Real Estate Activity in Detail
Orlando’s real estate market saw an increase in buyer activity in July, pulling sales out of the red after three months of sharp year-over-year declines caused by the COVID-19 pandemic, according to the Orlando Regional REALTOR® Association. The median price of homes sold in Orlando continued its upward trend, while inventory fell to its lowest level this year.
“The significant lull in closings* during April, May, and June led to a surge in transactions in July, which was actually 1% higher than in July of last year,” explains ORRA President Reese Stewart of RE/MAX Properties SW, who also cites lower interest rates as a factor driving buyers. “Orlando real estate agents are reporting a level of buyer demand that continues to far exceed the supply of available properties. We can easily attribute any future decline in sales to an ever-increasing shortage of inventory.”
*Closings refer to the signing of deeds.
Real Estate Market Indicators
Average Price
The overall average price of homes sold in Orlando (all types combined) in July was $270,000, which is 9.2% higher than the July 2019 average price of $247,250 and 1.9% higher than the June 2020 average price of $265,000.
The average price of single-family homes sold in July rose 10.1% compared to July 2019 and now stands at $295,000. The median price of condos rose 5.1% to $145,000, and townhomes and duplexes rose 4.6% to $224,900.
The housing affordability index in Orlando in July was 137.74%, down from 139.10% 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 to 97.95%, down from 98.92% last month.
Sales and Inventory
ORRA member real estate agents were involved in 3,679 sales of all types of homes combined in July, which is 1.4% more than the 3,628 sales in July 2019 and 18.6% more than the 3,103 sales in June 2020.
Sales of single-family homes (2,920) in July 2020 increased by 2.4% compared to July 2019, while condo sales (401) decreased by 4.8% year-over-year. Sales of townhomes and duplexes (358 in total) increased by 0.9% compared to July 2019.
Sales of distressed homes (foreclosures and short sales) totaled 79 in July, down 27.5% from the 109 sales recorded in July 2019. Distressed sales accounted for 2.2% of all transactions in the Orlando area last month.
The average interest rate paid by homebuyers in Orlando in July was 2.97%, down from 3.04% the previous month.
Homes for which deeds were signed in July took an average of 54 days to go 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 93 days from listing to closing (up from 87 days the previous month).
The total inventory of homes available for sale in July (6,220) represents a 22.2% decrease compared to July 2019 and a 5.1% decrease compared to the previous month. There were 32.7% fewer single-family homes; 11.4% more condos; and 22.8% more duplexes, townhouses, and villas, year over year.
Future Indicators
Pending sales in July rose 8.7% compared with July of last year and fell 1.5% compared with last month. New contracts rose 8.2% year-over-year, and new listings rose 3.6%.
Metropolitan Area Statistics
Home sales across the Orlando metropolitan area (Lake, Orange, Osceola, and Seminole counties) in July were 2.1% lower than in July 2019. So far this year, sales in the MSA have fallen 13.6%.
The sales comparisons for each county are as follows:
- Lake: 6.8% higher than July 2019;
- Orange: 5.2% less than July 2019;
- Osceola: 4.3% less than July 2019; and
- Seminole: 0.5% higher than July 2019.