Orlando Real Estate

Orlando Real Estate May 2014

June 5th, 2014 8:11 AM by David W. Welch

Despite what we keep hearing in the news, the inventory of homes available for sale is climbing. Once again making my point that real estate is all about the local market. Other cities around the country may be running very low on inventory, but overall we are close to a four month supply. Historically, a six month supply has been considered a "balanced" market favoring neither sellers nor buyers. Personally, I don't that measure is as reliable a benchmark everything moves much faster today.

Currently, there are 11,392 properties listed as active by Orlando REALTORS®. Of the properties listed active 1,759 or 15.4% are REO, 1,120 or 9.8% are short sales, and 8,513 or 74.7% are equity sales. It is equity sales where inventory has grown the most as more people are finally able to sell their homes after years of being under water on their mortgages. There are 8,210 homes of all types with contract pending. Of the pending sales, 1,639 or 20.0% are REO, 3,263 or 39.7% are short sales and 3,308 or 40.3% are equity sales. This may be the first time in years that pending equity sales made up the plurality.

Last month 2,917 transactions closed with a median sales price of $162,000. I had hoped for about 3,000 closings, but the pace fell off during the last week of the month. Sales were down slightly from May 2013 when I reported 2,945 closed transactions. Prices were only up 9.1% from last year's median price of $148,500. Of the closed sales, 805 or 27.6% were REO with a median price of $102,000, 260 or 8.9% were short sales with a median price of $133,500, and 1,852 or 63.5% were equity sales with a median price of $195,000. Short sales continue to drag with the 260 closed sales representing only 8% of the pending short transactions and an average 277 days to closing.

While cash transactions remain strong, they again made up slightly fewer than half the closed sales.  There were 1,334 cash sales or 45.7% with a median sales price of $106,618. The remaining 1,583 or 54.3% had some form of financing and had a median price of $195,000.
Posted in:General
Posted by David W. Welch on June 5th, 2014 8:11 AM

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