Pending sales predict an improvement in year-to-date sales numbers

 Orlando area home sales, as for the past five years, declined a fraction in July following a traditional summer peak in June. Members of the Orlando Regional Realtor® Association sold 1,436 homes during the month of July, 3.56 percent below the (1,489) sold in June. That tally is 5.77 percent below the total of 1,524 homes sold in July 2007.

Year to date, sales are down by 24.52 percent (8,387 through July 2008 compared to 11,112 through July 2007). However that gap is expected to close by year-end as the number of homes currently under contract (3,258) is 26.72 percent greater than the number of homes that were under contract in July 2007 (2,571). Pending sales for the past three months have been greater than their 2007 counterparts.

The median sales price of a home in the Orlando area in July declined to $207,500, a 3.94 percent decrease compared to the June 2008 median of $216,000. (The median sales price for July 2008 is 17.00 percent below the July 2007 median of $250,000).

The decrease in the median home price to $207,500 means that the area's affordability index jumped in July to 103.80 percent. (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.) Buyers who earn the reported median income of $51,734 can qualify to purchase one of 11,620 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $215,305 or less.

The first time homebuyer affordability index increased to 73.81 percent from June's 71.20 percent.

The area's average interest rate was 6.40 percent in July 2008, up from 6.35 percent in June, 5.94 percent in May, and 5.77 percent in April.

Homes of all types spent an average of 117 days on the market before being sold in July 2008, and the average home sold for 93.50 percent of its listing price. In July 2007 those numbers were 96.00 and 94.66 percent, respectively. The majority of single-family homes (257) that changed hands in June 2008 were sold in the $200,000 - $250,000 price range. Another 170 homes sold in June for between $250,000 and $300,000. Four hundred seventy-seven homes sold for less than $200,000 in June, and 285 sold for more than $300,000. On the far ends of the scale, 25 homes were sold for $1 million or more while 9 homes sold for less than $50,000.

Inventory

There are currently 24,742 homes available for purchase through the MLS. Inventory increased by 167 homes in July 2008, which means that 167 more homes entered the market than left the market. Compared to last year, the July 2008 inventory level (24,742) is 4.90 percent lower than it was in July 2007 (26,018).

The current inventory level reflects a 17.23-month supply at the current pace of sales, which is up from the 16.50-month supply recorded June. Altogether, inventory months-of-supply has declined 45.54 percent since January 2008.

There are 18,363 single-family homes currently listed in the MLS, a number that is nearly 1,000 less than this time last year. Most (3,132) are listed in the $200,000 - $250,000 price range. Condos currently make up 4,314 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,065. Most condos (605) are priced at $120,000 - $140,000. The majority of duplexes/town homes/villas (361) are listed in the $200,000 - $250,000 price category.

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of Real Estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs.  Please give me a call if you have questions about the Orlando and Central Florida real estate market.

P.S. If you are listing your home as a short sale in Orange County Florida and Orlando, Windermere, Winter Garden,  or Ocoee Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 407-580-7011 to find out more about Orange County Short Sales and Orlando Area Short Sales.