In addition, Orlando REALTORS® filed 58.36 percent more contracts in the month of February (2,434) than in February 2008 (1,537). Overall, pending sales — considered by housing economists 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 (2,175).
“Conditions are aligning very favorably in Orlando for buyers,” says ORRA President Les Simmonds, L.G. Simmonds Real Estate Corp. “Local first-time buyers are particularly well positioned as a result of the new $8,000 first-time homebuyer tax credit, record low interest rate, and decreasing median price.”
The median price of Orlando homes sold in February ($145,500) decreased by 34.75 percent compared to February 2008 while the area’s average interest rate dropped yet again to 5.25 percent, its lowest point since May of 2005.
The decrease in median price drove the area’s affordability index to yet another record high of 169.17 percent. (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 $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 first-time homebuyer affordability has increased to 120.30 percent.
Homes of all types spent an average of 102 days on the market before being sold in February 2009, and the average home sold for 93.03 percent of its listing price (an increase from January 2009’s 92.63 percent). In February 2008 those numbers were 123 and 92.94 percent, respectively.
The majority of single-family homes (154) that changed hands in February 2009 were sold in the $200,000 - $250,000 price range; 97 homes sold in the $140,000 - $160,000 category and 81 homes sold in the $160,000 - $180,000 category. Five hundred seventy-nine homes sold for less than $200,000 in November, and 114 sold for more than $300,000. On the far ends of the scale, 10 homes were sold for $1 million or more while 64 homes sold for less than $50,000.
Local new-home builders reported 122 new-home sales for the month of February, with a median price of $234,950.
- Average Mortgage Rate: 5.25%
- Inventory: 22,168
- New Listings: 3,876
- New Contracts: 2,434
- Under Contract: 4,348
- Back on the Market: 599
- Expired: 1,134
- Withdrawn: 1,488
- Sales Closed: 1,219
- Average Days on Market: 102