New Southern Properties
Lake Mary, FL Real Estate
321-262-6162
MENU
Lake Mary Homes For Sale

Orlando Florida Regional Housing Market Update October 2010

NEXT
PREV

 

 

ORLANDO FLORIDA REGIONAL

 HOUSING MARKET UPDATE

 

OCTOBER 2010

 

 

The latest data in are in: Here are the highlights taken from the Orlando Realtor Regional Board for October 2010:

 

Inventory 

Currently there are now 15,441 “units” on the market through the Orlando Multiple Listing Service.  This is a decrease of 918 units from September’s inventory. October 2010’s inventory is lower by 302 than it was in October 2009 reversing the trend of the past few months.   

There are 12,124 single family homes on the market - 594 fewer than September and 645 fewer than August. Condos account for 2,011 listings – 216 fewer than September and townhomes & duplexes round out the numbers with 1,306 – 108 fewer than September.  The current pace of sales equates to an 8.35 month supply – up by a month from September. Last October the supply was 6.79 months. Six months of supply is generally considered balanced.    

Sales 

Orlando home sales in October slowed somewhat.  There were 2,374 (revised) closed sales in September – but only 1,848 in October, a decrease of 526 and almost 21% fewer than a year ago.    

To date, Orlando area home sales are up over 26% compared to this time last year. 

The number of “Normal sales” - those between a willing homeowner and willing buyer – continues to trail bank-owned and short sales – with normal sales accounting for 32.74% of all sales (up by just over 4% from last month) and the latter groups making up 67.26%.   

Pending home sales are down by almost 2.5% (8,817) from October of last year (9,050).   

Condo sales increased by less than 1% over October of last year. Duplex, townhome and villa sales are now down just under 1% from this time last year as well.   

Homes spent an average of 91 days on the market in October – up 4 days from September (as was adjusted), but 1 day less than this time last year. The trend of average days in the 80-90 day range has been fairly constant now for a year. The average home sold for 94.61% of its then current listing price.

By county in the Orlando MSA, Seminole County continues to lead with a 35% increase in sales over last year. Orange County is up 22%, Lake County is up 5% and Osceola came in at just over 14% above last year.  No statistics for Volusia or Brevard were available (Volusia has several different realtor boards with both New Smyrna and Daytona each having their own and Volusia is officially part of the Daytona Beach MSA.  In addition, Brevard has its own Board). 

Prices 

Overall, prices decreased significantly from a year ago. The decrease in the median price of an existing home dropped by 19.23% from a year ago to $105,000 from $130,000. The October $105,000 median price is identical to September’s median price.

The median price above encompasses all sales. The median price for Bank Owned properties’ was $70,000, down from September, and Short Sales’ median came in at $90,000 which is down more than 20% from September.  Normal sales, as would be expected, led the median price breakout with $173,000, up more than 10% from September.    

Affordability 

The Orlando MSA affordability index increased to 267 and the first time homebuyer’s index also increased to 190.  An affordability index of 100 means that a buyer earning the state-reported median income has exactly the income necessary to purchase the median-priced home.  Anything over 100 indicates that buyers have more income than that which is required.   A score of 99 means the buyer is 1 percent short of the income necessary to qualify.

 

 

Other Discussion, Opinion and Points.

  

The Real Estate Market Struggle Continues…

Though this time of year typically sees a slowing of real estate in anticipation of the holidays, the Orlando area real estate continues to labor under the weight of falling prices brought on by continued foreclosures and high unemployment.   

Strategic Defaulters Exacerbate The Trend …

One disturbing statistic is that reportedly 31% - almost a third - of all defaults are now considered strategic.  These are borrowers who can actually afford to make their payments, but “strategically” decide to walk away from their obligations – choosing instead to saddle their neighbors with the declining pricing and values by contributing to the problem.

