Home Prices in Orlando Continued Their Climb in February
The Orlando Regional Realtor Association (ORRA) reported a 42 percent increased in the housing inventory last month as people prepare for the spring “selling” season. This is to be expected, but home prices have continued to climb in Orlando at an unexpected rate. It seems that demand for listings in the Orlando Metro area is still going strong.
The reported median price during the month of February was $158,000– nearly 19 percent higher than the reported median price ($133,000) one year ago.
“As prices continue to rise, non-distressed homeowners are entering the market and giving inventory a much-needed boost,” explained Zola Szerencses, Chairman of ORRA. “Even so, inventory still remains tight. Desirable homes are selling very fast and often receiving multiple offers.”
Demand for Orlando Homes Remains Strong
Orlando has gained national recognition for being a desirable place to call home. The number of people relocating to the area have continued to push up the average cost per home. Orlando’s overall median sales price has been on the rise for 31 consecutive months (Average home prices are 36.80 higher than they were in 2011).
The reported median price for last month was also 5.69 percent higher than it was in January 2014.
Jumps in sales prices were seen in across all variations of homes and sales types during February:
- “Normal” sales prices were up by 12.23 percent
- Short sales were up by 18.30 percent
- Foreclosures also increased by 0.67 percent
- Single-family home prices are 17.69 higher than in 2013
- Condo prices are 16.40 percent higher than in 2013
Average prices are continuing to climb but the pace of sales has slowed recently. Szerencses points out that many first-time buyers are having a much harder time accounting for the cost of homeownership. These would be buyers face:
- Higher mortgage rates
- Rising sales prices
- Tighter lines of credit
Here’s a quick breakdown of what the sales portfolio looked like in February:
- Short sales and foreclosures accounted for 34.27 percent of sales in Orlando
- Normal sales accounted for 65.73 percent
Last February, these percentages were 46.01 percent and 53.99 percent, respectively.
What Do the Reported Sales Numbers Around Orlando Mean?
That being said, there were a healthy number of homes sold in neighborhoods like Celebration and Lake Mary last month. This has encouraged more homeowners who aren’t dealing with any equity issues to list their homes and condos for sale.
The most popular neighborhood in the area is still Winter Park, but several communities in Lake County are growing in popularity amongst homebuyers. These areas all exhibited further increases in average sales prices over the last month as well.
“The majority of results for the residential market paint a picture of a normal growing market,” stated John Tuccillo, Florida Realtors’ Chief Economist. “The weaker results in sales for both single-family homes and townhouses and condos are solely the result of plummeting short sales. This is actually a good sign since short sales are falling because prices are rising, reducing the number of homes that fall into the potential short sales category.”