Real Estate in Detail
Orlando's real estate market in April saw its overall average price of homes sold rise 12%, while the number of homes sold fell 28% in the first month to show an anticipated decline in activity as a result of the COVID-19 pandemic. Inventory registered a 3% decline compared to the previous year, reports ORRA - Orlando Regional Realtors Association.
"Our market - like that of the entire country - is weathering the coronavirus-induced slowdown," says ORRA President Reese Stewart, RE/MAX Properties SW. "ORRA anticipates that listings and buying activity will resume, especially given our history of demand versus low supply, along with low interest rates that increase purchasing power."
"Although the pandemic is a major disruption as far as sales are concerned, home prices in Orlando held up in April and even increased due to the ongoing housing shortage," Stewart continues. "However, while the lack of inventory in the lower price categories will likely protect prices, it is possible that the upper market segment could experience a decline in values."
Real estate market indicators
Average Price
The overall average price of Orlando homes (all types combined) sold in April is $263,750, 12.2% higher than the April 2019 average price of $235,000 and 4.0% higher than the March 2020 average price of $253,500.
The average price of single-family homes sold in April increased by 9.0% compared to April 2019 and now stands at $278,000. The average price of condos increased 5.1% to $145,000 and townhomes/duplexes increased 5.6% to $225,000.
The housing affordability index in Orlando in April is 136.60, down from 137.63 last month.
*An affordability index of 99% means that buyers earning the state-reported median income are 1% below the income needed to buy a median-priced home. On the other hand, an affordability index greater than 100 means that median wage earners earn more needed to qualify for a median-priced home.
The affordability index for first-time buyers fell from 97.87 to 97.14 last month.
Sales and stock
ORRA member brokers participated in 2,393 sales of all types of homes combined in April, 28.1% less than the 3,329 in April 2019 and 25.3% less than the 3,204 in March 2020.
Sales of single-family homes (1,926) in April 2020 decreased 24.0% compared to April 2019, while sales of condos (249) decreased 42.5% year-on-year. Duplexes, townhomes and sobrados (218 combined) decreased 37.2% compared to April 2019.
Sales of homes in financial distress(foreclosures and short sales) reached 61 in April and are 41.9% less than the 105 sales in April 2019. Distressed sales represented 2.6% of all transactions in the Orlando area last month.
The overall inventory of homes available for purchase in April (7,659) represents a 2.9% drop from April 2019 and a 4.3% increase from last month. There were 8.7% fewer single-family homes; 6.9% more condos; and 42.4% more duplexes/townhomes/lofts, year-over-year.
The current inventory combined with the current pace of sales created a 3.2 month supply of homes in Orlando in April. There was a 2.4 month supply in April last year and a 2.3 month supply last month.
The average interest rate paid by Orlando home buyers in April was 3.20%, down from 3.45% the previous month.
Homes whose deeds were signed in April took an average of 47 days to go from listed to pending (when the sales contract is signed) and an average of 39 days between pending and closed (when the deed is signed), for an average total of 86 days from listing to closed (down from a total of 91 days in the previous month).
Pending sales (contract signed but pending the signing of the deed) in April fell 36.3% compared to April last year and 17.1% compared to last month.
Figures for the Metropolitan Region
Existing home sales in all municipalities in the Orlando metropolitan area (Lake, Orange, Osceola and Seminole counties) were 32.4% lower than in April 2019. Year-to-date, sales in the metropolitan area are down 7.2%.
The sales comparisons for each county are as follows:
- Lake: 33.5% less than April 2019;
- Orange: 35.8% less than April 2019;
- Osceola: 30.8% less than April 2019; and
- Seminole: 23.5% less than April 2019.