These defaults have a compounding affect on everyone else.  First, by walking away without a true hardship they add to a lender’s apprehension about doing work-outs with all borrowers in need - which can lead to increased processing time trying to identify and weed out strategic defaulters from borrowers with real problems.   Second, the increase by almost a third simply by volume slows down the entire short sale and foreclosure timeline and in turn stalls the entire market process of correction and normalization.  These two in turn contribute to the further decline in pricing affecting those left behind in the wake of such decisions. 

In addition, an effect not yet being discussed is how these individuals will affect the housing market for years to come.  In theory they will have the stigma of a strategic default on their credit histories thereby making them unqualified for a home loan.  Fannie Mae has already instituted a proposal whereby they will not purchase a loan from any lender who loans to a strategic defaulter.  Will they further affect the markets by decreasing the pool of otherwise qualified buyers years down the road? 

Prices and Value

Now that the elections are over and the balance of power has incurred a dramatic shift, many feel that the markets will begin to stabilize under the theory of stalemates are good for the markets – i.e. no new radical proposals or legislation can be passed.

One thing that remains unaffected in the short term – most properties being purchased today are still being purchased for less than what it would cost to build.  This means they are worth more than what is currently being paid – a trend which is just as unsustainable as the one we experienced in 2005 - 2007.

This has spurred a flurry of activity by investors in both the residential and commercial markets.   Properties purchased for this purpose can   and are being purchased to cash flow at a profit without the need for an appreciation component. 

Employment Still Remains Key To Real Recovery

The unemployment in the Orlando area is 11.8% as of September, a tenth of a point lower than August, but still higher still than July’s 11.7%.  In September of 2009, the unemployment rate was 11.5%.  Thus, the unemployment rate in excess of 11% is becoming a longer term trend and the longer it remains high, the harder it is to reverse as people’s short term choices (looking for work elsewhere, leaving the area, etc.) become permanent ones.

 

Please have a safe and happy Thanksgiving !

 

Let’s see what next month brings us……….

 

If you or someone you know is in the market to buy or sell a home, townhome, condo or light commercial property – please email, text or call us and let us help !

 

 

 

Statistical Data and Graphs

 
ORRA Originated Sales
October 2009
5.02%
15,743
4,165
3,864
9,050
857
924
646
2,319*
92*
November 2009
4.95%
16,002
3,758
3,023
8,633
1,007
636
1,047
2,329*
85*
December 2009
5.03%
15,549
3,485
2,984
8,163
875
1,419
916
2,410*
89*
January 2010
5.05%
15,911
4,279
3,579
8,590
956
691
1,048
1,820*
89*
February 2010
4.96%
16,051
4,586
4,043
9,462
960
601
1,064
1,973*
91*
March 2010
4.99%
16,223
5,282
4,662
10,179
1,195
680
1,233
2,610*
91*
April 2010
5.12%
15,766
5,116
5,221
10,832
1,331
579
1,540
2,644*
81*
May 2010
4.89%
15,963
4,304
3,669
10,351
1,161
553
1,187
2,783*
83*
June 2010
4.84%
16,304
4,470
3,736
9,625
1,343
743
1,294
3,059*
85*
July 2010
4.67%
16,563
4,388
3,793
9,133
1,224
709
1,182
2,516*
84*
August 2010
4.61%
16,535
4,146
3,892
8,945
1,277
613
1,285
2,566*
83*
Sept. 2010
4.46%
16,359
3,984
3,654
8,713
1,169
637
1,301
2,374*
87*
October 2010
4.28%
15,441
3,650
3,466
8,817
1,080
707
1,323
1,848
91

* Monthly revised sales. 

 

 

 

Average Mortgage Rate

Inventory
 

 




 

 

 

 

 

 
 




 

 

The statistics cited and the graphical data is provided by the Orlando Regional Realtors Association, of which we are a member.

 

This report is intended to be for reference and informational purposes only.  The opinions expressed herein are solely those of New Southern Properties Inc. and are opinions. No purchases or investments should be made based solely on this report, this data, or the opinions expressed herein.  Real Estate purchases and investments are complex transactions. You are strongly urged to consult with your financial, legal and real estate consultants before making any real estate purchase or investment.

