Orlando Median Home Price Up Again for November 2014
Orlando’s median home price rose in November by 3.1 % to $165,000, while inventory of unsold homes dipped 2.1% to 14,102 units. This decline in inventory is the first decline in seventeen months. With inventory now at 14,102, a 5.01 month supply of unsold homes, Orlando’s real estate market has reached a balanced buyer-seller market.
Let’s dig into the numbers and see what else is happening in the Orlando real estate market.
Orlando Median Home Price for November 2014 — $165,000
Orlando’s median home price was up for November after being down in October and up in September. Now at $165,000, Orlando’s median home price has increased 12.9 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 50.1 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) — 14,102 units
In November the number of homes for sale in Orlando decreased by 308 properties for a total of 14,102 units. Last year in November 2013 there were 11,209 homes for sale in the Orlando MSA, which means there has been a 25.8 percent increase in the number of homes for sale listings in the past 12 months.
Orlando Pending Home Sales (homes under contract) — 6,553 units
There were 6,553 Pending Home Sales (homes under contract) in the Orlando MSA for November. This marks a 16.4 percent drop in the homes under contract, compared to last year’s 7,837 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) — 2,815 units
In November 2,815 homes sold and closed in the Orlando MSA. Last November 2,517 homes sold and closed, which means there was an 11.8 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. We will be watching the Pending Home Sales and Homes Sold closely going forward.
Orlando Months Supply of Inventory (MOI) — 5.01 MOI
The Months’ Supply of Inventory (MOI) was up for November to 5.01 MOI. This increase in the supply of unsold homes favors homebuyers. Experts point to a five to six-month supply of homes for sale (MOI) as a balanced market. At 5.01 MOI Orlando has reached a balanced buyer-seller’s market, although recent trends favor home buyers. Last November there was 4.45 MOI.
Orlando Real Estate Market Summary — November 2014
Since May 2013 the Orlando real estate market has added 6,300 homes to its growing inventory of unsold homes. This 73.9 percent increase in inventory will affect Orlando’s real estate market going forward. Interest rates are still extremely low at 3.97% for a 30 year fixed-rate mortgage, so there is no buyer deterrent there. Fortunately the number of homes that sold and closed in November was up sharply, 11.8 percent, over November 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 5.01 MOI the market has reached a statistically balanced market of 5 to 6 MOI. The substantial increase in the number of home that sold and closed in the past three months is worth watch going forward. If the increases in closings continue homebuyers may face more competition for homes in the near future, if not, sellers will need to adjust to a buyers’ market.
Communities in Focus:
|November 2014||Active Listings||Pendings||Properties Sold||Median Home Price||Months Suppy||Active vs Last Month|
|CITIES AND TOWNS|
|Dr Phillips Area||300||105||53||$375,500||5.66||-9|