Real Estate in Detail
Orlando real estate sales are on the rise, despite the region's ongoing struggle with COVID-19. A new report from the Orlando Regional REALTOR® Association shows that home sales soared in June, an increase of nearly 46% over May. The number of homes for sale (inventory) continues to be a problem, as June's inventory was down 19% compared to June 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® were able to accommodate buyers and sellers and conduct business while maintaining safety protocols," said Reese Stewart, 2020 ORRA President, RE/MAX Properties SW.
"The outlook remains positive, as pending sales* in June also rose, showing an increase of 14.5% compared to May."
*Pending sales refer to contracts signed but awaiting closing (signing of the deed).
Real estate market indicators
Average Price
The overall average price of Orlando homes (all types combined) sold in June was $265,000, 6% higher than the June 2019 average price of $249,999 and 1.9% higher than the May 2020 average price of $259,900.
The average price ofsingle-family homes sold in June 2020 increased by 3.7% compared to June 2019 and now stands at $280,000. The average price of condos increased 4.9% to $141,000 and townhomes/duplexes increased 0.5% to $219,950.
The housing affordability index in Orlando in June was 139.10%, compared to 138.37% 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 rose to 98.92%, up from 98.40% last month.
Sales and stock
ORRA member brokers participated in 3,103 sales of all types of homes combined in June, 9% less than the 3,412 in June 2019 and 45.9% more than the 2,127 in May 2020.
Sales of single-family homes (2,478) in June 2020 fell by 8.2% compared to June 2019, while sales of condos (325) were down 20% year-on-year. Townhomes/duplexes (300 combined) increased by 2.6% compared to June 2019.
Sales of homes in financial distress(foreclosures and short sales) reached 87 in June and are 25.6% less than the 117 distressed sales in June 2019. Distressed sales represented 2.8% of all transactions in the Orlando area last month.
The overall stock of homes that were available for purchase in June (6,557) represents a drop of 18.6% compared to June 2019 and a drop of 9.7% compared to last month. There were 26.8% fewer single-family homes; 6.3% more condos; and 19% more duplexes/townhomes/lofts, year-over-year.
The current inventory combined with the current pace of sales has created a 2.1 month supply in Orlando for June. There was a 2.4 month supply in June last year and a 3.4 month supply last month.
The average interest rate paid by Orlando home buyers in June was 3.04%, down from 3.22% the previous month.
Homes whose deeds were signed in June took an average of 52 days to go from Listed to Pending (when the sales contract is signed) and an average of 38 days between Pending and closing (when the deed is signed), for an average total of 90 days from listing to closing (up from a total of 87 days the previous month).
Figures for the Metropolitan Region
Existing home sales in all districts of the Orlando metropolitan area (Lake, Orange, Osceola and Seminole counties) in June were 13.4% lower than June 2019. Year-to-date, sales in the MSA are down 15.8%.
The sales comparisons for each county are as follows:
- Lake: 15.6% less than June 2019;
- Orange: 18.5% less than June 2019;
- Osceola: 6.8% less than June 2019; and
- Seminole: 3.6% less than June 2019.