 

 

 

 

 



All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independent verified. Listing information is provided for consumer personal, non-commercial use, solely to identify potential properties for potential purchase; all other use is strictly prohibited and may violate relevant federal and state law. The source of the listing data is as follows: Stellar MLS (updated 4/24/24 3:16 AM) |
Real Estate
Real Estate
  • New Listing Alerts
  • Foreclosure and hot deals
  • Market value of your home
  • Excellent rates on mortgages

Florida Luxury Gated Communities

Alaqua Country Club
Alaqua Lakes Golf | Alaqua Lakes Golf Course | Alaqua Lakes Florida | Alaqua Lakes Country Club
The Preserve at Astor Farms
Baker's Crossing
Banyon Pointe
Barclay Place At Heathrow
Berington Club
Brentwood Club
Brookhaven Manor and Brookhaven Ridge
Buckingham Estates
Burlington Oaks
Calabria Cove
Capri Cove
Carrisbrooke
Coventry At Heathrow Florida
Dakotas
Debarry Golf and Country
Dunwoody Commons
Egret's Landing
Estates at Wekiva Park
Fountainhead
Grande Oaks at Heathrow
Fountain Parke
Greystone
Heathrow
Heathrow Woods
Heron Ridge
Keenwicke
Kentford Garden
Lake Forest
Lake Markham Preserve
Lakeside
Lansdowne
Magnolia Plantation
Markham Estates
Markham Forest
Markham Woods Enclave
Oregon Trace
Reserve At Heathrow
Retreat at Wekiva
River Crest
Riviera Bella
Savannah Park at Heathrow
Stonebridge
Summer Oaks
Terracina At Lake Forest
Terra Oaks
The Cove
The Retreat At Twin Lakes
Tuscany At Lake Mary
Waters Edge
Wilson Park
Wingfield North
Woodbridge Lakes

Florida Communities

Arbor Ridge
Arlington Park
Antigua Bay
Barrington
Bear Lake Woods
Breckenridge Heights
Celery Estates
Celery Lakes
Celery Key
Chase Groves
Chelsea Place
Country Club Oaks
Coventry
Country Downs
The Crossings
Crystal Lake Estates
Danbury Mill
Eagle Creek
The Forest
Hidden Cove
The Hills of Lake Mary
Groveview Village
Huntington Ridge, Huntington Landing, Huntington Pointe
Isle of Windsor
Kaywood
Lakewood Ranches
Live Oak Reserve
Mandarin
Markham Glen
Markham Meadows
Markham Place
Manderley
Mayfair Club
Mayfair Meadows
Mayfair Oaks
Middleton Oaks
Misty Oaks
North Cove
Northampton
Oak Island
Oceanside Village
The Pelican
Osprey Pointe
Preserve At Lake Monroe
Parkview and Parkview Heights
Ravensbrook
The Reserve At DeBary
Reserve At Golden Isle
The Reserve At Lake Mary
Ridge Pointe Cove
Shannon Downs
Springhurst
Springview
Sun Oaks
Sweetwater Oaks
Sylvan Lake Reserve
Tall Trees
The Estates At Springs Landing
Timacuan
Timacuan Park - Lake Mary Florida
Turnberry
Wingfield Reserve
Woodbine

Florida Retirement Communities

Heathrow Retirement Communities

Buyers (5)
Foreclosures (1)
Homes In Heathrow FL (4)
Investment Properties (6)
Orlando Housing Market (5)
Orlando Regional Housing Market Updates (1)
Sellers (2)

Archive

<< April 2024
S M T W T F S
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30        

Tell A Friend
New Southern Properties Inc.
4300 West Lake Mary Blvd
Bldg 1010, #415
Lake Mary, FL 32746
Phone: 321-262-6162
Email: CLICK HERE