August 2017 Housing Market
Released September 18, 2017
Key Market Messages
Reminder: Statistics released in September reflect the August housing market. The report released in October will reflect Hurricane Irma’s impact on Orlando’s housing market.
*Orlando’s market currently favors sellers, particularly within the lower (under $300,000) price categories, which are in very high demand. Indicators of a seller’s market include: declining inventory, rising sales, rising prices, and a very low months-of-supply statistic.
*Messaging for Buyers: Buyers need the assistance of REALTORS® to help them compete against other buyers, for example by crafting attractive offers that take into consideration current appraisal issues and advising on contingencies, in addition to assistance through the many traditional functions that a buyers’ agent performs.
*Messaging for Sellers: Inventory is down and prices are up – it’s a great time to sell! In addition, Orlando home values are nearing normalized, which is helping to eliminate “underwater” mortgage conditions for many sellers. However, sellers should be aware that while selling their home is likely to be quick (particularly in the lower price categories) securing a new residence could be a challenge and requires the assistance of a REALTOR®. Those seeking to move up into larger, more expensive homes will have more choices and less competition than those seeking to downsize.
*The median price of all existing homes combined sold in August 2017 — $225,000 — is a 9.8 percent increase from the $205,000 median price recorded in August 2016, and is 2.3 percent above the July 2017 median price of $220,000.
*The median price for “normal” existing homes sold in August is $229,000, an increase of 6.5 percent from the median price of “normal” existing homes in August 2016.
*The year-over-year median price for bank-owned sales increased by 14.3 percent in August while the median price for short sales increased by 7.6 percent.
*The year-over-year median price for single-family homes increased by 7.5 percent, and the year-over-year median price for condos increased 12.5 percent.
*The overall average home price for August 2017 is $259,331, an increase of 6.7 percent over the average home price in August 2016.
*Orlando home sales (all home types and all sales types combined) in August 2017 were up 2.7 percent when compared to August of 2016 and up 4.8 percent compared to July 2017.
*Single-family sales increased 1.3 percent year over year, while condo sales increased by 2.9 percent.
*Of the 3,544 sales in August, 3,340 normal sales accounted for 94.2 percent of all sales, while 153 bank-owned and 51 short sales respectively made up 4.3 percent and 1.4 percent.
*The number of normal sales in August increased by 8.6 percent compared to August 2016, while foreclosures decreased 49.0 percent and short-sales decreased 32.9 percent.
*The 5,666 pendings in August of this year are an increase of 14.4 percent compared to the 4,955 pendings in August of last year (and a 2.6 percent decrease compared to the 5,819 pendings last month).
*Normal properties made up 85.7 percent of pendings in August, an increase of 34.5 percent. Short sales made up 9.3 percent of pendings (a decrease of 31.6 percent), and bank-owned properties accounted for 4.9 percent (a decrease of 50.9 percent).
*Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in August were up by 2.5 percent when compared to Augustof 2016. Year to date, MSA sales are up 5.0 percent
Each individual county’s sales comparisons are as follows:
•Lake: 1.2 percent above August 2016;
•Orange: 2.8 percent above August 2016;
•Osceola: 8.1 percent above August 2016; and
•Seminole: 1.7 percent below August 2016.
*There are currently 8,833 homes available for purchase through the MLS. The August 2017 overall inventory level is 15.9 percent lower than it was in August 2016. Note: When adjusted for the elimination of “Active With Contract” status homes from of the active listings category within the local multiple listing service, the August 2017 inventory is 5.9 percent lower than in August 2016.
*Overall inventory is down 2.4 percent compared to last month.
*The inventory of normal properties decreased 12.2 percent compared to August 2016, while foreclosure inventory is down 46.3 percent and short sale inventory is down 71.1 percent.
*Year-over-year single-family home inventory is down 13.5 percent; condo inventory is down 27.5 percent.
*The current pace of sales (all home types and all home types) translates into 2.49 months of inventory supply.
*New contracts are up 34.3 percent compared to August of 2016. New listings are up 0.4 percent.
*The Orlando affordability index decreased to 142.0 percent in August. First-time homebuyer affordability in August decreased to 100.97 percent.
*Homes of all types spent an average of 54 days on the market (from 52 the month prior) before coming under contract in August 2017.
*The average home sold for 97.2 percent of its listing price (97.3 percent in August 2016).