Orlando Housing Market Continues Winning Sales Trend, Transactions Up 39% Over last Year

---

According to the Orlando Regional Realtor Association (ORRA), in July there were 2,387 homes sold in Orlando, which is a 39.54 percent increase over this time in 2009.

"Sales closed after the homebuyer tax credit are expected to be lower compared to the credit-induced spring surge," explains ORRA Chairman of the Board Kathleen Gallagher McIver, RE/MAX Town & Country Realty, "yet total annual home sales are rising above 2009 and we're looking for overall gains again this year."

"Conditions have become more balanced in Orlando, which is good for both buyers and sellers. However, consumers find it even more challenging to navigate the transaction process, especially for distressed properties, which only underscores the value Realtors bring to buyers and sellers in this market."

The number of new contracts filed in July 2010 (3,793) represents an increase of 2.62 percent more than were filed in July 2009 (3,696). The area's pending sales statistic -- also an indicator of future sales activity - is likewise remaining at a record high with 18.41 percent more homes (9,133) under contract and awaiting closing in July of this year than in July of last year (7,713).

The median price of all existing homes combined sold in July 2010 decreased 17.37 percent to $109,900 from the $133,000 recorded in July 2009. July 2010's median price is a decrease of 4.43 percent compared to June 2010's median of $115,000.

The median price for "normal" sales is $179,138 (up 4.15 percent from last month's $172,000). The median price for bank-owned sales is $73,999 (down 4.52 percent from last month's $77,500), and the median price for short sales is $115,000 (steady from last month's $115,000).

"Distressed properties, which accounted for almost 70 percent of sales in July, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area," explains Gallagher McIver.

Of the 2,387 sales in July, 740 "normal" sales accounted for 31.00 percent of all sales, while 1,133 bank-owned and 514 short sales made up 69.00 percent.

The Orlando affordability index increased to 243.74 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 $53,162 can qualify to purchase one of 9,812 homes in Orange and Seminole counties currently listed in the local multiple listing service for $267,866 or less.

First-time homebuyer affordability in July increased to 173.32 percent. First-time buyers who earn the reported median income of $36,150 can qualify to purchase one of 6,837 homes in Orange and Seminole counties currently listed in the local multiple listing service for $161,910 or less.

Homes of all types spent an average of 85 days on the market before coming under contract in July 2010, and the average home sold for 94.89 percent of its listing price. In July 2009 those numbers were 101 and 94.04 percent, respectively. The area's average interest rate decreased in July to 4.67 percent.

Inventory

There are currently 16,563 homes available for purchase through the MLS. Inventory increased by 259 homes from June 2010, which means that 259 more homes entered the market than left the market. The July 2010 inventory level is 3.88 percent lower than it was in July 2009 (17,231). The current pace of sales translates into 6.94 months of supply; July 2009 recorded 7.49 months of supply.

There are 12,708 single-family homes currently listed in the MLS, a number that is 185 (1.48 percent) more than in July of last year. Condos currently make up 2,457 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,398.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area increased by 35.64 percent in July when compared to July of 2009 and decreased by 16.21 percent compared to June of this year. To date, condo sales are up 78.15 percent (3,921 condos sold to date in 2010, compared to 2,201 by this time in 2009).

The most (285) condos in a single price category that changed hands in July were yet again in the $1 - $50,000 price range, which accounted for 52.01 percent of all condo sales.

Orlando homebuyers purchased 232 duplexes, town homes, and villas in July 2010, which is a 27.47 percent increase from July 2009 when 182 of these alternative housing types were purchased.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July were down by 5.94 percent when compared to July of 2009. Throughout the MSA, 2,770 homes were sold in July 2010 compared with 2,945 in July 2009.

To date, sales throughout the MSA are 31.72 percent above this time in 2009 with 20,978 homes exchanging hands compared to 15,926. Each individual county's year-to-date sales comparisons are as follows:

Lake: 16.41 percent above 2009 (2,589 homes sold to date in 2010 compared to 2,224 in 2009);

Orange: 35.19 percent above 2009 (11,361 homes sold to date in 2010 compared to 8,404 in 2009);

Osceola: 18.52 percent above 2009 (3,609 homes sold to date in 2010 compared to 3,045 in 2009); and

Seminole: 51.75 percent above 2009 (3,419 sold to date in 2010 compared to 2,253 in 2009).

---