Orlando Median Home Price Up - Inventory of Unsold Homes Up for August 2014
For the eighth straight month, Orlando’s Median Home Price was up in August to $169,900. Inventory of Unsold Homes was also up 205 units to 13,989 for a .5 percent increase for the month. This steady rise in inventory marks a 76.5 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 of inventory will exert downward pressure on home prices, although inflation may help keep things balanced out. Mortgage rates were down just a tick to 4.10 percent for a 30 year fixed rate mortgage. Let’s see what else is happening in the Orlando real estate market.
Orlando Median Home Price for August 2014—$169,900
Orlando’s median home price was up again in August for the eighth straight month. Now at $169,900, Orlando’s median home price has increased 16.2 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 54.6% here in Orlando Florida. The median home prices for the last three months were:
Orlando Active Homes for Sale Listings (Inventory of Unsold Homes)—13,989 units
In August, the Inventory of Unsold Homes in the Orlando area increased by 205 properties for a total of 13,989 units. Last year in August 2013 there were 9,693 homes for sale in Orlando which means there has been a 44.3 percent increase in the number of homes for sale in the past 12 months. This increase in inventory marks the fifteenth straight monthly increase which is worth noting since we are nearing a statistically balanced market of a five to six month 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)—7,279 units
There were 7,279 Pending Home Sales (homes under contract) in the Orlando MSA for August 2014, down from the 7,442 units this July. Last August there were 8,775 homes under contract which means there was a 17.0 percent decline in the number of pending homes sales this August vs August 2013. 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)—3,296 units
In August, 3,296 homes sold and closed in the Orlando MSA. Last August 3,432 homes sold and closed which means there was a 4.0 percent decrease, or 136 fewer homes sold (closings) this year compared to last. Although not a major decline, fewer home sales is a negative market indicator.
Orlando Months Supply of Inventory (MOI)—4.24 MOI
The Months’ Supply of Inventory (MOI) was up for August to 4.24 MOI. This increase in the months of supply of unsold homes favors home buyers. Experts point to a five to six-month supply of homes for sale (MOI) as a balanced market. At 4.24 MOI, Orlando is still a seller’s market, but the recent trend favors home buyers. Last year there was only a 2.82 MOI.
Orlando Real Estate Market Summary—August 2014
Since May 2013 the Orlando real estate market has added 5,879 homes to its growing inventory of unsold homes. This 72.5% increase in inventory will have an effect on Orlando’s real estate market going forward. Interest rates are still extremely low at 4.10% for a 30 year fixed-rate mortgage, so there is no buyer deterrent there. Fortunately the number of homes that sold and closed in the Orlando MSA was stable and home prices are still rising.
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 competition and competing purchase offers. Now at 4.24 MOI, the market trending towards a statistically balanced market of 5 to 6 MOI, homebuyers may finally be able to purchase their dream home before the next home buying craze hits Orlando.
Communities in Focus:
|August 2014||Active Listings||Pendings||Properties Sold||Median Home Price||Months Suppy||Active vs Last Month|
|CITIES AND TOWNS|
|Dr Phillips Area||288||94||55||$320,000||5.24||1|