COVID-19 definitely continues to have an impact on our lives and the real estate market in Orlando. The good news is that the real estate market has shown its resilience and home sales are surging despite the area’s continuing struggle with COVID-19. According to Orlando Regional REALTOR® Association home sales skyrocketed in June, up nearly 46% from May. In other positive news, mortgage rates continue to decline, which helps keep home ownership more affordable and within reach for many people. Buyer demand is still strong and continues to drive the market.
Inventory remains a challenge for the Orlando market, as June inventory experienced a decline of 19% when compared to June of 2019. Sales of new homes continue to rebound nicely, which helps with the inventory shortage. In fact, home builders showed strong results in June as sales in Florida increased 84%. As Florida continues to reopen, we will watch the real estate market and are hopeful that the positive news will continue.
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ORLANDO’S JUNE HOME SALES SURGE AS COVID-19 PANDEMIC CONTINUES
Orlando home sales are surging despite the region’s continuing struggle with COVID-19. A new report from the Orlando Regional REALTOR® Association shows that home sales skyrocketed in June, up nearly 46% from May. The number of homes for sale continues to be an issue, as June inventory experienced a decline of 19% when compared to June of 2019.
“Despite the ongoing pandemic, there is still strong demand from homebuyers throughout the Orlando area. With virtual tours and other measures, such as limiting in-person showings, REALTORS® have been able to accommodate buyers and sellers and conduct business while maintaining safety protocols,” said 2020 ORRA President Reese Stewart, RE/MAX Properties SW. “The outlook continues to be positive, as pending sales in June were also up, showing an increase of 14.5% from May.”
Median Price
The overall median price of Orlando homes (all types combined) sold in June was $265,000, which is 6% above the June 2019 median price of $249,999 and 1.9% above the May 2020 median price of $259,900.
The median price for single-family homes sold in June 2020 increased 3.7% over June 2019 and is now $280,000. The median price for condos increased 4.9% to $141,000 and townhomes/villas/duplexes increased 0.5% to $219,950.
The Orlando housing affordability index for June was 139.10%, up from 138.37% 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’s affordability index increased to 98.92% from 98.40% last month.
Sales and Inventory
Members of ORRA participated in 3,103 sales of all home types combined in June, which is 9% less than the 3,412 sales in June 2019 and 45.9% more than the 2,127 sales in May 2020.
Sales of single-family homes (2,478) in June 2020 decreased by 8.2% compared to June 2019, while condo sales (325) decreased 20% year over year. Duplexes, townhomes, and villas (300 combined) increased 2.6% over June 2019.
Sales of distressed homes (foreclosures and short sales) reached 87 in June and are 25.6% less than the 117 distressed sales in June 2019. Distressed sales made up 2.8% of all Orlando-area transactions last month.
The overall inventory of homes that were available for purchase in June (6,557) represents a decrease of 18.6% when compared to June 2019, and a 9.7% decrease compared to last month. There were 26.8% fewer single-family homes; 6.3% more condos; and 19% more duplexes/townhomes/villas, year over year.
Current inventory combined with the current pace of sales created a 2.1-month supply of homes in Orlando for June. There was a 2.4-month supply in June of last year and a 3.4-month supply last month.
The average interest rate paid by Orlando homebuyers in June was 3.04%, down from 3.22% the month prior.
Homes that closed in June took an average of 52 days to move from listing to pending and an average of 38 days between pending and closing, for an average total of 90 days from listing to closing (up from a total of 87 days the month prior).
MSA Numbers
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in June were 13.4% lower than June of 2019. To date, sales in the MSA are down by 15.8%.
Each individual county’s sales comparisons are as follows:
*Lake: 15.6% below June 2019;
*Orange: 18.5% below June 2019;
*Osceola: 6.8% below June 2019; and
*Seminole: 3.6% below June 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.
