The biggest news from the February 2016 Orlando housing market update from the Orlando Regional REALTOR Association (ORRA) was that inventory continued to tumble, down by 5% year-over-year. With buyer demand increasing and inventory decreasing, the median home price in Central Florida grew by over 12% to $185,000. February also marked the 55th consecutive month of year-over-year median home price gains in Central Florida. The February median home price also marks a new high since the boom when the record median home price of $200,000 was set in August 2008. The increase in median home prices was felt across all sale types with normal sales increasing 3.21 percent, foreclosures increasing 8.33 percent and short sales increasing 10.52 percent. Single-family homes saw the biggest year-over-year gain with an increase of 11.06% while condos saw a modest increase of 3.26%.
Completed Home Sales
Combined, the members of ORRA completed 2,334 home sales that closed in February 2016. This is a decrease of 5.01 percent compared to the same month in 2015 which can be attributed to near record low inventory levels. The continual month-to-month increased of sales has signaled that central Florida is officially back in to a seller driven market. Another key indicator of the shift to a seller’s market is the marked increase of the sales of duplexes, town homes, and villas in February. Combined, these types of homes climbed 9.91 percent in February while single-family sales decreased nearly 5 percent. This indicates that buyers, faced with limited inventory, are turning to alternatives to single-family homes.
The February affordability index is 173.30 percent, a decrease from January’s index of 173.91. (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 $56,981 can qualify to purchase one of 4,471 homes in Orange and Seminole counties currently listed in the local multiple listing service for $320,609 or less.
First-time homebuyer affordability in February decreased to 123.24 percent from last month’s 123.67 percent. First-time buyers who earn the reported median income of $38,747 can qualify to purchase one of the 2,312 homes in Orange and Seminole counties currently listed in the local multiple listing service for $193,790 or less.
County Wide Numbers from Around Central Florida
Each individual county’s monthly sales comparisons are as follows:
• Lake: 9.88 percent below February 2015;
• Orange: 5.88 percent below February 2015;
• Osceola: 9.48 percent below February 2015; and
• Seminole: 5.05 percent below February 2015.
This representation is based in whole or in part on data supplied by the Orlando Regional REALTOR® Association and the My Florida Regional Multiple Listing Service. Neither the association nor MFRMLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or MFRMLS may 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, referred to as the core market, represent all sales by members of the Orlando Regional REALTOR® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received. Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any REALTOR® association, not just members of ORRA.