Orlando Real Estate Update: Jan 2009

For those that still need convincing that it’s time to make that Orlando real estate purchase, comes some interesting data from the Orlando Regional Realtor Association (ORRA).

The average price of an Orlando home sold in January 2009 ($148,274) decreased by 33.06% compared to January 2008 – on top of that, the area’s average interest rate dropped to its lowest point since May of 2005, creating a perfect storm for would-be home buyers. 

Home sales are up, with over 17.71% more homes in January of this year than January of last year. And the number of pending sales, considered by housing economists to be a good predicator of future sales activity, continued upward to 3,830 with 121.25% more homes under contract in January 2009 than compared to January 2008.

The decrease in median price drove the area’s affordability index to another record high of 165.27%. 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. ORRA notes: “Buyers who earn the reported median income of $52,136 can qualify to purchase one of 12,122 homes in Orange and Seminole counties… for $245,046 or less.”

The majority of Orlando single-family homes that changed hands in January 2009 were sold in the $200,000 - $250,000 price range. On the far ends of the scale, 13 homes were sold for $1 million or more while 52 homes sold for less than $50,000.

There are currently 22,613 Orlando homes available for purchase through the MLS. Compared to last year, the January 2009 inventory level is 12.09% lower than it was in January 2008 (25,724).

Average days on market? 104.

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