Orlando Real Estate Update: Feb 2009

The Orlando housing market continued to show signs of strength in February. Orlando Realtors filed 58.36% more contracts in the month of February than in February 2008. Overall, pending sales - considered to be a reliable indicator of future sales - continued its upward trend in February to 4,348. There are twice as many more homes under contract in February 2009 than compared to February 2008.

The median price of Orlando homes sold in February ($145,500) decreased by 34.75% compared to February 2008 while the area’s average interest rate dropped yet again to 5.25%, its lowest point since May of 2005 which is great news.

The decrease in median price drove the area’s affordability index to yet another record high of 169.17%. The first-time homebuyer affordability has increased to 120.30%. (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. This means that buyers who earn the reported median income of $52,193 can qualify to purchase one of 11,976 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $246,140 or less.

The majority of single-family homes that changed hands in February 2009 were sold in the $200,000 - $250,000 price range, while local new-home builders reported 122 new-home sales for the month of February, with a median price of $234,950.

There are currently 22,168 homes available for purchase through the MLS. Inventory decreased by 445 homes from January 2009. Compared to last year, the February 2009 inventory level is 14.68% lower than it was in February 2008 (25,984). The inventory level reflects an 18.19-month supply at the current pace of sales, which is down from the 21.54-month supply recorded in January 2009 and down from the 27.32-month supply recorded in February 2008. There are 16,057 single-family homes currently listed in the MLS, a number that is 3,474 (17.79%) less than this time last year.

Average days on the market? 102.

See this link for January’s Orlando Real Estate analysis.

See the Condo Metropolis blog for Orlando’s condo information.

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