Orlando Home Inventory Levels Drop Along With Median Home Values

Now is the time to purchase your first home. Not only is the $8,000 first time buyers credit a great incentive for some, The Orlando Regional Realtor Association just announced that the month of August brought the Orlando area a surprising median home price drop to $128,000.

In August, Orlando Realtors sold 2,115 homes, a 65 percent increase when compared to the same time last year. Last month's sales included 850 bank-owned transactions and 188 distressed properties. These two categories accounted for 49 percent of the sales.

Home Sales UP!

There was a 71 percent increase in existing home sales in the Orlando metropolitan statistical area, which includes, Lake, Orange, Osceola, and Seminole counties. In August 2008 the total amount of home sales in the Orlando metropolitan was 1,589, compared to 2,720 this year.

Prices Down!

The median price range for homes was $84,050 for bank-owned, $125,800 for distressed, and $165,000 for a conventional transaction.

The increase in home sales is attributed to the drop in prices. The August inventory is 34 percent lower than August 2008.

Optimism continues since pending sales have more than doubled from 3,220 in August 2008 to 8,237 last month. There were 3,324 sales contracts filed last month, which is a 96 percent increase when compared to August 2008's 1,699.

Affordability

The Orlando affordability index saw improvement with lower median home prices that helped the index rise to 193 percent. An affordability index of more than 100 qualifies those earning the state median income of $52,535 to qualify to buy one of 8,964 homes in the multiple listing service for the maximum of $257,142.

The first-time homebuyer affordability increased to 137.5 percent last month. That means a first-time buyer earning median income of $35,724 would qualify to buy one of 5,629 area homes priced up to $155,428.

In August 2009, the typical home spent an average of 93 days on the market before being sold at 94 percent of its listing price.

Great Condo Values!

Condos also had excellent resale numbers, at nearly four times higher in August of this year when compared to last year. There were 116 condos sold in 2008 compared to 417 last month. The best selling price range for condos was for $50,000 and under with 223 closings. The $50,000-$60,000 price range had 54 closings and only seven units sold for more than $250,000.

Now's the Time

With so many incentives to buy, don't let $8,000 in free money slip by. Time is ticking away on your first time homebuyer credit opportunity! Some good supporters like the National Association of Realtors and National Association of Home Builders are behind efforts to extend it. With health care and other spending priorities on Congress's plate, there is no certainty that it will be extended.

The deals are so good that any homebuyer will benefit from making a move now. If you are looking for your first home in the Orlando and other Central Florida cities, Janice Petteway and the Exit Results Real Estate team can help you find the home of your dreams.