The median price of existing homes sold in Orlando during the month of March jumped more than 20 percent over March of last year, caused in part by a nearly 50 percent increase in the number of non-distressed "normal” home sales, reports the Orlando Regional REALTOR® Association.
The March 2013 overall median price of $140,000 is 21.74 percent above that of March 2012 ($115,000) and 5.26 percent above that of February 2013 ($133,000). Orlando’s median price has risen almost 30 percent in the 15 months since January of 2012.
"Normal sales traditionally carry a higher price tag than foreclosures and short sales,” explains ORRA Chairman Steve Merchant, broker-owner of Global Realty International. "For example, in March the median price for normal sales is $173,590 while the median for foreclosures is $96,000 and for short sales is $110,000.”
In addition to the overall median increase, each individual sales type experienced a year-to-year median price increase in March, with foreclosures leading the way with a 15.73 percent jump. The median price of short sales increased 7.84 percent; normal sales increased 11.99 percent.
Members of ORRA participated in the sales of 2,605 homes (all types combined) that closed in March 2013, an increase of 6.98 percent compared to March 2012 and an increase of 12.43 percent compared to February 2013.
Single-family home sales increased 9.20 percent in March 2013 compared to March 2012, while condo sales increased 4.29 percent.
Compared to March of 2012, the number of short sales (566) decreased 29.86 percent and the number of foreclosures (556) decreased 12.30 percent. The number of completed traditional sales (1,483), however, is a 49.20 percent increase compared to last year.
In March, short sales and foreclosures made up 43.07 percent of the entire sales pie, while normal sales made up 56.93 percent. Last year in March, those percentages were 59.18 percent and 40.82 percent, respectively.
Homes of all types spent an average of 80 days on the market before coming under contract in March 2013, and the average home sold for 95.96 percent of its listing price. In March 2012 those numbers were 97 days and 94.94 percent, respectively.
The average interest rate paid by Orlando homebuyers in March, 3.65 percent, marks the first increase since April 2012. Last month, homebuyers paid an average interest rate of 3.21 percent; this month last year, homebuyers paid an average interest rate of 3.65.
Pending sales – those under contract and awaiting closing – are currently at 8,799. The number of pending sales in March 2013 is 9.74 percent lower than it was in March 2012 (9,748) and 0.29 percent lower than it was in February 2013 (8,825).
Short sales, which take much longer to process from contract to close, made up 60.67 percent of pending sales in March 2013. Normal properties accounted for 26.92 percent of pendings, while bank-owned properties accounted for 12.41 percent.
The number of existing homes (all types combined) available for purchase in Orlando is continuing a steady tumble that began back in July 2010 at 16,563 and now rests at 6,937. In March 2013, inventory was 19.95 percent less than it was in March 2012.
The inventory of single-family homes is down by 22.53 percent when compared to March of 2012, while condo inventory has decreased by 7.29 percent.
Current inventory combined with the current pace of sales created a 2.66-month supply of homes in Orlando in March. There was a 3.56-month supply in March 2012 and a 3.10-month supply last month.
The March affordability index is 223.58 percent, a decrease of 25 percentage points from February’s index of 248.38 that is attributed in part to this month’s jump in both the median price and the interest rate. (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 $54,986 can qualify to purchase one of 3,594 homes in Orange and Seminole counties currently listed in the local multiple listing service for $313,017 or less.
First-time homebuyer affordability in March decreased to 158.99 percent from last month’s 176.63 percent. First-time buyers who earn the reported median income of $37,390 can qualify to purchase one of the 2,529 homes in Orange and Seminole counties currently listed in the local multiple listing service for $189,202 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando were up 4.29 percent in March, with 413 sales recorded in March 2013 compared to 396 in March 2012.
The most (115) condos in a single price category that changed hands in March were yet again in the $1 - $50,000 price range and accounted for 27.85 percent of all condo sales.
Orlando homebuyers purchased 234 duplexes, town homes, and villas in March 2013, which is a 4.88 percent decrease compared to March 2012. Most (31) fell within the $160,000 - $180,000 price range category.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in March were up by 1.41 percent when compared to March of 2012. Throughout the MSA, 3,174 homes were sold in March 2013 compared with 3,130 in March 2012. To date, sales throughout the MSA are 7.59 percent above this time last year.
Each individual county’s monthly sales comparisons are as follows:
- Lake: 13.96 percent above March 2012 (506 homes sold in March 2013 compared to 444 in March 2012);
- Orange: 0.51 percent above March 2012 (1,589 homes sold in March 2013 compared to 1,581 in March 2012);
- Osceola: 14.36 percent below March 2012 (501 homes sold in March 2013 compared to 585 in March 2012); and
- Seminole: 11.15 percent above March 2012 (578 sold in March 2013 compared to 520 in March 2012).