ORRA Housing Market Report - July 2017
The Orlando Regional Realtor Association (ORRA) has released its July 2017 housing market report. Overall, the association found that the Central Florida median price rose as home sales slowed in July.
The median price of Orlando homes sold during the month of July increased almost 7 percent while sales decreased 0.2 percent compared to July 2016, reports the Orlando Regional REALTOR® Association. Inventory continued its year-over-year slide.
Orlando’s overall median home price (all home types combined) is $220,000, which is 6.8 percent above the July 2016 median price of $206,000. Year-over-year increases in median price have been recorded for the past 72 consecutive months; as of July 2017, the overall median price has more than doubled since July 2010.
The median price for single-family homes that changed hands in July increased 4.7 percent over July 2016 and is now $240,000. The median price for condos increased 21.0 percent to $115,000.
The overall average home price for July 2017 is $263,877, an increase of 8.3 percent over the average home price in July 2016. The average home listed for $271,002 in July and sold for 97.4 percent of its listing price (97.3 percent in July 2016).
ORRA President Bruce Elliott, Regal R.E. Professionals LLC, explains that demand for homes is strong, but the supply of homes, especially those under $250,000, remains low.
“Would-be first-time homebuyers are being kept on the sidelines by limited inventory and rising prices,” says Elliott. “However, rising prices have slowed some of the investor activity, which could mean slightly less competition for homes at the lower end of the market."
Sales of single-family homes (2,634) in July 2017 decreased by 0.9 percent compared to July 2016, while condo sales (383) increased 6.1 percent.
Sales of distressed homes (foreclosures and short sales) reached only 202 in July and is 46.0 percent less than in July 2016. Distressed sales made up 6.0 percent of all Orlando-area transactions last month.
The average interest rate paid by Orlando homebuyers in July was 4.01 percent, up from 3.98 percent the month prior.
The overall inventory of homes that were available for purchase in July (9,051) represents a decrease of 15.0 percent when compared to July 2016, and a 1.0 percent decrease compared to last month. There were 13.3 percent fewer single family homes and 25.5 percent fewer condos.
Current inventory combined with the current pace of sales created a 2.7-month supply of homes in Orlando for July. There was a 3.2-month supply in July 2016 and a 2.4-month supply last month.
In conclusion, it is a great time to be a Seller in this real estate market! Buyers who are shopping in the price range under $250,000 are finding it more difficult to find a home; some of this challenge can be overcome if they have their financing in place and are ready to make quick decisions in this rapid-moving market.