Central Florida Real Estate Blog

On March 13, 2010, the MFRMLS (My Florida Regional MLS) http://www.mfrmls.com/ which covers most of the Central Florida area released the February 2010 Real Estate Sales & Inventory Report for the Orlando Regional Area (ORRA). While there was a slight increase in the average sales price of a home, the Orlando region is still challenged with an oversupply of short sale and bank owned foreclosed properties.  

The number of home sales that closed in the month of February increased slightly to 1,847 units. Of those February sales, 70% percent of the homes were either bank-owned (45%) or short sales (25%). The remaining “normal” sales made up 30% percent. While inventory is very slowly being absorbed, there still is over 16,766 active homes available in the marketplace. MFRMLS currently shows a 9.3 month supply of inventory. While inventory may appear to be low, 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 1% from January to February, but is still down 19.5% from February '09 to February '10.

In regards to the average sale price of a home, we saw a nominal increase of 2% from January '10 to February '10. But, over the last 12 months, values have still declined 18%, or approximately 1.5% per month. On a $200,000.00 property, this means a home has lost about $3,000.00 per month in value. Also consider the dynamic between Sellers and Buyers during the negotiating process. As of the February report, Buyers were negotiating an average of 5% off the asking price. Since the end of December '09, that number has since dropped 1%, most likely meaning Sellers are getting more realistic about the asking price of their homes.

The number #1 selling price range in the Orlando Region is still the $1.00-$49,900.00 range making up over 20.6% of the yearly sale. In this category year-to-date, there has been over 761 homes sold. Furthermore, the $0.00-$100,00.00 range accounted for 46.81% of the sales, while the $100,000-$200,000.00 range accounted for 35.37%. Lastly, the $200,001-$300,000.00 range accounted for another 10.27% of sales. Collectively year-to-date, the $0-$300K range made up almost 93% of all sales in the area. 

Where is the market heading from here? It's anyones guess. The first-time homebuyers credit is driving significant Buying activity as potential Buyer have only until the end of April '10 to be under contact, and the end of June '10 for closing the transaction to qualify for the credit. Agents and their Buyer are scrambling to contract the bank-owned foreclosures and normal sale to meet the deadline. It's very likely we will see a spike in the number of units contracted in March and April.

Another important factor that is starting to get additional media attention is the Commercial sector. Analyst are predicting significant turmoil which is likely to add increased downward pressure across the board. In either sector, the biggest challenge still appears to be the credit markets. Until we see a thawing in the availability of credit, its unlikely the surplus of inventory can get absorbed, thus allowing prices to stabilize and recover.

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 or obligation. 

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