Hurricane Irma contributes to September drop in Orlando home sales
- *Hurricane Irma contributed to the significant sales decline in September. Previous hurricanes delayed closings due to circumstances such as title companies without power and home damage that required repair and additional inspections. Previous hurricanes also contributed to declines in inventory as homes were taken off the market for repair, or as owners delayed plans to list their homes as they dealt with aftermath. (The market response to Hurricane Irma is following suit: new listings for the month of September dropped by 31 percent compared to September of 2016.)
*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 September 2017 — $225,000 — is a 9.8 percent increase from the $205,000 median price recorded in September 2016, and is equal to the August 2017 median price of $225,000 as well.
*The median price for “normal” existing homes sold in September is $229,000, an increase of 6.5 percent from the median price of “normal” existing homes in September 2016.
*The year-over-year median price for bank-owned sales increased by 23.3 percent in September while the median price for short sales decreased by 23.2 percent.
*The year-over-year median price for single-family homes increased by 8.9 percent, and the year-over-year median price for condos increased 26.9 percent.
*The overall average home price for September 2017 is $267,578, a decrease of 8.4 percent over the average home price in September 2016.
- *Orlando home sales (all home types and all sales types combined) in September 2017 were down 18.8 percent when compared to September of 2016 and down 29.4 percent compared to August 2017.
*Single-family sales decreased 20.8 percent year over year, while condo sales decreased by 12.0 percent.
*Of the 2,526 sales in September, 2,399 normal sales accounted for 95.0 percent of all sales, while 103 bank-owned and 24 short sales respectively made up 4.1 percent and 1.0 percent.
*The number of normal sales in September decreased by 13.9 percent compared to September 2016, while foreclosures decreased 57.1 percent and short-sales decreased 71.8 percent.
*The 4,881 pendings in September of this year are an increase of 6.3 percent compared to the 4,594 pendings in September of last year (and a 13.9 percent decrease compared to the 5,666 pendings last month).
*Normal properties made up 84.3 percent of pendings in September, an increase of 22.1 percent. Short sales made up 10.7 percent of pendings (a decrease of 27.0 percent), and bank-owned properties accounted for 5.0 percent (a decrease of 52.1 percent).
*Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in September were down by 19.3 percent when compared to September of 2016. Year to date, MSA sales are up by 2.3 percent.
Each individual county’s sales comparisons are as follows:
*Lake: 20.5 percent below September 2016;
*Orange: 18.7 percent below September 2016;
*Osceola: 15.1 percent below September 2016; and
*Seminole: 23.1 percent below September 2016.
- *There are currently 8,643 homes available for purchase through the MLS. The September 2017 overall inventory level is 16.6 percent lower than it was in September 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 September 2017 inventory is 7.2 percent lower than in September 2016.
*Overall inventory is down 2.15 percent compared to last month.
*The inventory of normal properties decreased 13.4 percent compared to September 2016, while foreclosure inventory is down 40.5 percent and short sale inventory is down 68.3 percent.
*Year-over-year single-family home inventory is down 14.3 percent; condo inventory is down 27.9 percent.
*The current pace of sales (all home types and all home types) translates into 3.42 months of inventory supply.