More #homes and townhomes/condos sold and the median sale price increased in the Orlando-Kissimmee-Sanford area in May when compared to the year-ago period, according to the latest housing data released by #Florida Realtors. In May, 3,428 homes and 983 townhomes/condos sold in metro Orlando. The number of homes sold was up 8.8 percent from May 2016, while the number of townhomes/condos sold rose 17.6%.
Along with an increase in units sold in the Central Florida area, median sales prices also were up. Last month, the median home sale price in the area grew 7 percent to $240,788 and the median townhome/condo sale price increased 12.1 percent to $150,000.
These year over year increases are no surprise to President of the Orlando Regional Realtor Association, Bruce Elliott. “Orlando has strong job growth and a great quality of life that makes this area a great place to live. There have been a lot of third-party sources, from Forbes magazine to WalletHub, showing a variety of different statistics about how good Orlando is.”
Along with higher numbers in metro Orlando, the state also saw an increase in the number of homes and townhomes/condos sold in last month when compared to May 2016.
“Closed sales of existing homes in the Sunshine State not only rebounded from a relatively flat April, they positively surged to record highs in May of 2017,” said Florida Realtors Chief Economist Brad O’Connor. “To be more specific, May’s sale totals of 27,850 existing single-family homes and 11,538 existing condos and townhomes were the most ever recorded [by Florida Realtors] for a single month in either property type category. In both cases, these totals were also markedly higher than the very strong number of sales racked up in May of 2016.”
The median sale prices also rose when compared to last year. Last month, the median sale price for a home in Florida grew 7.7 percent to $239,000 and the median sale price for a townhome/condo rose 8.1 percent to $178,000 when compared to the year-ago period.
- The spring #housing market continues to be plagued by a lack of #homes #for sale
- Home shoppers signed 1.3 percent fewer contracts to buy existing homes in April compared with March
- That drop comes after a larger-than-expected drop in closed home sales in April.
Pending home sales down 1.3% in April
Home buyers pull back again in April, signing fewer contracts
The spring housing market continues to be plagued by a lack of homes for sale. Home shoppers signed 1.3 percent fewer contracts to buy existing homes in April compared with March, according to a monthly index from the National Association of Realtors. March’s reading was also revised down. The index is 3.3 percent lower than April of 2016.
“Much of the country for the second straight month saw a pullback in pending sales as the rate of new listings continues to lag the quicker pace of homes coming off the market,” said Lawrence Yun, chief economist for the Realtors, adding that foot traffic is higher than a year ago.
The drop comes after a larger-than-expected drop in closed home sales in April. More sellers listed their homes in April, but the number of listings was still 9 percent lower than a year ago. Tight supply continues to put upward pressure on home prices, which are now rising at three times the rate of incomes.
“We know two things heading into the summer selling season. One, home prices continue to leap forward. Two, homebuyers continue to jump into the market.”
“The unloading of single-family homes purchased by real estate investors during the downturn for rental purposes would also go a long way in helping relieve these inventory shortages,” said Yun. “To date, there are no indications investors are ready to sell.”
Weaker sales are not due to a lack of potential buyers, especially this year, as millennials age into their home-buying years and confidence in the U.S. #economy improves. Home buyer demand surged in April, according to Redfin, a real estate brokerage. The number of clients requesting home tours jumped 12 percent.
“We know two things heading into the summer selling season. One, home prices continue to leap forward. Two, homebuyers continue to jump into the market,” said Redfin chief economist Nela Richardson. “A pop of new listings only encourages more homebuyers to barge their way into this crowded and competitive, low-inventory market in order to take advantage of still-low mortgage rates.”
Regionally, pending home sales in the Northeast decreased 1.7 percent for the month and are 0.6 percent below a year ago. In the Midwest, the index fell 4.7 percent for the month and 6.1 compared to a year ago. In the South, sales fell 2.7 for the month and are 2.3 percent below last April. The index in the West rose 5.8 percent in April but is still 4.2 percent below a year ago.
- Size of the space
- Orientation of sunlight
- Connection of kitchen to adjacent rooms
- Homeowner’s lifestyle
- Condition of the building
Kitchen Remodeling Considerations
- How do you move in the space?
- Does the workflow accommodate your cooking routine?
- Can you easily move from the range to the sink?
- How effective is your kitchen when more than one person is cooking?
