Buyers "snatch up property in orlando like it’s 2006"

Photo credit: Michael Patrick

Buyers are snapping up property in Orlando 25 per cent faster than this time last year, according to the Orlando Regional Realtor Association. Homes spent an average of 79 days on the market in October, a 25.47 percent drop from the 106 days homes spent on the market in October 2011 - a speed not seen since the tail end of the red-hot market in 2005-2006.

In addition, buyers are purchasing more homes and paying more for them. Sales of homes in the Orlando area jumped 14 percent in October when compared to October of last year, boosted by a nearly 30 percent leap in the number of normal sales transactions. The median price increased 9.24 percent to $122,900, from October 2011's median price of $112,500.

Orlando's overall median price has now posted positive year-to-year gains for 16 consecutive months. However, the median price dipped a bit (1.60 percent) from last month.

"We've seen steady improvements in sales and median price throughout 2012, and Orlando's housing market recovery should continue through the coming years," says ORRA Chairman Stephen Baker, RE/MAX Central Realty. "However, it's crucial that there are no further limitations on the availability of mortgage credit."

All sales types experienced year-to-year increases in median price in October. The median price of normal sales increased 4.61 percent, while the median price of foreclosures increased 8.44 percent and short sales increased 7.37 percent.

2,434 home sales closed in October 2012, an increase of 14.17 percent compared to October 2011 and a 6.01 percent increase compared to September 2012.

Compared to October of 2011, the number of short sales decreased 1.36 percent and foreclosures increased 9.36 percent. The number of completed traditional sales, however, jumped a 29.86 percent compared to last year.

Homes of all types spent an average of 79 days on the market before coming under contract in October 2012, and the average home sold for 96.29 percent of its listing price. In October 2011 those numbers were 106 days and 94.66 percent, respectively.

The average interest rate paid by Orlando homebuyers in October, 3.49 percent, set yet another record as lowest average interest rate since ORRA began tracking the statistic in 1989. A year ago, homebuyers paid an average interest rate of 4.21 percent.

Pending sales - those under contract and awaiting closing - are currently at 9,252. The number of pending sales in October 2012 is 3.52 percent higher than it was in October 2011 (8,937) and 0.17 percent lower than it was in September 2012 (9,268).

Short sales, which take much longer to process from contract to close, made up 68.42 percent of pending sales in October 2012. Normal properties accounted for 20.36 percent of pendings, while bank-owned properties accounted for 11.22 percent.

The number of existing homes (all types combined) available for purchase in Orlando is continuing a steady decline that began back in July 2010 at 16,563 and now rests at 8,094. In October 2012, inventory was 18.84 percent less than it was in October 2011.

The inventory of single-family homes is down by 21.49 percent when compared to October of 2011, while condo inventory has decreased by 3.57 percent.

The month-of-supply decreased in October when compared to last month: Current inventory combined with the current pace of sales equates to a 3.33-month supply of homes in Orlando (there was a 3.52-month supply in September 2012).

This month's decrease in median price has led to an increase in Orlando's affordability index: The October index of 258.44 percent is seven points higher than September 2012's index of 251.25 percent. (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 $54,701 can qualify to purchase one of 4,650 homes in Orange and Seminole counties currently listed in the local multiple listing service for $317,625 or less.

First-time homebuyer affordability in October increased to 183.78 percent from last month's 178.67 percent. First-time buyers who earn the reported median income of $37,197 can qualify to purchase one of the 3,338 homes in Orange and Seminole counties currently listed in the local multiple listing service for $191,987 or less.

The sales of condos in the Orlando area increased by 2.33 percent in October when compared to October of 2011 (352 to 344).

 The most (100) condos in a single price category that changed hands in October were yet again in the $1 - $50,000 price range and accounted for 28.41 percent of all condo sales.

Orlando homebuyers purchased 190 duplexes, town homes, and villas in October 2012, which is a 10.80 percent decrease compared to October 2011. Most (48) fell equally within the $100,000 - $120,000 and the $120,000 - $140,000 price range categories.

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in October were up by 9.72 percent when compared to October of 2011. Throughout the MSA, 2,890 homes were sold in October 2012 compared with 2,634 in October 2011. To date, sales are down 0.92 percent for all counties combined.