This month’s report from the Orlando Regional REALTOR® Association sounds very similar to the previous month’s report. Extremely low levels of inventory and matching low interest rates continue to have the most impact on the local and national real estate markets. In fact, there is only a one-month supply of inventory in the Orlando area in certain price points.
On a positive note, the Orlando Regional REALTOR® Association reported that a Spring consumed with paused transactions have propelled an upswing in buyer activity that continued in August and sent Orlando area home sales into positive territory for the second consecutive month. As a result of low inventory and high buyer demand, Orlando’s median price also continued on an upward path.
On a national level, Realtor.com reported that the national median listing price was 10.8 percent higher than last year and total inventory was down 39 percent compared to last year. The Housing Market Recovery Index, an index used by Realtor.com to measure the recovery of the real estate market, was actually above the pre-COVID baseline and showed continued improvement which is another positive sign for the real estate market.
ORLANDO HOME SALES, MEDIAN PRICE INCREASE AS INVENTORY CONTINUES FREEFALL
A spring of paused transactions have propelled an upswing in buyer activity that continued in August and sent Orlando area home sales into positive territory for the second consecutive month, reports the Orlando Regional REALTOR® Association. Orlando’s median price also continued on its upward path, while inventory again fell to a new low.
“Lack of inventory — not lack of buyer activity, as you would expect — is clearly shaping up to be the concerning result of the COVID-19 pandemic,” says ORRA President Reese Stewart, RE/MAX Properties SW. “In fact, the availability of single-family properties within our most in-demand price ranges of $160,000 to $400,000 is startling; less than a single month of supply.”
Housing economists generally consider a 5- to 6-month supply to indicate a healthy market that is balanced between buyers and sellers.
The overall median price of Orlando homes (all types combined) sold in August is $275,000, which is 10.0% above the August 2019 median price of $250,000 and 1.9% above the July 2020 median price of $270,000.
The median price for single-family homes that changed hands in August increased 9.3% over August 2019 and is now $295,000. The median price for condos increased 11.3% to $152,500 and townhomes/villas/duplexes increased 4.2% to $225,900.
The Orlando housing affordability index for August is 137.47%, down from 137.74% last month. (An affordability index of 99% means that buyers earning the state-reported median income are 1% 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.)
The first-time homebuyer affordability index decreased to 97.76 from 97.95 last month.
Sales and Inventory
Members of ORRA participated in 3,539 sales of all home types combined in August, which is 4.2% more than the 3,397 sales in August 2019 and 3.8% more than the 3,679 sales in July 2020.
Sales of single-family homes (2,868) in August 2020 increased by 7.5% compared to August 2019, while condo sales (367) decreased 12.8% year over year. Duplexes, townhomes, and villas (304 combined) decreased 1.6% over August 2019.
Sales of distressed homes (foreclosures and short sales) reached 82 in August and are 4.7% less than the 86 distressed sales in August 2019. Distressed sales made up 2.5% of all Orlando-area transactions last month.
The average interest rate paid by Orlando homebuyers in August was 2.85%, down from 2.97% the month prior.
Homes that closed in August took an average of 49 days to move from listing to pending and an average of 44 days between pending and closing, for an average total of 93 days from listing to closing (equal to a total of 93 days the month prior).
The overall inventory of homes that were available for purchase in August (5,958) represents a decrease of 22.1% when compared to August 2019, and a 4.2% decrease compared to last month. There were 34.3.% fewer single-family homes; 20.3% more condos; and 28.3% more duplexes/townhomes/villas, year over year.
Pending sales in August are up 15.8% compared to August of last year and are down 1.7% compared to last month.
New contracts are up 11.4% year over year, and new listings are up 3.3%
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in August were 0.7% lower than in August of 2019. To date, sales in the MSA are down by 11.3%.
Each individual county’s sales comparisons are as follows:
*Lake: 6.0% below August 2019;
*Orange: 4.4% below August 2019;
*Osceola: 6.3% below August 2019; and
*Seminole: 2.5% below August 2019.
This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the Stellar Multiple Listing Service. Neither the association nor Stellar MLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or by Stellar MLS does 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 represent sales involving Orlando Regional REALTOR® Association members, who are primarily – but not exclusively – located in Orange and Seminole counties. Note that statistics released each month March 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.