Orlando Housing Market Update
Orlando’s March/April 2018 Real Estate Numbers and Other Facts
Orlando is one of the best places for preparing to sell a house. Each year, Orlando attracts millions of tourists and bring in new residents that decide to make Orlando their new home. One of the reasons being of Orlando's central location in the state, and Florida having the second-lowest state taxes per capita in the country!
March 2018 Housing Market Updates
According to the Orlando Regional Realtor Association (ORRA), the city of Orlando enjoyed steady home sales in March as the median prices of residential real estate rose up to six percent during the mentioned month, compared to the same period last year.
Inventory has become tighter with a decline of almost 10%, and sales remained stable with just one percent increase, which is a good sign that the Orlando real estate market is unwavering. Here are some of the essential numbers for March 2018:
The median price of residential real estate regardless of the property type was $230,000.
The amount is 5.5% higher than the median price of sold homes in Orlando last year.
It is also 0.4% higher than the median price of homes sold in February 2018.
For the past 81 consecutive months, the year-over-year (Y-O-Y) increase in the average price of homes as of March 2018 was 99.1% higher than in July 2011.
Single-family homes have increased in prices, and the average cost is now $249,900, which is a 6.3% hike from last year.
The condos were recorded to reach an increase of almost 20% since last year, with the average cost set to $122,900 in March.
As for the affordability index of the city in March this year, it was 133.76%, which is higher than February’s 132.60%. Note that the affordability index that reaches 99% means that the buyers who earn the median income of the state are about one percent short of the necessary revenue to buy an average-priced property.
Meanwhile, if the affordability index of a city is more than 100%, it signifies that the residents who earn the median income have more than the necessary salary to qualify for a property that is priced based on the average cost of the city.
The affordability index of first-time homebuyers rose to 95.12% compared to February’s 94.29%. In the meantime, sales are up by one percent with 3,508 homes that found their new owners just in the month of March. Pending sales decrease to seven percent compared to February with only 5,724 awaiting decisions from the buyers and sellers.
New listings though declined three percent with a total of 4,468 in the mentioned month, but new contracts were up one percent with 3,710 in numbers. Inventory was 10% lower with just 7,710 on the market, which the interest rate was fixed at 4.29%, which was lower than February’s 4.39%.
The housing market of the city is still caught in between issues, such as low inventory. Due to the high demand for the properties, the result was that most of the houses for sale were off the market within just a few weeks.
The sales for the first quarter of 2018 were almost the same as the first quarter of 2017, although there is a slight increase of 1.5% this year. The good news though is that the median price of the homes in March 2018 was up by nine percent. At the same time, the dollar volume also increased 11.4% higher than the first quarter of 2017.
During this month, the sales of single-family homes were lower than last year’s, but condo sales were up 3.2%. Foreclosures, as well as short sales, were also available in the city, but the distressed properties were only 115. The number was 57.7% lower than the distressed sales that took place in March of last year. This 2018, distressed sales were just about 3.3% of all the transactions that happened in the Orlando area in March.
Other Numbers
Sales of homes that already exist in different counties appear to be lower than last year’s sales:
Lake County decreased 4.4% compared to the sales from last year.
The sales in Seminole County also fell 3.7% compared to March 2017.
Orange County was 2.9% lower in sales than March 2017.
The only county that experienced an increase was Osceola, which had a 5.9% increase in sales compared to last year.
April 2018 Updates
The month of April opened with a decrease in sales of single-family homes. A week before that, there were more than 760 homes sold, but the first of April only had 488 purchased single-family properties. The median price also decreased 3.4% to $254,000 with foreclosure transactions also lowering in numbers from 22 to 13.
Short sale transactions also decreased compared to the week prior’s seven to six. Meanwhile, the number of single-family homes on the market increased to almost 140.
As for condominiums, townhomes, and villas in the city, the sales of these types of properties also decreased to 150 compared to the 214 sold the week before that. The median price also dropped 7.5%, which became $164,500. Foreclosure transactions that involved these three property types also decreased to one, which was two before March ended.
There was a property that was short sold whereas the last week of March did not have any. The inventory of condos on the market increased and was 1,878 during the first week of April.
During the week of April 29, 2018, things were positive with increases in sales of single-family homes, which was a total of 667. A week before, the sales were around 558. The median price had a two percent decrease from the week prior, which became $258,000. The single-family home foreclosure transactions also decreased to 12 since the week before that there were 15 sales. More single-family properties were on the market before the month ended with 119 and at that time, it sat at 7,412.
The condos, villas, and townhouses in the city increased in the number of sales to 196 from 154 the week before that. The median price of such properties decreased by eight percent and became $155,000.
Orlando Real Estate Outlook and Forecast
The tight inventory in Orlando continues to have a massive impact on the housing market in the entire state. It constrained sales and even placed pressure on the median prices of properties, especially single-family homes in the city. The statewide sales price averaged $250,800 in March, which increased more than eight percent from the previous year. Meanwhile, the statewide rate for townhouses and condos was $183,000 on average, a seven percent increase from last year.
The ongoing supply is expected to continue to tighten, which can cause frustration for potential buyers. It can affect most of the first-time homebuyers in Orlando. If move-up purchasers cannot locate the home that will fit their tastes and their budgets, it is highly unlikely that they will find a new place to call their new home. In turn, entry-level properties will continue to be scarcer.
The demand of the buyers is quite high in the city. However, the shortfall of the home inventory, particularly those that are around $250,000 and below, will undoubtedly impact the affordability of homes in several areas in Orlando.
For homebuyers, having a realtor who understands the local place can put buyers at an advantage. The market conditions today have become quite complicated, but having a professional by your side can make things easy.
For the 75th time, the median sales prices for townhouses or condos and single-family homes increased year-over-year in Orlando and throughout the whole state. The taxes and commissions drive the prices of home sales according to reports. Labor costs, on the other hand, influence the values of the properties on sale, which push them down.
Metro homeowners are preparing for the peak sales season, which is before spring ends and during the early summer months. It is expected that they would spend approximately $3,800 for different tasks, including minor repairs, yard work, and cleaning. Nationally, the sellers would pay an average of $4,800 for the mentioned activities.
The prices are anticipated to slowly move up as 2018 continues. For homeowners who bought their properties in 2006 will likely see a return on their investment this year. The growth of the costs of homes is quite strong, and the robust increase in jobs in the Orlando area should help maintain the prices. The market will remain steady but calmer days are expected ahead this year.
If you have any additional questions about the Orlando market, please give our office a call. We would be happy to assist you in any way we can.
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