Real Estate Activity in Detail
The Orlando real estate market in January marked the second consecutive month of double-digit year-over-year sales increases, according to the Orlando Regional Realtors Association (ORRA).
Sales rose by more than 16% compared to January 2019, while the median price increased by 8%. However, inventory (the number of homes available for sale) in Orlando fell by nearly 15%.
ORRA President Reese Stewart of RE/MAX Properties SW highlights some interesting data in this month's housing report.
“First, the 25% increase in sales in Osceola County was by far the largest among the four counties that make up the Orlando Metropolitan Statistical Area,” says Stewart. “Second, sales of duplexes, townhomes, and villas rose 37% compared to January 2019 and likely reflect our ongoing shortage of single-family homes priced under $300,000.”
Real Estate Market Indicators
Average Price
The overall average price of homes in Orlando (all types combined) sold in January was $245,000, up 7.9% from the January 2019 average price of $227,000 and down 1.6% compared with the December 2019 average price of $249,000.
The median price of single-family homes sold in January rose 6.9% compared to January 2019 and now stands at $265,000. The median sales price of condos rose 11.2%, to $139,000.
The housing affordability index in Orlando for January is 140.36%, up from 135.73% 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 workers with median wages earn more than is required to qualify for a median-priced home.
The affordability index for first-time homebuyers rose to 99.81%, up from 96.52% last month.
Sales and Inventory
ORRA members were involved in 2,270 sales of all types of homes combined in January, 16.4% more than the 1,950 sales in January 2019 and 25.2% fewer than the 3,033 sales in December 2019.
Sales of single-family homes (1,751) in January 2020 increased by 17.0% compared to January 2019, while sales of apartments (294) rose by 1.7% year-over-year. Sales of duplexes, townhouses, and villas (225 in total) jumped 37.2% compared with January 2019.
Sales of distressed properties (foreclosures and short sales) totaled 108 in January, up 16.1% from the 93 sales in January 2019. Distressed sales accounted for 4.8% of all transactions in the Orlando area last month.
The total inventory of homes available for sale in January (7,030) represents a 14.7% decrease compared to January 2019 and a 0.1% increase compared to last month. There were 16.0% fewer single-family homes; 11.9% fewer condos; and 7.0% fewer duplexes, townhouses, and villas, compared to a year ago.
The current inventory, combined with the current sales pace, resulted in a 3.1-month supply of homes in Orlando for January. There was a 4.2-month supply in January 2019 and a 2.3-month supply in December 2019.
The average interest rate paid by homebuyers in Orlando in January was 3.55%, down from 3.66% the previous month [rate for loans to residents].
Homes thatclosed in January took an average of 60 days to go from “listed” to “pending” [when the sales contract is signed] and an average of 38 days from “pending” to “closed” [when the deed is signed], for an average total of 98 days from listing to closing (up from a total of 91 days the previous month).
Pending sales [sales for which a contract has been signed but the deed has not yet been executed] in January increased 7.8% compared to January of last year and 25.9% compared to last month.
Metropolitan Area Statistics
Sales of existing homes in all municipalities in the Orlando metropolitan area (Lake, Orange, Osceola, and Seminole counties) in January increased by 11.8% compared with January 2019.
The sales comparisons for each county are as follows:
- Lake: 9.2% higher than January 2019;
- Orange: 9.9% higher than January 2019;
- Osceola: 25.3% higher than January 2019; and
- Seminole: 6.9% higher than January 2019.