Orlando Median Home Price Up Again for December 2014
Orlando’s median home price has risen for two straight months, while inventory of unsold homes dipped to 13,623 units. This decline in inventory is the second monthly decline after sixteen months of inventory gains. With inventory now at 13,623, a 3.86 month supply of unsold homes, Orlando’s real estate market has swung back to a buyer’s market.
Let’s dig into the numbers and see what else is happening in the Orlando real estate market.
Orlando Median Home Price for December 2014 — $169,999
Orlando’s median home price was up in December for a second straight. Now at $169,999, Orlando’s median home price has increased 16.3 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 54.7 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) — 13,623 units
In December the number of homes for sale in Orlando decreased by 479 properties for a total of 13,623 units. Last year in December 2013 there were 11,361 homes for sale in the Orlando MSA, which means there has been a 19.9 percent increase in the number of homes for sale listings in the past 12 months.
Orlando Pending Home Sales (homes under contract) — 5,664 units
There were 5,664 Pending Home Sales (homes under contract) in the Orlando MSA for December 2014. This marks an 18.3 percent drop in the homes under contract, compared to last year’s 6,936 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) — 3,533 units
In December 3,533 homes sold and closed in the Orlando MSA. Last December 2,920 homes sold and closed, which means there was an 21 percent increase in the number of homes that sold and closed (closings) this year compared to last. This increase in home sales 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 home closings in the near future. We will be closely watching the pending home sales and home closing going forward.
Orlando Months Supply of Inventory (MOI) — 3.86 MOI
The Months’ Supply of Inventory (MOI) was down for December to 3.86 MOI. This decrease in the supply of unsold homes favors home sellers. Experts point to a five to six-month supply of homes for sale (MOI) as a balanced market. At 3.86 MOI, Orlando has swung back to a seller's market, although recent trends favor home buyers. Last December there was 3.89 MOI.
Orlando Real Estate Market Summary — December 2014
Since May 2013 the Orlando real estate market has added 3,589 homes to its growing inventory of unsold homes. This 44.3 percent increase in inventory will affect Orlando’s real estate market going forward. Interest rates are still extremely low at 3.87% for a 30 year fixed-rate mortgage, so there is no buyer deterrent there. Fortunately the number of homes that sold and closed in December was up sharply, 21 percent, over December 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 3.86 MOI the market has reached a statistical seller's market again. The substantial increase in the number of homes that sold and closed over the past four months has turned the market once again. If the increases in closings continue homebuyers may face more competition for homes. Are we seeing the signs of another wild buying boom? We should know more in the next few months.
Communities in Focus:
|December 2014||Active Listings||Pendings||Properties Sold||Median Home Price||Months Suppy||Active vs Last Month|
|CITIES AND TOWNS|
|Dr Phillips Area||270||95||71||$325,000||3.80||-30|