Orlando Housing Market Report August 2014

OrlHousMrktSnap092014

Median Price

*The median price of all existing homes combined sold in August 2014 — $165,000 — is a 6.45 percent increase from the $155,000 median price recorded in August 2013.

*The median price for “normal” existing homes sold in August is $190,000, an increase of 5.56 percent from the median price of “normal” existing homes in August 2013.

*The year-to-year median price for short sales increased by 25.98 percent in August, while the median price for bank-owned sales increased by 9.00 percent.

*The year-over-year median price for single-family homes increased by 6.05 percent, and the year-over-year median price for condos increased 1.30 percent.

Sales

*Orlando home sales (all home types and all sales types combined) in August 2014 were down 15.55 percent when compared to August of 2013 and down 3.66 compared to July 2014. Single-family sales decreased 13.12 percent, while condo sales decreased by 16.41 percent year to year.

*Of the 2,449 sales in August, 1,643 normal sales accounted for 67.09 percent of all sales, while 631 bank-owned and 175 short sales respectively made up 25.77 percent and 7.15 percent.

*The number of normal sales in August decreased by 14.25 percent compared to August 2013, while short-sales decreased 64.93 percent and foreclosures increased 30.10 percent.

*The 6,507 pendings in August of this year is a decrease of 13.46 percent compared to the 7,519 pendings in August of last year (and a 3.86 percent decrease compared to the 6,768 pendings last month).

*Short sales made up 34.44 percent of pendings in August, a decline of 45.93 percent from August of last year. Normal properties accounted for 41.68 percent (an increase of 17.61 percent) and bank-owned properties accounted for 23.88 percent (an increase of 45.51 percent).

*Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in August were down by 6.99 percent when compared to August of 2013. Throughout the MSA, 3,209 homes were sold in August 2014 compared with 3,450 in August 2013. To date, MSA sales are down 4.52 percent.

*Each individual county’s monthly sales comparisons are as follows:

Lake: 6.12 percent above August 2013;
Orange: 7.39 percent below August 2013;
Osceola: 17.59 percent below August 2013; and
Seminole: 6.72 percent below August 2013.

Inventory

*There are currently 13,084 homes available for purchase through the MLS. The August 2014 overall inventory level is 52.57 percent higher than it was in August 2013; inventory is up 8.19 percent compared to July 2014.

*The inventory of normal sales increased 56.81 percent compared to August 2013, while foreclosure inventory is up 86.39 percent and short sale inventory is up 6.65 percent.

*Year-to-year single-family home inventory is up 55.25 percent; condo inventory is up 37.23 percent.

*The current pace of sales translates into 5.34 months of inventory supply.

Other

*New contracts are down 13.83 percent compared to August of 2013. New listings are up 2.04 percent.

*The Orlando affordability index increased to 181.44 percent in August. First-time homebuyer affordability in August increased to 129.02 percent.

*Homes of all types spent an average of 68 days on the market (down from 73 days the month prior) before coming under contract in August 2014, and the average home sold for 96.82 percent of its listing price (up from 96.63 percent the month prior).

price of all existing homes combined sold in July 2014 — $171,000 — is an 8.92 percent increase from the $157,000 median price recorded in July 2013.

Florida Market Overview

*Sales, existing single-family: 5.000 percent decrease in August 2014 compared to August2013.

*Sales, existing condo: 6.70 percent decrease in August 2014 compared to August 2013.

*Median price, existing single-family: 3.60 percent increase in August 2014 compared to August 2013.

*Median price, existing condo: 7.40 percent increase in August 2014 compared to August 2013.

National Market Overview

*Sales, existing single-family: 4.40 percent decrease in August 2014 compared to August 2013.

*Sales, existing condo: 7.80 percent decrease in August 2014 compared to August 2013.

*Median price, existing single-family: 5.10 percent increase in August 2014 compared to August 2013.

*Median price, existing condo: 3.30 percent increase in August 2014 compared to August 2013.

Persuasive Points Overview

*Homeownership is an investment in your well-being and future.

*Homeownership offers immediate benefits and long-term value.

