Orlando Home Prices Continue Steep Rise in April, Despite Coronavirus Outbreak
Inventory shortages, coupled with fast rising inbound population growth continue to drive up Orlando home prices in 2020. The Orlando Regional Realtors Association is reporting this week that Orlando’s housing market in April 2020 saw its median home price increase 12%, while home sales dropped 28% in the first month to show an anticipated decline in activity, as a result of the COVID-19 pandemic. Inventory experienced a year over-year decline of 3%.
“Our market — like those nationwide — is grappling with the coronavirus-induced slowdown,” says ORRA President Reese Stewart. “Orlando Realtors anticipate listings and buying activity will eventually resume, especially given our history of demand versus low supply, along with the record low mortgage rates that increase buyers’ purchasing power.”
“Although the pandemic is a major disruption in regard to sales, Orlando home prices held up in April and even increased due to the ongoing housing shortage, continues Stewart. “However, while lack of inventory in the lower-price categories will likely safeguard prices, it’s possible the upper-end market segment could experience a decline in values.”
Orlando Median Home Prices
The overall median price of Orlando homes (all types combined) sold in April 2020 is $263,750, which is 12.2% above the April 2019 median price of $235,000 and 4.0% above the March 2020 median price of $253,500.
The median price for single-family homes that changed hands in April increased 9.0% over April 2019 and is now $278,000. The median price for condos increased 5.1% to $145,000 and townhomes/villas/duplexes increased 5.6% to $225,000.
The Orlando housing affordability index for April is 136.60, down from 137.63, down from last month. (An affordability index of 99% means that buyers earning the state-reported median income are 1% 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.)
The first-time homebuyers affordability index decreased to 97.14 from 97.87 last month.
Sales and Inventory
Members of ORRA participated in 2,393 sales of all home types combined in April, which is 28.1% less than the 3,329 sales in April 2019 and 25.3% less than the 3,204 sales in March 2020.
Sales of single-family homes (1,926) in April 2020 decreased by 24.0% compared to April 2019, while condo sales (249) decreased 42.5% year over year. Duplexes, townhomes, and villas (218 combined) decreased 37.2% over April 2019.
Sales of distressed homes (foreclosures and short sales) reached 61 in April and are 41.9% less than the 105 distressed sales in April 2019. Distressed sales made up 2.6% of all Orlando-area transactions last month.
The overall inventory of homes that were available for purchase in April (7,659) represents a decrease of 2.9% when compared to April 2019, and a 4.3% increase compared to last month. There were 8.7% fewer single-family homes; 6.9% more condos; and 42.4% more duplexes/townhomes/villas, year over year.
Current inventory combined with the current pace of sales created a 3.2-month supply of homes in Orlando for April. There was a 2.4-month supply in April of last year and a 2.3-month supply last month.
The average interest rate paid by Orlando homebuyers in April was 3.20%, down from 3.45% the month prior.
Homes that closed in April took an average of 47 days to move from listing to pending and an average of 39 days between pending and closing, for an average total of 86 days from listing to closing (down from a total of 91 days the month prior).
Pending sales in April are down 36.3% compared to April of last year and are down 17.1% compared to last month.
Central Florida MSA Numbers
Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in April were 32.4% lower than in April of 2019. To date, sales in the MSA are down by 7.2%.
Each individual county’s sales comparisons are as follows:
- Lake: 33.5% below April 2019;
- Orange: 35.8% below April 2019;
- Osceola: 30.8% below April 2019; and
- Seminole: 23.5% below April 2019.