Orlando Median Home Price Up 2.5 Percent to $159,900 for March 2014

Orlando Median Home Price Up 2.5 Percent to $159,900 for March 2014
Orlando’s Median Home Price was up again in March 2014. Now at $159,900 the Orlando Median Home Price has gained 9.37 percent since its pullback in January to $146,200.
Inventories of unsold homes were up yet again for the tenth straight month to 12,147 units. This steady rise in inventory marks a 53.2 percent increase in inventory since the lows of March of 2013 when inventory was at a many year low of 7,928 units. This continuous increase in inventory will exert downward pressure on home prices, although inflation may help keep things balanced out. 
Let’s take a look and see what else is happening in the Orlando real estate market.

Orlando Median Home Price for March 2014—$159,900
Median home price in Orlando was up 2.5 percent to finish the month of March at $159,900. After absorbing January’s 6.9 percent drop in home prices, Orlando’s median home price is up 1.8 percent year to date. Orlando’s median home price increased 21.7 percent in 2013, improving home seller’s equity position greatly over the year.  Since January of 2012 when Orlando’s median home price was only $109,900, home prices have risen 45.5% here in Orlando Florida. With the swing in home prices to start 2014, what does the future hold for Orlando’s ever changing housing market?

Orlando Active Homes for Sale Listings (Inventory of Unsold Homes)—12,147 units
In March, the number of homes for sale in the Orlando area increased by 209 units for a total of 12,147 units.  This increase in the number of homes for sale in Orlando is a 6.9 percent increase in the numbers of homes for sale this year.  This increase in inventory marks the tenth straight monthly increase which is a concern since we are nearing a statistically balanced market of five to six months’ 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)—8,117 units
There were 8,117 Pending Home Sales (homes under contract) in Orlando for March 2014. Last year in March there were 10,262 homes under contract, which means Orlando Pending Home Sales are down 20.9 percent this year.  This decline in pending home sales indicates that fewer homebuyers are submitting purchase offers, which is a negative indicator for sellers and the market.

Homes Sold—2,953 units
In March 2,953 homes sold and closed in the Orlando MSA.  Last year in March, 3,226 homes sold and closed, which means there was an 8.46 percent decline in the number of closings this year.

Orlando Months Supply of Inventory (MOI)—4.11 MOI
The Months’ Supply of Inventory (MOI) was down for March to 4.11 MOI.  This reduction in the months of supply of unsold homes favors homes sellers. Experts point to a five to six-month supply (MOI) of homes for sale as a balanced market. At 4.11 MOI, Orlando is not from from being a balanced market.

Orlando Real Estate Market Summary—March 2014
Since May 2013, the Orlando real estate market has added 4,037 homes to its growing inventory of unsold homes.  This 49.8% increase in inventory will have an effect on Orlando’s real estate market going forward.  Since pending home sales are down from last year as well, we must acknowledge that homebuyer enthusiasm has declined since May of 2013. At this time, I do not see any one specific reason for the pullback. Yes, mortgage interest rates are slightly higher, now at 4.40%, but this pullback seems to be more fear related.

Since Orlando’s real estate market has been heavily weighted towards home sellers for some time, this turn in the market will give frustrated homebuyers an opportunity to locate and secure a suitable home. For months, homebuyers have faced fierce competition and competing purchase offers.  Now, with the market trending towards a statistically balanced market of 5 to 6 months, homebuyers may finally be able to purchase their dream home before the next home buying craze hits Orlando.

Communities in Focus:

March 2014 Active Listings Pendings Properties Sold Median Home Price Months Suppy Active vs Last Month
             
ORLANDO MSA 12,147 8,117 2,953 $159,900 4.11 209
Short Sales 1,158 3,446 247 $120,000 4.69 -92
Foreclosures 1,686 1,393 673 $113,963 2.51 -29
CITIES AND TOWNS            
Altamonte Springs 284 184 82 $94,950 3.46 -2
Apopka 390 332 113 $155,000 3.45 4
Casselberry 114 114 44 $116,500 2.59 13
Celebration 104 43 27 $422,090 3.85 -13
Clermont 610 325 124 $182,500 4.92 31
Davenport 653 295 142 $147,500 4.60 28
Kissimmee 1,440 1,074 315 $138,900 4.57 -90
Lake Mary 194 139 51 $202,000 3.80 12
Longwood 248 201 94 $185,000 2.64 -11
Maitland 129 55 33 $220,000 3.91 11
Montverde 40 13 13 $231,194 3.08 -2
Mount Dora 247 90 46 $133,125 5.37 0
Ocoee 137 149 44 $194,700 3.11 0
Orlando 3,662 2,996 968 $159,700 3.78 91
Oviedo 191 176 77 $250,750 2.48 0
Sanford 370 274 95 $134,551 3.89 -22
Sorrento 63 45 13 $187,000 4.85 2
St. Cloud 425 328 95 $145,000 4.47 22
Windermere 359 148 68 $379,781 5.28 20
Winter Garden 248 193 90 $283,000 2.76 10
Winter Park 452 208 95 $198,000 4.76 37
Winter Springs 194 170 63 $165,000 3.08 16
COMMUNITIES            
Avalon Park 130 121 44 $230,550 2.95 -8
Baldwin Park 57 24 26 $409,321 2.19 10
College Park 108 49 30 $245,000 3.60 11
Conway Area 91 47 12 $175,000 7.58 -3
Downtown Orlando 107 50 18 $258,000 5.94 17
Dr Phillips Area 201 116 48 $332,500 4.19 8
Heathrow 45 23 12 $297,000 3.75 1
Hunter's Creek 90 91 27 $227,000 3.33 2
Isleworth 28 3 1 $1,730,000 28.00 -2
Keene's Pointe 54 15 5 $770,000 10.80 4
Lake Nona 216 85 40 $293,280 5.40 13
Metrowest 104 64 34 $132,000 3.06 15
Waterford Lakes 81 42 18 $240,000 4.50 2
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