October 14th, 2008 11:02 AM by Alan Martin
(October 9, 2008 – Orlando, FL) Members of the Orlando Regional Realtor® Association were involved in the sale of 37.63 percent more homes in September than during the same month last year: 1,335 compared to 970. Geographically, home sales in Osceola County jumped a whopping 72.02 percent and Orange County sales increased 54.05 percent.
Each of the four counties in the Orlando MSA area increased their sales numbers in comparison to September 2007 tallies. All except Lake County increased sales in comparison to the previous month (August 2008). Also turning in a big increase this month were sales of duplexes, town homes, and villas, with 53.13 percent more sales of these home types taking place in September 2008 compared to September 2007.
The median sales price of the homes sold in September dropped by 9.00 percent to $182,000 from August’s $200,000. The current median sales price is 22.55 percent below what it was this time last year ($235,000).
Other market positives include month-over-month increases in the number of new contracts and in the number of pending sales. Those pending sales, considered by housing economists to be a reliable predictor of future sales activity, are expected to continue closing the current year-to-date sales deficit of 18.53 percent by year end as there are 61.82 percent more homes under contract this month (3,256) than in September of 2007 (2,012).
The decrease in the median home price to $182,000 means that the area’s affordability index leapt in September to 123.74 percent. (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 $51,848 can qualify to purchase one of 13,386 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $225,204 or less.
The first time homebuyer affordability index increased to 87.99 percent from August’s 76.75 percent. The area’s average interest rate was 6.00 percent in September 2008, down from 6.39 percent in August. Homes of all types spent an average of 113 days on the market before being sold in September 2008, and the average home sold for 94.33 percent of its listing price (an increase over August 2008’s 92.81 percent). In September 2007 those numbers were 111 and 93.41 percent, respectively. The majority of single-family homes (188) that changed hands in September 2008 were sold in the $200,000 - $250,000 price range; another 128 homes sold in September for between $140,000 and $160,000. Five hundred eighty-six homes sold for less than $200,000 in September, and 229 sold for more than $300,000. On the far ends of the scale, 13 homes were sold for $1 million or more (again the least this year) while 26 homes sold for less than $50,000 (again the most this year).
There are currently 24,690 homes available for purchase through the MLS. Inventory decreased by 144 homes from August to September, which means that 144 more homes left the market than entered the market. Compared to last year, the September 2008 inventory level is 6.16 percent lower than it was in September 2007 (26,310).
The current inventory level reflects an 18.49-month supply at the current pace of sales, which is down from the 19.40-month supply recorded in August. Altogether, inventory months-of-supply has declined 58.44 percent since January 2008.
There are 18,169 single-family homes currently listed in the MLS, a number that is more than 1,500 less than this time last year. As usual most (2,961) are listed in the $200,000 - $250,000 price range. Condos currently make up 4,393 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,128. Most condos (572) are priced at $100,000 - $120,000. The majority of duplexes/town homes/villas (378) are listed in the $200,000 - $250,000 price category.
Condos and Town Homes/Duplexes/Villas The sales of condos in the Orlando area held perfectly steady in September: A total of 116 condos changed hands in both September of this year and September of last year. Year to date, condo sales are down 40.75 percent, with 1,057 condos sold so far in 2008 compared to 1,784 sold through the same time in 2007.
In September, the most (20) condos that changed hands were in the $100,000 - $120,000 price category, while an additional 11 sold condos fell in both the $80,000 - $90,000 range and the $140,000 - $160,000 range.
Orlando homebuyers purchased 98 duplexes, town homes, and villas in September 2008, which is a 53.13 percent increase from September 2007 when 64 of these alternative housing types were purchased. Year-to-date, duplex, town home, and villa sales are down 14.47 percent. The majority (17) of duplexes, town homes, and villas sold in September 2008 fell into the $140,000 - $160,000 price category, while another 13 sold in both the $120,000 - $140,000 range and the $160,000 - $180,000 range.
Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in September were also up by (coincidentally) 37.63 percent when compared to September of last year. Throughout the entire MSA, 1,624 homes were sold in September 2008 compared with 1,180 in September 2007. Year to date, sales in the MSA are down by 17.63 percent, with 13,344 homes sold far in 2008 compared to 16,201 sold through September 2007.
Seminole County’s September 2008 sales increased 7.35 percent over that of September 2007 (292 to 272), while Orange County jumped 54.05 percent (818 to 513). Lake County saw a 7.66 percent improvement in the number of sales in September 2008 compared to September 2007 (225 to 209), and Osceola County experienced a massive 72.02 percent increase (289 to 168).
Each county’s year-to-date sales comparisons are as follows:
Lake: 10.28 percent below 2007 (2,234 homes sold to date in 2008 compared to 2,490 in 2007);Orange: 18.65 percent below 2007 (6,555 homes sold to date in 2008 compared to 8,058 in 2007);Osceola: 9.15 percent below 2007 (1,966 homes sold to date in 2008 compared to 1,164 in 2007); andSeminole: 25.80 percent below 2007 (2,589 sold to date in 2008 compared to 3,489 in 2007).
This representation is based in whole or in part on data supplied by the Orlando Regional Realtor® Association or its Multiple Listing Service (MLS). Neither the Association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.
Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any Realtor® association, not just members of ORRA.