Real Estate Activity in Detail
The average price of homes sold in May rose nearly 7%, while transactions fell 44% (compared to May 2019) during the second month reflecting the impact of COVID-19 on the Orlando real estate market. Inventory fell by 11% compared to the previous year, according to ORRA—the Orlando Regional Realtors Association.
“Although the year-over-year comparison is in the red, our month-over-month metrics show signs of anxiety in the market,” says ORRA President Reese Stewart of RE/MAX Properties SW. “For example, compared to the previous month, pending sales, new listings, and new contracts are up by double digits. In fact, the number of new contracts in May rose 61% compared to April.”
Real Estate Market Indicators
Average Price
The overall average price of homes in Orlando (all types combined) sold in May was $259,900, up 7.0% from the May 2019 average price of $243,000 and down 1.5% from the April 2020 average price of $263,750.
The median price of single-family homes sold in May rose 5.4% compared to May 2019 and now stands at $277,250. The median price of condos rose 2.8% to $140,000, and that of townhomes and duplexes rose 3.1% to $218,250.
The housing affordability index in Orlando for May is 138.37%, up from 136.60% 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 98.4% from 97.14% last month.
Sales and Inventory
ORRA member real estate agents were involved in 2 , 127 sales of all types of homes combined in May, which is 44.1% lower than the 3,806 sales in May 2019 and 11.1% lower than the 2,393 sales in April 2020.
Sales of single-family homes (1 , 732) in May 2020 fell 42.5% compared to May 2019, while condo sales (193) fell 55.3% year-over-year. Sales of duplexes, townhomes, and two-story homes (202 combined) fell 44.5% compared to May 2019.
Sales of distressed homes (foreclosures and short sales) totaled 70 in May, down 46.1% from the 130 distressed sales in May 2019. Distressed sales accounted for 3.3% of all transactions in the Orlando area last month.
The total inventory of homes available for sale in May (7 , 260) represents a 10.6% decrease compared to May 2019 and a 5.2% decrease compared to last month. There were 18.4% fewer single-family homes; 9.5% more condos; and 35.3% more duplexes, townhomes, and row houses, year over year.
Current inventory, combined with the current sales pace, resulted in a 3.4-month supply of homes in Orlando for May. There was a 2.1-month supply in May of last year and a 3.2-month supply last month.
The average interest rate paid by homebuyers in Orlando in May was 3.22%, up from 3.20% the previous month.
Homes for which deeds were signed in May took an average of 48 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 87 days from listing to closing (up from a total of 84 days in the previous month).
Pending sales (contracts signed but with the deed yet to be signed) in May fell 13.5% compared with May of last year and 34.0% compared with last month.
Metropolitan Area Statistics
Sales of existing homes in all municipalities within the Orlando metropolitan area (Lake, Orange, Osceola, and Seminole counties) in May were 43.9% lower than in May 2019. So far this year, sales in the MSA have fallen 16.4%.
The sales comparisons for each county are as follows:
- Lake: 30.4% less than in May 2019;
- Orange: 46.2% less than in May 2019;
- Osceola: 50.5% less than May 2019; and
- Seminole: 42.2% less than in May 2019.