May 2016 Orlando Housing Market Update
Orlando home sales rise 7 percent, median price jumps 12 percent to $203,000
The median price of Orlando homes sold during the month of May increased more than 12 percent compared to May 2015 and crossed the $200,000 mark for the first time since August 2008. In addition, sales showed a year-over-year increase of nearly 7 percent despite a continuing slide in inventory.
“Orlando’s inventory of available homes is 11 percent below where it was this time last year and continues to impact both sales and price,” says ORRA President John Lazenby, Colony Realty Group, Inc. “Regardless, we are seeing a small trend of increasing sales that illustrates buyer enthusiasm for our current historically low interest rates and steadily rising values.”
Median Price
The overall median price (all sales types and all home types combined) for the month of May 2016 is $203,000, a 12.15 percent jump compared to the $181,000 median price in May 2015. The median price is up 5.73 percent compared to the April 2016 median of $192,000.
The Orlando median home price has now experienced year-over-year increases for the past 58 consecutive months; as of May the median price is 75.76 percent higher than it was in July 2011.
The year-to-year median price of normal sales increased 7.00 percent, while the median price for foreclosure sales increased 10.31 percent and short sales increased 1.05 percent.
The median price of single-family homes increased 10.68 percent when compared to May of last year, and the median price of condos increased 15.29 percent.
Completed Sales
Members ORRA participated in the sale of 3,333 homes (all home types and all sale types combined) that closed in May 2016, an increase of 6.93 percent compared to May 2015 and an increase of 5.08 percent compared to April 2016.
Sales of normal homes increased 29.25 percent in May 2016, while foreclosures decreased 57.58 percent and short sales decreased 24.79 percent. Sales of single-family homes increased 7.76 percent year over year; condo sales increased 5.76 percent.
Homes of all types spent an average of 67 days on the market before coming under contract in May 2016, and the average home sold for 97.14 percent of its listing price. In May 2015 those numbers were 72 days and 96.87 percent, respectively.
The average interest rate paid by Orlando homebuyers in May was 3.62 percent. Last month, the average interest rate was 3.63 while this month last year homebuyers paid an average interest rate of 3.92.
Pending Sales
Pending sales – those under contract and awaiting closing – are currently at 6,169. The number of pending sales in May 2016 is 12.06 percent lower than it was in May 2015 and 1.55 percent higher than it was in April 2016.
Normal properties made up 72.78 percent of pending sales in May 2016. Short sales accounted for 15.19 percent, while bank-owned properties accounted for 12.03 percent.
Inventory
The number of existing homes (all types combined) that were available for purchase in May is 10.55 percent below that of May 2015 and now rests at 10,553. Inventory increased by 1.01 percent (106 homes in number) compared to last month.
The inventory of normal homes increased 1.68 percent, while foreclosures decreased 65.96 percent and short sales decreased 47.40 percent.
The inventory of single-family homes is down by 9.08 percent when compared to May of 2015, while condo inventory is down by 16.64 percent. The inventory of duplexes, townhomes, and villas is down by 11.98 percent.
Current inventory combined with the current pace of sales created a 3.17-month supply of homes in Orlando for May. There was a 3.79-month supply in May 2015 and a 3.29-month supply last month.
Affordability
The May affordability index is 160.96 percent, a decrease from April’s index of 169.78. (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 $57,152 can qualify to purchase one of 4,423 homes in Orange and Seminole counties currently listed in the local multiple listing service for $326,755 or less.
First-time homebuyer affordability in May decreased to 114.46 percent from last month’s 120.74 percent. First-time buyers who earn the reported median income of $38,863 can qualify to purchase one of the 2,084 homes in Orange and Seminole counties currently listed in the local multiple listing service for $197,505 or less.
Condos and Town Homes/Duplexes/Villas
The sales of condos in the Orlando area were up 5.76 percent, with 367 sales recorded in May 2016 compared to 347 in May 2015.
Orlando homebuyers purchased 315 duplexes, town homes, and villas in May 2016, which is 1.61 percent more than in May 2015.
MSA Numbers
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in May (4,083) were up by 5.83 percent when compared to May of 2015 (3,858). To date, sales in the MSA are up 0.46 percent.
Each individual county’s monthly sales comparisons are as follows:
• Lake: 7.46 percent above May 2015; • Orange: 4.13 percent above May 2015; • Osceola: 6.38 percent above May 2015; and • Seminole: 8.40 percent above May 2015.
This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the My Florida Regional Multiple Listing Service. Neither the association nor MFRMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or MFRMLS 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.
ORRA REALTOR® sales, referred to as the core market, represent all sales by members of the Orlando Regional REALTOR® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.
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.
