Real Estate Activity in Detail
Real estate sales in Orlando are on the rise, despite the region’s ongoing struggle with COVID-19. A new report from the Orlando Regional REALTOR® Association shows that home sales skyrocketed in June, an increase of nearly 46% compared to May. The number of homes for sale (inventory) remains a concern, as June’s inventory fell by 19% compared to June 2019.
“Despite the ongoing pandemic, there is still strong demand from homebuyers throughout the Orlando area. Through virtual tours and other measures, such as limiting in-person showings, REALTORS® have been able to accommodate buyers and sellers and conduct business while maintaining safety protocols,” said Reese Stewart, 2020 president of ORRA and RE/MAX Properties SW.
“The outlook remains positive, as pending sales* in June also increased, showing a 14.5% rise compared to May.”
*Pending sales refer to contracts that have been signed but are awaiting closing (signing of the deed).
Real Estate Market Indicators
Average Price
The overall average price of homes in Orlando (all types combined) sold in June was $265,000, up 6% from the June 2019 average price of $249,999 and up 1.9% from the May 2020 average price of $259,900.
The average price ofsingle-family homes sold in June 2020 increased by 3.7% compared to June 2019 and now stands at $280,000. The median price of condos rose 4.9% to $141,000, and townhomes and duplexes rose 0.5% to $219,950.
The housing affordability index in Orlando in June was 139.10%, up from 138.37% 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 rose to 98.92%, up from 98.40% last month.
Sales and Inventory
ORRA member real estate agents were involved in 3,103 sales of all types of homes combined in June, 9% fewer than the 3,412 recorded in June 2019 and 45.9% more than the 2,127 recorded in May 2020.
Sales of single-family homes (2,478) in June 2020 decreased by 8.2% compared to June 2019, while sales of condos (325) fell 20% year-over-year. Townhomes and duplexes (300 combined) increased by 2.6% compared to June 2019.
Sales of distressed homes (foreclosures and short sales) totaled 87 in June, down 25.6% from the 117 distressed sales in June 2019. Distressed sales accounted for 2.8% of all transactions in the Orlando area last month.
The total inventory of homes available for sale in June (6 , 557) represents an 18.6% decrease compared to June 2019 and a 9.7% decrease compared to last month. There were 26.8% fewer single-family homes; 6.3% more condos; and 19% more duplexes, townhomes, and row houses, year over year.
Current inventory, combined with the current sales pace, resulted in a 2.1-month supply in Orlando for June. There was a 2.4-month supply in June of last year and a 3.4-month supply last month.
The average interest rate paid by homebuyers in Orlando in June was 3.04%, down from 3.22% the previous month.
Homes for which deeds were signed in June took an average of 52 days to move from “Listed” to “Pending” (when the sales contract is signed) and an average of 38 days from “Pending” to closing (when the deed is signed), for an average total of 90 days from listing to closing (up from a total of 87 days the previous month).
Metropolitan Area Statistics
Sales of existing homes in all districts of the Orlando metropolitan area (Lake, Orange, Osceola, and Seminole counties) in June were 13.4% lower than in June 2019. So far this year, sales in the MSA have fallen 15.8%.
The sales comparisons for each county are as follows:
- Lake: 15.6% less than June 2019;
- Orange: 18.5% less than in June 2019;
- Osceola: 6.8% less than June 2019; and
- Seminole: 3.6% less than June 2019.