Central Florida Real Estate Blog

On June 9, 2010, the MFRMLS-My Florida Regional Multiple Listing Service (http://www.mfrmls.com/) which covers most of the Central Florida area released the May 2010 Real Estate Sales & Inventory Report for the Orlando Regional Area. There may be hope yet...while January, February, and April were flat, May saw surprising increases across the board. The question to ask yourself is this the beginning of a trend? Let's look at the numbers before you draw your conclusion.

The number of home sales that closed in the month of May increased slightly to 2,694 units, or an increase of 1.7% from April. Of those May sales, almost 65% percent of the homes were either bank-owned (41%) or short sales (24%). The remaining “arms-length” transactions made up the balance of the May sales. While inventory is very slowly being absorbed, there still is over 16,400 active homes available in the marketplace. MFRMLS currently shows a 6.1 month supply of inventory...WOW!!! While inventory may appear to be evaporating, these numbers are significantly distorted due to the large number of pending short sales which will most likely reenter the active inventory, or end up in foreclosure.

The current average list price of a home has increased 7.5% from April to May, but is still down 3% from May'09 to May'10. 

In regards to the average sale price of a home, we saw a significant increase of 6.4% from April to May. This is great news for the Sellers out there. While over the last year values are still down, the margin has narrowed with a 12 month declined of just 2.8%. Also consider the dynamic between Sellers and Buyers during the negotiating process. As of the April'10 report, Buyers were negotiating an average of 4% off the asking price. As of May'10, that percentage had widened to 6%. While properties are selling for a higher price, the amount a homeowner must negotiate off their asking price to get under contract is widening as Buyer still have the edge in the marketplace.  

The number #1 selling price range in the Orlando Region is still the $1.00-$49,900.00 range making up almost 21% of the May monthly sale. In this category alone last month, there was over 550 homes sold. Furthermore, the $0.00-$100,00.00 range accounted for 46.3% of the sales, while the $100,000-$200,000.00 range accounted for 34.8%. Lastly, the $200,001-$300,000.00 range accounted for another 11.3% of sales. Collectively year-to-date, the $0-$300K range made up over 92% of all sales in the area. In comparison to the rest of the market, Seller above the $300,000.00 range must get very realistic regarding pricing and marketing strategies. On the flip side, Buyer are going to have a huge advantage in negotiating on a luxury home while benefiting from a lower market demand.

Where is the market heading from here? Industry Analysts are talking more and more about the "Shadow Inventory" of foreclosure lurking behind the scenes potentially creating another significant round of residential foreclosure hitting the marketplace. If these concerns come true, we could see further erosion of home values in the near term. Also, don't forget about the looming commercial marketplace which could further erode any hopes of a recovery in the near future. Stayed tuned, I'm predicting a roller coaster ride over the next 6 months....

If you would like a full copy of the Orlando Regional Sale & Inventory Report, please email joe@rockspringsrealty.net and a copy will be emailed to you at no charge. 

Rock Springs Realty is a full-service Real Estate Brokerage working with Buyer, Seller, and Investors throughout the Central Florida Area. We cover all areas of Lake, Sumter, Orange, Seminole, Osceola, and Volusia Counties. Our sales staff has extensive experience Buying and Selling normal, REO (Bank Owned Foreclosures), and investment properties. We welcome the opportunity to confidentially discuss your real estate needs. You can reach us toll free at (877) 333-2811 or on the web at www.rockspringsrealty.net

P.S. - If you would like a free list of bank-owned foreclosure properties in your area, please contact us at the toll free for a detailed list sent by email.

Best Regards,
Joe Bornstein, Broker/Owner
Rock Springs Realty, LLC
3780 Rochelle Lane
Apopka, FL 32712