Decline in available inventory sends Orlando median home price soaring 15 percent in June
The median price of Orlando homes sold during the month of June increased 15 percent compared to June of last year, the result in part of yet another double-digit decline in inventory.
“Orlando’s inventory has now seen 12 consecutive months of year-over-year declines with the month of June recording an 11.85 percent drop, the steepest to date,Interest rates continue to be a contributing factor to the increasing buyer demand, and coupled with depleting inventory, is continuing to drive up the median price, which at $207,000, is the highest since July 2008. Current demand even helped generate a 5 percent increase in sales compared to last month, despite the limited choice of available homes.”
The overall median price (all sales types and all home types combined) for the month of June 2016 is $207,000, a 15.00 percent jump compared to the $180,000 median price in June 2015. The median price is up 1.97 percent compared to the May 2016 median of $203,000.
The Orlando median home price has now experienced year-over-year increases for the past 59 consecutive months; as of June the median price is 79.22 percent higher than it was in July 2011.
The year-to-year median price of normal sales increased 4.88 percent, while the median price for foreclosure sales increased 3.54 percent and short sales increased 14.54 percent.
The median price of single-family homes increased 12.50 percent when compared to June of last year, and the median price of condos increased 19.76 percent.
Members ORRA participated in the sale of 3,513 homes (all home types and all sale types combined) that closed in June 2016, a decrease of 2.50 percent compared to June 2015 but an increase of 4.96 percent compared to May 2016.
Sales of normal homes increased 16.50 percent in June 2016, while foreclosures decreased 60.12 percent and short sales decreased 30.56 percent. Sales of single-family homes decreased 0.88 percent year over year; condo sales decreased 5.67 percent.
Homes of all types spent an average of 62 days on the market before coming under contract in June 2016, and the average home sold for 96.93 percent of its listing price. In June 2015 those numbers were 67 days and 96.99 percent, respectively.
The average interest rate paid by Orlando homebuyers in June was 3.45 percent. Last month, the average interest rate was 3.62 while this month last year homebuyers paid an average interest rate of 4.08.
Pending sales – those under contract and awaiting closing – are currently at 5,512. The number of pending sales in June 2016 is 20.07 percent lower than it was in June 2015 and 9.27 percent lower than it was in May 2016.
Normal properties made up 72.48 percent of pending sales in June 2016. Short sales accounted for 15.48 percent, while bank-owned properties accounted for 12.05 percent.
The number of existing homes (all types combined) that were available for purchase in June is 11.85 percent below that of June 2015 and now rests at 10,629. Inventory increased by 0.72 percent (76 homes in number) compared to last month.
The inventory of normal homes decreased 1.11 percent, while foreclosures decreased 67.62 percent and short sales decreased 44.68 percent.
The inventory of single-family homes is down by 10.26 percent when compared to June of 2015, while condo inventory is down by 21.80 percent. The inventory of duplexes, townhomes, and villas is down by 7.05 percent.
Current inventory combined with the current pace of sales created a 3.03-month supply of homes in Orlando for June. There was a 3.35-month supply in June 2015 and a 3.15-month supply last month.
The June affordability index is 161.30 percent, an increase from May’s index of 160.96. (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 $57,209 can qualify to purchase one of 4,571 homes in Orange and Seminole counties currently listed in the local multiple listing service for $333,888 or less.
First-time homebuyer affordability in June increased a fraction to 114.70 percent from last month’s 114.46 percent. First-time buyers who earn the reported median income of $38,902 can qualify to purchase one of the 2,144 homes in Orange and Seminole counties currently listed in the local multiple listing service for $201,817 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were down 5.67 percent, with 399 sales recorded in June 2016 compared to 423 in June 2015.
Orlando homebuyers purchased 287 duplexes, town homes, and villas in June 2016, which is 12.50 percent less than in June 2015.
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in June (4,192) were down by 3.41 percent when compared to June of 2015 (4,340). To date, sales in the MSA are down 0.24 percent.
Each individual county’s monthly sales comparisons are as follows: