Orlando home sales hold steady, median price rises in March
Orlando’s median home price rose 6 percent in March when compared to March of last year while sales held steady with a slight 1 percent increase, reports the Orlando Regional REALTOR Association. Inventory declined by nearly 10 percent compared to this time last year.
The overall median price of Orlando homes (all types combined) sold in March is $230,000, which is 5.5 percent above the March 2017 median price of $218,000 and 0.4 percent above the February 2018 median price of $229,000.
The median price for single-family homes that changed hands in March increased 6.3 percent over March 2017 and is now $249,900. The median price for condos increased 19.4 percent to $122,900.
The Orlando housing affordability index for March is 133.76 percent, up from 132.60 last month. (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.)
The first-time homebuyers affordability index increased to 95.12 percent, from 94.29 percent last month.
“Orlando’s housing market continues to be tugged by opposing factors such as low inventory and high demand”, says ORRA President Lou Nimkoff, Brio Real Estate Services. The result is a wash for sales: Transactions for the first quarter of 2018 closely mirror Q1 2017, with this year up by a slight 1.5 percent. However, the quarter’s median price is up by a healthy 9 percent and the dollar volume is up by 11.4 percent over Q1 2017.
Sales of single-family homes (2,727) in March 2018 decreased by 0.4 percent compared to March 2017, while condo sales (421) increased 3.2 percent.
The overall inventory of homes that were available for purchase in March (7,710) represents a decrease of 9.7 percent when compared to March 2017, and a 0.1 percent increase compared to last month. There were 6.1 percent fewer single-family homes and 24.3 percent fewer condos.
Buyers need the assistance of REALTORS to help them compete against other buyers, for example by crafting attractive offers that take into consideration current appraisal issues and advising on contingencies, in addition to assistance through the many traditional functions that a buyers’ agent performs.
Inventory continues to be low and prices are up and steady, it’s a great time to sell! In addition, Orlando home values are nearing normalized, which is helping to eliminate “underwater” mortgage conditions for many sellers. However, sellers should be aware that while selling their home is likely to be quick (particularly in the lower price categories) securing a new residence could be a challenge and requires the assistance of a REALTOR. Those seeking to move up into larger, more expensive homes will have more choices and less competition than those seeking to downsize.