Real Estate Activity in Detail
In February, the Orlando real estate market saw home sales rise by more than 4% compared to February 2019, while the median price increased by 6%. Inventory declined by 17% year-over-year and remains a limiting factor, according to a report by the Orlando Regional REALTOR® Association.
ORRA President Reese Stewart of RE/MAX Properties SW notes that real estate agents in Orlando, like those across the country, anticipate that the coronavirus situation will have an impact on the real estate market, but are unable to predict what that impact might be.
“For example, if buyer demand decreases, we could see a positive effect on Orlando’s critically low inventory levels and, at the same time, a negative impact on sales,” says Stewart. “On the other hand, if potential 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 sale in the Orlando area.”
Stewart also emphasizes that buyers and sellers can turn to their REALTORS® to discuss best safety practices related to mitigating the risk of the coronavirus. Options include making the most of technology, such as virtual property tours, or implementing pre- and post-showing sanitation routines for buyers and sellers.
Real Estate Market Indicators
Average Price
The overall average price of homes in Orlando (all types combined) sold in February was $250,000, up 6.4% from the February 2019 average price of $235,000 and a 2.0% increase compared with the January 2020 average price of $245,000.
The median price of single-family homes that changed hands in February rose 8.0% compared with February 2019 and now stands at $270,000. The median price of condos rose 6.2%, to $145,500.
The housing affordability index for Orlando in February is 139.71, down from last month's 140.36.
*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 workers with median wages earn more than is required to qualify for a median-priced home.
The affordability index for first-time homebuyers fell to 99.35%, down from 99.81% last month.
Sales and Inventory
ORRA member real estate agents were involved 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 condo sales (326) rose 16.9% year-over-year . Sales of duplexes, townhouses, and villas ( 236 combined) decreased by 9.6% compared to February 2019.
Sales of distressed properties (foreclosures and short sales) totaled 113 in February, up 5.6% from the 107 sales in February 2019. Distressed sales accounted for 4.4% of all transactions in the Orlando area last month.
The total inventory of homes available for sale in February (6 , 825) represents a 16.7% decrease compared to February 2019 and a 2.9% decrease compared to last month. There were 19.9% fewer single-family homes; 11.1% fewer condos; and 7.7% more duplexes, townhouses, and row houses, year over year.
Current inventory, combined with the current sales pace, resulted in a 2.7-month supply of homes in Orlando in February. There was a 3.4-month supply in February of last year and a 3.1-month supply last month.
The average interest rate paid by homebuyers in Orlando in February was 3.43%, down from 3.55% the previous month.
Homes for which 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 from “pending” to “closed” (when the deed is signed), for an average total of 94 days from listing to closing (down from a total of 98 days the previous month).
Pending sales (contracts signed but with the deed yet to be signed) in February increased 10.9% compared to February of last year and 20.4% 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) in February increased by 2.8% compared to February 2019. So far this year, sales in the MSA (Metropolitan Statistical Area) have increased by 6.9%.
The sales comparisons for each county are as follows:
- Lake: 11.0% higher than February 2019;
- Orange: 1.8% less than in February 2019;
- Osceola: 10.0% higher than February 2019; and
- Seminole: 1.5% higher than February 2019.