According to data from the Orlando Regional Realtor Association (ORAA), there was a 7.14 percent year-over-year increase in the number (1,950Â) of home sales January 2011, with a record-breaking percent of those transactions involving either bank-owned or short-sale homes.
The lower median prices of bank-owned and short sales, which accounted for 75.03 percent of all sales in January, exert a downward influence on the overall median price (as does the enormous percentage of sales of low-priced condos).
The median sales price of all homes sold in the Orlando area decreased 6.91 percent to $94,950 in January when compared to January 2010's median price of $102,000.
The median price for "normal" existing homes - i.e., those that are neither a short sale nor a foreclosure - sold in January is $145,000. The median price for bank-owned sales is $75,000 and the median price for short sales is $94,500.
In addition to an increase in completed sales, January saw a 4.69 percent rise in newly filed contracts over January 2010. The area's pending sales statistic -- which like new contracts is an indicator of future sales activity -- increased by 2.18 percent with 8,777 homes currently under contract and awaiting closing.
"Orlando's housing market is benefitting from conditions that are highly favorable to investors, which is evidenced by the large percentage of cash sales: 58 percent of sales in January were cash transactions," explains ORRA Chairman of the Board Mike McGraw, McGraw Real Estate Services, PL. "Investors and international buyers are soaking up our excess bank-owned and short-sale inventory and helping our market conditions head back to normal levels."
The Orlando affordability index increased to 278.41 percent in January from December 2010. (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 $53,504 can qualify to purchase one of 8,690 homes in Orange and Seminole counties currently listed in the local multiple listing service for $264,347 or less.
First-time homebuyer affordability in January increased to 197.98 percent since December 2010. First-time buyers who earn the reported median income of $36,383 can qualify to purchase one of 6,193 homes in Orange and Seminole counties currently listed in the local multiple listing service for $159,783 or less.
Homes of all types spent an average of 96 days on the market before coming under contract in January 2011, and the average home sold for 94.46 percent of its listing price. In January 2010 those numbers were 89 days and 93.73 percent, respectively. The area's average interest rate decreased in January to 4.84 percent.
There are 14,398 homes available for purchase through the MLS. Inventory decreased by 595 homes (3.97 percent) from December 2010, which means that 595 more homes exited the market than entered the market. The January 2011 inventory level is 9.5 percent lower than it was in January 2010 (15,911). The current pace of sales translates into 7.38 months of supply; January 2010 recorded 8.74 months of supply.
There are 11,616 single-family homes currently listed in the MLS, a number that is 1.19 percent less than the 11,756 single-family homes listed in January of last year. Condos make up 1,629 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,153. Orlando's condo inventory is now 41.86 percent lower than it was in January 2010.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area increased by 26.43 percent in January when compared to January of 2010 and decreased by 3.43 percent compared to December of 2010.
The most (278) condos in a single price category that changed hands in January were yet again in the $1 - $50,000 price range and accounts for 54.83 percent of all condo sales. The next greatest range, with 11.24 percent of this year's condo sales, is the $50,000 - $60,000 category.
Orlando homebuyers purchased 187 duplexes, town homes, and villas in January 2011, which is a 10.00 percent increase from January 2010, when 170 of these alternative housing types were purchased.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in January were up by 13.76 percent when compared to January of 2010. Throughout the MSA, 2,489 homes were sold in January 2011 compared with 2,188 in January 2010.
Each individual county's sales comparisons are as follows:
Lake: 6.09 percent below January 2010 (293 homes sold in January 2011 compared to 312 in January 2010);
Orange: 9.99 percent above January 2010 (1,343 homes sold in January 2011 compared to 1,221 in January 2010);
Osceola: 32.42 percent above January 2010 (482 homes sold in January 2011 compared to 364 in January 2010); and
Seminole: 27.49 percent above January 2010 (371 sold in January 2011 compared to 291 in January 2010).