Real Estate Activity in Detail
In March, the Orlando real estate market saw sales increase by nearly 2% compared to March 2019, while the median price rose 8%. Inventory declined 10% year-over-year, according to a report from the Orlando Regional REALTOR® Association.
ORRA President Reese Stewart of RE/MAX Properties SW notes that we will have to wait another month to see solid evidence of the COVID-19 pandemic’s impact on real estate sales statistics in Orlando.
“Given the time it traditionally takes for a home to go through the transaction process (an average of 37 days in March), properties that closed in March likely went under contract in February, before the stock market began to decline and stay-at-home orders were issued.”
“It’s important to remember that we’re in the midst of a global pandemic, not a real estate recession. Orlando is a vibrant destination that’s highly sought after by new residents, international buyers, investors, and others,” Stewart continues. “It’s clear that we’ll likely see a slowdown in sales, but we can’t offer short-term market forecasts because this is a situation we’ve never encountered before. However, we are confident in the long-term strength of the Orlando real estate market.”
Real Estate Market Indicators
Average Price
The overall average price of homes in Orlando (all types combined) sold in March was $253,500, up 7.9% from the March 2019 average price of $235,000 and up 1.4% from the February 2020 average price of $250,000.
According to Stewart, the increase in the average price can be attributed in part to historically low interest rates, which boost purchasing power and allow buyers to qualify for higher-priced homes.
The average price of single-family homes that changed hands in March rose 5.9% compared to March 2019 and now stands at $270,000. The median price of condos rose 14.5%, to $146,000, and townhomes and duplexes rose 5.0%, to $220,000.
The housing affordability index in Orlando for March is 137.63, down from 139.71 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 fell to 97.87 from 99.35% last month.
Sales and Inventory
ORRA member real estate agents were involved in 3 , 204 sales of all types of homes combined in March, which is 2.0% more than the 3,142 sales in March 2019 and 27.1% more than the 2,521 sales in February 2020.
Sales of single-family homes (2 , 544) in March 2020 increased by 3.3% compared to March 2019, while condo sales (352) decreased by 11.3% year-over-year. Sales of duplexes, townhouses, and villas (308 combined) rose 9.2% compared to March 2019.
Sales of distressed homes (foreclosures and short sales) totaled 80 in March, down 27.3% from the 110 distressed sales in March 2019. Distressed sales accounted for 2.5% of all transactions in the Orlando area last month.
The total inventory of homes available for sale in March (7,341) represents a 9.6% decrease compared to March 2019 and a 7.6% increase compared to last month. There were 14.2% fewer single-family homes; 1.3% fewer condos; and 27.3% more duplexes, townhouses, and villas, year over year.
The current inventory, combined with the current sales pace, resulted in a 2.3-month supply of homes in Orlando for March. There was a 2.6-month supply in March of last year and a 2.7-month supply last month.
The average interest rate paid by homebuyers in Orlando in March was 3.45%, up from 3.43% the previous month.
Homes for which deeds were signed in March took an average of 54 days to go from “listed” to “pending” (when the sales contract is signed) and an average of 37 days from “pending” to “closed” (when the deed is signed), for an average total of 91 days from listing to closing (down from a total of 94 days the previous month).
Pending sales (contracts signed but with the deed yet to be signed) in March fell 14.9% compared to March of last year and fell 14.7% compared to last month.
Metropolitan Area Statistics
Sales of existing homes across all municipalities in the Orlando metropolitan area (Lake, Orange, Osceola, and Seminole counties) in March (3,612) were, coincidentally, the same as in March 2019. So far this year, sales in the MSA (Metropolitan Statistical Area) have increased by 4.1%.
The sales comparisons for each county are as follows:
- Lake: 6.7% higher than March 2019;
- Orange: 1.7% less than March 2019;
- Osceola: 1.3% higher than March 2019; and
- Seminole: 2.9% less than March 2019.