June 4, 2017, #Orlando,#Florida — A team of University of Central Florida students who designed a solar-powered art sculpture celebrated this week after the Orlando Utilities Commission and Tavistock Development selected its project to be built in the innovative, Laureate Park master-designed Lake Nona community later this year.
According to the National Association of Realtors, existing-home sales took off in March 2017 to their highest pace in over 10 years, and severe supply shortages resulted in the typical home coming off the market significantly faster than in February and a year ago. Only the West saw a decline in sales activity in March.
Total existing-home sales, which are completed transactions that include single-family #homes, townhouses, condominiums and co-ops, ascended 4.4 percent to a seasonally adjusted annual rate of 5.71 million in March from a downward revised 5.47 million in February. March’s sales pace is 5.9 percent above a year ago and surpasses January as the strongest month of sales since February 2007 (5.79 million).
Lawrence Yun, NAR chief economist, says existing sales roared back in March and were led by hefty gains in the Northeast and Midwest. “The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month,” he said. “Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings in March for sales to muster a strong gain. Sales will go up as long as inventory does.”
The median existing-home price for all housing types in March was $236,400, up 6.8 percent from March 2016 ($221,400). March’s price increase marks the 61st consecutive month of year-over-year gains.
Total housing inventory at the end of March increased 5.8 percent to 1.83 million existing homes available #for sale, but is still 6.6 percent lower than a year ago (1.96 million) and has fallen year-over-year for 22 straight months. Unsold inventory is at a 3.8-month supply at the current sales pace (unchanged from February).
Lawrence Yun also noted, “Bolstered by strong consumer confidence and underlying demand, home sales are up convincingly from a year ago nationally and in all four major regions despite the fact that buying a home has gotten more expensive over the past year.”
Properties typically stayed on the market for 34 days in March, which is down significantly from 45 days in February and 47 days a year ago. Short sales were on the market the longest at a median of 90 days in March, while foreclosures sold in 52 days and non-distressed homes took 32 days (shortest since NAR began tracking in May 2011). Forty-eight percent of homes sold in March were on the market for less than a month.
“Last month’s swift price gains and the remarkably short time a home was on the market are directly the result of the home building industry’s struggle to meet the dire need for more new homes,” said Yun. “A growing pool of all types of buyers is competing for the lackluster amount of existing homes on the market. Until we see significant and sustained multi-month increases in housing starts, prices will continue to far outpace incomes and put pressure on those trying to buy.”
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage rose for the fifth straight month in March to 4.20 percent from 4.17 percent in February. The average commitment rate for all of 2016 was 3.65 percent.
First-time buyers were 32 percent of sales in March, which is unchanged from February and up from 30 percent a year ago. NAR’s 2016 Profile of Home Buyers and Sellers – released in late 2016 – revealed that the annual share of first-time buyers was 35 percent.
All-cash sales were 23 percent of transactions in March, down from 27 percent in February and 25 percent a year ago. Individual investors, who account for many cash sales, purchased 15 percent of homes in March, down from 17 percent in February but up from 14 percent a year ago. Sixty-three percent of investors paid in cash in March.
Distressed sales – foreclosures and short sales – were 6 percent of sales in March, down from 7 percent in February and 8 percent a year ago. Five percent of March sales were foreclosures and 1 percent were short sales. Foreclosures sold for an average discount of 16 percent below market value in March (18 percent in February), while short sales were discounted 14 percent (17 percent in February).
Single-family and Condo/Co-op Sales
Single-family home sales climbed 4.3 percent to a seasonally adjusted annual rate of 5.08 million in March from 4.87 million in February, and are now 6.1 percent above the 4.79 million pace a year ago. The median existing single-family home price was $237,800 in March, up 6.6 percent from March 2016.
Existing condominium and co-op sales increased 5.0 percent to a seasonally adjusted annual rate of 630,000 units in March, and are now 5.0 percent higher than a year ago. The median existing condo price was $224,700 in March, which is 8.0 percent above a year ago.
March existing-home sales in the Northeast surged 10.1 percent to an annual rate of 760,000, and are now 4.1 percent above a year ago. The median price in the Northeast was $260,800, which is 2.8 percent above March 2016.
In the Midwest, existing-home sales jumped 9.2 percent to an annual rate of 1.31 million in March, and are now 3.1 percent above a year ago. The median price in the Midwest was $183,000, up 6.2 percent from a year ago.
