Posted on: September 5, 2012
More positive news for greater Orlando area homeowners comes from a recent article in the World Property Channel showing that the Orlando Regional Real Estate Association (ORRA) reports consistently positive gains in the median price of home sales over the past twelve months.
Median prices increased significantly by “more than 15.74%” since the beginning of 2012 from $108,000 to $125,000, and further increased by a stunning 31.72% compared to January 2011. ORRA also observes a robust 13.64% increase over the June 2011 to June 2012 period.
Steady, consistent price growth continues to make the already attractive greater Orlando market an even more enticing investment opportunity for Canadians, who account for 27% of Florida’s foreclosed housing purchases. Foreclosed housing remains a sensible investment as ORRA shows that Orlando’s “median price of foreclosures increased 7.38 percent” while the percentage of foreclosed-home sales declined to 24.70% in 2012 from 32.59% the previous year. The decline in foreclosure sales is yet another indicator of a return to healthy real-estate market conditions.
ORRA Chairman Stephen Baker remarks that “in addition to across-the-board increases in median prices, Orlando is experiencing an increase in the number of homes selling for asking- or above-asking prices.” ORRA’s report shows that in June 2012, the average home sold for 94.83% of asking price. Baker continues: “Buyers are clamouring for quality homes—more than 43% of all sellers in June sold their homes for the asking price or even higher.”
Increasing Demand and Decreasing Inventory:
Consistently reasonable price gains combined with high demand has resulted in a near-historically low inventory. “Our inventory is so low,” enthused Baker, “that Orlando now has only a 3.32 month of supply. Baker puts the figure into perspective by noting that such supply levels have not occurred in Orlando “since the red-hot sellers’ market of 2005.”
ORRA’s report confirms this and shows that Orlando’s inventory is declining steadily. In July 2010 Orlando had an inventory of 16,563 homes, while that figure has slid to 8,136 homes in 2012. ORRA reports that in June 2012, Orlando’s overall inventory was down 22.95% from its June 2011 level, and down 26.26% for single-family homes in particular.
Condo is King:
Condominiums once again represent the best overall value in Orlando real estate in terms of price and return-on-investment potential. Most condos sold in June 2012, according to ORRA, came from the shockingly affordable “$1-$50,000 price range,” which category also accounted for 34.26% of all Orlando condo sales, unsurprisingly. Affordability combined with year-over-year appreciation in prices and rental-income potential once again make condominiums the king of Orlando’s regenerating real estate market.
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