Real Estate in Detail
The Orlando real estate market in February saw its home sales improve by more than 4% compared to February 2019, while the median price increased by 6%. Inventory suffered a 17% year-over-year decline and remains a dampening factor, according to a report by the Orlando Regional REALTOR® Association.
ORRA President Reese Stewart, RE/MAX Properties SW, points out that Orlando brokers, like those across the country, anticipate an impact from the coronavirus situation on the real estate market, but can't predict what it might be.
"For example, if buyer demand declines, we could see a positive influence on Orlando's critically low inventory levels while at the same time having a negative impact on sales," says Stewart. "On the other hand, if prospective sellers decide not to list their homes for the traditional spring/summer season, there could be a further decline in the number of homes available for purchase in the Orlando area."
Stewart also emphasizes that buyers and sellers can turn to their REALTORS® to discuss best safety practices related to mitigating coronavirus risk. Options include maximizing technology, such as video property tours, or implementing pre- and post-showing sanitization routines for buyers and sellers.
Real estate market indicators
Average Price
The overall average price of Orlando homes (all types combined) sold in February is $250,000, up 6.4% from the February 2019 average price of $235,000 and an increase of 2.0% compared to the January 2020 average price of $245,000.
The average price of single-family homes that changed hands in February increased by 8.0% compared to February 2019 and now stands at $270,000. The average price of condos increased by 6.2% to $145,500.
Orlando's housing affordability index for February is 139.71, down from 140.36 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 than necessary to qualify for a median-priced home.
The affordability index for first-time buyers fell to 99.35%, down from 99.81% last month.
Sales and stock
ORRA member brokers participated in 2,521 sales of all types of homes combined in February, 4.4% more than the 2,414 sales in February 2019 and 11.1% more than the 2,270 sales in January 2020.
Sales of single-family homes (1,959) in February 2020 increased by 4.54% compared to February 2019, while sales of condos (326) increased by 16.9% year-on-year. Duplexes, townhouses and villas (236 combined) decreased by 9.6% compared to February 2019.
Distressed home sales(foreclosures and short sales) reached 113 in February and are 5.6% more than the 107 sales in February 2019. Distressed sales represented 4.4% of all transactions in the Orlando area last month.
The overall stock of homes that were available for purchase in February (6,825) represents a drop of 16.7% compared to February 2019 and a decrease of 2.9% compared to last month. There were 19.9% fewer single-family homes; 11.1% fewer condos; and 7.7% more duplexes / townhouses / villas, year on year.
The current inventory combined with the current pace of sales created a 2.7-month supply in Orlando in February. There was a 3.4-month supply in February last year and a 3.1-month supply last month.
The average interest rate paid by Orlando buyers in February was 3.43%, compared to 3.55% in the previous month.
Homes whose deeds were signed in February took an average of 58 days to go from listed to pending (when the sales contract is signed) and an average of 36 days between pending and closed (when the deed is signed), for an average total of 94 days from listing to closed (down from a total of 98 days in the previous month).
Pending sales (contract signed but pending the signing of the deed) in February were up 10.9% on February last year and 20.4% on last month.
Figures for the Metropolitan Region
Existing-home sales in all counties in the Orlando metropolitan area (Lake, Orange, Osceola and Seminole counties) in February increased 2.8% compared to February 2019. Year-to-date, sales in the MSA(Metropolitan Statistical Area) are up 6.9%.
The sales comparisons for each county are as follows:
- Lake: 11.0% more than February 2019;
- Orange: 1.8% less than February 2019;
- Osceola: 10.0% more than February 2019; and
- Seminole: 1.5% more than February 2019.