1. Orlando housing market experiences uptick in sales activity, spurred by decreases in median price and interest rates (March 10, 2009 – Orlando, FL) Orlando area home sales have again experienced an increase in activity, with members of the Orlando Regional REALTOR® Association involved in the sale of 28.18 percent more homes in February of this year than February of last year: 1,219 to 951. 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. Inventory There are currently 22,168 homes available for purchase through the MLS. Inventory decreased by 445 homes from January 2009, which means that 455 more homes left the market than entered the market. Compared to last year, the February 2009 inventory level is 14.68 percent lower than it was in February 2008 (25,984). The inventory level reflects an 18.19-month supply at the current pace of sales, which is down from the 21.54-month supply recorded in January 2009 and down from the 27.32-month supply recorded in February 2008. There are 16,057 single-family homes currently listed in the MLS, a number that is 3,474 (17.79 percent) less than this time last year. As usual, most (2,203) are listed in the $200,000 - $250,000 price range. Condos currently make up 4,127 offerings in the MLS, while duplexes/town homes/villas make up the remaining 1,984. Most condos (499) are priced below $50,000; the majority of duplexes/town homes/villas (317) are listed in the $120,000 - $140,000 price category. Condos and Town Homes/Duplexes/Villas The sales of condos in the Orlando area have increased by 71.05 percent. A total of 195 condos changed hands in February of this year compared to 114 in February 2008. The most (93) condos in a single price category that changed hands were in the $1 - $50,000 price range, nearly four times the number (24) that were sold in the next most populated category ($60,000 - $70,000). Two condos sold for more than $1 million in February; none sold for that amount in January. Orlando homebuyers purchased 102 duplexes, town homes, and villas in February 2009, which is a 29.11 percent increase from February 2008 when 79 of these alternative housing types were purchased and a 10.87 increase from January 2009. The majority (22) of duplexes, town homes, and villas sold in January 2009 fell into the $120,000 - $140,000 price category.