Spring was slow. Summer picked up speed. This fall, there’s been upswing in buyer activity that continued in August and sent Orlando area home sales into the green for the second consecutive month. Orlando’s median price also continued on its upward path, while inventory again fell to a new low. See the numbers in our monthly market update!
Orlando home sales, median price increase as inventory continues freefall
A spring of paused transactions have propelled an upswing in buyer activity that continued in August and sent Orlando area home sales into positive territory for the second consecutive month, reports the Orlando Regional REALTOR® Association. Orlando’s median price also continued on its upward path, while inventory again fell to a new low.
“Lack of inventory — not lack of buyer activity, as you would expect — is clearly shaping up to be the concerning result of the COVID-19 pandemic,” says ORRA President Reese Stewart. “In fact, the availability of single-family properties within our most in-demand price ranges of $160,000 to $400,000 is startling; less than a single month of supply.”
Median Price for Orlando Homes in August 2020
The overall median price of Orlando homes (all types combined) sold in August is $275,000, which is 10.0% above the August 2019 median price of $250,000 and 1.9% above the July 2020 median price of $270,000.
The median price for single-family homes sold in August 2020 increased 9.3% over August 2019 and is now $295,000. The median price for condos increased 11.3% to $152,500 and townhomes/villas/duplexes increased 4.2% to $225,900.
The Orlando housing affordability index for August was 137.74%, down from 137.74% 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 homebuyer’s affordability index decreased to 97.76% from 97.95% last month.
Orlando Home Sales in August 2020
Orlando REALTORS® sold 3,539 homes in August 2020, which is 4.2% more than sales during the same time period last year (3,397 in August 2019) and 3.8% more than the sales the month prior (3,679 sold in July 2020).
Orlando Homes Available to Purchase in August 2020
The overall inventory of homes that were available for purchase in August (5,958) represents a decrease of 22.1% when compared to August 2019, and a 4.2% decrease compared to last month (July 2020). There were 34.3% fewer single-family homes; 20.3% more condos; and 28.3% more duplexes/townhomes/villas, year over year.
Average Mortgage Rates in August 2020
The average interest rate paid by Orlando homebuyers in August was 2.85%, down from 2.97% the month prior.
Average Time on Market for Orlando Homes Sold in August 2020
Homes that closed in August took an average of 49 days to move from listing to pending and an average of 44 days between pending and closing, for an average total of 93 days from listing to closing (equal to a total of 93 days the month prior).
Orlando Housing Market Recap
What to expect in Next Month
Pending Sales in August are up 15.8% compared to August of last year and are down 1.7% compared to last month.
New Contracts are up 11.4% year over year, and New Listings are up 3.3%.
This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the Stellar Multiple Listing Service. Neither the association nor StellarMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or by StellarMLS does not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.
ORRA REALTOR® sales represent sales involving Orlando Regional REALTOR® Association members, who are primarily – but not exclusively – located in Orange and Seminole counties. Note that statistics released each month March be revised in the future as new data is received.