Existing-home sales in the South in March rose 3.4 percent to an annual rate of 2.42 million, and are now 8.5 percent above March 2016. The median price in the South was $210,600, up 8.6 percent from a year ago.
Existing-home sales in the West decreased 1.6 percent to an annual rate of 1.22 million in March, but are still 5.2 percent above a year ago. The median price in the West was $347,500, up 8.0 percent from March 2016.
An abnormally warm winter, strong consumer confidence and robust underlying demand ended up being the perfect formula to push existing-home sales in March to their highest pace in over 10 years.
More notably, despite the fact that supply is extremely tight and buying a home has gotten more expensive, home sales are up convincingly from a year ago nationally and in all four major regions.
In addition to the 4.4 percent leap in sales last month, equally impressive was the fact that #homes typically sold 11 days faster than in February and 13 days quicker than a year ago. There’s no question that buyers are struggling to find an affordable home to buy, and when they do, they have to act very fast just to have a chance.
To reiterate what NAR Chief Economist Lawrence Yun said during this morning’s press conference: “sales will go as far as inventory does.”
The midpoint sale price in February for an area that includes mostly Orange and Seminole counties was $205,000, which was up about 11 percent from a year earlier.
Despite limited options for buyers, rising prices and interest rates edging up, association members closed 2,423 sales in February. Sales were up 10 percent from a month earlier and basically flat from a year ago.
“We are headed into peak home-buying season with high demand but significantly fewer #homes on the market compared to last year,” said Orlando association President Bruce Elliott, an #agent with Regal R.E. Professionals LLC.
Central Florida’s job and population growth has been depleting the available listings, even as the appetite for rentals has grown in recent years.
One Orlando-area real estate agent said he listed a three-bedroom, one-bath house without central heat/air in the west Winter Park area for $219,000. Immediately, he said, seven investors offered cash with the hope of tearing it down to make way for new townhomes.
During February, Osceola had the greatest increase in sales among Central #Florida counties with 10 percent growth from a year ago. Orange County also had an increase in sales during the 12-month period while Lake and Seminole counties both experienced declines.
Orlando’s housing market wades further into 2017 with markedly fewer houses listed #for sale. Listings in February were down 21 percent from a year earlier and the area had a 3.5-month supply — about a month less than February 2015.
Overall for the area in February, houses sold within 69 days of hitting the market — almost two weeks faster than sales a year ago.
Looking ahead, because association members reported 5,849 pending sales. That is an increase of 8 percent from a year ago and 14 percent from a month ago. Orlando’s pipeline of pending sales in February had about 400 more houses and condos than it did last February.
Elliott said current market conditions make it particularly conducive to sell for owners who have been contemplating getting into the market. And for buyers, he added, getting professional help structuring offers is especially key leading into the most active sales season of the year.
Despite the fact that the median value of a home sold in the fourth quarter of 2016 was lower in 21 of the 27 markets analyzed by HSH.com, the decline in cost wasn’t enough to offset the increase in 30-year fixed mortgage rates, so the salary needed to purchase that median home rose yet again in all but five markets.
The top three most affordable markets and the salary needed there to buy a median-priced house house included Pittsburgh, $$32,373.50; Cleveland, $33,779.45; and Cincinnati, $36,520.35. The three least affordable markets included San Francisco, $160,589.84; San Diego, $113,530.43; and Los Angeles, $98,315.22.
And in case you wondered, if homebuyers in the Orlando metro area put 10 percent down instead of 20 percent, the required salary increases from $50,871.95 to $58,734.31.
The results are in: Orlando is one of the fastest-growing metro areas in the country.
According to Forbes, Orlando is No. 2 in the country, just behind Cape Coral, in its ranking of the country’s fastest-growing metropolitan cities.
#Florida cities dominate the list with nine out of 25, more than any other state. Six of those cities are included in the list’s top 10.
The Cape Coral-Fort Myers area took the top spot, with a population increase of 3.39 percent and a projected growth rate of 3.61 percent for 2017.
The Orlando-Kissimmee-Sanford area ranks No. 2 on the list, but was No. 1 in job growth for 2016 at 4.57 percent. That growth is expected to decrease a bit this year however, with a projected rate of 3.54 percent.
The Deltona-Daytona Beach-Ormond Beach area, Jacksonville, the North Port-Sarasota-Bradenton area, and the Tampa-St. Petersburg-Clearwater area also made the top 10.