Orlando's July Completed Home Sales and Contract Filings Nearly Double Over Last Year

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(News Source: Orlando Regional Realtor Association)

(ORLANDO, FL) -- Members of the Orlando Regional Realtor Association in July sold 45.45 percent more homes than in July of last year, contributing to the area's year-to-date sales increase of 45.11 percent. There were 2,141 closings in July, which brings the year's total to 12,223, while a total of 8,423 homes had changed by this time last year. Of those July sales, 41.99 percent of the homes were either bank-owned (737) or distressed (162). The remaining (1,242) "normal" sales made up 58.01 percent.

In addition to an increase in completed sales in Orlando, there is more than twice the number pending home sales (7,713) than in July of last year (3,258).

"Pending sales is an accepted economic indicator of future sales activity," explains ORRA President Les Simmonds, L.G. Simmonds Real Estate Corp., "but we are seeing a bottleneck in this category due to the extended length of time it takes to complete transactions involving bank-owned and distressed homes. Another good indicator of market future market activity is the number of newly filed contracts, which in July was 3,696 and the most in a single month this year. In July 2008, there were 1,947 newly filed contracts."

The median sales price of all existing homes sold in July rose 2.92 percent to $135,000 from the $131,175 recorded in June. That same median price is a decrease of 35.10 percent compared to July 2008's median of $208,000.

July's $135,000 median price encompasses all types of sales situations; there is a noteworthy variation between the median price of "normal," distressed, and bank-owned home sales. The median price for "normal" sales is $165,000 (down 4.35 percent from last month's $172,500). The median price for bank-owned sales is $84,500 (up 5.76 percent from last month's $79,900), and the median price for distressed sales is $139,500 (down 8.22 percent from last month's $152,000).

The Orlando affordability index declined a tad in July to 181.48 as a result of in the month's increase in median price. (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 $52,748 can qualify to purchase one of 11,198 homes in Orange and Seminole counties currently listed in the local multiple listing service for $245,005 or less.

First-time homebuyer affordability in July decreased to 129.06 percent. First-time buyers who earn the reported median income of $35,685 can qualify to purchase one of 6,488 homes in Orange and Seminole counties currently listed in the local multiple listing service for $148,092 or less.

Homes of all types spent an average of 103 days on the market before being sold in July 2009, and the average home sold for 93.93 percent of its listing price. In July 2008 those numbers were 116 and 93.54 percent, respectively. The area's average interest rate decreased in July to 5.34 percent.

The most single-family homes sold in any one price category (206) fell into the $200,000 - $250,000 range. On the far ends of the scale 10 homes were sold for $1 million or more while 114 homes sold for less than $50,000.

Inventory

There are currently 17,231 homes available for purchase through the MLS. Inventory decreased by 600 homes from June 2009, which means that 600 more homes left the market than entered the market. Compared to last year, the July 2009 inventory level is 30.36 percent lower than it was in June 2008 (24,742).

The inventory level's 8.05-month supply is just a fraction above June's level which was 8.03 and the lowest since July 2006. Increased sales activity has led inventory months-of-supply to decline by 62.63 percent since January 2009, when months of supply clocked in at 21.54.

There are 12,523 single-family homes currently listed in the MLS, a number that is 5,840 (31.80 percent) less than this in July last year. As usual, most homes (1,503) are listed in the $200,000 - $250,000 price range. Condos currently make up 3,211 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,497. Most condos by far (640) are priced below $50,000; the majority of duplexes/town homes/villas (231) are listed in the $120,000 - $140,000 price category.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area increased by 175.37 percent in July when compared to July of last year, and decreased by 10.00 percent when compared to last month. A total of 369 condos changed hands in July of this year compared to 134 in July 2008. To date 2,166 condos have sold this year, a 162.55 percent increase over last year's 825 by this time.

The most (193) condos in a single price category that changed hands were in the $1 - $50,000 price range, more than three times the number (56) that were sold in the next most populated category ($50,000 - $60,000). Only eight condos sold for more than $250,000 in July.

Orlando homebuyers purchased 166 duplexes, town homes, and villas in July 2009, which is a 32.80 percent increase from July 2008 when 125 of these alternative housing types were purchased; year-to-date sales for these home types are up 37.47 percent. The majority (29) of duplexes, town homes, and villas sold in July 2009 fell into the $120,000 - $139,000 price category.

MSA Numbers

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July were up by 56.28 percent when compared to July of last year. Throughout the entire MSA, 2,763 homes were sold in July 2009 compared with 1,768 in July 2008. To date, MSA sales are up by 55.40 percent over this time last year, with sales at 15,744 compared to 2008's 10,131.

Each county's year-to-date sales comparisons are as follows:

Lake: 26.06 percent above 2008 (2191 homes sold to date in 2009 compared to 1,738 in 2008);

Orange: 67.52 percent above 2008 (8,269 homes sold to date in 2009 compared to 4,936 in 2008);

Osceola: 109.01 percent above 2008 (3,016 homes sold to date in 2009 compared to 1,443 in 2008); and

Seminole: 12.61 percent above 2008 (2,268 sold to date in 2009 compared to 2,014 in 2008).

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