According to an Orlando real estate industry report, the housing inventory for the city saw a 42 percent hike in February, just ahead of the much awaited spring selling season. The increase in inventory however is not without an increase in median prices of homes – a phenomenon that Orlando realtors are attributing to increased demands for residential properties in Orlando.
Orlando Real Estate- high inventory – high demand – high median prices
The overall median price of homes in Orlando for February 2014 stood at $158,000 – 18.80 percent higher than the median price during the same time in 2013, when it was $133,000. With the increasing prices, there has also been a rise in the number of non-distressed property owners entering the Orlando real estate market, providing the inventory a much needed boost.
The near 19 percent increase in median price, despite a 42 percent increase in inventory is because desirable homes in Orlando continue to attract multiple buyers. As a result, these homes disappear quickly from the open market, tightening the inventory.
Considering consecutive year-on-year growth rates, the city’s overall median price has increased 36.80 percent in 31 months, registering year-to-year gains throughout the period. Further, the median price for February, 2014 was 5.69 percent higher than January, 2014.
According to Orlando short sale realtors, the median prices increased 18.30 percent for short sales and 12.23 percent for “normal” sales. Condos registered a 16.40 percent hike in their median price, compared to February 2013 while single-family homes registered a slightly higher increase of 17.69 percent.
Short Sales, Normal Sales and Pending
In February 2014, foreclosures and short-sales accounted for 34.27 percent of all home sales. Back in 2013, they amounted for 46.01 percent of the total sales. The number of sales closed in February, 2014 was 17.26 percent lower than February, 2013; however, the figure exceeded the number of sales closed in January, 2014 by 1.48 percent.
Realtors hold that the slower rate of closure is because prospective buyers, especially first-time buyers, had to face the challenges posed by tighter credits, increased rates of mortgages and higher prices.
Compared to the corresponding value in February 2013, “normal” sales of residential properties saw a 0.72 percent hike in February 2014. The rate of closure for short sales on the other hand, saw a massive decrease of 63.53 percent and the sales-closing of foreclosed properties decreased by 15.29 percent.
The number of pending sales in February 2014 decreased by 19.72 percent as compared to the same period in 2013. However, it was recorded to be 9.67 percent higher than the number of pending sales in January 2014. Further, the report also found that homes came under contract or closed, faster in 2014 than they did in 2013. Homes typically spent 76 days, listed on the market in February 2014 as against 84 days in February 2013.