Real Estate Activity in Detail
In April, the Orlando real estate market saw the overall average price of homes sold rise by 12%, while the number of homes sold fell by 28% —the first month to show an early decline in activity as a result of the COVID-19 pandemic. Inventory fell by 3% compared to the previous year, according to ORRA—the Orlando Regional Realtors Association.
“Our market—like the rest of the country—is facing a slowdown caused by the coronavirus,” says ORRA President Reese Stewart of RE/MAX Properties SW. “ORRA anticipates that listings and home purchases will pick up again, especially given our history of strong demand and low supply, along with low interest rates that boost purchasing power.”
“Although the pandemic has caused a major disruption to sales, home prices in Orlando held steady in April and even rose due to the ongoing housing shortage,” Stewart continues. “However, while the lack of inventory in the lower price ranges will likely support prices, it’s possible that the high-end market segment could see a decline in values.”
Real Estate Market Indicators
Average Price
The overall average price of homes in Orlando (all types combined) sold in April was $263,750, up 12.2% from the April 2019 average price of $235,000 and up 4.0% from the March 2020 average price of $253,500.
The median price of single-family homes sold in April rose 9.0% compared with April 2019 and now stands at $278,000. The median price of condos rose 5.1%, to $145,000, and that of townhouses and duplexes rose 5.6%, to $225,000.
The housing affordability index in Orlando for April is 136.60, down from 137.63 last month.
*An affordability index of 99% means that buyers with the state’s median income earn 1% less than the income required to purchase a median-priced home. Conversely, an affordability index greater than 100 means that median-income earners make more than what is required to qualify for a median-priced home.
The affordability index for first-time homebuyers fell from 97.87 to 97.14 last month.
Sales and Inventory
ORRA member real estate agents were involved in 2,393 sales of all types of homes combined in April, 28.1% fewer than the 3,329 recorded in April 2019 and 25.3% fewer than the 3,204 recorded in March 2020.
Sales of single-family homes (1,926) in April 2020 fell 24.0% compared to April 2019, while condo sales (249) fell 42.5% year-over-year. Sales of duplexes, townhomes, and townhouses (218 combined) fell 37.2% compared to April 2019.
Sales of distressed homes (foreclosures and short sales) totaled 61 in April, down 41.9% from the 105 sales recorded in April 2019. Distressed sales accounted for 2.6% of all transactions in the Orlando area last month.
The total inventory of homes available for sale in April (7,659) represents a 2.9% decrease compared to April 2019 and a 4.3% increase compared to last month. There were 8.7% fewer single-family homes; 6.9% more condos; and 42.4% more duplexes, townhomes, and row houses, year over year.
The current inventory, combined with the current sales pace, resulted in a 3.2-month supply of homes in Orlando in April. There was a 2.4-month supply in April of last year and a 2.3-month supply last month.
The average interest rate paid by homebuyers in Orlando in April was 3.20%, down from 3.45% the previous month.
Homes for which deeds were signed in April took an average of 47 days to move from “listed” to “pending” (when the sales contract is signed) and an average of 39 days from “pending” to “closed” ( when the deed is signed), for an average total of 86 days from listing to closing (down from 91 days the previous month).
Pending sales (contracts signed but with the deed yet to be signed) in April fell 36.3% compared to April of last year and 17.1% compared to last month.
Metropolitan Area Statistics
Sales of existing homes in all municipalities within the Orlando metropolitan area (Lake, Orange, Osceola, and Seminole counties) were 32.4% lower than in April 2019. So far this year, sales in the metropolitan area have fallen 7.2%.
The sales comparisons for each county are as follows:
- Lake: 33.5% less than April 2019;
- Orange: 35.8% less than in April 2019;
- Osceola: 30.8% less than April 2019; and
- Seminole: 23.5% less than April 2019.