*Today’s market offers great opportunities for buyers and sellers.

*Mortgage interest rates are low. Home prices are affordable.

*REALTORS® add value to the real estate transaction.

*REALTORS® are the most trusted resource for real estate information.

Economic and Social Benefits of Homeownership

*Homeowners benefit from the power of leverage. Buyers typically use their own money for just a portion of the home price, but the appreciation they realize is based on the property’s total value.

*Given the leverage in purchasing a home, the average return on a 5 percent down payment over 10 years is usually three to five times greater than stock market returns.

*The typical homeowner’s net worth ($205,200) was 49 times that of the typical renter ($4,200) in 2008, according to NAR calculations using the latest statistics from the Federal Reserve Board.

*Homeownership offers “pride of ownership” — giving you control over your surroundings.

*Homeownership strengthens communities. Homeowners are more likely to be involved and engaged in local issues, and they move less frequently than renters. This helps to prevent crime, improve childhood education and support neighborhood upkeep.

*Owning a home is one of the best ways to build long-term wealth, providing both equity accumulation and tax benefits over time.

Use-a-REALTOR® Discussion Topics

*It has never been more important than now to work with a REALTOR®, the local market professional, to properly gauge local neighborhood conditions.

*Distressed sales — foreclosures and short sales — account for more than a third of all transactions nationwide. This varies widely from market to market — sometimes even from neighborhood to neighborhood. Distressed homes typically are selling at a 15 percent discount, but this varies widely by market, as well.

*REALTORS® have access to the most up-to-date and comprehensive property listing and sales information, making them a buyer’s best resource in finding the home that is right for each customer.

*Many markets have two levels of pricing: distressed sales and traditional sales. Foreclosures and short-sales tend to carry prices as much as of 20 percent below traditional homes in the same area. REALTORS® can help both buyers and sellers navigate today’s tricky market conditions.

Source: NAR Surround Sound Campaign

Why Homeownership Matters…

To people

*Homeowners are happier and healthier and enjoy a greater feeling of control over their lives.

*Owning a home is one of the best ways to build long-term wealth. Historically, a homeowner’s net worth has ranged from 31 to 46 times that of a renter.

*Homeowners are free to redecorate, renovate, and modify their homes as they wish.

*Most home owners enjoy stable housing costs — a fixed-rate mortgage payment might not change for 15 to 30 years while rent typically increases 3 percent a year.

*Homeowners can typically deduct mortgage interest and property taxes on their federal individual income tax return.

To communities

*People who own homes vote more, volunteer more and contribute more to their neighborhoods.

*Homeowners do not move as frequently as renters, providing more neighborhood stability. In turn, this stability helps reduce crime and supports neighborhood upkeep.

*Children of homeowners do better in school, stay in school longer, are more likely to participate in organized activities and spend less time in front of the television.

To the United States

*Sixty-seven percent of American households are owner-occupied. America is a nation of homeowners.

*Homeowners pay 80 to 90 percent of federal individual income taxes, contributing to federal programs that benefit all Americans.

*Every home purchased pumps $60,000 into the economy for furniture, home improvements, and related items.

*Housing accounts for more than 15 percent of the national Gross Domestic Product, a key driver of our national economy.

Source: NAR Homeownership Matters Campaign

For detailed statistical reports and video, visit the Orlando Regional REALTOR® Association website.

As always, if you have questions about these statistics or trends, let me know! Also, feel free to contact me whenever you are ready to buy or sell your next home!

All my best,
Kelly Signature
Kelly Foster, Licensed Realtor
RE/MAX Blue Water Realty
321-946-1004 – Direct
Kelly@OrlandoMetroRealty.com
Serving: Orange, Osceola, Lake, Polk and Seminole County

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About Kelly M. Foster

Realtor & Investor in Central Florida. Website: http://orlandometrorealty.com
This entry was posted in Home Buying, Home Ownership, Mortgages, Orlando, Properties for Sale, Real Estate, Real Estate Market Update, Selling a Home and tagged , , , , , , , , . Bookmark the permalink.

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