply of homes in Orlando's inventory. The number of homes available for purchase in the Orlando area increased in October by 42 homes and now rests at 9,973. Overall inventory is down 35.41 percent from October of last year; single family home inventory is down 33.52 percent while condo inventory is down 38.69 percent.
Pending sales - those under contract and awaiting closing - are currently at 8,937. The number of pending sales in October 2011 is 1.36 percent greater than in October 2010.
The Orlando affordability index decreased to 254.94 percent in October. (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 $54,017 can qualify to purchase one of 5,605 homes in Orange and Seminole counties currently listed in the local multiple listing service for $287,314 or less.
First-time homebuyer affordability in October decreased a bit to 181.29 percent from last month's 181.81 percent. First-time buyers who earn the reported median income of $36,732 can qualify to purchase one of the 3,984 homes in Orange and Seminole counties currently listed in the local multiple listing service for $173,665 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area (332) decreased by 26.55 percent in October when compared to October of 2010 (452).
The most (151) condos in a single price category that changed hands in October were yet again in the $1 - $50,000 price range and account for 45.48 percent of all condo sales. Low-priced units have overwhelmingly dominated condo sales since March of 2009; this year alone, low-priced sales have made up 48.37 percent of all sales.
Orlando homebuyers purchased 207 duplexes, town homes, and villas in October 2011, which exactly the same number that was purchased in October 2010. There was a tie for the price category with the most (26) sales: under $50,000 and $120,000 - $140,000.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in October were up by 4.60 percent when compared to October of 2010. Throughout the MSA, 2,548 homes were sold in October 2011 compared with 2,436 in October 2010. To date, sales in the MSA are down 1.20 percent.
Each individual county's monthly sales comparisons are as follows:
Lake: 8.47 percent above October 2010 (320 homes sold in October 2011 compared to 295 in October 2010) Orange: 0.54 percent above October 2010 (1,293 homes sold in October 2011 compared to 1,286 in October 2010). Osceola: 5.86 percent below October 2010 (450 homes sold in October 2011 compared to 478 in October 2010).
Seminole: 28.65 percent above October 2010 (485 sold in October 2011 compared to 377 in October 2010).