Real Estate in Detail
The Orlando real estate market in March saw its sales improve by almost 2% compared to March 2019, while the median price increased by 8%. Inventory experienced a 10% year-over-year decline, according to a report by the Orlando Regional REALTOR® Association.
ORRA President Reese Stewart, RE/MAX Properties SW, points out that we will have to wait another month to see solid evidence of the influence of the COVID-19 pandemic on Orlando's real estate sales statistics.
"Due to the time it traditionally takes a house to go through the transaction process (an average of 37 days in March), the properties that had the closing in March probably went into contract in February, before the stock market went into decline and the stay-at-home orders came through."
"It's important to remember that we are in a global pandemic, not a real estate recession. Orlando is a vibrant and sought-after destination for new residents, international buyers, investors, etc. " continues Stewart. "It's clear that we're likely to see a slowdown in sales, but we can't offer short-term market forecasts because that's a situation we've never encountered. However, we are confident in the long-term strength of the Orlando real estate market."
Real estate market indicators
Average Price
The overall average price of Orlando homes (all types combined) sold in March is $253,500, 7.9% higher than the March 2019 average price of $235,000 and 1.4% higher than the February 2020 average price of $250,000.
According to Stewart, the increase in the average price can be attributed in part to historically low interest rates that increase purchasing power and allow buyers to qualify for higher-priced homes.
The average price of single-family homes that changed hands in March increased by 5.9% compared to March 2019 and now stands at $270,000. The average price of condos increased 14.5% to $146,000 and townhomes/duplexes increased 5.0% to $220,000.
Orlando's housing affordability index for March is 137.63, down from 139.71 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 97.87, from 99.35% last month.
Sales and stock
ORRA member brokers participated in 3,204 sales of all types of homes combined in March, which is 2.0% more than the 3,142 sales in March 2019 and 27.1% more than the 2,521 sales in February 2020.
Sales of single-family homes (2,544) in March 2020 increased by 3.3% compared to March 2019, while sales of condos (352) decreased by 11.3% year-on-year. Duplexes, townhouses and villas (308 combined) increased by 9.2% compared to March 2019.
Sales of homes in financial distress(foreclosures and short sales) reached 80 in March and are 27.3% less than the 110 distressed sales in March 2019. Distressed sales represented 2.5% of all transactions in the Orlando area last month.
The overall stock of homes available for purchase in March (7,341) represents a drop of 9.6% compared to March 2019 and an increase of 7.6% compared to last month. There were 14.2% fewer single-family homes; 1.3% fewer condos; and 27.3% more duplexes/townhouses/villas, year-over-year.
The current inventory combined with the current pace of sales created a 2.3-month supply of homes in Orlando for March. There was a 2.6-month supply in March last year and a 2.7-month supply last month.
The average interest rate paid by Orlando buyers in March was 3.45%, compared to 3.43% the previous month.
Homes whose deeds were signed in March took an average of 54 days to go from listed to pending (when the sales contract is signed) and an average of 37 days between pending and closed (when the deed is signed), for an average total of 91 days from listing to closed (down from a total of 94 days in the previous month).
Pending sales (contract signed but pending the signing of the deed) in March fell 14.9% compared to March last year and fell 14.7% compared to last month.
Figures for the Metropolitan Region
Existing-home sales in all counties of the Orlando metropolitan area (Lake, Orange, Osceola and Seminole counties) in March (3,612) were, coincidentally, equal to March 2019. To date, sales in the MSA(Metropolitan Statistical Area) are up 4.1%.
The sales comparisons for each county are as follows:
- Lake: 6.7% more than March 2019;
- Orange: 1.7% less than March 2019;
- Osceola: 1.3% more than March 2019; and
- Seminole: 2.9% less than March 2019.