Orlando Real Estate

Orlando Real Estate June 2013

July 5th, 2013 9:50 AM by David W. Welch

The king is dead, long live the king. Cash has been king in Orlando real estate for about the last 3.5 years. Last month for the first time in ages, financed sales outpaced cash deals. Not only has the percentage of cash sales declined, the actual number of cash sales dropped quite a bit. That is probably contributing to the steady rise in inventory we saw throughout the month of June. The number of homes listed active by Orlando Realtors is up from 6,695 in May to 7,006 last month. Of those 897 or 12.8% are REO, 798 or 11.4% are short sales and 5,311 or 75.8% are equity sales. Although inventory is up, pending sales have dropped a bit to 9,357 from 9,597 in May. Of the homes with contracts pending, 1,119 or 12.0% are REO, 5,385 or 57.6% are short sales and 2,853 or 30.5% are equity sales.

Financed sales did not pick up the slack, and we actually saw a decline in total sales in June compared to May. Overall the number of closed sales dropped 11.6% from 2,945 in May to only 2,603 in June. That number is even down 3.5% from June 2012's 2,700. The median price for last month was $152,000 up more than 20% over June 2012's $125,000. Of the total sales last month 501 or 19.2% were REO with a median price of $101,000, 485 or 18.6% were short sales with a median price of $115,000 and 1,617 or 62.1% were equity sales with a median of $192,000. Prices were up $11,000 for REO and almost $9,000 for equity sales, but declined slightly for short sales. The 485 closed short sales accounted for only 9% of the short sales under contract. As I mentioned, cash sales slipped from 1,576 in May to only 1,290 in June accounting for 49.6% of the sales with a median price of $105,000. Financed sales took the lead with 1,313 making up 50.4% of the sales with a median price of $205,000.

Are investors tiring of Orlando? Have they been priced out? Will rising interest rates and higher prices slow demand? It is only one month, and that does not make a trend, but we may already be seeing this bull market slowing.

Posted in:General
Posted by David W. Welch on July 5th, 2013 9:50 AM


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