Orlando Median Home Price Down Again for October 2014
After eighth straight months of price increases Orlando’s median home price was down for a second straight month. Inventory of Unsold Homes was up again for the seventeenth straight month which certainly contributed to the downward pressure on home prices. With inventory now at 14,410, Orlando’s real estate market inches ever closer to a balanced buyer-seller market. On a positive note for home sellers, the number of homes that sold and closed this month was up for a second straight month. Let’s dig into the numbers and see what else is happening in the Orlando real estate market.
Orlando Median Home Price for October 2014 — $160,000
Orlando’s median home price was down for October after being up for the eighth straight month. Now at $160,000, Orlando’s median home price has increased 9.6 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 45.6 percent here in Orlando Florida. The median home prices for the last three months are:
Orlando Active Homes for Sale Listings (Inventory of Unsold Homes) — 14,410 units
In October the number of homes for sale in Orlando increased by 341 properties for a total of 14,410 units. Last year in October 2013 there were 10,972 homes for sale in the Orlando MSA which means there has been a 31.3 percent increase in the number of homes for sale listings in the past 12 months. This increase in inventory marks the seventeenth straight monthly increase. This increase in the number of unsold homes is worth noting since inventory is at a multiyear high dating back to April 2011 when inventory was 14,757 units. Orlando is quickly approaching a statistically balanced buyer-seller market of a five to six month supply of available homes for sale. If we shoot past a balanced market home prices could suffer further. Expect pressure on home prices if inventory levels continue to rise.
Orlando Pending Home Sales (homes under contract) — 7,007 units
There were 7,007 Pending Home Sales (homes under contract) in the Orlando MSA for October. This marks a 13.6 percent drop in the homes under contract when compared to last year’s 8,114 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) — 3,481 units
In October 3,481 homes sold and closed in the Orlando MSA. Last October 2,866 homes sold and closed which means there was a 21.5 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 watch on the decline in pending home sales. Fewer pending home this month means fewer homes sold and closed next month. We will be watching the Pending Home Sales and Homes Sold closely going forward.
Orlando Months Supply of Inventory (MOI) — 4.14 MOI
The Months’ Supply of Inventory (MOI) was down for October to 4.14 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 4.14 MOI Orlando is still a seller’s market although recent trends favor home buyers. Last year in October there was 3.83 MOI.
Orlando Real Estate Market Summary — October 2014
Since May 2013 the Orlando real estate market has added 6,300 homes to its growing inventory of unsold homes. This 77.7 percent increase in inventory will have an effect on Orlando’s real estate market going forward. Interest rates are still extremely low at 3.98% for a 30 year fixed-rate mortgage, so there is no buyer deterrent there. Fortunately the number of homes that sold and closed in October was up sharply, 21.5 percent, over October 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 4.14 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 in the past two months is worth watch going forward. If the increase in closings continue homebuyers may face more competition for homes in the near future.
Communities in Focus:
|October 2014||Active Listings||Pendings||Properties Sold||Median Home Price||Months Suppy||Active vs Last Month|
|CITIES AND TOWNS|
|Dr Phillips Area||309||121||51||$309,000||6.06||9|