Orlando Home Prices Increase 23% in 2011, Median Price at $117,000

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(ORLANDO, FL) -- According to the Orlando Regional Realtor Association (ORRA), Orlando area's overall median price climbed to $117,000 in July. Since January of this year, Orlando's median price has increased by 23.29 percent. The median price is also 7.64 percent higher than the $108,700 recorded in July 2010.

An increase in the percentage of "normal" sales -- those that are neither bank-owned nor short sales -- continues to boost the overall median price. In July, the percentage of normal sales increased for the sixth consecutive month and made up 42.15 percent of all Realtor transactions.

The lower median price of foreclosures and short sales does continue to negatively influence the overall median price. The median price for bank-owned sales in July is $80,000 and the median price for short sales is $98,000.

The 2,147 sales transactions that were completed in July 2011 is 14.67 percent less than were completed in July 2010. Bank-owned sales dropped 49.08 percent compared to July 2010, while short sales increased 16.73 percent and "normal" sales increased 16.03 percent.

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 declined in July by 210 homes and now rests at 10,349. (Inventory is down 37.52 percent from July of last year; single family home inventory is down 33.28 percent; and condo inventory is down 53.19 percent.)

"With affordable prices and historically low mortgage interest rates, homebuyer demand remains strong. A more rapid sales recovery is possible if banks return to normal and safe but sensible lending standards," explains ORRA Chairman of the Board of Directors Mike McGraw, McGraw Realty Services, PL.

Pending sales - those under contract and awaiting closing - are currently at 9,869. In July 2010, the pending tally was 19,133.

Homes of all types spent an average of 101 days on the market before coming under contract in July 2011, and the average home sold for 95.00 percent of its listing price. In July 2010 those numbers were 84 days and 95.01 percent, respectively.

The area's average interest rate decreased in July 2011 to 4.53 percent, from the 4.56 percent posted in June 2011.

Affordability

The Orlando affordability index decreased to 235.71 percent in July. (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 $53,846 can qualify to purchase one of 5,692 homes in Orange and Seminole counties currently listed in the local multiple listing service for $275,777 or less.

First-time homebuyer affordability in July decreased to 167.61 percent from last month's 177.43 percent. First-time buyers who earn the reported median income of $36,615 can qualify to purchase one of the 3,931 homes in Orange and Seminole counties currently listed in the local multiple listing service for $166,692 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area (369) decreased by 37.88 percent in July when compared to July of 2010 (594).

The most (162) condos in a single price category that changed hands in July were yet again in the $1 - $50,000 price range and account for 43.90 percent of all condo sales. Low-priced units have overwhelmingly dominated condo sales since March of 2009.

Orlando homebuyers purchased 178 duplexes, town homes, and villas in July 2011, which is a 28.51 percent decrease from July 2010, when 249 of these alternative housing types were purchased. Most sales (30) were between $100,000 and $120,000.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July were down by 9.42 percent when compared to July of 2010. Throughout the MSA, 2,673 homes were sold in July 2011 compared with 2,951 in July 2010. To date, sales in the MSA are down 1.46 percent.

Individual county's monthly sales comparisons are as follows:

• Lake: 13.59 percent above July 2010 (351 homes sold in July 2011 compared to 309 in July 2010);

• Orange: 17.65 percent below July 2010 (1,320 homes sold in July 2011 compared to 1,603 in July 2010);

• Osceola: 9.58 percent below July 2010 (472 homes sold in July 2011 compared to 522 in July 2010); and

• Seminole: 2.51 percent above July 2010 (530 sold in July 2011 compared to 517 in July 2010).

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