Orlando Median Home Price Down — More Homes Sold in September 2014
After eighth straight months of price increases, Orlando’s Median Home Price was down in September to $166,000. Inventory of Unsold Homes was up slightly from 13,898 units last month to 14,069 for September. This rise in inventory marks a 77.5 percent increase in inventory since the lows of March of 2013 when inventory was at a multiyear low of 7,928 units. This continuous increase of inventory will exert downward pressure on home prices, although inflation may help keep things balanced out. Mortgage rates were up slightly to 4.20 percent for a 30 year fixed rate mortgage.
On a positive note for home sellers, the number of homes that sold and closed this month was up by 20.7 percent over this time last year. Let’s dig into the numbers and see what else is happening in the Orlando real estate market.
Orlando Median Home Price for September 2014 — $166,000
Orlando’s median home price was down for September after being up for the eighth straight month. Now at $166,000, Orlando’s median home price has increased 13.5 percent so far this year. In 2013 home prices increased 21.7 percent over the year. Since January of 2012 when Orlando’s median home price was only $109,900, home prices have risen 51.1% here in Orlando Florida. The median home prices for the last three months were:
Orlando Active Homes for Sale Listings (Inventory of Unsold Homes) — 14,069 units
In September, the number of homes for sale in Orlando increased by 80 properties for a total of 14,069 units. Last year in September 2013, there were 10,399 homes for sale in Orlando, which means there has been a 35.3 percent increase in the number of homes for sale listings in the past 12 months. This increase in inventory marks the sixteenth straight monthly increase which is worth noting since we are nearing a statistically balanced market of a five to six month supply. If we shoot past a balanced market, home prices could suffer. Expect pressure on home prices if inventory levels continue to rise.
Orlando Pending Home Sales (homes under contract) — 7,219 units
There were 7,219 Pending Home Sales (homes under contract) in the Orlando MSA for September. This marks a 12.8 percent drop in the homes under contract when compared to last year’s 8,278 homes under contract. This decline in pending home sales shows that fewer homebuyers are submitting purchase offers, which is a negative indicator for home sellers and the market in general.
Homes Sold (closings) — 3,324 units
In September, 3,324 homes sold and closed in the Orlando MSA. Last September, 2,754 homes sold and closed which means there was a 20.7 percent increase in the number of homes that sold and closed (closings) this year compared to last. The increase is a great sign for the market, although we must keep a watch on the decline in pending home sales. Fewer pending home this month means fewer homes sold next month. We will be watching the Pending Home Sales and Homes Sold closely going forward.
Orlando Months Supply of Inventory (MOI) — 4.23 MOI
The Months’ Supply of Inventory (MOI) was down for September to 4.23 MOI. This decrease in the supply of unsold homes favors home sellers. Experts point to a five to six-month supply of homes for sale (MOI) as a balanced market. At 4.23 MOI, Orlando is still a seller’s market, but the recent trend favors home buyers. Last year in September, there was 3.78 MOI.
Orlando Real Estate Market Summary — September 2014
Since April 2013, the Orlando real estate market has added 5,959 homes to its growing inventory of unsold homes. This 73.5% increase in inventory will have an effect on Orlando’s real estate market going forward. Interest rates are still extremely low at 4.20% for a 30 year fixed-rate mortgage, so there is no buyer deterrent there. Fortunately, the number of homes that sold and closed in September was up sharply (20.7 percent) over September 2013.
Since Orlando’s real estate market has been heavily weighted towards home sellers for some time, the increase in Orlando’s homes for sale inventory will give frustrated homebuyers the opportunity to locate and secure suitable homes. For months, homebuyers have faced competition and competing purchase offers. Now at 4.23 MOI, the market is trending towards a statistically balanced market of 5 to 6 MOI. The substantial increase in the number of home that sold and closed this September is the number to watch going forward. If this increase in closings continues, homebuyers may face more competition for homes in the near future.
Communities in Focus:
|September 2014||Active Listings||Pendings||Properties Sold||Median Home Price||Months Suppy||Active vs Last Month|
|CITIES AND TOWNS|
|Dr Phillips Area||300||95||49||$345,000||6.12||12|