Real Estate in Detail
The Orlando real estate market recorded a 6% year-on-year increase in average price and a small 1% drop in sales in October. The inventory of homes available for purchase seems to be back on a downward trend, with a drop (5%) for the third month in a row.
"Low inventory translates into opportunities for sellers," says Jeffrey M. Fagan, president of the Orlando Regional Association of Realtors. "Falling interest rates mean greater purchasing power, which attracts buyers, and our local demand is illustrated by an 8% increase in pending sales for October."
"The vacations and winter are really great times to list a home, especially here in Orlando, where we don't have weather concerns," continues Fagan: "Those looking for a home during these periods tend to take their purchase very seriously, and with fewer clients, real estate service providers tend to be more attentive. "
October real estate market indicators
Average Price
The overall average price of Orlando homes (all types combined) sold in October is $242,000, up 5.7% from the October 2018 average price of $229,000 and down 1.2% compared to the September 2019 average price of $245,000.
The average price of single-family homes sold in October increased by 5.2% compared to October 2018 and now stands at US$263,000. The average price of condos increased by 12.8% to US$143,500.
The housing affordability index in Orlando for October is 140.70, compared to 137.63% last month.
*An affordability index of 99% means that buyers in the median income range reported by the state 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 to buy a median-priced home.
The affordability index for first-time buyers rose to 100.05, up from 97.87% last month.
Sales and stock
ORRA members participated in 2,899 sales of all types of homes combined in October, 0.9% less than the 2,924 sales in October 2018 and 3.0% less than the 2,989 sales in September 2019.
Sales of single-family homes (2,227) in October 2019 were down 0.1% on October 2018, while sales of condominiums (360) were down 10.5% year-on-year.
Sales of homes in financial distress(Foreclosures and Short Sales) reached 100 in October and are 20.0% lower than the 125 in October 2018. These sales represented 3.5% of all transactions in the Orlando area last month.
The overall stock of homes that were available for purchase in October (7,837) represents a drop of 5.3% compared to October 2018 and an increase of 0.7% compared to last month. There were 6.4% fewer single-family homes and 5.4% fewer condos, year on year.
The current inventory combined with the current pace of sales created a 2.7-month inventory in Orlando in October. There was 2.8 months of inventory in October 2018 and 2.6 months in September 2019.
The average interest rate paid by buyers in October was 3.61%, compared to 3.68% in the previous month.
Homes that were closed in October took an average of 54 days to go from listed to pending and an average of 37 days between pending and closed, for an average total of 91 days from listing to closed (up from a total of 89 days in the previous month).
Pending sales in October rose by 8.3% compared to October last year and increased by 0.6% compared to last month.
Figures for the Metropolitan Region
Existing-home sales in all metro Orlando counties (Lake, Orange, Osceola and Seminole counties) in October were down 1.6% compared to October 2018. Year-to-date, sales are down 2.9%.
The sales comparisons for each county are as follows:
- Lake: 5.8% more than October 2018;
- Orange: 2.8% less than October 2018;
- Osceola: 0.7% less than October 2018; and
- Seminole: 5.7% less than October 2018.