ORRA Housing Market Report - January 2019

Orlando inventory jumps 8% as sales slip 14% and median price hangs tight.

The Orlando housing market in January saw its third consecutive month of year-over-year increases in the number of available homes for purchase, along with a slide in sales and a holding steady of the median price.

"Our condo inventory rose by 26% last month, and this home type is an excellent option for those seeking entry into homeownership as a relief from Orlando's soaring rental rates," says Orlando Regional REALTOR Association President Jeffrey M. Fagan.  "Condos also tend to be cheaper than single-family homes; for example, the median price of a condo sold in January was only $125,000 compared to $247,950 for a single-family home."

The overall median price of Orlando homes (all types combined) sold in January is $226,500, which is 0.7% above the January 2018 median price of $225,000 and 2.4% below the December 2018 median price of $232,750.

Year-over-year increases in median price have been recorded for the past 91 consecutive months; as of January 2019, the overall median price is 96.1% higher than it was back in July 2011.

The median price for single-family homes that changed hands in January increased 3.3% over January 2018 and is now $247,950.  The median price for condos increased 8.7% to $125,000.

The Orlando housing affordability index for January is 136.65%, up from 132.46% last month.  (An affordability index of 99% means that buyers earning the state-reported median income are 1% 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 97.17 from 94.19 % last month.

Sales of single-family homes (1,486) in January 2019 decreased by 15% compared to January 2018, while condo sales (289) increased 7% year-over-year.

The overall inventory of homes that were available for purchase in January (8,243) represents an increase of 8.4% when compared to January 2018, and a 4.7% increase compared to last month.  There were 6.8% more single-family homes and 26.2% more condos, year-over-year.

Current inventory combined with the current pace of sales created a 4.3 month supply of homes in Orlando for January.  There was a 3.3 month supply in December 2018 and a 3.4 month supply in January 2018.

The average interest rate paid by Orlando homebuyers in January was 4.32%, down from 4.38% the prior month.

Homes that closed in January took an average of 60 days to move from listing to pending and an average of 38 days between pending and closing, for an average total of 98 days from listing to closing.

Pending sales in January are down 16.5% compared to January of last year and are up 24.8% compared to last month.