Orlando Median Home Price Up to $166,000 - Inventory of Homes For Sale Up to 12,974 for June 2014
Orlando’s Median Home Price was up in June for the sixth straight month. Now at $166,000 the Orlando Median Home Price has gained 13.5 percent since January when the median home price was to $146,200. Inventory of unsold homes was up again for the thirteenth straight month to 12,974 units. This steady rise in inventory marks a 63.6 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 June 2014—$166,000
Orlando’s median home price was up again in June for the sixth 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, 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 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)—12,974 units
In June, the number of homes for sale in the Orlando area increased by 241 homes for a total of 12,974 units. Last year in June 2013 there were 8,484 homes for sale in Orlando, which means there has been a 53.0 percent increase in the number of homes for sale in the past 12 months. This increase in inventory marks the thirteenth 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)—8,202 units
There were 8,202 Pending Home Sales (homes under contract) in the Orlando MSA for June 2014, down from the 8,409 units this May. Last June there were 9,910 homes under contract, which means there are 17.2 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 home sellers and the market.
Homes Sold (closings)—3,262 units
In June, 3,262 homes sold and closed in the Orlando MSA. Last June, 3,109 homes sold and closed, which means there was a 4.9 percent increase in the number of Homes Sold (closings) this year over last. This is the first time this year that closings have outpaced last year’s numbers, a positive sign for Orlando’s real estate market.
Orlando Months Supply of Inventory (MOI)—3.98 MOI
The Months’ Supply of Inventory (MOI) was up for June to 3.98 MOI. This increase in the months of supply of unsold homes favors home buyers. Experts point to a five to six-month supply (MOI) of homes for sale as a balanced market. At 3.98 MOI, Orlando is a seller’s market. Last year there was only 2.73 MOI.
Orlando Real Estate Market Summary—June 2014
Since May 2013, the Orlando real estate market has added 4,864 homes to its growing inventory of unsold homes. This 60.0% increase in inventory will have an effect on Orlando’s real estate market going forward, if buyers’ demand doesn’t keep pace. Interest rates are still extremely low at 4.14% for a 30 year mortgage, so there is no buyer deterrent there. Fortunately this month we did see an increase in the number of homes that sold and closed in the Orlando MSA, which does indicate an increase in buyer interest. We’ll need to keep watch to see if this interest is the beginning of a trend or just a one-off event.
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:
|June 2014||Active Listings||Pendings||Properties Sold||Median Home Price||Months Suppy||Active vs Last Month|
|CITIES AND TOWNS|
|Dr Phillips Area||254||118||49||$329,950||5.18||17|