Orlando Median Home Price Up 1.6 Percent to $165,000 for May 2014
Orlando’s Median Home Price was up in May for the fifth straight month. Now at $165,000 the Orlando Median Home Price has gained 12.9 percent since January when the median home price was to $146,200. Inventories of unsold homes were up again for the twelfth month to 12,733 units. This steady rise in inventory marks a 60.7 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 in inventory will exert downward pressure on home prices, although inflation may help keep things balanced out.
Let’s see what else is happening in the Orlando real estate market.
Orlando Median Home Price for May 2014—$165,000
Orlando’s median home price was up another 1.6 percent in May to $165,000. Orlando’s median home price has increased 12.9 percent so far this year. In 2013 home prices increased 21.7 percent, 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 50.1% here in Orlando Florida. The median home prices for the three months prior were:
- February $156,000
- March $159,900
- April $162,387
What does the future hold for Orlando’s ever changing housing market?
Orlando Active Homes for Sale Listings (Inventory of Unsold Homes)—12,733 units
In May, the number of homes for sale in the Orlando area increased by 262 homes for a total of 12,733 units. Last year in May 2013 there were 8,110 homes for sale in Orlando, which means there has been a 57.0 percent increase in the number of homes for sale in the past 12 months. This increase in inventory marks the twelfth 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)—8,409 units
There were 8,409 Pending Home Sales (homes under contract) in Orlando for May 2014. Last May there were 10,438 homes under contract, which means there are 19.4 percent fewer homes under contract this year. This decline in pending home sales shows that fewer homebuyers are submitting purchase offers, which is a negative indicator for sellers and the market.
Homes Sold—3,313 units
In May, 3,313 homes sold and closed in the Orlando MSA. Last May, 3,534 homes sold and closed, which means there was a 6.3 percent decline in the number of closings this year.
Orlando Months Supply of Inventory (MOI)—3.84 MOI
The Months’ Supply of Inventory (MOI) was down for May to 3.84 MOI. This reduction in the months of supply of unsold homes favors home sellers. Experts point to a five to six-month supply (MOI) of homes for sale as a balanced market. At 3.84 MOI, Orlando is a seller’s market.
Orlando Real Estate Market Summary—May 2014
Since May 2013, the Orlando real estate market has added 4,623 homes to its growing inventory of unsold homes. This 57.0% increase in inventory will have an effect on Orlando’s real estate market going forward. Since pending home sales are down as well, we must acknowledge that homebuyer enthusiasm has declined since the highs of May 2013. At this time, I do not see any one reason for the pullback, although mortgage interest rates are slightly higher, now at 4.12%.
Since Orlando’s real estate market has been heavily weighted towards home sellers for some time, the increase in inventory of homes for sale 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:
|May 2014||Active Listings||Pendings||Properties Sold||Median Home Price||Months Suppy||Active vs Last Month|
|CITIES AND TOWNS|
|Dr Phillips Area||237||125||46||$380,000||5.15||12|