“Research by the National Association of REALTORS® shows bank-owned and distressed homes typically sell for 20 percent less than normal homes,” explains Simmonds, “and with these types of homes accounting for nearly 50 percent of sales in Orlando, they are naturally creating a downward distortion in median price. It’s important for owners to keep in mind that the distorted median price doesn’t equate to a similar loss of values for traditional homes in good condition.”  

The reported $128,000 median price encompasses all types of sales situations. The median price for “normal” sales is $165,000 (holding steady from last month). The median price for bank-owned sales is $84,050 (down a fraction from last month’s $84,500), and the median price for distressed sales is $125,800 (down 9.82 percent from last month’s $139,500). 

The $128,000 median sales price of all existing homes sold in August declined 3.76 percent from the $133,000 recorded in July. That same median price is a decrease of 36.00 percent compared to August 2008’s median of $200,000.  

Members of the Orlando Regional REALTOR® Association in July sold 65.23 percent more homes than in August of last year, contributing to the area’s year-to-date sales increase of 49.40 percent. There were 2,115 closings in August, which brings the year’s total to 14,496, while a total of 9,703 homes had changed by this time last year. Of those August sales, 49.08 percent of the homes were either bank-owned (850) or distressed (188). The remaining (1,077) “normal” sales made up 50.92 percent. 

In addition to the increase in completed sales in August, there is currently more than twice the number of pending sales (8,237) than in August of last year (3,220). A total of 3,324 sales contracts were newly filed in the month of August alone, which is a jump of 95.64 percent compared to August 2008 (1,699). 

The Orlando affordability index improved in August to 193.34 percent as a result in part of in the month’s decrease in median price. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.) Buyers who earn the reported median income of $52,535 can qualify to purchase one of 8,964 homes in Orange and Seminole counties currently listed in the local multiple listing service for $257,142 or less. 

First-time homebuyer affordability in August increased to 137.49 percent. First-time buyers who earn the reported median income of $35,724 can qualify to purchase one of 5,629 homes in Orange and Seminole counties currently listed in the local multiple listing service for $155,428 or less. 

Homes of all types spent an average of 93 days on the market before being sold in August 2009, and the average home sold for 94.39 percent of its listing price. In August 2008 those numbers were 113 and 92.81 percent, respectively. The area’s average interest rate decreased in August to 5.26 percent. 

Inventory 

There are currently 16,361 homes available for purchase through the MLS. Inventory decreased by 870 homes from July 2009, which means that 870 more homes left the market than entered the market. Compared to last year, the August 2009 inventory level is 34.12 percent lower than it was in August 2008 (24,834). 

The inventory level’s 7.74-month supply for August is just a fraction above July’s level, which was 7.49 and the lowest since July 2006. Increased sales activity has led inventory months-of-supply to decline by 65.23 percent since January 2009, when months of supply clocked in at 21.54. 

There are 11,910 single-family homes currently listed in the MLS, a number that is 6,453 (35.14 percent) less than in August of last year. As usual, most homes (1,423) are listed in the $200,000 - $250,000 price range. Condos currently make up 3,057 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,394. Most condos by far (642) are priced below $50,000; the majority of duplexes/town homes/villas (199) are listed in the $120,000 - $140,000 price category.  

Condos and Town Homes/Duplexes/Villas 

The sales of condos in the Orlando area increased by 259.48 percent in August when compared to August of last year, and increased by 3.22 percent when compared to last month. A total of 417 condos changed hands in August of this year compared to 116 in August 2008. To date 2,618 condos have sold this year, a 178.21 percent increase over last year’s 941 by this time. 

The most (223) condos in a single price category that changed hands were yet again in the $1 - $50,000 price range, more than four times the number (54) that were sold in the next most populated category ($50,000 - $60,000). Only seven condos sold for more than $250,000 in July. 

Orlando homebuyers purchased 192 duplexes, town homes, and villas in August 2009, which is an 88.24 percent increase from August 2008 when 102 of these alternative housing types were purchased; year-to-date sales for these home types are up 45.57 percent. The majority (30) of duplexes, town homes, and villas sold in August 2009 fell into the $100,000 - $120,000 price category. 

MSA Numbers 

Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in August were up by 71.18 percent when compared to August of last year. Throughout the entire MSA, 2,720 homes were sold in August 2009 compared with 1,589 in August 2008. To date, MSA sales are up by 59.10 percent over this time last year, with sales at 18,646 compared to 2008’s 11,720. 

Each county’s year-to-date sales comparisons are as follows: 

Lake: 26.93 percent above 2008 (2,550 homes sold to date in 2009 compared to 2,009 in 2008);
Orange: 71.57 percent above 2008 (9,843 homes sold to date in 2009 compared to 5,737 in 2008);
Osceola: 111.75 percent above 2008 (3,551 homes sold to date in 2009 compared to 1,677 in 2008); and
Seminole: 17.63 percent above 2008 (2,702 sold to date in 2009 compared to 2,297 in 2008). 

For detailed statistical reports, please visit www.orlrealtor.com and click on Housing Statistics on the top menu bar. This representation is based in whole or in part on data supplied by the Orlando Regional Realtor® Association or its Multiple Listing Service (MLS).  Neither the Association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market.  Due to late closings, an adjustment is necessary to record those closings posted after our reporting date. 

ORRA Realtor® sales, referred to as the core market, represent all sales by members of the Orlando Regional Realtor® Association, not necessarily those sales strictly in Orange and Seminole counties.  Note that statistics released each month may be revised in the future as new data is received.  

Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any Realtor® association, not just members of ORRA. 

Statistics on the sales of area homes that are sold without the assistance of a Realtor® are available in the Real Estate Index, a report produced jointly by ORRA and the Real Estate Attorney’s Fund.